As Appeared in InvestmentNews, May 17, 2004

On Greed, Social Investors Haven't Been Unconscious

By Amy Domini

I was pleased to see the headline ''We can't ignore corporate greed'' on the Opinion page of your April 12 issue, but dismayed when I began reading. It is simply untrue that socially conscious investors have ignored the issue of excessive compensation for top corporate executives.

Over the years, Domini has filed or co-filed a number of shareholder resolutions asking companies to disclose the salaries of employees at various levels or calling for executive compensation to be linked to social and environmental performance. Just last year, we co-sponsored a proposal at Cisco (Systems Inc. of San Jose, Calif.) with a coalition of faith-based investors, seeking a pay disparity report. In 2002, Mattel (Inc. of El Segundo, Calif.) produced a report on how it determines severance packages for its top executives, in response to a Domini proposal. That same year, in a letter to the New York Stock Exchange, we highlighted excessive executive compensation as ''arguably the most critical single barrier to re-establishing investor confid ence in our markets.'' Domini's proxy-voting guidelines have included detailed criteria on levels of compensation for management and directors — including stock options and severance pay — for many years.

Finally, ''excessive compensation'' is regularly noted in the corporate social profiles produced by our social-research provider, KLD Research and Analytics Inc. of Boston, and is a factor that helps determine which companies will be included in the Domini 400 Social Index — the index on which the Domini Social Equity Fund is based. For example, in 2002, Computer Associates (International Inc. of Islandia, N.Y.) was removed from the index for awarding excessive bonuses to its top officers.

Other socially responsible investment firms have done important work. This season alone, resolutions on executive compensation were filed by Christian Brothers Investment Services (Inc.) in New York, Boston Common Asset Management (LLC) and the Calvert Group (Ltd. of Bethesda, Md.). The Interfaith Center on Corporate Responsibility in New York and Boston-based Responsible Wealth, two organizations with which social investment firms often work, have been raising these issues for many years.

Contrary to your editorial, members of the socially responsible investment community have been leaders on this critically important issue and deserve more credit than you give them. To make a real difference, we need support from tra ditional investors, who have generally been silent on these issues.

Past performance is no guarantee of future results . The Domini Social Equity Fund is not insured and is subject to market risks. You may lose money. Although the Domini Social Equity Fund is no-load, certain fees and expenses apply to a continued investment and are described in the prospectus. The composition of the Fund's portfolio is subject to change.