Researchers:
Biel, Anders
Hedesström, Martin
Jansson, Magnus
Juravle, Carmen
Lewis, Alan

This project investigate to which extent adherence to, or rejection of, a SI policy can be explained by the organisational structure and the decision making process within investment organisations. Institutional investors are large and powerful owners of corporate equity and have, through their investment decisions, the potential to influence company behaviour in a more sustainable direction. How can then institutional investors be influenced? There are many obstacles to overcome before such influences will become more widespread.

The present study investigates impediments to sustainable investment (SI) that reside within the organizations of institutional investors. A questionnaire has been addressed to approximately 40 institutional investors with board directors, senior investment managers and portfolio managers acting as respondents. The respondents represent SI as well as non-SI funds. The survey instrument assesses constructs in the Value-Belief-Norm theory by Stern et al. (1999). Presently, little is known about how variations in the endorsement of values and norms among members in an organisation affect decision making.

We test the hypothesis that to the extent that a SI policy has been adopted, members of the organisation share a norm to advance SI, driven by an adherence to social and environmental values, together with beliefs about potential benefits of SI. We also examine an alternative model assuming a direct link between beliefs about financial outcomes of SI and SI practices in the organisation.

In addition, we will distribute a mail survey to owners and beneficiaries. One group of respondents will be private owners, the other group organisational owners (e.g., municipalities, county councils, unions). Our chief concern is to compare the importance of intangibles, that is, value and issue priorities and moral norm concerns between investors and beneficiaries.

In parallel, SI practitioners in the UK are interviewed. Furthermore, the questionnaire to owners will also be distributed in the UK to allow for comparisons among Swedish and UK beneficiaries.

Reference
Stern, P.C., Dietz, T., Abel, T., Guagnano, G.A., & Kalof, L. (1999). A value-belief-norm theory of support for social movements: The case of environmentalism. Human Ecology Review, 6, 81-97.