Tighter corporate governance rules and greater disclosure by companies make socially responsible investing and shareholder activism easier, fund professionals said this week.

But the jury is out on how far funds should go and what methods might be used by funds and their shareholders to pressure companies to be good corporate citizens.

Views on how funds can actively influence socially responsible corporate behaviour were given during a panel discussion on Monday at the 15th annual ?Globalisation of Mutual Funds? conference being held this week at the Fairmont Southampton on corporate governance for mutual funds.

William Tartikoff, senior vice president and general counsel of the Calvert Group Ltd., a Maryland-based mutual fund that has a track record of investing in companies that are socially responsible, said increased disclosure requirements for mutual funds ? including having to make public information surrounding proxy voting ? has laid the way for greater shareholder advocacy.

With a declared social agenda, Mr. Tartikoff said Calvert was using the proxy voting power of its large shareholder base to take up issues with companies they are invested in, whether it for improved environmental practices, more diversity on boards or improvements in labour practices.

The company has a minimum set of standards that must be in place before Calvert will invest but after that may make a direct approach to management to encourage changes.

But he stressed Calvert is ?only buying into a company if it thinks that stock is going to go up? but also saw its social mandate as being sound as a company with a responsible approach was increasing its chances for long-term viability.

?We don?t take the view that everyone should be giddy (about being a good corporate citizen); we think a company will do better over time. You cannot tell me that an all-white board will do as well over time as a more diverse board,? adding that a socially responsible approach to business would lead to ?shareholders, over the long term, making more money?.

His views were backed by panellist Christian Strenger, an adviser for capital markets, corporate finance and asset management matters who formerly worked with Deutsche Bank and now sits on the German Government Commission on Corporate Governance, who said social responsibility can only be positive.

?Shareholder value can only be created over time, that is why (social responsibility) is relevant,? he said.

But others at the panel discussion, from the audience and the panel, said the decision would come down to shareholders, and there was debate on how one could manage to effectively canvas the wishes of a large investor base.

One said: ?We are trying to create shareholder value. We would not go as far as Calvert.?

Mr. Strenger agreed that there were difficulties in ?canvassing? shareholder interests, with some funds having millions of investors.

But he added: ?I think it is not so difficult, particularly under SEC rules that say you have to list all votes,? which he said encouraged investors ?to enter the arena? and make concerns known.

However, Mr. Tartikoff said mutual funds taking a social activist role in the companies they invest in should be left a private sector matter, and not something mandated by Government or regulators, after an audience member from the Bermuda Monetary Authority asked if it should be issuing guidelines to the private sector on social responsibility.