Exploring the Dynamics of Socially Responsible Investment Behavior among the Pension Funds Managers in Pakistan

Abstract

Socially accountable investment (SRI) is an investment strategy that considers both economic returns and social, environmental, and moral (SEE) affects. While the expansion of SRI is developing, there's constrained expertise of the elements influencing funding behavior in emerging markets like Pakistan, specifically amongst pension fund managers. A quantitative approach utilized using structural equation modeling (SEM) to evaluate the relationships among the determinants of SRI behavior. Data collected through a survey administered to pension fund managers and Financial Firms registered with the Securities and Exchange Commission of Pakistan. The sample covered 199 respondents, and the questionnaire measured variables along with mind-set, aim, subjective norms, PBC, ethical norms, and training and education. The effects display that the intention to spend money on socially responsible funds is notably motivated by means of attitudes, subjective norms, and PBC, regular with the Theory of Planned Behavior. Moral norms were also located to have a direct impact on both goal and conduct, highlighting their important function in moral investment selections. Additionally, education and training had been shown to definitely have an effect on each intention and behavior. The findings offer sensible insights for fund managers, policymakers, and academic institutions. By understanding the behavioral drivers of SRI, stakeholders can better promote socially responsible funding strategies that align with moral and sustainable development. This research advances the knowledge of socially responsible funding behavior within the context of developing market. It confirms the applicability of the Theory of Planned Behavior to SRI selections and underscores the significance of moral norms, education and training in shaping behavior.