CSR Research: The Value of Corporate Citizenship

RESEARCH BRIEF - Evidence in this research points out the critical role corporate citizenship activity plays in financial performance when cash is tight, and that good governance results in higher firm corporate citizenship ratings.

RESEARCH BRIEF - Firms that invest in corporate citizenship effectively build a buffer that protects them from becoming targets of litigation.

RESEARCH BRIEF - Publicized corporate citizenship activities are associated positively with shareholder value and improved future operating performance. The effect is strongest when news coverage focuses on community, diversity, and employee relations-focused corporate citizenship activities, which are likely to generate tangible benefits for firms’ stakeholders.

RESEARCH BRIEF - Companies, especially those who sell potentially controversial products, benefit from having a strong social media following and engaged followers. When a company has more followers and more positive comments on a corporate citizenship campaign, consumers perceive their message to be more legitimate and are more likely to buy their products.

RESEARCH BRIEF - Established firms have the ability to affect the income inequality by offering their workforce more equal wage structures, and many are likely to do so in part to avoid employee backlash resulting from wage comparison. As employees tend to compare themselves to others in their organization, particularly those who have similar roles, on such issues as pay; perceived inequality can have negative consequences for an organization, similar to those of disengaged workers.

RESEARCH BRIEF - Researchers examined how CSR leadership appointments impact corporate financial performance—specifically return on assets (ROA), sales over total assets (SOA), and sales growth—and whether gender and/or CSR experience affects this relationship.

RESEARCH BRIEF - Following financial misconduct, executives are likely to forge new ties with foundation boards, which results in more positive media attention.

RESEARCH BRIEF - When seeking to improve financial performance through corporate citizenship, a long-term perspective is vital. When firms attract long-term investors and invest in corporate citizenship, stock valuations increase by nearly 5 percent.

RESEARCH BRIEF - Long-term debt markets reward increases in corporate citizenship with lower risk ratings and lower costs of capital.

RESEARCH BRIEF - Customers are more likely to purchase an environmentally friendly product when the company promotes its own environmental commitment in its marketing messages.

RESEARCH BRIEF - While the market initially reacts negatively to the announcement of mandated ESG reporting, firms that have strong ESG performance and disclosure are not only spared from the market reaction, they actually benefit.

RESEARCH BRIEF - While increased carbon emissions lead to higher debt financing costs, transparent communication—signaling awareness and providing context—mitigates this effect.