Proceedings of the 2nd International Conference on Environmental Pollution and Remediation Montreal, Quebec, Canada, 28-30 August 2012

Paper No. 257

Socially Responsible Investing: the Green Attitudes and Grey Choices of Brazilian Students
Daniel Jos Cardoso da Silva,
Federal University of Alagoas - Faculty of Economics and Business Av Lourival Mota Melo, s / n, bl. 16, 1st Floor, Board of Martins - Maceio Alagoas Brasil danieljcsilva@gmail.com

Luiz Carlos Marques dos Anjos,

Federal University of Alagoas - Faculty of Economics and Business Av Lourival Mota Melo, s / n, bl. 16, 1st Floor, Board of Martins - Maceio Alagoas Brasil luiz@consultorcontabil.com

Adhemar Ranciaro Neto,

Federal University of Alagoas - Faculty of Economics and Business Av Lourival Mota Melo, s / n, bl. 16, 1st Floor, Board of Martins - Maceio Alagoas Brasil adhranneto@gmail.com

Luiz Carlos Miranda,

Federal University of Pernambuco - Center of applied social sciences Av. Moraes Rego, 1235 - University City, Recife - Pernambuco Brasil lc-miranda@uol.com.br

Aldemar de Arajo Santos,

Federal University of Pernambuco - Center of applied social sciences Av. Moraes Rego, 1235 - University City, Recife - Pernambuco Brasil aldemar.santos@ufpe.br
Abstract - This article was inspired by research Vyvyan et al (2007) who tried to better understand the disparity between the positive attitudes towards socially responsible investment (SRI) and the level of investment in SRI, examining both the attitudes and SRI investment choices are made. Both studies worked with the hypothesis: those who are more committed to principles of environmental sustainability are more likely to invest in SRI. We surveyed 351 students and teachers from various states and regions of Brazil. Respondents were asked about their beliefs in the practice of corporate governance and sustainable development. They were then simulated three investment scenarios involving two fictitious companies, one adopting governance practices and sustainable development and the other with no commitment to these practices. At first almost all respondents reported caring and concern for their decisions, corporate governance and socially and environmentally responsible companies. What is noticeable is that there was a change in the choices of respondents contradicting the "green attitudes. Keywords: Socially Responsible Investing, the Green Attitudes, Grey Choices, Brazilian Students

1. Introduction
This article was inspired by research Vyvyan et al (2007) who tried to better understand the disparity between the positive attitudes towards socially responsible investment (SRI) and the level of investment in SRI, examining both the attitudes and SRI investment choices are made. Both studies worked with the

257-1

hypothesis: those who are more committed to principles of environmental sustainability are more likely to invest in SRI. To test this 318 people from two large Queensland organisations are surveyed in relation to their investment attitudes and preferences, by Australians researchers. In this survey of Brazilian students surveyed were called sciences of business: administration, accounting and economics of various grade levels. Vyvyan et al (2007) thought that there are significant differences in investment attitudes with environmentalists placing more importance on SRI investment criteria. However, there was no significant difference between environmentalists and non-environmentalists in terms of utility scores from an investment selection experiment with the environmentalists placing higher importance on financial performance criteria than SRI criteria, making choices similar to those with the lowest level of environmental activism. Stayed the question: Will students have the same behavior of professional investors?

2. Methodology
We surveyed 351 students and teachers from various states and regions of Brazil, for example, Pernambuco, Paraiba, Alagoas, Minas Gerais. We used an electronic questionnaire tool "Google Docs", available at: https://docs.google.com/spreadsheet/viewform?formkey=dHFfTlhUdFp2WHlvYWxFdjB2NFZLOWc6M A. The research took place in the period 19/03/2012 to 13/04/2012. Respondents were asked about their beliefs in the practice of corporate governance and sustainable development. They were then simulated three investment scenarios involving two fictitious companies, one adopting governance practices and sustainable development and the other with no commitment to these practices. The results are presented in the following sections of this research using descriptive statistics. For the analyzes we used the SPSS statistical software in its version number 20.

3. Description of the Sample Surveyed

Table 1 presents a description of the sample surveyed. The predominant profile of the respondents are young up to 25 years old (58.49%), college students (68.4%), female (53.6%) and accounting students (51.6%).
Table 1: Descriptive statistics Age <25yrs >26-30yrs >30-40yrs >40-50yrs >50yrs Total Gender Male Female Total Frequency 205 57 53 29 7 351 Frequency 163 188 351 Percent 58,4 16,2 15,1 8,3 2,0 100,0 Percent 46,4 53,6 100,0 Valid Percent 58,4 16,2 15,1 8,3 2,0 100,0 Valid Percent 46,4 53,6 100,0 Cumulative Percent 46,4 100,0 Cumulative Percent 58,4 74,6 89,7 98,0 100,0

257-2

Education Student in higher education Undergraduate qualification Postgraduate qualification Master Science Ph.D. / Doctor Total Main_Training_Area Administration Accounting Economy Other areas Total

Frequency 240 47 33 24 7 351 Frequency 117 181 23 30 351

Percent 68,4 13,4 9,4 6,8 2,0 100,0 Percent 33,3 51,6 6,6 8,5 100,0

Valid Percent 68,4 13,4 9,4 6,8 2,0 100,0

Cumulative Percent 68,4 81,8 91,2 98,0 100,0

Valid Percent Cumulative Percent 33,3 51,6 6,6 8,5 100,0 33,3 84,9 91,5 100,0

4. The Green Attitudes

Three questions were asked to evaluate the stated beliefs (green attitudes) of respondents. The first was: Do you consider important to be informed about issues related to corporate sustainability? The overwhelming majority (95.4%) said yes. The second question was: Do you think that sustainable companies create shareholder value over the long term because they are better prepared to face economic risks, social and environmental? Again the majority of respondents (89.5%) said yes. Finally the third question was: If you were an investor, issues of corporate sustainability and corporate governance would be taken into account when making investment decisions in a given institution? Also the previous question, the vast majority (89.5%) said they would do.

5. The Grey Choices

Table 2 shows how respondents behaved in front of three simulated scenarios in relation to an investment. In the first scenario they had the option to invest in a company that adopted corporate governance practices and was committed to environmental responsibility, since the other company had no commitment to these beliefs. The return on investment would be the same. In the second scenario the company without compromising environmental and governance offered a return 50% higher than the other company. In the third scenario the return on investment would be 100% that the company's "sustainable". What is noticeable is that there was a change in the choices of respondents contradicting the "green attitude". Analyzing the behavior of respondents by age was the biggest change in young people up to 25 years in which 29% changed their choice from the first to the third scenario, although there have been changes in all ages, except among those with more than 50 years not changed their minds. By gender, there was the highest among men change (29%). For education, Master Sciences (33%) and Undergraduate qualification (26%) had change of greater than college students (25%). And looking at the main training area students and professors of economics (39%) were the most radically changed their choice.

4. Conclusion
Based on the results observed, it can be concluded that education, nor gender were decisive in changing choices because the results end up being very similar. But the experience brought by the age seems to help maintain more consistent choices. Also, apparently made quite a difference was the main training area, and economists more sensitive with respect to the return on investment.

257-3

Table 2 - Behavior of respondents on the scenarios First investment scenario Option 1 Age <25yrs >26-30yrs >30-40yrs >40-50yrs >50yrs Total Gender Total Education student in higher education Undergraduate qualification Postgraduate qualification Master Science Ph.D. / Doctor Total Main Training Area Accounting Economy Other areas Total 178 23 28 346 3 0 2 5 155 17 25 297 26 6 5 54 134 14 24 261 47 9 6 90 Administration 117 0 100 17 89 28 Male Female 202 57 53 27 7 346 160 186 346 237 47 31 24 7 346 Option 2 3 0 0 2 0 5 3 2 5 3 0 2 0 0 5 Second investment scenario Option 1 Option 2 169 51 45 25 7 297 129 168 297 204 44 26 18 5 297 36 6 8 4 0 54 34 20 54 36 3 7 6 2 54 Third investment scenario Option 1 144 46 42 22 7 261 113 148 261 178 35 26 16 6 261 Option 2 61 11 11 7 0 90 50 40 90 62 12 7 8 1 90

Although the majority of respondents to maintain their initial choice, the most important conclusion of this work is that there is still much to do in relation to environmental education, especially among the young students of business science. Furthermore, the observed lack of congruency between attitudes and choices in relation to environmental criteria may have implications for the growth of SRI funds, Vyvyan et al (2007) have also warned of this in his study.

References
Vyvyan, V., Ng, C and Brimble, M. (2007). Fluoride Socially Responsible Investing: the green attitudes and grey choices of Australian investors. Corporate governance, Volume 15 Number 2 March 2007., 370-381.

257-4