Many people make the case for socially responsible investing. They are keen on being green -- and they put a lot of green where their mouths are, more than $2 trillion. SRI typically holds that avoiding so-called sin stocks isn't only the right thing to do, it is also a good way to make money. It is true. Except sometimes it isn't.

Now comes a new book by Chicago-based investment adviser that offers a variation on the theme. "Profitable Socially Responsible Investing?" makes the case that the way to do right by your conscience and your portfolio is to drop the typical SRI strategy of "negative screening," which Mr. argues is a path to risky, less-diversified portfolios. More to the point, going out of your way to avoid beer and smokes doesn't mean you will always prosper, at least not financially.

Mr. 's way is to match the specific values of an investor with companies that have similar operational values. For example, a food bank with an endowment to invest would want to buy the stocks of a company with a good human-rights record. Should that company happen to produce, say, liquor? No problem, under Mr. 's method.

by Gene Colter

To learn more about and/or order Mr. Lane's book, "PROFITABLE SOCIALLY RESPONSIBLE INVESTING? AN INSTITUTIONAL INVESTOR'S GUIDE," CLICK HERE