Research Briefs

When customers or employees feel a personal connection to a cause or organization, they are more likely to engage in pro-social behaviors such as volunteering and donation efforts.

Firm innovation capacity increases with superior management of environmental, social, and governance (ESG) risk criteria.

Strong CSR practices can create a virtuous cycle—regardless of past behavior, once firms have adopted CSR behaviors, there is a decreased likelihood of subsequent irresponsible behavior.

Companies’ likelihood of disclosing information about their water management voluntarily is impacted mostly by internal factors, including self-regulation and internal governance measures, and external factors, including operating in a water-intensive industry.

Firms that have both strong CSR performance and operate in a stable institutional environment—with strong governance and regulation enforcement—enjoy benefits to the bottom line. Firms operating in corrupt environments may also receive financial benefits from strong CSR.

Thinking about how to improve employee well-being? Think first about your employment practices.

Positive external ESG ratings and corporate citizenship program assessments correlate to improved financial performance for companies in emerging economies.

Following a corporate social or environmental controversy, consumers who are less accepting of inequality are more inclined to perceive a company negatively and not purchase its products—however, issuing both an apology and a plan to remedy the situation can mitigate these negative perceptions.

When faced with mandatory carbon reduction regulations, multinational-owned plants had better environmental performance than plants operating only within a domestic market.

Product appeals linked to CSR commitments can lead to higher levels of trust and increased intention to purchase. This is especially true when such appeals are targeted toward consumers who see themselves as having high levels of integrity (in terms of ethics).

When encouraged to change behavior, employees may be more motivated by straightforward, business-driven reasoning than stated prosocial motives such as saving the environment—which they may not view as genuine.

Want employees to be more engaged? Tell them why what they do is important.