Working Paper Series, Swedish Institute for Social Research, Stockholm University
Who is Willing to Let Ethics Guide His Economic Decision-Making? Evidence from Individual Investments in Ethical Funds
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.
Keywords: Socially Responsible Investing; Altruism; Individual Financial Investments; Individual Decision-Making; Ethics and Norms; (follow links to similar papers)
JEL-Codes: A13; C24; D80; Z13; (follow links to similar papers)
37 pages, November 24, 2005
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- This paper is published as:
Säve-Söderbergh, Jenny, (2010), 'Who is Willing to Let Ethics Guide His Economic Decision-Making? Evidence from Individual Investments in Ethical Funds', Economics Letters, Vol. 107, No. 2, pages 270-272
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