An investor-activist organization of religious-based pension funds and investment groups, the Socially Responsible Investment Coalition was founded in 1982. It addresses social concerns through dialogues with corporate management and proxy votes. Judith Schoolman spoke with Sister Mika, a Benedictine nun, who has served as schoolteacher, principal and public advocate.

Q: The SRIC has been raising questions for years regarding equal employment opportunities, pay, human rights and the environment. If you don't like the companies' policies, why invest in them?

A:Part of a diversified portfolio is stocks. Some [religious groups in the corporate responsibility movement] do have investment screens in place-companies they approve of, and those to avoid. But to hold stock allows us to raise our voices if we agree or disagree. Religious groups raised the issue of companies doing business in South Africa during the time of apartheid on proxies from 1971 until 1994. During this time some invested to raise questions, some divested, some protested outside shareholder meetings. Our strategy is to do all types of actions.

Q: What do you think are the greatest issues affecting public corporations today and how do these issues affect shareholders?

A: Many of the issues facing corporations have an influence on all of society. The greatest issue right now is a lack of long-term thinking by corporations, thinking only about the next quarter. We need to look at the next seven generations-as the Native Americans believe-the long term. How can we change this outlook so there is more focus on the long-term impacts? Transparency is another area. We're asking banks and different institutions for more transparency. There is progress but we will continue to press corporations for years.

Q: Should corporations like the work you do?

A:Corporations respect the work that we do, but don't necessarily agree. But, in retrospect, some wish they had paid more attention. Years ago we had one company tell us that we were about seven years ahead of the curve, that it took society that long to catch up. Today, that is a much shorter curve due to the instantaneous nature of communication. We question [practices of corporations] in the form of dialogues and stockholder resolutions and raise them at annual meetings. Corporations don't necessarily like that. But many corporations become part of the dialogue and bring issues to the top-level people.

Q: How can socially-responsible investing make companies and investors stronger?

A: There used to be a phrase called the triple-bottom line-financial, social and environmental. Companies were urged by shareholders to improve people and society. Today there is emphasis on governance practices, economic performance, environmental performance and social indicators. Many of the companies now do sustainability reports, based on outside performance criteria. We give many companies feedback. A company can have an effect and it can trickle down. I can't think of a downside. 'Doing well by doing good' can transcend other concerns.

Q: How are you progressing on the mission to address employment, environmental and social problems in the maquiladora industries-often factories of U.S. corporations along the U.S.- Mexico border?

A: We've worked on this since the '80s. The goal was to document maquiladora workers, to raise questions with management. Many of the Fortune 500 companies have factories there. There are hundreds of thousands of jobs in the maquiladora industries. We used to be able to bring workers to annual meetings but with immigration laws tightening, they can't come to the U.S., so we go to meetings in Mexico. Major issues are working conditions, exposure to chemicals and unsustainable salaries. Mexico has good laws on the environmental and labor side, but it's a matter of enforcement. Some workers are making $40 to $80 a week.