More and more investors are putting their money into socially responsible mutual funds. According to the Social Investment Forum, a national organization that promotes investment to encourage social and environmental change, $2.1 trillion in assets is now invested in funds that claim to reject the reprehensible. The group also said that assets in these funds grew 40 percent faster than other professionally managed assets from 1995 to 2003.

But a recent report by Donald Schepers, a management...

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