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Journal of Business Ethics

, 90:1 | Cite as

Morals or Economics? Institutional Investor Preferences for Corporate Social Responsibility

  • Henry L. Petersen
  • Harrie Vredenburg
Article

Abstract

This article presents the results of a study that analysed whether social responsibility had any bearing on the decision making of institutional investors. Being that institutional investors prefer socially aligned organizations, this study explored to what extent the corporate actions and/or social/environmental investments influenced their decisions. Our results suggest that there are specific variables that affect the perceived value of the organization, leading to decisions to not only invest, but whether to hold or sell the shares, and therefore having a consequential impact on the capital market’s valuation.

Key words

social responsibility institutional investing social–financial performance 

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Copyright information

© Springer Science+Business Media B.V. 2009

Authors and Affiliations

  1. 1.School of Business and EconomicsSeattle Pacific UniversitySeattleU.S.A.
  2. 2.Haskayne School of BusinessUniversity of CalgaryCalgaryCanada

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