The Role Of Social Factors Of ESG In Driving Sustainable Investment Decisions: Evidence From Emerging Economies
DOI:
https://doi.org/10.64252/r9rfzq72Keywords:
ESG Factors, Social Factors, SMARTPLS, Sustainable Investment, Investment intention, investment behaviour Authors’ individual contributions: Conceptualization — A.R. Methodology — A.R. A.A., E.H.; Investigation — A.R, V.S.; Software- A.A., E.H., V.S.; Resources — A.A., E.H.; Writing — Original Draft —F.S., N.T.; Writing — Review & Editing —V.S., F.S., N.T.; Supervision — A.A., E.H.,Abstract
The increasing focus on fulfilling stakeholder expectations, maintaining corporate responsibility, and promoting sustainable wealth growth has made sustainable investment a crucial initiative globally. Within the framework of Environmental, Social, and Governance (ESG), social factors play an important role in guiding investors’ perspectives and decisions. Knowledge of social responsibility serving as a mediating construct, this study examines how investors' intentions and behaviors are impacted by four social dimensions: human capital, product liability, stakeholder opposition, and social opportunities. Using structural equation modelling (SmartPLS-SEM) to analyze survey data from 384 Indian investors, the findings show that social opportunity initiatives, stakeholder management, product liability, and human capital significantly raise awareness of social responsibility, which in turn encourages sustainable investment intentions. Nonetheless, some social factors have a less direct influence on investment behavior, highlighting the mediating function of awareness. By emphasizing the importance of social factors in investment decisions, these findings add to the expanding ESG literature and have useful ramifications for businesses seeking to attract ethical investors and legislators to support sustainable finance.
