CSR Research: The Value of Corporate Citizenship

RESEARCH BRIEF - In developed economies, improved corporate citizenship performance is linked to improved financial performance. In emerging economies, where institutional and competitive pressures to invest in ESG might be weaker, improved CSR performance is linked to decreased financial performance.

RESEARCH BRIEF - Taking a corporate stance on a polarizing issue can be a differentiator for brands with smaller market share and more competitors, resulting in a potentially increased customer base—however, this effect is weakened if the advocacy is perceived to be inauthentic.

RESEARCH BRIEF - The media reports on corporate social irresponsibility events significantly more for strong and well-established brands.

RESEARCH BRIEF - Increased board diversity leads to the adoption of management practices that support diversity—and vice versa—this virtuous cycle can result in a more inclusive culture over time.

RESEARCH BRIEF - Investor demands and CSR practices are not in conflict, as research shows that transparency of environmental and social practices can increase firm-level payouts on dividends and stock repurchase.

RESEARCH BRIEF - Firms with worker representation on their boards achieved 40 to 50% larger long-term stock results than firms without workers on the board, with comparable wages.

RESEARCH BRIEF - Companies adopting stakeholder engagement strategies may increase firm financial performance when the most appropriate engagement strategy is employed.

RESEARCH BRIEF - Increased competition spurs increased corporate citizenship investment.

RESEARCH BRIEF - The way that frontline employees perceive certain organizational attributes, such as efficient resource management, servant leadership management styles, and organizational citizenship behavior, contribute to their support for CSR programs.

RESEARCH BRIEF - Multinational companies based in emerging markets that received negative media coverage of their environmental, social, and governance (ESG) performance were more likely to have delays and cancellations of their publicly announced cross-border acquisition plans.

RESEARCH BRIEF - Firms that manage and track their environmental impact through BOTH internal operations AND their supply chains have improved environmental disclosure.

RESEARCH BRIEF - Companies with strategies dependent on high volume low-cost products and services tend to fare worse on assessments of ethical practice and discretionary commitments to CSR than companies that focus their strategy on customization or differentiation strategies.