Socially Responsible Mutual Funds tougher on corporate governance

Study: Socially Responsible Mutual Funds are far tougher on traditional corporate governance resolutions than "conventional" mutual funds

Socially responsible mutual funds are considerably stronger proponents of corporate governance shareholder resolutions – such as focusing on poison pills, expensing stock options, golden parachutes, declassifying boards, and “vote no” director campaigns – than are “conventional” mutual funds, according to the surprising conclusion of an extensive new study by the nonprofit Social Investment Forum Foundation (SIFF). The SIFF report analyzed the U.S. mutual fund voting patterns that are now discernible as a result of the first 12 months of mandatory proxy disclosure, a requirement that was strenuously opposed by most of the mutual fund industry.

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