On some level it's reasonable to say that you own shares in a mutual fund, not shares in the individual companies.

But the other side of that is that you can fairly easily see what the mutual fund is doing, and copy it, without the problematic companies. Yes, it will be less profitable, but you can do it, and you can do it without too much difficulty when you're talking about millions of dollars in investments. So it seems, I dunno, weak to say that you can't divest your own personal investments from these things. Plus, I'm pretty sure that there are at least a handful of mutual funds that entirely avoid those kind of companies in order to attract ethical investors.