I wrote 'that depends' as I really wanted to tick 'something I'll put in a comment'.

I think Charities should write (and regularly review) investment policies. A good charity investment policy should include consideration of returns needed, what access to the money might be needed and so on. The 'ethical' bit should follow naturally from the aims of the charity, and should be specific (although the specific 'we will not invest in gold mining or alcohol production' might lead the organization to invest in a generic 'ethical' product which has those specifics, alongside things like no-arms and no-oppressive-regimes, which the charity does not care about.