Drivers of Corporate Social Responsibility Attitudes: The Demography of Socially Responsible Investors

Abstract

Demographic characteristics of socially responsible investors (SRIs) are likely to play a significant role in shaping their perceptions and behaviour concerning corporate social responsibility (CSR). This paper identifies demographic characteristics of SRIs and explores the relationship of these characteristics with their CSR attitudes. We analyse, using generalized ordered logistic regression, the questionnaire responses of 2464 SRIs from 20 countries. The results demonstrate that younger and female SRIs are more likely to believe that a company's social and environmental performance is as important as its financial performance. Female SRIs and those with high incomes are the most likely to believe that companies should be as responsible to their shareholders as to the broader society. In addition, younger SRIs, those with high incomes and those who have attained higher education levels regard socially responsible companies as at least as profitable as other companies. The benefits which companies can derive from understanding the demographic profile of SRIs are examined, including a potentially lower cost of capital, improved CSR rankings and business policy formulation and communication consistent with CSR views held by specific groups of SRIs.