Profiting from corporate social responsibility
Article Type: Abstracts From: Strategic Direction, Volume 27, Issue 8
Ioannou I.Business Strategy Review, 2010, Vol. 21, No. 4, Start page: 39, No. of pages: 2
Summarizes his recent research that looked at whether there is a causal link between corporate social responsibility and financial performance. Describes the research method, which involved analysing corporate social responsibility rankings for US firms and the rankings given by sell-side analysts in the capital markets. Reports that until 1997/1998, the analysts tended to recommend selling shares in firms that had engaged in corporate social responsibility initiatives but that this trend then reversed and became positive. Links this change to the positive coverage of corporate social responsibility, which legitimised these activities and also meant that analysts understood them better. Recommends that companies work closely with investors to make sure that they understand company corporate social responsibility initiatives. Discusses how companies can do this.Article type: Research paperISSN:0955-6419Reference: 40AG215
Keywords: Financial performance, Investment appraisal, Share prices, Social responsibility
