Motives to engage in sustainable investment: a comparison between institutional and private investors

• Published in: Sustainable development (Bradford, West Yorkshire, England) Vol. 19; no. 2; pp. 135 - 142
• Main Authors: Jansson, Magnus, Biel, Anders
• Format: Journal Article
• Language: English
• Published: Chichester, UK John Wiley & Sons, Ltd 01-03-2011; Wiley Periodicals Inc
• Series: Sustainable Development
• Subjects: beliefs; Comparative analysis; Corporate social responsibility; Criteria; Documents; Employees; ethical investments; Ethics; Fiduciaries; Financial institutions; Financial risks; Financing; Fund management; Institutional investments; Institutions; Investment; Investment advisors; Investment decision; investment decisions; Investment policy; Investment returns; Investments; Investors; Questionnaires; Rates of return; Responsibility; Risk; Social aspects; Social responsibility; Social Values; socially responsible investment; Studies; Sustainable Development; Values
• ISSN: 0968-0802; 1099-1719
• DOI: 10.1002/sd.512

The current study compares motives to invest in accordance with socially responsible criteria among different groups of investors. In total, 60 employees from 19 investment institutions, 453 private investors and 71 institutional investors participated in a questionnaire study. While socially responsible investment (SRI) among private and institutional investors was guided by self‐transcendent values (environmental and social values), this was not the case among fund managers working in investment institutions. Fund managers in investment institutions were affected by beliefs about long‐term returns of SRI. Private investors were, in addition, influenced by beliefs about long‐term returns, whereas institutional investors were motivated by an effort to reduce financial risks. Finally, investment institutions tended to overrate the importance of financial returns among their beneficiaries (private and institutional beneficiaries) and underestimate the importance of ethical, environmental and social aspects for beneficiaries. The results indicate that private and institutional investors/beneficiaries give a wider interpretation of fiduciary duty than investment institutions do. Copyright © 2011 John Wiley & Sons, Ltd and ERP Environment.