Millennials have more interest in making socially responsible investments than do investors from other generations, according to a generational study conducted by Spectrem.
In the study High Net Worth Millennials, 49 percent of Millennials with more than $1 million net worth said that social responsibility is a factor in choosing an investment. Forty-three percent of investors from Generation X said social responsibility matters in investment choices, 34 percent of Baby Boomers agreed, and 27 percent of seniors looked to social responsibility in making investment decisions.
Millennials were investors aged 32 and younger. Generation X was investors aged 33 to 47. Baby Boomers were investors aged 48 to 66, and seniors were 67 and above.
For non-Millionaire Millennials, social responsibility was an even higher priority, with 53 percent saying they made investment decisions based on social factors. Forty-two percent of non-Millionaire Generation X investors made decisions based on social responsibility, 41 percent of non-Millionaire Baby Boomers and 39 percent of non-Millionaire seniors did the same.
Millennials are the most cynical regarding corporations who claim to be socially responsible. Three-fourths of Millionaire Millennials (vs. 49 percent overall) said they believe that socially responsible corporate behavior is nothing more than public relations, according to a separate Spectrem study conducted in 2013.
Millennials are also more likely to believe that social responsibility is not a corporate responsibility and that it is up to individuals to decide whether or not to use their investment returns for social change.
Millennials report far less concern over issues outside the social responsibility area. While 64 percent of seniors report concern over terrorism, only 36 percent of Millennials have that worry, and while 84 percent of seniors are concerned over the political environment in the United States, only 54 percent of Millennials worry about the political atmosphere.