Social preferences and socially responsible investing:a survey of US investors

We undertook a survey of US investors to examinewhether social preferences can explain three measures ofengagement in socially responsible investment (SRI): interest in SRI; history of SRI investment; and the proportion currently invested in SRI. We find that investors with stronger social preferences are more interested in SRI than are those with weaker social preferences. Further, investors with stronger social preferences are more likely to have invested in SRI. We do not, however, obtain any association between social preferences and the share of total portfolio invested in SRI. These results are consistent with a ‘warm glow’ interpretation of investor motivations to hold SRI.