WINTER zyxwvuts 1991 VOLUME 25, NUMBER 2 22 1 PAPERS BARRY N. zyxwv ROSEN, DENNIS M. SANDLER, AND DAVID SHANI Social Issues and Socially Responsible Investment Behavior: A Preliminary Empirical Investigation An important dimension of the ongoing trend toward greater cor- porate social responsibility is the emergence of individual and institu- tional investors who invest in companies that support social objec- tives. While a small number of studies have examined the criteria used by institutions, no studies have looked at individual investors. Using a mail survey of 4,000 investors in two mutual funds that incorporate social screens in their investment decisions, this study finds that com- pared with other investors, socially responsible investors are younger and better educated. Respondents most frequently identify environ- mental and labor relations issues when asked what defines socially responsible corporate behavior. Although the respondents value socially responsible behavior in companies they invest in, they are unwilling to sacrifice financial returns to achieve it. An important dimension of the ongoing demand for greater cor- porate social responsibility is the emergence of the socially responsi- ble investor (SRI). The SRI invests in companies whose actions sup- port social objectives deemed desirable by the investor, e.g., reduc- ing environmental pollution. There are two broad groups of SRIs: individuals and institutions such as public and private pension funds, trusts, and endowed insti- tutions (e.g., universities or religious orders). While a couple of Barry N. Rosen is Associate Professor, Dennis M. Sandler is Assistant Professor, and David Shani is Assistant Professor, Marketing Department, Baruch College, The City University of New York, New York, NY. The names are listed in alphabetical order; all authors contributed equally. This research was supported by grants from the Rockefeller Brothers Fund, the Community Capital Bank, The Calvert Social Investment Fund, and the Working Assets Money Fund. The authors wish to express their appreciation to David Bushnell for his invaluable assistance in compiling and analyzing the data. The Journal of Consumer Affairs, Vol. 25, No. 2, 1991 zyxw @ 1991 by The American Council on Consumer Interests 0022-0078/OOO2-221 1.50/0