The Blue Fund invests in those companies that both "act blue" and "give blue."

We believe that a company's ethical and political practices are inherently linked. After all, a company should not bill itself as an environmental leader if it gives millions of dollars to those who push for loosening emissions standards. Nor should a company claim strong employee relations if it supports politicians who deny working Americans a living wage.

At The Blue Fund, our research team monitors the political giving and social responsibility of S&P 500 companies. The Blue Fund invests in companies that both "act blue" and "give blue." We build our portfolios on core Democratic values like environmental sustainability, community participation and respect for human rights. And then we go a step further, investing only in those companies whose political contributions demonstrate a sincere commitment to these values.

The Criteria

We screen companies to ensure they both "act blue" and "give blue" - in other words, that they meet high standards of social, political and corporate responsibility.

In order to "act blue," companies must pass the following social screens:

• Environmental Sustainability

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  Environmental Sustainability

  We work to ensure that companies in our portfolios avoid contributing to climate change or producing agricultural chemicals, hazardous waste, ozone depleting chemicals, or substantial emissions.

  • Production of agricultural chemicals
  • Substantial revenues from the sale of coal or oil and related products
  • Hazardous waste
  • Ozone depleting chemicals
  • Regulatory problems
  • Substantial emissions
  • Other concerns

  • Beneficial products & services
  • Clean energy sourcing
  • Management systems
  • Pollution prevention
  • Recycling
  • Other Strengths
• Respect for Human Rights

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  Respect for Human Rights at Home and Abroad

  We look at factors including respect for labor rights and relations with indigenous peoples.

  • Labor right problems
  • Poor relations with indigenous peoples
  • Investment or sourcing from Burma
  • Other concerns

  • Strong labor rights record
  • Good relations with indigenous peoples
  • Other strengths
• Corporate Governance

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  Responsible Corporate Governance

  We look at factors such as compensation, ownership and related party transactions, political accountability, transparency, and accounting.

  • High executive compensation
  • Ownership of another firm with a poor social record
  • Poor political accountability
  • Poor transparency in social/environmental activities
  • Accounting controversies
  • Other concerns

  • Reasonable executive compensation
  • Ownership of another firm with a good social record
  • Strong political accountability
  • Good transparency in social/environmental activities
  • Other strengths
• Fair Treatment of Employees

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  Fair Treatment of Employees

  We work to ensure that companies in our portfolios enjoy good labor relations, show concern for employee health and safety, and offer adequate employee retirement benefits.

  • Poor union relations
  • Violations of health & safety codes
  • Inadequate retirement benefits program
  • Significant workforce reductions
  • Other concerns

  • Strong health & safety programs
  • Good union relations
  • Cash profit sharing program
  • Employee involvement in decision-making or profit sharing
  • Other strengths
• Diversity

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  Diversity

  We look at factors such as lack of minority representation in key positions.

  • Controversies
  • Non-representation of women in senior leadership and board membership
  • Other concerns

  • Representation of women & minorities in senior leadership and Board of Directors
  • Employment of the disabled
  • Gay & lesbian policies
  • Programs addressing work/life concerns for employees
  • Other strengths
• Positive Community Relations

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  Positive Community Relations

  We work to ensure that companies in our portfolios have positive economic impacts on local communities and avoid investment controversies and tax disputes.

  • Investment controversies
  • Negative economic impact
  • Tax disputes
  • Other concerns

  • Charitable giving
  • Support for education
  • Support for housing
  • Volunteer programs
  • Other Strengths
• Avoidance of Harmful Products

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  Avoidance of Harmful Products

  We consider factors such as product safety and marketing and contracting practices.

  • Antitrust
  • Marketing/contracting controversy
  • Safety
  • Other concerns

  • Benefits to the economically disadvantaged
  • Quality
  • R&D/Innovation
  • Other strengths
• Firearms Products

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  Firearms Products

  No company that sells, distributes, or licenses firearms or tobacco products passes The Blue Fund screens.

• Tobacco Products

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  Tobacco Products

  No company that sells, distributes, or licenses firearms or tobacco products passes The Blue Fund screens.

In order to "give blue," companies must:

• Give A Majority (over 50%) of their political donations to Democratic organizations or candidates.

How It Works

"Giving Blue"

Companies' political donations are defined as federal-level contributions from each company's corporate PACs and top 3 executives from the 1998, 2000, 2002, 2004, and 2006 (to present) election cycles.

"Acting Blue"

For each of the seven screens listed above, companies must have fewer than three (3) areas of concern to be included in our portfolio.

Why fewer than three? Because we recognize that no company is perfect, but want to support those companies that are doing more than their fair share to make sure their businesses work for everyone, not just their corporate leaders - those companies that are going the extra mile to support their communities, those that are trying their best to provide safe working conditions across their global network.

Many Blue Companies are taking proactive, positive steps to keep improving their operations, their workplace, and their corporate responsibility. From sourcing wind energy to providing gay partnership benefits, Blue Companies collectively represent a business model consistent with progressive values.

For more details on the factors driving our "Act Blue" screen, please click on the "magnifying glass" icon to the right of each "criteria" category listed above.

Updated Frequently, Verified Independently