The Problem with Social Investing

Money quote (via Paul Kedrosky):

A lot of socially responsible funds have this idea that they’ll provide a social return, but you’ll have to accept a below-average financial return. I disagree. Once you give a business an opportunity to make a below-average return, you make it more likely it will.

Update: Have a read of the entire article. Too often, social investing is an excuse for mediocre returns but given the right approach, I tend to believe that social investing is just plain simple business sense. Then again, I've always believed that Compartamos is social investing (WSJ).