On the relevance of contextual factors for socially responsible investments: an econometric analysis

On the basis of unique data from an (online) representative web-based survey among financial decision-makers in Germany, this paper empirically examines the relevance of contextual factors including social norms for socially responsible investments (SRIs). The econometric analysis reveals a significant positive correlation between SRIs and common attitudinal variables such as feelings of warm glow or social norms as, for example, prevalent in an environmental organization. In contrast, a left-wing political orientation is significantly negatively correlated with SRIs. However, the main result is that also perceived behaviours and expectations of peers for SRIs, especially in the narrowest social environment like the family, friends, and colleagues, are highly relevant. Overall, this suggests that SRI investors gain strong non-financial utility from sustainable investments.