Sustainable Investing and the Ethical Dilemma: Consumer Reactions to Sustainable Companies Choosing Controversial Investors

Objectives The main objectives of this study were to analyze the phenomenon of sustainable companies choosing unethical investors and fill the gaps in existing literature by focusing on consumer reactions and behaviors resulting from the phenomenon. In addition, this study aimed to examine consumer perceptions towards the sustainable market, as well as the climate crisis. Finally, through providing consumers with additional information of the positive effects of additional funding, this study attempted to examine if the positive effects of funding are significant enough to maintain consumers’ willingness to buy from a company. Summary This research was conducted through a quantitative study where consumer reactions towards an event where a sustainable company chooses an unethical investor were examined with the help of a survey instrument. In addition, the quantitative study examined the differences in consumer behaviors after the respondents were given additional information on the aforementioned event. The responses of consumers were reviewed and analyzed, and discussion was driven from the analysis. Conclusions The existing literature created an assumption that in a situation where a sustainable company chooses an investor with a bad reputation, consumers will have negative reactions. The primary data of this study aligned with these assumptions, revealing generally negative consumer attitudes. However, it was noticed that while having negative reactions, consumers were not ready to take significant actions towards the company. When presented with additional information on the possible positive effects of the funding, consumers’ reactions turned to more positive. Through analyzing secondary and primary data, it was concluded that sustainable companies can benefit from big investors despite possible controversy if they manage to communicate their intentions and the positive effects of the funding to their customers