The decision process for ethical investment

Hofmann, Eva; Meier-Pesti, Katja; Kirchler, Erich

doi:10.1057/palgrave.fsm.4760057

Cited by 34 publications

(19 citation statements)

References 19 publications

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“…The only hypothesis that was not confirmed was the influence of moral intensity on moral intentions, which suggests that moral intensity affects moral intention only indirectly through moral judgment. Similar findings were reported by Hofmann, Meier‐Pesti, and Kirchler () who also did not confirm the significant influence of moral intensity on moral intention when testing the complete model in the context of ethical investments. The authors attributed this to the type of moral issue investigated.…”

Section: Discussionsupporting

confidence: 86%

Consumer recycling: An ethical decision‐making process

Culiberg

Bajde

2013

J of Consumer Behaviour

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Although recycling is often experienced as a moral dilemma, studies that systematically approach this issue from an ethical perspective are scarce. Moreover, previous studies have explored recycling by mainly using single ethical constructs, such as moral norms, values or obligations, rarely approaching it as an ethical decision‐making process. Our study takes a more holistic approach and integrates the recycling literature with business ethics theory in order to develop a conceptual model of ethical decision making involved in recycling. The model is based on Jones' issue‐contingent model and its key concept, that is, moral intensity, which we extend by adding altruism as an important personality trait that influences pro‐social behaviour. The data were collected from a sample of 367 adult consumers, representative of the Slovenian population by gender and age. The hypotheses were tested using structural equation modelling. The results of our study confirmed the relationships between three key facets of ethical decision making: moral recognition, moral judgment and moral intention. Higher levels of moral recognition were found to lead to more positive moral judgments, which in turn positively influenced the formation of intentions to recycle. Moreover, moral intensity was found to be a significant predictor of moral recognition and moral judgment, while altruism was found to be a significant predictor of moral recognition. These findings hold important implications for public policy makers and social marketers who have to consider not only the consumer characteristics but also the issue characteristics in seeking to understand and influence consumer recycling. Copyright © 2013 John Wiley & Sons, Ltd.

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Section: Discussionsupporting

confidence: 86%

Consumer recycling: An ethical decision‐making process

Culiberg

Bajde

2013

J of Consumer Behaviour

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“…Again, the concept of a fiduciary is based more upon decision-making processes rather than the outcomes. Hofman et al (2007) discovered in an empirical study of 286 participants that the issue-contingent model of ethical decision making in organizations is applicable to SRI decision making. Young (2007) writes that a fiduciary ''…is expected to assume new decision-making habits and reflective capacities that transcend selfishness'' (p. 4).…”

Section: Legal/regulatory Basismentioning

confidence: 98%

Socially Responsible Investing: Is Your Fiduciary Duty at Risk?

Martin

2009

J Bus Ethics

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“…The literature on socially responsible investing (SRI) is ambiguous on whether moral considerations might introduce inefficiency by either increased risk or reduced profitability (e.g., Barnett and Salomon, 2006;Hofmann et al, 2007;Jensen, 2002). For example, Barreda-Tarrazona et al (2011) find that socially responsible investors are willing to accept a smaller return from a socially responsible investment than from non-SR funds.…”

Section: Buying Csr With Employees' Pensions? the Effect Of Social Rementioning

confidence: 99%

“…More specifically, influenced by the investment strategies of the Norwegian Petroleum Fund and from pressure from various stakeholders, pension fund managers and pension fund investors are expected to take both moral and financial considerations in their investment choices (e.g., Hofmann et al, 2007;Scholtens and Sievänen, 2013). Corporate brand credibility assists companies in assessing the suppliers' quality which otherwise might be difficult due to the financial services' experience and credence attributes.…”

Section: Research Context and Sampling Framementioning

confidence: 99%

“…Hence, balancing expected return and costs while reducing personal and organizational risk should prevail in pension fund choice (Hofmann et al, 2007). For example, a survey shows that a majority of Norwegian employees will emphasize expected return on their occupational pension deposits rather than ethical and social responsible investments (Ditlev-Simonsen and Wenstøp, 2014).…”

Section: Theoretical Framework and Hypothesesmentioning

confidence: 99%

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Buying CSR with employees’ pensions? The effect of social responsible investments on Norwegian SMEs’ choice of pension fund management

Biong

Silkoset

2017

IJBM

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PurposeEmployees often expect an emphasis on financial aspects to be predominant when their employers choose a fund management company for the investment of employees' pension fund deposits. By contrast, in an attempt to appear as socially responsible company managers may emphasize social responsibility in pension fund choices. This study examines to what extent managers for small and medium sized companies emphasize social responsibility (SR) vs. expected returns when choosing investment managers for their employees' pension funds. Design/methodology/approachA conjoint experiment among 276 Norwegian SMEs' decision makers examines their tradeoffs between social and financial goals in their choice of employees' pension management.Furthermore, the study examines how the companies' decision makers' characteristics influence their pension fund management choices. FindingsThe findings show that the employers placed the greatest weight to suppliers providing funds adhering to socially responsible investment (SRI) practices, followed by the suppliers' corporate brand credibility, the funds' expected return, and the suppliers' management fees.Second, employers with investment expertise emphasized expected returns and downplayed social responsibility in their choice, whereas employers with stated CSR-strategies downplayed expected return and emphasized SR. Originality/valueChoice of supplier to manage employees' pension funds relates to a general discussion on whether companies should do well -maximizing value, or do good, -maximizing corporate social responsibility. In this study, doing well means maximizing expected returns and minimizing costs of the pension investments, whereas doing good means emphasizing SRI in this choice. Unfortunately, the employees might pay a price for their companies' ethicality as moral considerations may conflict with maximizing the employees' pension fund value.

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The decision process for ethical investment

Cited by 34 publications

References 19 publications

Consumer recycling: An ethical decision‐making process

Consumer recycling: An ethical decision‐making process

Socially Responsible Investing: Is Your Fiduciary Duty at Risk?

Buying CSR with employees’ pensions? The effect of social responsible investments on Norwegian SMEs’ choice of pension fund management

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