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Who is Willing to Let Ethics Guide His Economic Decision-Making? Evidence from Individual Investments in Ethical Funds

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Author Info
Säve-Söderbergh, Jenny () (Swedish Institute for Social Research, Stockholm University)
Abstract

Recent economics literature has devoted attention towards motives beyond the typical selfish norm for economic decision-making. Yet, it still remains a puzzle who allows such considerations to govern their behavior. This paper contributes by empirically identifying some features which differentiate individuals who choose to bear the cost of ethically guided economic decision-making from others. Using unique Swedish data on individual pension portfolio choices, we find that education, the choice of an occupation that is committed to taking care of others, actively joining a group working for a common cause, clearly predict the choice of an ethical screen for individual investments.In contrast to previous findings on altruism, income, financial wealth and age do not govern the decision. The results therefore suggest that investing ethically is typically a choice of principles.

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Publisher Info
Paper provided by Swedish Institute for Social Research in its series Working Paper Series with number 7/2005.

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Length: 37 pages
Date of creation: 24 Nov 2005
Date of revision:
Handle: RePEc:hhs:sofiwp:2005_007

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Related research
Keywords: Socially Responsible Investing; Altruism; Individual Financial Investments; Individual Decision-Making; Ethics and Norms;

Find related papers by JEL classification:
A13 - General Economics and Teaching - - General Economics - - - Relation of Economics to Social Values
C24 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Truncated and Censored Models
D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General
Z13 - Other Special Topics - - Cultural Economics - - - Social Norms and Social Capital; Social Networks Economic Anthropology

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References listed on IDEAS
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