THE DREYFUS SOCIALLY RESPONSIBLE GROWTH FUND, INC.
LETTER TO SHAREHOLDERS
Dear Shareholder:
I want to inform you of a recent change in the portfolio management of
the Dreyfus Socially Responsible Growth Fund, Inc. Eric Steedman, who has
been a member of the Fund's staff since January, 1995, is now a portfolio
manager of the Fund with respect to the Fund's areas of special concern. Mr.
Steedman replaces Diane Coffey, who has left Dreyfus for another position. He
shares the management duties with Maceo Sloan, Chairman and CEO of NCM
Capital Management Group, Inc., sub-advisor to the Fund. Mr. Sloan remains
primarily responsible for selection of the Fund's portfolio securities based
on traditional financial concerns.
Prior to joining the Dreyfus staff, Mr. Steedman was employed by the
Council on Economic Priorities, a New York City-based nonprofit public
interest research organization. A graduate of Carleton University, Ottawa,
Canada, he received his Master of Philosophy degree from the University of
Glasgow, Scotland.
We have great confidence in the ability of Eric Steedman and Maceo Sloan
to manage the Fund's portfolio in a rewarding fashion, while upholding the
Fund's policy of selecting investments that contribute to the enhancement of
the quality of life in America.
Sincerely,
[Stephen E. Canter signature logo]
Stephen E. Canter
Chief Investment Officer
The Dreyfus Corporation
DREYFUS SOCIALLY RESPONSIBLE GROWTH FUND, INC.
LETTER TO SHAREHOLDERS
Dear Shareholder:
For the six-month period ended June 30, 1996, Dreyfus Socially
Responsible Growth Fund, Inc. provided a total return of 8.90%* compared to
10.09% for the Standard & Poor's 500 Composite Stock Price Index.** Results
were negatively affected during the reporting period by a number of very
large withdrawals from the Fund which did not appear to be related to its
portfolio performance.
THE ECONOMY
As you are probably aware, last year's market was dominated by the
actions of Alan Greenspan and the Federal Reserve Board. The Fed and its Open
Market Committee authorized a series of cuts in interest rates from mid 1995
to early 1996, to support the apparently weakening economy. In recent months,
however, both the Fed and the fixed-income markets became concerned that an
accelerating economic growth rate was threatening to revive inflation. By
early July, the Fed had not yet tightened interest rates; however, the
markets still expected such a move.
MARKET ENVIRONMENT
Concerns about higher interest rates were dampened somewhat by sluggish
consumer spending during January and February, along with the severe winter
weather. These conflicting economic signals seemed to form the foundation for
a great deal of the market volatility we have seen so far this year. As a
result, the markets experienced a good deal of stock rotation, as investors
scrambled to find value in an unpredictable market environment.
PORTFOLIO FOCUS
We have been pleased with the performance of several of the Fund's
sectors. Strong returns from the Consumer Cyclicals, Technology and Financial
Services sectors have been key drivers of the Fund's performance. Sears,
Roebuck Co. and Consolidated Stores are two holdings in the Consumer
Cyclicals sector that have performed well, driven by investor belief that
consumer debt levels, although high, would not hamper spending. Other stocks
in the sector with strong performance include Nike, an athletic shoe and
apparel manufacturer, Jones Apparel Group, a women's apparel maker, and CUC
International, a consumer buying group membership company.
Continued strong demand for PCs, computer networking systems and software
has helped the performance of the Fund's technology sector. Winners in this
area include BMC Software, a maker of business software, Computer Associates
International, in the network software business, Hewlett-Packard, a PC and
peripherals manufacturer, and the software giant Microsoft.
Financial Services stocks were also decent performers, supported by
speculation that a better interest rate environment was approaching.
Citicorp, BankAmerica and Green Tree Financial all performed well in this
sector.
We have also increased the Fund's exposure to small-capitalization
stocks. While it is uncertain that small-cap stocks will continue to
outperform the market as they have recently, we will continue to look for
opportunities in this area, while maintaining a solid position in
larger-capitalization companies, some of which are mentioned above.
In terms of the Fund's social investment criteria, we believe that the
present holdings meet the objectives of the Fund's special considerations. We
were particularly pleased that two of the Fund's holdings, Hewlett-Packard
and the Federal National Mortgage Association (Fannie Mae), America's largest
mortgage guarantor, were among the recipients of the Council on Economic
Priorities' prestigious America's Corporate Conscience Award for 1996. Hewlett-
Packard received praise for its high degree of responsiveness to employees,
while Fannie Mae was lauded for its accomplishments in the area of equal
employment opportunity.
The Fund is continually engaged in a process of identifying companies
that not only meet traditional investment standards, but which also show
evidence that they conduct their business in a manner that contributes to the
enhancement of the quality of life in America. Recent acquisitions include
Neopath, a medical technology company whose automated PAP-smear testing
process helps to reduce the incidence of false negatives in cervical cancer
tests, and Neurogen, a neuropharmaceutical company developing treatments for
anxiety and schizophrenia that lack the negative side effects of traditional
psychiatric and neurological disorder drugs.
OUTLOOK
We expect the market to undergo a 5%-10% correction from its current
levels during 1996. This seems to have been partially confirmed by the stock
market setback in mid-July. At the same time, we see a continuation of modest
economic growth during the medium term. Given these expectations, the Federal
Reserve is likely, in our opinion, to keep interest rates at a level
favorable to the markets. At some point over the coming 12 months, we do
expect some economic weakness, leading to falling interest rates and an
increasingly positive market environment, though we will most likely see some
bumps along the way as economic data and market sector corrections come
along. At this point we do, however, express cautious optimism for the
future, and we have positioned the Fund accordingly.
Sincerely,
[Maceo K. Sloan, CFA signature logo]
Maceo K. Sloan, CFA
Portfolio Manager
NCM Capital Management Group, Inc.
[Eric Steedman signature logo]
Eric Steedman
Portfolio Manager
The Dreyfus Corporation
July 17, 1996
New York, N.Y.
* Total return includes reinvestment of dividends and any capital gains
paid. The Fund's performance does not reflect the deduction of additional
charges applicable to separate accounts of participating insurance companies
using the Fund as an underlying investment.
**SOURCE: LIPPER ANALYTICAL SERVICES, INC. - Reflects the reinvestment of
income dividends and, where applicable, capital gain distributions. The
Standard & Poor's 500 Composite Stock Price Index is a widely accepted
unmanaged index of U.S. stock market performance.
<TABLE>
THE DREYFUS SOCIALLY RESPONSIBLE GROWTH FUND, INC.
STATEMENT OF INVESTMENTS JUNE 30, 1996 (UNAUDITED)
COMMON STOCKS-96.4% SHARES VALUE
__________ __________
<S> <C> <C> <C>
COMMERCIAL SERVICES-2.4% Grainger (W.W.)........................ 5,100 $ 395,250
Sysco.................................. 29,800 1,020,650
_________
1,415,900
_________
COMPUTER
SOFTWARE/SERVICES-.2% Forefront Group........................ 10,000 140,000
_________
CONSUMER DURABLES-2.0% Briggs & Stratton...................... 19,500 801,938
Oakwood Homes.......................... 20,000 412,500
_________
1,214,438
_________
CONSUMER
NON-DURABLES-11.8% CPC International...................... 8,800 633,600
Coca-Cola.............................. 26,200 1,280,525
Gillette............................... 12,800 798,400
Jones Apparel Group.................... (a) 14,400 707,400
NIKE, Cl. B............................ 15,700 1,613,175
PepsiCo................................ 30,400 1,075,400
Tambrands.............................. 24,000 981,000
_________
7,089,500
_________
CONSUMER SERVICES-8.3% BET Holdings, Cl. A................... (a) 9,000 237,375
CUC International..................... (a) 24,200 859,100
Disney (Walt)......................... 22,500 1,414,688
Regal Cinemas......................... (a) 18,650 853,237
Service Corp. International........... 28,000 1,610,000
_________
4,974,400
_________
ELECTRONIC
TECHNOLOGY-13.7% Applied Materials...................... (a) 35,400 1,079,700
Atmel.................................. (a) 18,000 542,250
Coherent............................... (a) 8,500 442,000
EMC.................................... (a) 47,800 890,275
Hewlett-Packard........................ 10,970 1,092,886
Linear Technology...................... 35,400 1,062,000
Sun Microsystems....................... (a) 26,300 1,548,413
3COM................................... (a) 33,180 1,517,985
_________
8,175,509
_________
FINANCE-14.1% AFLAC.................................. 18,900 564,638
Allstate............................... 18,100 825,813
American International Group........... 11,000 1,084,875
Citicorp............................... 20,400 1,685,550
Federal National Mortgage Association.. 47,100 1,577,850
Green Tree Financial................... 26,400 825,000
MGIC Investment........................ 9,300 521,962
THE DREYFUS SOCIALLY RESPONSIBLE GROWTH FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) JUNE 30, 1996 (UNAUDITED)
COMMON STOCKS (CONTINUED) SHARES VALUE
________ ________
FINANCE (CONTINUED) Summit Bancorp 14,000 $ 491,750
SunAmerica............................. 15,000 847,500
_________
8,424,938
_________
HEALTH SERVICES-1.1% HealthCare COMPARE..................... (a) 13,000 633,750
_________
HEALTH TECHNOLOGY-13.9% Amgen.................................. (a) 14,700 793,800
Becton, Dickinson & Co................. 12,600 1,011,150
Bristol-Myers Squibb................... 18,600 1,674,000
Chiron................................. (a) 8,000 784,000
Guidant................................ 14,000 689,500
Johnson & Johnson...................... 20,200 999,900
Medtronic.............................. 20,900 1,170,400
Merck & Co............................. 12,460 805,227
Neopath................................ (a) 10,900 275,225
Neurogen............................... (a) 5,000 128,750
_________
8,331,952
_________
PROCESS INDUSTRIES-5.2% Avery Dennison......................... 17,000 932,875
Bemis.................................. 32,800 1,148,000
Sigma-Aldrich.......................... 19,000 1,016,500
_________
3,097,375
_________
PRODUCER
MANUFACTURING-2.5% Dover.................................. 16,500 761,062
Harnischfeger Industries............... 22,000 731,500
_________
1,492,562
_________
RETAIL TRADE-3.3% Consolidated Stores.................... (a) 31,000 1,139,250
Sears, Roebuck & Co.................... 16,500 802,312
_________
1,941,562
_________
TECHNOLOGY SERVICES-11.1% Arrow Electronics...................... (a) 20,500 884,063
BMC Software........................... (a) 17,700 1,057,575
Computer Associates International...... 18,300 1,303,875
Ericsson (LM) Telephone, Cl. B, A.D.R.. 25,900 556,850
Microsoft.............................. (a) 12,900 1,549,612
Oracle (a) 32,850 1,295,522
_________
6,647,497
_________
TRANSPORTATION-2.1% Comair Holdings........................ 21,000 567,000
Federal Express........................ (a) 8,700 713,400
_________
1,280,400
_________
UTILITIES-4.7% Ameritech.............................. 9,500 564,063
CMS Energy............................. 7,200 222,300
Century Telephone Enterprises.......... 29,900 953,062
THE DREYFUS SOCIALLY RESPONSIBLE GROWTH FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) JUNE 30, 1996 (UNAUDITED)
COMMON STOCKS (CONTINUED) SHARES VALUE
________ ________
UTILITIES (CONTINUED).............GTE 12,960 $ 579,960
360 Communications..................... 20,000 480,000
_________
2,799,385
_________
TOTAL INVESTMENTS (cost $52,911,478)........................................ 96.4% $ 57,659,168
======= ===========
CASH AND RECEIVABLES (NET).................................................. 3.6% $ 2,180,008
======= ===========
NET ASSETS.................................................................. 100.0% $ 59,839,176
======= ===========
NOTE TO STATEMENT OF INVESTMENTS;
(a) Non-income producing.
</TABLE>
See independent accountants' review report and notes to financial statements.
<TABLE>
THE DREYFUS SOCIALLY RESPONSIBLE GROWTH FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES JUNE 30, 1996 (UNAUDITED)
<S> <C> <C>
ASSETS:
Investments in securities, at value
(cost $52,911,478)-see statement...................................... $57,659,168
Payable for investment securities sold.................................. 4,115,563
Dividends receivable.................................................... 35,257
Prepaid expenses........................................................ 31,898
____________
61,841,886
LIABILITIES:
Due to The Dreyfus Corporation and affiliates........................... $ 36,887
Due to Custodian........................................................ 1,912,349
Accrued expenses........................................................ 53,474 2,002,710
_____________ ____________
NET ASSETS.................................................................. $59,839,176
=============
REPRESENTED BY:
Paid-in capital......................................................... $52,549,850
Accumulated undistributed investment income-net......................... 127,947
Accumulated undistributed net realized gain on investments.............. 2,413,689
Accumulated net unrealized appreciation on investments-Note 4........... 4,747,690
____________
NET ASSETS at value applicable to 3,175,429 shares outstanding
(150 million shares of $.001 par value Common Stock authorized)......... $59,839,176
=============
NET ASSET VALUE, offering and redemption price per share
($59,839,176 / 3,175,429 shares)........................................ $18.84
========
</TABLE>
See independent accountants' review report and notes to financial statements.
<TABLE>
THE DREYFUS SOCIALLY RESPONSIBLE GROWTH FUND, INC.
STATEMENT OF OPERATIONS SIX MONTHS ENDED JUNE 30, 1996 (UNAUDITED)
<S> <C> <C>
INVESTMENT INCOME:
INCOME:
Cash dividends (net of $3,103 foreign taxes withheld at source)....... $ 290,064
Interest.............................................................. 81,409
__________
TOTAL INCOME.................................................... $ 371,473
EXPENSES:
Investment advisory fee-Note 3(a)..................................... 190,172
Professional fees..................................................... 14,028
Prospectus and shareholders' reports.................................. 12,932
Registration fees..................................................... 8,622
Directors' fees and expenses-Note 3(c)................................ 7,114
Custodian fees-Note 3(b).............................................. 5,588
Shareholder servicing costs-Note 3(b)................................. 5,231
Miscellaneous......................................................... 7,998
__________
TOTAL EXPENSES.................................................. 251,685
Less-reduction in investment advisory fee due to
undertaking-Note 3(a)............................................. 6,459
__________
NET EXPENSES.................................................... 245,226
________
INVESTMENT INCOME-NET........................................... 126,247
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain on investments-Note 4................................. $2,010,869
Net unrealized appreciation on investments.............................. 1,025,072
__________
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS................. 3,035,941
________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $3,162,188
===========
</TABLE>
See independent accountants' review report and notes to financial statements.
<TABLE>
THE DREYFUS SOCIALLY RESPONSIBLE GROWTH FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED SIX MONTHS ENDED
DECEMBER 31, JUNE 30, 1996
1995 (UNAUDITED)
____________ __________
<S> <C> <C>
OPERATIONS:
Investment income-net.................................................. $ 129,313 $ 126,247
Net realized gain on investments....................................... 1,186,985 2,010,869
Net unrealized appreciation on investments for the period.............. 3,840,201 1,025,072
____________ __________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS................. 5,156,499 3,162,188
____________ __________
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income-net.................................................. (140,970) __
Net realized gain on investments....................................... (722,469) __
____________ __________
TOTAL DIVIDENDS...................................................... (863,439) __
____________ __________
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold.......................................... 19,961,839 54,310,356
Dividends reinvested................................................... 863,438 __
Cost of shares redeemed................................................ (3,867,386) (29,290,600)
____________ __________
INCREASE IN NET ASSETS FROM CAPITAL STOCK TRANSACTIONS............... 16,957,891 25,019,756
____________ __________
TOTAL INCREASE IN NET ASSETS..................................... 21,250,951 28,181,944
NET ASSETS:
Beginning of period.................................................... 10,406,281 31,657,232
____________ __________
End of period (including undistributed investment income-net:
$1,700 in 1995 and $127,947 in 1996)................................. $31,657,232 $59,839,176
============= =============
SHARES SHARES
____________ __________
CAPITAL SHARE TRANSACTIONS:
Shares sold............................................................ 1,237,706 2,928,718
Shares issued for dividends reinvested................................. 50,113 __
Shares redeemed........................................................ (245,303) (1,582,516)
____________ __________
NET INCREASE IN SHARES OUTSTANDING................................... 1,042,516 1,346,202
============ =============
</TABLE>
See independent accountants' review report and notes to financial statements.
THE DREYFUS SOCIALLY RESPONSIBLE GROWTH FUND, INC.
FINANCIAL HIGHLIGHTS
Contained below is per share operating performance data for a share of
Common Stock outstanding, total investment return, ratios to average net
assets and other supplemental data for each period indicated. This
information has been derived from the Fund's financial statements.
<TABLE>
YEAR ENDED DECEMBER 31, SIX MONTHS ENDED
___________________________________ JUNE 30, 1996
PER SHARE DATA: 1993(1) 1994 1995 (UNAUDITED)
______ ______ ______ __________
<S> <C> <C> <C> <C>
Net asset value, beginning of period.............. $12.50 $13.38 $13.23 $17.31
______ ______ ______ _______
INVESTMENT OPERATIONS:
Investment income-net............................. .04 .35 .08 .04
Net realized and unrealized gain (loss) on investments .88 (.15) 4.49 1.49
______ ______ ______ _______
TOTAL FROM INVESTMENT OPERATIONS................ .92 .20 4.57 1.53
______ ______ ______ _______
DISTRIBUTIONS:
Dividends from investment income-net.............. (.04) (.35) (.08) -
Dividends from net realized gain on investments... - - (.41) -
______ ______ ______ _______
TOTAL DISTRIBUTIONS............................. (.04) (.35) (.49) -
______ _______ ______ _______
Net asset value, end of period.................... $13.38 $13.23 $17.31 $18.84
======== ======= ======= ========
TOTAL INVESTMENT RETURN............................... 7.35%(2) 1.49% 34.56% 8.90%(2)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets........... .06%(2) .25% 1.27% .48%(2)
Ratio of net investment income to average net assets .64%(2) 4.58% .70% .25%(2)
Decrease reflected in above expense ratios due to
undertakings by Dreyfus and sub-investment adviser 6.19%(2) 2.60% .06% .01%(2)
Portfolio Turnover Rate........................... - 373.68% 88.52% 64.54%(2)
Average commission rate paid(3)................... - - - $.0582
Net Assets, end of period (000's Omitted)......... $1,372 $10,406 $31,657 $59,839
(1) From October 7, 1993 (commencement of operations) to December 31, 1993.
(2) Not annualized.
(3) For fiscal years beginning January 1, 1996, the Fund is required to
disclose its average commission rate paid per share for
purchases and sales of investment securities.
</TABLE>
See independent accountants' review report and notes to financial statements.
THE DREYFUS SOCIALLY RESPONSIBLE GROWTH FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES:
The Dreyfus Socially Responsible Growth Fund, Inc. (the "Fund") is
registered under the Investment Company Act of 1940 ("Act") as a diversified
open-end management investment company. The Fund's investment objective is to
provide capital growth through equity investments in companies that not only
meet traditional investment standards but which also show evidence that they
conduct their business in a manner that contributes to the enhancement of the
quality of life in America. The Fund is intended to be a funding vehicle for
variable annuity contracts and variable life insurance policies to be offered
by the separate accounts of life insurance companies. The Dreyfus Corporation
("Dreyfus") serves as the Fund's investment adviser. Dreyfus is a direct subsi
diary of Mellon Bank, N.A. ("Mellon"). NCM Capital Management Group, Inc.
("NCM") serves as the Fund's sub-investment adviser. Premier Mutual Fund
Services, Inc. (the "Distributor") acts as the distributor of the Fund's
shares, which are sold without a sales charge.
(A) PORTFOLIO VALUATION: Investments in securities are valued at the last
sales price on the securities exchange on which such securities are primarily
traded or at the last sales price on the national securities market.
Securities not listed on an exchange or the national securities market, or
securities for which there were no transactions, are valued at the average of
the most recent bid and asked prices. Bid price is used when no asked price
is available.
(B) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities
transactions are recorded on a trade date basis. Realized gain and loss from
securities transactions are recorded on the identified cost basis. Dividend
income is recognized on the ex-dividend date and interest income, including,
where applicable, amortization of discount on investments, is recognized on
the accrual basis.
(C) DIVIDENDS TO SHAREHOLDERS: Dividends are recorded on the ex-dividend
date. Dividends from investment income-net and dividends from net realized
capital gain are normally declared and paid annually, but the Fund may make
distributions on a more frequent basis to comply with the distribution
requirements of the Internal Revenue Code. To the extent that net realized
capital gain can be offset by capital loss carryovers, if any, it is the
policy of the Fund not to distribute such gain.
(D) FEDERAL INCOME TAXES: It is the policy of the Fund to continue to
qualify as a regulated investment company, if such qualification is in the
best interests of its shareholders, by complying with the applicable
provisions of the Internal Revenue Code, and to make distributions of taxable
income sufficient to relieve it from substantially all Federal income and
excise taxes.
NOTE 2-BANK LINE OF CREDIT:
The Fund participates in a $100 million unsecured line of credit provided
by The Bank of New York, primarily for temporary or emergency purposes,
including the meeting of redemption requests that otherwise might require the
untimely disposition of securities. Interest is payable at the Federal Funds
rate plus .50% on an annualized basis. For the period ended June 30, 1996,
the Fund did not borrow under the line of credit.
THE DREYFUS SOCIALLY RESPONSIBLE GROWTH FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
NOTE 3-INVESTMENT ADVISORY FEE, SUB-INVESTMENT ADVISORY FEE AND OTHER
TRANSACTIONS WITH AFFILIATES:
(A) Pursuant to an Investment Advisory Agreement ("Agreement") with
Dreyfus, the investment advisory fee is computed at the annual rate of .75 of
1% of the value of the Fund's average daily net assets and is payable
monthly. The Agreement provides that if in any full year the aggregate
expenses of the Fund, exclusive of taxes, brokerage, interest on borrowings
and extraordinary expenses, exceed the expense limitation of any state having
jurisdiction over the Fund, the Fund may deduct from the fee to be paid to
Dreyfus, or Dreyfus will bear, such excess expense to the extent required by
state law. However, Dreyfus has undertaken from January 1, 1996 through
December 31, 1996 to reduce the investment advisory fee paid by the Fund, to
the extent that the Fund's aggregate expenses (exclusive of certain expenses
as described above) exceed an annual rate of 1% of the value of the Fund's
average daily net assets. The reduction in investment advisory fee, pursuant
to the undertaking, amounted to $6,459 during the six months ended June 30,
1996.
The undertaking may be extended, modified or terminated by Dreyfus,
provided that the resulting expense reimbursement would not be less than the
amount required pursuant to the Agreement.
Pursuant to a Sub-Investment Advisory Agreement with NCM, the
sub-investment advisory fees are payable monthly by Dreyfus, and are based
upon the value of the Fund's average daily net assets, computed at the
following annual rates:
<TABLE>
AVERAGE NET ASSETS
___________________
<S> <C> <C>
0 to $32 million....................................................................... .10 of 1%
In excess of $32 million to $150 million............................................... .15 of 1%
In excess of $150 million to $300 million.............................................. .20 of 1%
In excess of $300 million.............................................................. .25 of 1%
</TABLE>
Prior to April 22, 1996, the sub-investment advisory fee was computed at
an annual rate of .10 of 1% on the first $500 million and .20 of 1% on the
excess over $500 million of the value of the Fund's average daily net assets
and was payable monthly by Dreyfus.
(B) Pursuant to the Fund's Shareholder Services Plan, the Fund reimburses
Dreyfus Service Corporation, a wholly-owned subsidiary of Dreyfus, an amount
not to exceed an annual rate of .25 of 1% of the value of the Fund's average
daily net assets for certain allocated expenses with respect to servicing
and/or maintaining shareholder accounts. During the six months ended June 30,
1996, the Fund was charged an aggregate of $1,918 pursuant to the Shareholder
Services Plan.
The Fund compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of
Dreyfus, under a transfer agency agreement for providing personnel and
facilities to perform transfer agency services for the Fund. Such
compensation amounted to $78 during the six months ended June 30, 1996.
THE DREYFUS SOCIALLY RESPONSIBLE GROWTH FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
Effective May 10, 1996, the Fund entered into a Custody Agreement with
Mellon to provide custodial services for the Fund. During the period May 10,
1996 through June 30, 1996, $1,977 was paid to Mellon pursuant to the Custody
Agreement.
(C) Each director who is not an "affiliated person" as defined in the Act
receives from the Fund an annual fee of $2,500. The Chairman of the Board
receives an additional 25% of such compensation.
NOTE 4-SECURITIES TRANSACTIONS:
The aggregate amount of purchases and sales of investment securities,
excluding short-term securities, during the six months ended June 30, 1996,
amounted to $55,385,949 and $30,471,153, respectively.
At June 30, 1996, accumulated net unrealized appreciation on investments
was $4,747,690, consisting of $6,162,416 gross unrealized appreciation and
$1,414,726 gross unrealized depreciation.
At June 30, 1996, the cost of investments for Federal income tax purposes
was substantially the same as the cost for financial reporting purposes (see
the Statement of Investments).
THE DREYFUS SOCIALLY RESPONSIBLE GROWTH FUND, INC.
REVIEW REPORT OF ERNST & YOUNG LLP, INDEPENDENT ACCOUNTANTS
SHAREHOLDERS AND BOARD OF DIRECTORS
THE DREYFUS SOCIALLY RESPONSIBLE GROWTH FUND, INC.
We have reviewed the accompanying statement of assets and liabilities of
The Dreyfus Socially Responsible Growth Fund, Inc., including the statement
of investments, as of June 30, 1996, and the related statements of operations
and changes in net assets and financial highlights for the six month period
ended June 30, 1996. These financial statements and financial highlights are
the responsibility of the Fund's management.
We conducted our review in accordance with standards established by the
American Institute of Certified Public Accountants. A review of interim
financial information consists principally of applying analytical procedures
to financial data, and making inquiries of persons responsible for financial
and accounting matters. It is substantially less in scope than an audit
conducted in accordance with generally accepted auditing standards, which
will be performed for the full year with the objective of expressing an
opinion regarding the financial statements and financial highlights taken as
a whole. Accordingly, we do not express such an opinion.
Based on our review, we are not aware of any material modifications that
should be made to the interim financial statements and financial highlights
referred to above for them to be in conformity with generally accepted
accounting principles.
We have previously audited, in accordance with generally accepted
auditing standards, the statement of changes in net assets for the year ended
December 31, 1995 and financial highlights for each of the three years in the
period ended December 31, 1995 and in our report dated February 9, 1996, we
expressed an unqualified opinion on such statement of changes in net assets
and financial highlights.
[Ernst & Young LLP signature logo]
New York, New York
July 25, 1996
THE DREYFUS SOCIALLY RESPONSIBLE GROWTH FUND, INC.
PROXY RESULTS (UNAUDITED)
A special meeting of stockholders of the Fund was held on April 18, 1996,
at which stockholders approved an amended and restated sub-investment
advisory agreement between The Dreyfus Corporation and NCM Capital Management
Group, Inc., by a vote of 2,491,245 shares in favor of, and 127,889 shares
against, approval of the agreement, with 491,432 shares abstaining. At the
meeting, Fund stockholders also approved amending the Fund's fundamental
investment policy and investment restriction with regard to socially
responsible Special Considerations (as described in the Fund's current
Prospectus) to provide that such socially responsible Special Considerations
may be supplemented by action of the Fund's Board members without stockholder
approval. Prior to the effectiveness of the amendment, stockholder approval
was required to supplement or change the Fund's Special Considerations.
Approval of the amendment was obtained by a vote of 2,268,785 shares in favor
of, and 364,245 shares against, the amendment, with 477,537 shares
abstaining.
[Dreyfus lion "d" logo]
THE DREYFUS SOCIALLY RESPONSIBLE
GROWTH FUND, INC.
200 Park Avenue
New York, NY 10166
INVESTMENT ADVISER
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
SUB-INVESTMENT ADVISER
NCM Capital Management Group, Inc.
103 West Main Street
Durham, NC 27705
CUSTODIAN
Mellon Bank, N.A.
One Mellon Bank Center
Pittsburgh, PA 15258
TRANSFER AGENT &
DIVIDEND DISBURSING AGENT
Dreyfus Transfer, Inc.
P.O. Box 9671
Providence, RI 02940
Printed in U.S.A. 111SA966
[Dreyfus logo]
Socially Responsible
Growth Fund, Inc.
Semi-Annual
Report
June 30, 1996
