To read this content please select one of the options below:

Millennial behavioral intentions toward socially responsible investment: an application of norm activation model in a developing country

Rajdeep Kumar Raut (Department of Finance, Jaipuria Institute of Management – Jaipur Campus, Jaipur, India)
Rohit Kumar (Amity Business School, Amity University, Patna, India)
Niladri Das (Department of Management Studies, IIT (ISM), Dhanbad, India)

Journal of Global Responsibility

ISSN: 2041-2568

Article publication date: 17 January 2025

49

Abstract

Purpose

Sustainable financial practices are integral to achieving the United Nation’s development goals that necessitates the collaborative efforts of both corporate and investors. This study focuses on investors’ pro-environmental personal norms (PN) along with hedonic values on socially responsible investment (SRI) intentions, which could help in understanding investors’ responsiveness to corporate Environmental, Social and Governance efforts.

Design/methodology/approach

The sample for this study included 415 responses from young millennial investors, using a cross-sectional research design. A two-step structural equation model was used to analyze construct reliability and validity and to test the hypotheses and overall model predictability. The mediating role of ascribed responsibility (AR) between the awareness of consequence (AOC) and PNs was investigated.

Findings

These results indicate that AOC and AR substantially affect PNs. PNs based on AOC and AR was found to be significant but scored lower than hedonic considerations for SRI. In addition, the relationship between AOC and PNs exhibited a full mediation effect on AR.

Practical implications

These findings suggest that investors are environmentally conscious when aware of the repercussions of their actions. They feel accountable, even when making financial choices. Fund managers might include more environmentally responsible companies in their portfolios and the government could offer tax incentives to attract investors. The active economic participation of an increasing number of pro-environmental investors can improve the macroeconomic climate.

Originality/value

This is the first study to use the norm activation model for pro-environmental behavior in a financial setting. Most previous studies have focused on social norms to showcase individuals’ obligation and responsibility for a good cause. However, this study demonstrates the importance of personal moral obligation in shaping societal norms. Hedonism is a new dimension in the context of responsible investment.

Keywords

Citation

Raut, R.K., Kumar, R. and Das, N. (2025), "Millennial behavioral intentions toward socially responsible investment: an application of norm activation model in a developing country", Journal of Global Responsibility, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/JGR-01-2024-0002

Publisher

:

Emerald Publishing Limited

Copyright © 2025, Emerald Publishing Limited

Related articles