Investors’ pro-environmental attitude, spirituality and socially responsible investing: a mediating role of greenwashing practices

Purpose The objective of this study is to examine the influence of investors’ pro-environmental attitudes and spirituality on their intentions to invest in socially responsible investment projects in the context of India. This study also examines whether investors’ perceptions of firms’ greenwashing practices mediate the relationship between their pro-environmental attitude, spirituality and investing decisions. Design/methodology/approach The authors collected data from 337 investors registered at the National Stock Exchange of India. Additionally, data were analyzed, and hypotheses were tested using linear regression, zero-order correlation and mediation approaches in SPSS 28. Findings The findings of this study report that investors’ pro-environmental attitudes and spirituality have a significant positive impact on their intentions to invest in socially responsible investment projects. Additionally, their mediation analysis further shows that both manipulative and selective disclosures of greenwashing practices mediate the association between investors’ pro-environmental attitude, spirituality and their intentions to invest in socially responsible investment projects. Practical implications The findings of the study have important implications for regulators, policymakers, firms and researchers in understanding the impact of pro-environmental attitudes and firms’ greenwashing practices on investors’ socially responsible investing decisions. Social implications This study also has implications for regulators in creating awareness for tackling greenwashing practices and screening intentions to invest in socially responsible investment projects in developing countries. Originality/value This study stresses creating awareness for incorporating pro-environmental and spiritual mindset into addressing the challenges of socially responsible investing in the presence of greenwashing practices.