Baby Boomers and seniors ages 65 and up are the strongest proponents of socially responsible investing and the investors most likely to support companies whose policies support causes in which they are passionate.
Socially responsible investing appeals to investors’ altruistic natures.
More than six-in-ten (62 percent) affluent investors believe that the practice will create a better world for their children and grandchildren, while 57 percent think it will improve the environment, according to a new Spectrem Group study. Almost half believe that socially responsible investing will create a better world for the less fortunate (48 percent) or compel companies to embrace social responsibility in their business practices (46 percent).
When it comes to social responsibility, some of the best investments are those that investors don’t make. The highest number of affluent investors surveyed by Spectrem Group said that they avoid investing in companies whose practices hamper human rights. They would also be most likely to avoid companies that produce or solicit products that are either physically or socially harmful to the consuming public.
(What percentage of affluent investors’ portfolios is devoted to socially responsible investments? See the full report here).
Conversely, affluent investors interested in social responsibility are most likely to invest in companies that encourage and foster environmentally friendly practices (while avoiding companies perceived to harm or damage the environment). A majority of respondents also said they have strong interest in supporting companies that encourage and promote diversity and have specific programs in place that create a diverse workforce.
Men and women are basically on the same page when it comes to how they would practice socially responsible investing. They express the same reluctance to invest in companies that produce or solicit products they deem physically or socially harmful to the public. But not surprisingly, women are more adamant than their male counterparts about avoiding companies that don’t offer adequate pay as well as supporting companies that encourage and promote diversity and foster environmentally friendly practices.
Across age groups, Millennials are less likely than previous generations to be on board with socially responsible investing. Baby Boomers and seniors ages 65 and up are this investment practice’s strongest proponents and the investors most likely to support companies whose policies support causes in which they are passionate.
Donald Liebenson writes news and features for Millionaire Corner. He has been published in the Chicago Tribune, The Chicago Sun-Times, The Los Angeles Times, Fiscal Times, Entertainment Weekly, Huffington Post, and other outlets. He has also served as a marketing writer for Chicago-based Questar Entertainment and distributor Baker & Taylor.
A graduate of the University of Southern California, he is married with a college-age son. He also writes extensively about entertainment.