The impact of financial analysts’ spirituality on their socially responsible investing decisions: a mediating role of social consciousness
ISSN: 0114-0582
Article publication date: 21 May 2024
Issue publication date: 30 May 2024
Abstract
Purpose
This paper aims to contribute to the social aspect of corporate social responsibility literature by examining the influence of financial analysts’ spirituality on their socially responsible investing (SRI) decisions relating to a profitable organization, which is alleged by the media to employ children as laborers in hazardous works in Pakistan. This study also investigates whether analysts’ social consciousness mediates between their spirituality and investing decisions.
Design/methodology/approach
A scenario-based survey was administered to 124 financial analysts at leading financial institutions in Pakistan. Data were analyzed using regression, analysis of variance and mediation analysis on SPSS 26.
Findings
The findings demonstrate that financial analysts’ spirituality negatively influences their SRI decisions to invest in a profitable organization, which is alleged to employ children in hazardous work that may harm them physically and psychologically. The findings also express that analysts’ social consciousness intervenes in the association between analysts’ spirituality and SRI decisions.
Practical implications
The findings of this study may interest regulators, multinational firms and researchers in recognizing the importance of individuals’ values for increasing socially responsible investments and addressing social issues such as the exploitation of children.
Social implications
This study encourages firms to recognize the importance of spiritual and socially conscious corporate conviction while designing strategies and policies. For example, the financial industry may incorporate fundamental personal values such as stewardship, dignity and fairness into its investment plans.
Originality/value
This study provides rigorous insights and contributes to contemporary studies by providing empirical evidence that individuals’ intrinsic values and consciousness drive their judgments.
Keywords
Acknowledgements
Declarations of interest: All authors declare that they have no conflict of interest.
Funding: This research did not receive any specific grants from funding agencies in the public, commercial or not-for-profit sectors.
Ethical approval: All procedures performed in this study involving human participants were in accordance with the ethical standards of our respective institution.
Informed consent: Informed consent was obtained from all individual participants included in the study.
Citation
Shahid, A.U., Tufail, H.S., Baig, W., Ismail, A. and Shahid, J. (2024), "The impact of financial analysts’ spirituality on their socially responsible investing decisions: a mediating role of social consciousness", Pacific Accounting Review, Vol. 36 No. 2, pp. 234-254. https://doi.org/10.1108/PAR-07-2023-0101
Publisher
:Emerald Publishing Limited
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