Deontological and Utilitarian Responses to Sacrificial Dilemmas Predict Disapproval of Sin Stocks

Investors sometimes invest in so-called ‘sin’ stocks that cause social harm as a byproduct of doing business (e.g., tobacco companies). Three studies examined whether people who reject harm and maximize outcomes in sacrificial dilemmas approve less of investing in sin (but not conventional) stocks. We employed process dissociation to assess harm-rejection (deontological) and outcome-maximization (utilitarian) response tendencies independently. Study 1 (N=337) assessed moral approval of stocks: People scoring higher on either deontological or utilitarian response tendencies disapproved of investing in sin, but not conventional, stocks. Study 2 (N=402) replicated this effect for willingness-to-invest in companies abandoning (vs. retaining) socially responsible policies. Study 3 (N=558) confirmed earlier findings using more conservative measures. These findings clarify the psychology of morally-questionable investment decisions.