403(b) Sponsors Weigh in on "Socially Responsible" Investments

June 9, 2009 (PLANSPONSOR.com) - Not many 403(b) sponsors responded to PLANSPONSOR (b)lines' survey on so-called socially responsible investments, but the majority of those who did think they are important.

So-called socially responsible investments are funds which favor securities of companies with corporate practices that promote environmental stewardship, consumer protection, human rights, and diversity. Eighty percent of respondents said their plans offer socially responsible investments.

Another 80% of respondents indicated it is “very important” for them and their plan participants to invest in so-called socially responsible investments. The other 20% who answered the question indicated it was “important” or they “don’t know.”

Two-thirds (66.7%) of sponsors responding to the survey said it is “very likely” that participants would invest in socially responsible investments if offered in the plan. Among those who answered the question, 16.7% said it is “not likely” participants would choose those investments.

Thank you to all the sponsors who participated in our survey.