INTRODUCTION:

Investment behaviour is a complex arena of finance where demographics, behavioural biases and market dynamics have a significant role to play (S. K. Das, 2012; U. Das and Mohapatra, 2017; Ganesamoorthy and Baba, 2016; Gowd et al., 2012; Gupta, 2017; Ikhar, 2014; J, 2017; Maroor, 2015; Mittal, 2017; Narayanan et al., 2024; Patni and Gupta, 2015; Rao and T.Gopi, 2013; Vijayakumar et al., 2011).

While the history of SRI in India is relatively young compared to Western counterparts, the trajectory showcases a promising shift towards a more conscientious and sustainable financial ecosystem. As the global discourse on responsible investing continues to shape financial markets, India's SRI landscape is poised for continued growth and integration of ethical considerations into mainstream investment practices (Krishna et al., 2022; OpenAI, 2023).

Socially responsible investing (SRI), also recognized as social investment, involves placing funds in a manner deemed socially responsible based on the company's business practices (James, 2021). The act of directing investments towards companies and funds with positive social impacts is termed socially responsible investment (SRI), and its popularity has grown in recent times. It's crucial for investors to bear in mind that socially responsible investments are, at their core, financial endeavors, and considerations of profitability should not be overlooked in decision-making. Socially responsible investment is driven by two primary goals: achieving a positive social impact and reaping financial benefits. However, it's essential to note that these objectives are not necessarily synonymous.

SRI: A Short History Timeline:

The history of Socially Responsible Investment (SRI) dates back several decades and reflects the evolving societal awareness of the impact of investments on both financial returns and broader social and environmental issues. The roots of SRI can be traced to various movements and developments:

· 1960s - The Vietnam War Era: The modern history of SRI can be linked to the 1960s when individuals started aligning their investment choices with their values, particularly in response to concerns about the Vietnam War. Investors began avoiding companies involved in military contracts, reflecting an early form of socially conscious investing.

· 1970s - Anti-Apartheid Movement: The anti-apartheid movement in South Africa had a significant influence on SRI during the 1970s. Investors, particularly institutional investors and pension funds, divested from companies operating in South Africa to protest the apartheid regime. This marked a pivotal moment in the intersection of ethical considerations and investment decisions.

· 1980s - Rise of Ethical Mutual Funds: The 1980s saw the establishment of the first mutual funds explicitly dedicated to ethical and socially responsible investing. These funds allowed individual investors to allocate their capital in alignment with their values, avoiding industries such as tobacco, alcohol, and firearms.

· 1990s - Globalization and Environmental Concerns: As globalization accelerated, so did the awareness of global social and environmental issues. SRI expanded beyond ethical considerations to encompass environmental sustainability and corporate responsibility. This era witnessed the emergence of guidelines and principles for responsible investing.

· 2000s - Integration of ESG Factors: The concept of Environmental, Social, and Governance (ESG) factors gained prominence in the 2000s. Investors began integrating non-financial factors into their decision-making processes, recognizing that companies with strong ESG practices might be more sustainable and less exposed to certain risks.

· 2010s - Mainstream Acceptance: SRI moved further into the mainstream in the 2010s. More institutional investors and asset managers began incorporating ESG criteria into their investment strategies. The notion that responsible investing does not necessarily sacrifice financial returns gained traction.

· 2020s - Continued Growth and Standardization: In recent years, SRI has continued to evolve, with an increasing emphasis on impact investing, community development, and corporate accountability. Standardization efforts, such as the development of global sustainability reporting standards, aim to provide investors with consistent and comparable ESG information.

Throughout its history, SRI has transformed from a niche approach to investment into a global movement that acknowledges the interconnectedness of financial markets, social issues, and environmental concerns. The ongoing evolution of SRI reflects a growing recognition among investors that sustainable and responsible practices can contribute to long-term financial success while addressing pressing global challenges.

A claim of social responsibility by an investment does not guarantee a substantial financial return, and the assurance of financial gains does not assure the company's dedication to social consciousness. While assessing an investment's social value, investors must also scrutinize its financial outlook (Aleena and Vineeth, 2021; Ankiewicz, 2021; Babu and Vineeth, 2023; Baker and Nofsinger, 2012; CFI Team, 2023; Devina and Vineeth, 2019; Fabozzi, 2020; Krishna et al., 2022; Lakshmi and Vineeth, 2019; Merina and Vineeth, 2023; Nikhila M and Vineeth, 2019; Ranju and Vineeth, 2018; Sulfiya and Geetha, 2023; Vineeth, 2014; Warsame and Ireri, 2016). SRI has advanced to the point where portfolio construction aligns with an investor's beliefs, institutional mission, and/or social concerns, catering to a broad spectrum of investing needs (Schueth, 2003).

The Theory of Planned Behaviour (TPB) has been used productively to predict and explain a wide range of behaviors_and_intentions (Ajzen, 1991, 2011; Koropp et al., 2014). Inspired from the work in different dimensions, the following conceptual model is framed for the study (Babu and Vineeth, 2023; Merina and Vineeth, 2023).

Exhibit 1 Conceptual Model

Constructs and scale items have been adapted from Mohammed HWand Edward MI published in the Journal of Behavioral and Experimental Finance.(Warsame and Ireri, 2016)

MATERIALS AND METHODS:

The present descriptive natured uses primary data collected from individuals using a structure questionnaire adopting scale items from literature (Warsame and Ireri, 2016) and secondary data from published works.

The study is based on 580 responses received at random using Google forms. The respondents consisted of 44.8% Male and 55.2% Female. 50% of the respondents were employed and others belonged to different categories like unemployed (17.2%), Professional (6.9%), Retired/Pensioner (3.4%) and Self Employed (22.4%). 46.6% of the respondents were post graduates and 22.4% were graduates. 51.7% of the respondents were having a monthly income below Rs 20000 and 25.9% of the respondents belongs to a monthly income category of Rs 20000 to Rs 50000. Average age of the respondents was 33.2.

All the constructs used in the study with respective adapted scale items have demonstrated reliability, with a Cronbach's Alpha exceeding 0.7, making them suitable for additional statistical analyses (Nunnally, 1978).

The normality test yielded significant p-values (< 0.05), indicating that the data does not follow a normal distribution. Consequently, it is advisable to employ nonparametric procedures for making inferences.

Research Hypothesis of the Study:

H1: Attitude, Subjective Norms and Perceived Behavioural Control (Antecedents of Social Responsible Investing Intention) are positively related to Behavioural Intention

RESULTS:

Analysis of the collected information produced the following results:

Table 1 Frequencies of Risk Behaviour:

Levels	Counts	% of Total	Cumulative %
Risk Averter	130	22.4 %	22.4 %
Risk Neutral	420	72.4 %	94.8 %
Risk Seeker	30	5.2 %	100.0 %

Source: Computed from Survey Data

The respondents were asked to self-assess their risk behaviour. 72.4% of the individuals were found to be risk neutral while 22.4% were risk averters and only 5.2% were found to be risk seekers.

TPB Model in Social Responsibility Investing:

When considering the suitability of the TPB model for studying behavioral intentions towards Socially Responsible Investment (SRI), it is essential to evaluate how well the model aligns with the unique characteristics and considerations associated with SRI.

· Attitudes toward SRI:

TPB recognizes the importance of individuals' attitudes toward a behavior in shaping their behavioral intentions. In the context of SRI, attitudes would refer to individuals' positive or negative evaluations of investing in socially responsible funds. Researchers can explore how individuals perceive the social and environmental impact of SRI and how these perceptions influence their intention to engage in such investment practices.

· Subjective Norms:

Subjective_norms in TPB refer to the perceived_social_pressure or influence from significant others in determining one's intention to engage in a behavior. In the case of SRI, understanding the influence of social networks, family, friends, and societal expectations on individuals' decisions to invest responsibly is crucial. Research can delve into how these subjective norms impact the formation of behavioral intentions regarding SRI.

· Perceived_Behavioral_Control: Perceived_behavioral_control reflects an individual's perception of the ease or difficulty of performing a behavior. In the context of SRI, factors such as financial knowledge, accessibility of socially responsible investment options, and perceived barriers to entry can influence perceived behavioral control. Researchers can investigate how these factors shape individuals' confidence and ability to engage in SRI.

Additional Considerations for SRI:

TPB can be enhanced by incorporating additional factors specific to SRI, such as moral and ethical considerations, environmental awareness, and corporate social responsibility values. These factors may contribute to a more comprehensive_understanding of the determinants of behavioral intentions towards SRI.

Limitations of TPB:

While TPB provides a robust framework, it's essential to acknowledge its limitations. For instance, TPB assumes that individuals are rational decision-makers, and their intentions directly lead to behavior. However, external factors, unforeseen circumstances, and emotional elements can also play a role in behavior, which TPB may not fully capture.

In conclusion, the TPB model offers a valuable framework for studying behavioral intentions towards SRI by considering attitudes, subjective_norms, and perceived_behavioral_control. Researchers can build upon this foundation by incorporating additional factors specific to SRI, providing a nuanced and comprehensive understanding of individuals' motivations and intentions in the context of socially responsible investment.

Table 2 Descriptive Statistics:

	Attitude	Subjective Norms	Perceived Behavioural Control	Behavioural Intention
Mean_	3.60	3.48	3.47	3.44
Median_	3.50	3.50	3.25	3.33
Standard_deviation	0.731	0.855	0.929	0.923
Minimum_	1.00	1.00	1.00	1.00
Maximum_	5.00	5.00	5.00	5.00
Skewness_	-0.485	-0.431	-0.0239	0.0477
Std. error_skewness	0.314	0.314	0.314	0.314
Kurtosis_	1.90	0.297	-0.272	-0.211
Std. error_kurtosis	0.618	0.618	0.618	0.618
Shapiro-Wilk_W	0.948	0.955	0.957	0.938
Shapiro-Wilk_p	0.014*	0.030*	0.037*	0.005*

Exhibit 2 Correlation

Source: (R Core Team, 2020; The Jamovi Project, 2021)

Correlation analysis produced significant r values (p< 0.05) and it could be taken support to the hypotheses that attitude, subjective norms and perceived behavioural control (antecedents of investment intention towards socially responsible investing) are positively related to behavioural intention towards SRI.

Furthermore, the strength and direction of the correlations observed contribute to our understanding of the underlying dynamics within the dataset. The identification of significant correlations enhances the robustness of our findings and supports the validity of the relationships examined. It is essential to note that correlation does not imply causation, and additional research is warranted to explore the causal mechanisms and potential confounding variables that may influence the observed relationships.

The analysis serves as a foundation for future research endeavors and provides valuable insights for relevant stakeholders/policy implications/field of study. The findings contribute to the existing body of knowledge in [specific area] and may have implications for applications in practice/theoretical advancements. Further research employing complementary methodologies is encouraged to deepen our understanding of the complex interplay between these variables.

DISCUSSION:

Recent years have seen the Indian government endorsing sustainable development through policies promoting renewable energy, green initiatives, and corporate social responsibility (CSR). The rise of impact investing, which seeks measurable social and environmental benefits alongside financial returns, further underscores the changing landscape of responsible investing in India.

Over the years, SRI in India has matured, driven by heightened environmental awareness, corporate governance concerns, and social justice considerations. The National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) have introduced sustainability indices to recognize and promote responsible business practices among listed companies. Institutional investors and asset management firms are increasingly integrating SRI principles into their portfolios, reflecting a broader recognition of the interconnectedness between financial performance and sustainable practices.

The research used Theory of Planned Behaviour approach to study the behavioural intention towards SRI principles. Behavioural intention has been found to be promising though not really higher values. The positive spirit towards the antecedents and usage intention is expected to persist and contribute towards the widespread and growth in Socially Responsible Investing.

CONCLUSION:

In conclusion, this research underscores the compelling interplay between attitude, subjective norms, and perceived behavioral control in shaping individuals' behavioral intentions towards Socially Responsible Investing (SRI). The robust and significantly positive correlations discovered emphasize the collective impact of favorable attitudes, social influences, and perceived control on fostering a commitment to SRI. As investors increasingly recognize the significance of ethical financial practices, understanding these interconnected factors becomes paramount for promoting sustainable and socially responsible investment behaviors in the ever-evolving financial landscape. This study contributes valuable insights to the field, paving the way for informed strategies that align individual convictions with responsible investment choices.

CONFLICT OF INTEREST:

The author(s) have no conflicts of interest regarding this investigation.

ACKNOWLEDGEMENTS:

The guidance, support and mentoring of Dr Vineeth KM (Associate Professor of Commerce, Government College Tripunithura, Kerala, India) is duly acknowledged.

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Received on 20.11.2023 Revised on 23.04.2024

Accepted on 17.08.2024 Published on 06.12.2024

Available online on December 31, 2024

Asian Journal of Management. 2024;15(4):333-338.

DOI: 10.52711/2321-5763.2024.00052

		Attitude		Subjective Norms		Perceived Behavioural Control		Behavioural Intention
Behavioural Intention	Spearman's rho	0.730	*******	0.799	*******	0.785	*******	—
	p-value	< .001		< .001		< .001		—
Note. * p < .05, p < .01, * p < .001 Source: Researchers’ Computations (R Core Team, 2020; The Jamovi Project, 2021)