The purpose of this paper is to evaluate corporate social responsibility (CSR) in the context of real estate management. Different operation cost indicators are identified and related to the estates’ social condition.
The empirical material was collected from the company's accounts and by interviews with the staff and is based on a comparison between two similar areas that mainly differed in how much resources the company invested in social projects and maintenance.
The results indicate that CSR leads to approximately 4.5 percent lower annual operating and maintenance costs, which improved the company's profitability, especially if higher maintenance standards made higher rents possible. Other advantages were improved goodwill, which led to new business opportunities.
The primary issue of the study is to identify consequences of CSR. However, more research is needed about landlord incentives and economic effects of initiated landlord investments. The evaluation method also needs to be further developed and refined.
From a practical perspective, the paper gives a deeper insight into the possible economic advantages of CSR. From the perspective of the scientific community, the paper shows the possibilities in using a comparative evaluation model together with detailed company data in order to identify important indicators and effects.
