Conflicting Intuitions about Ethical Investment: A Survey among Individual Investors
This present paper relates the results of an exploratory survey distributed among individuals invested in so-called ethical (or socially responsible) mutual funds, and attempts to develop a better understanding of these individuals’ ethical beliefs – especially concerning whether, or why, they think that the practices of contemporary ethical funds indeed are ethical. Survey questions were informed by the contemporary philosophical literature pertaining to the ethics of investing and designed to elicit the respondents’ basic intuitions about the ethics of different investment strategies. Our results indicate that respondents show considerable support for both a moral purity perspective and a moral effectiveness perspective, and they seem to find it difficult to choose between these perspectives. Indeed, we find that this is not just a conflict between different groups of investors with different moral outlooks, but many individuals themselves seem to be struggling with conflicting ethical intuitions. We argue that these results are incompatible with the idea that ethical investors refrain from thinking systematically about ethics simply in order to be able to get away with also investing in non-ethical funds. A more probable explanation is developed building on the contemporary psychological literature concerning intuitions in ethics.
|Date of creation:||25 Aug 2011|
|Date of revision:|
|Contact details of provider:|| Postal: Economics of Corporate Sustainability Management, Department of Industrial Economics and Management, Royal Institute of Technology, SE-100 44 Stockholm, SWEDEN|
Phone: 08-790 78 61
Fax: 08-790 76 17
Web page: http://www.sirps.se
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Mackenzie, Craig & Lewis, Alan, 1999. "Morals and Markets: The Case of Ethical Investing," Business Ethics Quarterly, Cambridge University Press, vol. 9(03), pages 439-452, July.
- Anand, Paul & Cowton, Christopher J., 1993. "The ethical investor: Exploring dimensions of investment behaviour," Journal of Economic Psychology, Elsevier, vol. 14(2), pages 377-385, June.
- Hudson, Richard, 2005. "Ethical Investing: Ethical Investors and Managers," Business Ethics Quarterly, Cambridge University Press, vol. 15(04), pages 641-657, October.
- Webley, Paul & Lewis, Alan & Mackenzie, Craig, 2001. "Commitment among ethical investors: An experimental approach," Journal of Economic Psychology, Elsevier, vol. 22(1), pages 27-42, February.
- Joakim Sandberg, 2011.
"Socially Responsible Investment and Fiduciary Duty: Putting the Freshfields Report into Perspective,"
Journal of Business Ethics,
Springer, vol. 101(1), pages 143-162, June.
- Sandberg, Joakim, 2010. "Socially Responsible Investment and Fiduciary Duty: Putting the Freshfields Report into Perspective," Sustainable Investment and Corporate Governance Working Papers 2010/3, Sustainable Investment Research Platform.
- Jonas Nilsson, 2008. "Investment with a Conscience: Examining the Impact of Pro-Social Attitudes and Perceived Financial Performance on Socially Responsible Investment Behavior," Journal of Business Ethics, Springer, vol. 83(2), pages 307-325, December.
- Louche, C. & Lydenberg, Steven, 2006. "Socially responsible investment: differences between Europe and United States," Vlerick Leuven Gent Management School Working Paper Series 2006-22, Vlerick Leuven Gent Management School.
When requesting a correction, please mention this item's handle: RePEc:hhb:sicgwp:2010_016. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Pontus Cerin)
If references are entirely missing, you can add them using this form.