THE DREYFUS SOCIALLY RESPONSIBLE GROWTH FUND, INC.
LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to report that for the fiscal year ended December 31,
1995, The Dreyfus Socially Responsible Growth Fund, Inc., posted a total
return of 34.56%,* compared to a total return of 37.53% for the Standard &
Poor's 500 Composite Stock Price Index.** This performance placed the Fund in
the second quartile of the Lipper growth funds category, out of 98 funds for
the one-year period ended December 31, 1995.***
A LOOK AT THE ECONOMY
The most salient issue confronting the equity markets in 1995 continued
to be the Federal Reserve Board's vigilance in fighting inflation and overly
expansive economic growth. The Fed did this by raising interest rates an
unprecedented seven times in a 12-month period. The hope was that by doing
so, businesses would seek to grow their bottom lines via productivity
enhancements and market share growth rather than by simply raising prices, as
had been the case in previous economic cycles. The question in investors'
minds was, "Will the Fed continue to slay the inflation dragon by raising
rates and thereby establish an unprecedented soft landing in the economy?"
Investors kept a watchful eye on the economy in making decisions and for
the most part the economic reports were consistent with the soft landing
theme that we have followed all year. In a soft landing, the economy grows at
a reasonably slow to moderate pace with little to no inflation after a period
of significant growth, instead of adhering to the usual pattern of cyclical
booms and busts. After some decent economic advances in both 1993 and 1994,
investors became concerned that the Federal Reserve's vigilance in fighting
inflation might have pushed the economy to the brink of recession. However,
the economic information released through the third quarter of 1995 supported
our belief that the Fed had achieved the elusive economic soft landing. The
Fed even sent the market a very positive signal in early July by cutting
interest rates by a quarter of a percent, the first such reduction since the
Fed began preemptive rate increases in February 1994. The Fed decreased rates
once again in December.
PORTFOLIO OVERVIEW
In terms of the economic sectors of the Fund, we made several changes in
the weightings. The primary areas of focus for the Fund have been Consumer
Staples, Technology and Financials. During the last six months, we increased
the weightings in carefully selected Technology stocks and Financials and
maintained the exposure to Consumer Staples. We also reduced the Fund's
weighting in the Industrial sector. These thematic changes are indicative of
our overall view of what is driving the current economic environment. The
shift in Technology weight represents our belief that this traditional growth
sector, in spite of recent market weakness, is experiencing a secular
improvement in demand driven by global competition and productivity growth.
We also increased the Financials, believing that the Fed would continue to
lower interest rates, and that our positions would continue to benefit from
the consolidation trend in the industry. We reduced our weighting in
industrial stocks due to continued concerns over the strength of the economy
as well as valuation, both of which we believed indicated that better
opportunities lay elsewhere.
INDIVIDUAL ISSUES
For the year ended 12/31/95, there were many individual securities that
contributed nicely to the positive performance trends of the Fund. In the
consumer cyclical sector, Regal Cinemas, Capital Cities ABC, Disney (Walt),
Nike Cl.B and Phillips Electronics N.V. had superior performance. Those names
represent stocks that we believe can grow whatever the economic environment
because of globally oriented, diversified operations. Other stocks in the
portfolio that contributed to performance are Coca-Cola, Cordis, Amgen,
Medtronic, Becton, Dickinson, Bristol-Myers Squibb and Merck & Co. The food,
beverage and household products companies benefited from more positive
investor sentiment toward their long-term, globally driven growth rates. The
health care stocks benefited from an improved outlook for their operations
due to the rising optimism for new drug approvals and investor confidence in
the consistency of their growth.
Stock selection in the financial area also contributed to the Fund's
positive results as did a more benign interest-rate outlook. ADVANTA, Cl.A.,
a credit card company, banks such as Citicorp, Bank of New York, BayBanks and
Midlantic, specialty financial services companies such as Green Tree
Financial, a provider of mobile home financing, and Federal National Mortgage
Association, performed well for most of the year. In addition, insurers
American International Group and Allstate rose on expectations of lower
interest rates and possible industry consolidation.
Our focus in the technology sector was on stocks of companies which we
believed had fairly established market positions, superior technology and
outstanding management teams. Individual issues such as 3Com, Applied
Materials, Hewlett-Packard, Linear Technology, and Sun Microsystems were all
stellar performers. We believe each of these companies stands to benefit not
just from demand for a single product, but from a broad, diversified product
offering with multiple downstream beneficiaries. We believe these qualities
lower the risk profile of the Fund's technology weighting relative to the
typical technology stock and lower the general level of volatility in the
sector.
THE TAKEOVER THEME
Overall, from a stock selection standpoint, the Fund has benefited from
the rising tide of takeovers this year. Companies are under pressure to make
revenues grow in a very competitive environment, and are therefore buying
other firms to broaden and deepen their product offerings. Several Fund
holdings were taken over this year: Cordis, a medical technology firm;
BayBanks, a large regional banking firm; Capital Cities ABC, a broadcasting
company; and Scott Paper, a paper manufacturer. There are several other names
in the portfolio that we believe could benefit from this theme over the
coming years.
Going forward, we feel that the Federal Reserve's hold on the market will
persist. However, this time the Fed's action may benefit stocks because we
believe rates will be further reduced rather than raised, as the economy
shows signs of slowing. Our goal, as ever, is to provide superior returns to
our shareholders while honoring your socially responsible investment
objectives. We are confident in the outlook for the Fund and appreciate your
continued support. We take your socially responsible directives seriously as
we endeavor to provide attractive returns on shareholder capital.
Sincerely,
[Maceo K. Sloan, CFA and Diane M. Coffey signature logos]
Maceo K. Sloan, CFA Diane M. Coffey
Portfolio Manager Portfolio Manager
NCM Capital Management Group, Inc The Dreyfus Corporation
January 16, 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 when 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.
*** SOURCE: LIPPER ANALYTICAL SERVICES, INC.
<TABLE>
THE DREYFUS SOCIALLY RESPONSIBLE GROWTH FUND, INC. DECEMBER 31, 1995
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN THE DREYFUS SOCIALLY
RESPONSIBLE
GROWTH FUND AND THE STANDARD & POOR'S 500 COMPOSITE STOCK PRICE INDEX
[Exhibit A
$14,661
Dreyfus Socially Responsible
Growth Fund
Dollars
$14,257
Standard & Poor's 500
Composite Stock Price Index*
*Source: Lipper Analytical Services, Inc.
AVERAGE ANNUAL TOTAL RETURNS
ONE YEAR ENDED FROM INCEPTION (10/7/93)
DECEMBER 31, 1995 TO DECEMBER 31, 1995
__________ _____________
<S> <C> <C>
34.56% 18.63%
Past performance is not predictive of future performance.
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.
The above graph compares a $10,000 investment made in The Dreyfus Socially
Responsible Growth Fund, Inc. on 10/7/93 (Inception Date) to a $10,000
investment made in the Standard & Poor's 500 Composite Stock Price Index on
that date. For comparative purposes, the value of the Index on 9/30/93 is
used as the beginning value on 10/7/93. All dividends and capital gain
distributions are reinvested.
The Fund's performance shown in the line graph takes into account all
applicable fees and expenses. The Standard & Poor's 500 Composite Stock Price
Index is a widely accepted, unmanaged index of overall stock market
performance which does not take into account charges, fees and other
expenses. Further information relating to Fund performance, including expense
reimbursements, if applicable, is contained in the Financial Highlights
section of the Prospectus and elsewhere in this report.
</TABLE>
<TABLE>
THE DREYFUS SOCIALLY RESPONSIBLE GROWTH FUND, INC.
STATEMENT OF INVESTMENTS DECEMBER 31, 1995
COMMON STOCKS-93.8% SHARES VALUE
_______ ______
<S> <C> <C>
CONSUMER DURABLES-.9% Briggs & Stratton....................... 6,500 $ 281,937
_____
CONSUMER
NON-DURABLES-8.5% Campbell Soup........................... 10,400 624,000
Coca-Cola.............................. 7,800 579,150
Gillette............................... 11,100 578,588
NIKE, Cl. B............................ 4,400 306,350
PepsiCo................................ 11,000 614,625
______
2,702,713
______
CONSUMER SERVICES-7.9% Disney (Walt).......................... 7,400 436,600
Grainger (W.W.)........................ 8,000 530,000
Regal Cinemas........................(a) 15,450 459,638
Tribune................................ 8,750 534,843
Wendy's International.................. 25,500 541,875
______
2,502,956
______
ELECTRONIC
TECHNOLOGY-16.4% Applied Materials.....................(a) 15,100 594,562
DSC Communications...................(a) 17,400 641,625
EMC...................................(a) 37,450 575,794
Hewlett-Packard........................ 7,970 667,488
Linear Technology...................... 16,600 651,550
Micron Technology...................... 10,900 431,912
Sun Microsystems..................... (a) 15,200 693,500
3Com................................. (a) 19,980 931,568
_____
5,187,999
_____
ENERGY-2.3% Schlumberger........................... 10,420 721,585
--------
FINANCE-16.5% ADVANTA, Cl. A......................... 7,500 286,875
AFLAC.................................. 8,600 373,025
Allstate............................... 7,600 312,550
American International Group........... 4,860 449,550
Bank of New York....................... 14,000 682,500
BankAmerica............................ 6,600 427,350
BayBanks............................... 6,300 618,975
Citicorp............................... 10,200 685,950
Federal National Mortgage Association.. 6,000 744,750
Green Tree Financial................... 24,000 633,000
_____
5,214,525
_____
HEALTH SERVICES-.8% HealthCare COMPARE..................... (a) 5,500 239,250
_____
HEALTH TECHNOLOGY-14.0% Amgen.................................. (a) 12,000 712,500
Becton, Dickinson ..................... 8,620 646,500
Bristol-Myers Squibb................... 8,700 747,113
THE DREYFUS SOCIALLY RESPONSIBLE GROWTH FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) DECEMBER 31, 1995
COMMON STOCKS (CONTINUED) SHARES VALUE
______ _______
HEALTH
TECHNOLOGY (CONTINUED) Johnson & Johnson....................... 7,560 $ 647,325
Medtronic.............................. 15,600 871,650
Merck & Co............................. 12,460 819,245
_____
4,444,333
_____
NON-ENERGY MINERALS-.6% British Steel, A.D.S. .................. 7,700 197,312
_____
PROCESS INDUSTRIES-4.3% Bemis................................... 20,690 530,181
Sigma-Aldrich.......................... 11,500 569,250
Terra Industries....................... 18,300 258,488
_____
1,357,919
_____
PRODUCER
MANUFACTURING-4.3% AGCO................................... 13,600 693,600
Dover.................................. 7,800 287,625
Philips Electronics, N.V............... 10,900 391,038
_____
1,372,263
_____
RETAIL TRADE-3.0% Consolidated Stores..................(a) 15,800 343,650
Sears, Roebuck & Co.................... 15,200 592,800
_____
936,450
_____
TECHNOLOGY SERVICES-8.1% Arrow Electronics....................(a) 14,600 629,625
BMC Software.........................(a) 17,500 748,125
Computer Associates International...... 11,150 634,156
Oracle...............................(a) 13,000 550,875
_____
2,562,781
_____
TRANSPORTATION-1.2% Federal Express.......................(a) 5,350 395,231
_____
UTILITIES-5.0% Century Telephone Enterprises 20,200 641,350
Ericsson (LM) Telephone, Cl. B, A.D.R. 16,500 321,750
GTE 14,260 627,440
_____
1,590,540
_____
TOTAL COMMON STOCKS
(cost $25,985,306)................... $29,707,794
=======
PRINCIPAL
SHORT-TERM INVESTMENTS-5.8% AMOUNT
______
U.S. TREASURY BILLS: 5.25%, 2/29/96.......................... $ 704,000 $ 698,410
4.90%, 3/7/96.......................... 754,000 747,063
4.83%, 3/14/96......................... 379,000 375,115
_____
TOTAL SHORT-TERM INVESTMENTS
(cost $1,820,458).................... $ 1,820,588
=======
THE DREYFUS SOCIALLY RESPONSIBLE GROWTH FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) DECEMBER 31, 1995
VALUE
______
TOTAL INVESTMENTS (cost $27,805,764)........................ 99.6% $31,528,382
==== =======
CASH AND RECEIVABLES (NET)................. .4% $ 128,850
==== =======
NET ASSETS.................................................................. 100.0% $31,657,232
==== =======
NOTE TO STATEMENT OF INVESTMENTS;
(a) Non-income producing.
See notes to financial statements.
</TABLE>
<TABLE>
THE DREYFUS SOCIALLY RESPONSIBLE GROWTH FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES DECEMBER 31, 1995
<S> <C> <C>
ASSETS:
Investments in securities, at value
(cost $27,805,764)-see statement...................................... $31,528,382
Cash.................................................................... 127,477
Dividends receivable.................................................... 33,528
Prepaid expenses........................................................ 38,838
_____
31,728,225
LIABILITIES:
Due to The Dreyfus Corporation and subsidiaries......................... $20,566
Accrued expenses........................................................ 50,427 70,993
___ _____
NET ASSETS.................................................................. $31,657,232
=======
REPRESENTED BY:
Paid-in capital......................................................... $27,530,094
Accumulated undistributed investment income-net......................... 1,700
Accumulated undistributed net realized gain on investments.............. 402,820
Accumulated net unrealized appreciation on investments-Note 3........... 3,722,618
_____
NET ASSETS at value applicable to 1,829,227 shares outstanding
(150 million shares of $.001 par value Common Stock authorized)......... $31,657,232
=======
NET ASSET VALUE, offering and redemption price per share
($31,657,232 / 1,829,227 shares)........................................ $17.31
=======
See notes to financial statements.
</TABLE>
<TABLE>
THE DREYFUS SOCIALLY RESPONSIBLE GROWTH FUND, INC.
STATEMENT OF OPERATIONS YEAR ENDED DECEMBER 31, 1995
<S> <C> <C>
INVESTMENT INCOME:
INCOME:
Cash dividends (net of $3,898 foreign taxes withheld at source)....... $ 223,319
Interest.............................................................. 140,920
_____
TOTAL INCOME...................................................... $ 364,239
EXPENSES:
Investment advisory fee-Note 2(a)..................................... 138,453
Auditing fees......................................................... 39,288
Directors' fees and expenses-Note 2(c)................................ 14,073
Organization expenses................................................. 14,029
Shareholder servicing costs-Note 2(b)................................. 10,500
Legal fees............................................................ 10,026
Custodian fees........................................................ 7,139
Registration fees..................................................... 6,038
Prospectus and shareholders' reports.................................. 5,487
Miscellaneous......................................................... 1,543
_____
TOTAL EXPENSES.................................................... 246,576
Less-reduction in management fee due to
undertaking-Note 2(a)............................................. 11,650
_____
NET EXPENSES...................................................... 234,926
_____
INVESTMENT INCOME-NET............................................. 129,313
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain on investments-Note 3................................. $1,186,985
Net unrealized appreciation on investments.............................. 3,840,201
_____
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS................... 5,027,186
_____
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $5,156,499
=======
See notes to financial statements.
</TABLE>
<TABLE>
THE DREYFUS SOCIALLY RESPONSIBLE GROWTH FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED DECEMBER 31,
______________________________
1994 1995
______ _______
<S> <C> <C>
OPERATIONS:
Investment income-net................................................... $ 264,288 $ 129,313
Net realized gain (loss) on investments................................. (61,713) 1,186,985
Net unrealized appreciation (depreciation) on investments for the year.. (146,700) 3,840,201
_____ _____
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.................. 55,875 5,156,499
_____ _____
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income-net................................................... (265,951) (140,970)
Net realized gain on investments........................................ _ (722,469)
_____ _____
TOTAL DIVIDENDS....................................................... (265,951) (863,439)
_____ _____
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold........................................... 10,922,467 19,961,839
Dividends reinvested.................................................... 265,951 863,438
Cost of shares redeemed................................................. (1,943,759) (3,867,386)
_____ _____
INCREASE IN NET ASSETS FROM CAPITAL STOCK TRANSACTIONS................ 9,244,659 16,957,891
_____ _____
TOTAL INCREASE IN NET ASSETS...................................... 9,034,583 21,250,951
NET ASSETS:
Beginning of year....................................................... 1,371,698 10,406,281
_____ _____
End of year [including distributions in excess of investment
income-net; ($2,009) in 1994 and undistributed investment
income-net; $1,700 in 1995]........................................... $10,406,281 $31,657,232
===== =====
SHARES SHARES
_____ _____
CAPITAL SHARE TRANSACTIONS:
Shares sold............................................................. 808,182 1,237,706
Shares issued for dividends reinvested.................................. 20,087 50,113
Shares redeemed......................................................... (144,061) (245,303)
_____ _____
NET INCREASE IN SHARES OUTSTANDING.................................... 684,208 1,042,516
====== ======
See notes to financial statements.
</TABLE>
<TABLE>
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 year indicated. This information
has been derived from the Fund's financial statements.
YEAR ENDED DECEMBER 31,
_________________________________
PER SHARE DATA: 1993(1) 1994 1995
___ ___ ___
<S> <C> <C> <C>
Net asset value, beginning of year.................................... $12.50 $13.38 $13.23
___ ___ ___
INVESTMENT OPERATIONS:
Investment income-net................................................. .04 .35 .08
Net realized and unrealized gain (loss) on investments................ .88 (.15) 4.49
___ ___ ___
TOTAL FROM INVESTMENT OPERATIONS.................................... .92 .20 4.57
___ ___ ___
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 year.......................................... $13.38 $13.23 $17.31
=== === ===
TOTAL INVESTMENT RETURN................................................... 7.35%(2) 1.49% 34.56%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets............................... .06%(2) .25% 1.27%
Ratio of net investment income to average net assets.................. .64%(2) 4.58% .70%
Decrease reflected in above expense ratios due to undertakings
by Dreyfus and sub-investment adviser............................... 6.19%(2) 2.60% .06%
Portfolio Turnover Rate............................................... - 373.68% 88.52%
Net Assets, end of year (000's Omitted)............................... $1,372 $10,406 $31,657
(1) From October 7, 1993 (commencement of operations) to December 31, 1993.
(2) Not annualized.
See notes to financial statements.
</TABLE>
THE DREYFUS SOCIALLY RESPONSIBLE GROWTH FUND, INC.
NOTES TO FINANCIAL STATEMENTS
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES:
The Fund is registered under the Investment Company Act of 1940 ("Act")
as a diversified open-end management investment company. 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. Premier Mutual Fund Services, Inc. (the "Distributor") acts as the
distributor of the Fund's shares which are sold without a sales charge. The
Distributor, located at One Exchange Place, Boston, Massachusetts 02109, is a
wholly-owned subsidiary of FDI Distribution Services, Inc., a provider of
mutual fund administration services, which in turn is a wholly-owned
subsidiary of FDI Holdings, Inc., the parent company of which is Boston
Institutional Group, Inc. The Dreyfus Corporation ("Dreyfus") serves as the
Fund's investment adviser. NCM Capital Management Group, Inc. serves as the
Fund's sub-investment adviser. Dreyfus is a direct subsidiary of Mellon Bank,
N.A.
(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. This may result in distributions
that are in excess of investment income-net on a fiscal year basis. 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.
During the year ended December 31, 1995, the Fund reclassified $15,367
from paid-in capital to undistributed investment income-net and net assets
were not affected by the change.
(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-INVESTMENT ADVISORY FEE, SUB-INVESTMENT ADVISORY FEE AND OTHER TRANSACT
IONS WITH AFFILIATES:
(A) Pursuant to an Investment Advisory Agreement with Dreyfus, the
investment advisory fee is computed at the annual rate of .75 of 1% of the
average daily value of the Fund's net assets and is payable monthly. The
Investment Advisory Agreement further provides that if in any full year the
aggregate expenses of the Fund, exclusive of taxes, brokerage, interest on
borrowings and extraordinary
THE DREYFUS SOCIALLY RESPONSIBLE GROWTH FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
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 had undertaken from January 1, 1995 through July 10, 1995 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)
exceeded specified annual percentages of the Fund's average daily net assets.
The reduction in management fee, pursuant to the undertaking, amounted to
$11,650 for the year ended December 31, 1995.
Pursuant to a Sub-Investment Advisory Agreement with NCM Capital
Management Group, Inc., the sub-investment advisory fee is computed at an
annual rate of .10 of 1% on the first $500 million and .20 of 1% on the
excess of the average daily value of the Fund's net assets and is payable
monthly by Dreyfus.
Effective December 1, 1995, 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 $11 for the period from December 1,
1995 through December 31, 1995.
(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 year ended December 31,
1995, $2,800 was charged to the Fund pursuant to the Shareholder Services
Plan.
(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 3-SECURITIES TRANSACTIONS:
The aggregate amount of purchases and sales of investment securities,
excluding short-term securities, during the year ended December 31, 1995,
amounted to $32,998,822 and $14,121,334, respectively.
At December 31, 1995, accumulated net unrealized appreciation on
investments was $3,722,618, consisting of $4,326,576 gross unrealized
appreciation and $603,958 gross unrealized depreciation.
At December 31, 1995, 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.
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
SHAREHOLDERS AND BOARD OF DIRECTORS
THE DREYFUS SOCIALLY RESPONSIBLE GROWTH FUND, INC.
We have audited the accompanying statement of assets and liabilities of
The Dreyfus Socially Responsible Growth Fund, Inc., including the statement
of investments, as of December 31, 1995, and the related statement of
operations for the year then ended, the statement of changes in net assets
for each of the two years in the period then ended, and financial highlights
for each of the years indicated therein. These financial statements and
financial highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. Our procedures included confirmation of
securities owned as of December 31, 1995 by correspondence with the custodian.
An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights
referred to above present fairly, in all material respects, the financial
position of The Dreyfus Socially Responsible Growth Fund, Inc. at December
31, 1995, the results of its operations for the year then ended, the changes
in its net assets for each of the two years in the period then ended, and the
financial highlights for each of the indicated years, in conformity with
generally accepted accounting principles.
[Ernst and Young LLP signature logo]
New York, New York
February 9, 1996
[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 27701
CUSTODIAN
The Bank of New York
90 Washington Street
New York, NY 10286
TRANSFER AGENT &
DIVIDEND DISBURSING AGENT
Dreyfus Transfer, Inc.
One American Express Plaza
Providence, RI 02903
Further information is contained
in the Prospectus, which must
precede or accompany this report.
Printed in U.S.A. 111AR9512
[Dreyfus logo]
Socially Responsible
Growth Fund, Inc.
Annual Report
December 31, 1995
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
IN THE DREYFUS SOCIALLY RESPONSIBLE GROWTH FUND
AND THE STANDARD & POOR'S 500 COMPOSITE STOCK PRICE
INDEX
EXHIBIT A:
___________________________________________________________
| | STANDARD | |
| | & POOR'S 500 | DREYFUS |
| PERIOD | COMPOSITE STOCK | SOCIALLY RESPONSIBLE |
| | PRICE INDEX* | GROWTH FUND |
|--------- | --------------- | -------------------- |
| 10/7/93 | 10,000 | 10,000 |
|12/31/93 | 10,232 | 10,735 |
|12/31/94 | 10,366 | 10,895 |
|12/31/95 | 14,257 | 14,661 |
|--------- | --------------- | -------------------- |
*Source: Lipper Analytical Services, Inc.
