Analysis of Private Socially Responsible Investment: The Impact of Personal Concern with Corporate Social Responsibility

Abstract

Are many years that academics and professionals dealing with the so-called socially
 responsible investment (SRI). Yet, still it persists today the need of a better knowledge of personal
 reasons underlying the investment decision. This is evidenced by inconclusive and contradictory
 findings of decades of empirical research. So, this paper aims at contributing to fill this gap, by
 deepening whether the level of personal concerns with corporate social responsibility (CSR) and the
 personal preferences towards the screening criteria adopted by socially responsible funds (SRFs)
 affect the decision to choose a socially responsible investment. In order to connect the investment
 choice with the personal concerns for CSR, this study refers to an experimental survey that proposes
 different investment scenarios and several five point Likert statements referred to corporate social
 responsibility. Findings confirm that the traditional risk/return trade-off is not sufficient to explain
 the decision to invest socially responsibly, going beyond a purely financial return. In fact, the level
 of personal concerns with CSR and the preference for investment screens related to the safeguard of
 natural environment and human rights incentive individuals to invest in SRFs.