What Corporate Social Responsibility Activities are Valued by the Market?
Corporate management is torn betweeneither focusing solely on the interests of stockholders (theneo-classical view) or taking into account the interests ofa wide spectrum of stakeholders (the stakeholder theoryview). Of course, there need be no conflict where takingthe wider view is also consistent with maximisingstockholder wealth. In this paper, we examine the extentto which a conflict actually exists by examining therelationship between a company?s positive (strengths) andnegative (concerns) corporate social responsibility (CSR)activities and equity performance. In general, we findlittle evidence to suggest that managers taking a widerstakeholder perspective will jeopardise the interest of itsstockholders. However, our findings do suggest that themarket is not only influenced by the independent CSRactivities, but also the totality of these activities and thatthe facets that they value do vary over time. It seemsthat most recently, the market has valued most firms thatsatisfied minimum requirements in the areas of diversityand environmental protection but were most proactive inthe area of employee-relations.
Year of publication: |
2007
|
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Authors: | Bird Ronald ; Hall Anthony ; Momente Francesco ; Reggiani F |
Publisher: |
Springer |
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