(MONEY Magazine) – To put together this list of ethical investments, we asked Franklin Research & Development, which publishes Investing for a Better World (monthly, $19.95 a year; 617-423-6655), to identify the 50 most promising stocks, mutual funds and cash investments that meet widely accepted social-investing criteria. Franklin first excluded all companies connected with alcohol, animal testing, gambling, nuclear power, South Africa, tobacco and weapons manufacturing. After that, Franklin ranked the shares of 1,000 companies in three categories of social responsibility. With 1 as the highest rating and 5 as the lowest, the firms that qualified scored 2.5 or better in each category. Thirty stocks with solid investing fundamentals are listed in the table, starting with those that had the best overall ratings. Companies with an environmental rating of 1 were outstanding in pollution control, hazardous-waste reduction and energy conservation.

Firms that earned a 1 rating for employee relations excelled in at least three of the following areas: promotion of women and minorities, action on child care and AIDS, fringe benefits, commitment to on-the-job safety, and fair bargaining with unions. Franklin based corporate citizenship ratings on community involvement and charitable giving, such as funding low-income housing, scholarships and job- training programs. Again, the 1-rated companies were among the best in three areas. We then measured the survivors against investment criteria, excluding blue chips selling far above the average market P/E of 17, and we required at least a B+ financial rating from Value Line Investment Survey. In considering smaller growth stocks, we looked for trend-setters in socially conscious activities, such as plastics recycling. Because small stocks are volatile, only aggressive investors should consider them. The 10 utilities on the list offer total returns of 10% a year or higher, based on current yield and projected earnings growth rates for the next five years. They also have Value Line safety ratings of B+ or better. For mutual fund investors the choices are limited, since only about a dozen funds follow ethical investing principles; nine are currently open and tracked by Franklin. They are listed in order of their total return for the past year. Among cash investments, we include those offered by banks that lend locally for socially conscious projects. These banks are all federally insured and accept out-of-state deposits. The money-market funds on the list hold only the securities of corporations that meet broad social screening tests.

CHART: NOT AVAILABLE CREDIT: Sources: Franklin Research & Development, IBC/Donoghue's, Institutional Brokers Estimate System, Lipper Analytical Services, Value Line. CAPTION: NO CAPTION