Wealthy Private Investors and Socially Responsible Investing: The Influence of Reference Groups

Sustainable development requires a shift from traditionally invested assets to socially responsible investing (SRI), bringing together financial profits and social welfare. Private high-net-worth individuals (HNWIs) are critical for this as they control nearly half of global wealth. While we know little about HNWIs’ investment behavior, reference group theory suggests that their SRI engagement is influenced by identification with comparison groups. We thus ask: how do groups influence the behavior SRI-oriented HNWIs? To answer question, analyzed unique qualitative data set 55 semi-structured interviews HNWIs industry experts. Our research found that, on one hand, family serves normative upholds economic profit motive directly shapes make gains investments at expense On other fellow serve comparative does not impose any concrete requirements welfare performance, indirectly influencing subordinate concerns profits. scholarly insights contribute literature, theory, practice.