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CSR Research: Corporate Citizenship

ResearchBrief_1483653945_144

Media coverage drives companies to increase efforts to create positive impacts but not to reduce negative impacts

This study analyzed how increased coverage by major media organizations affected U.S. companies’ CSR efforts. Researchers found companies under greater scrutiny are more likely to increase their CSR efforts but they focus more often on increasing positive impacts, rather than reducing negative effects that may result from business operations.

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ResearchBrief_1483653945_144

Firms that engage in strategic CSR that is aligned with their business and invested at an appropriate scale receive better rates on bank loans

Researchers analyzed the role of corporate social responsibility in determining the financial terms of bank loans to corporations. They found that firms with higher quality CSR and few CSR concerns will have an advantage in the lending market.

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ResearchBrief_1483653945_144

Where does the virtuous cycle begin? Corporate social performance is both chicken and egg to financial performance

Researchers in this study looked at the relationship between corporate social performance and financial performance to determine which comes first. They found that while corporate social performance generally depends on prior financial performance, environmental concerns and social strengths of a firm can impact financial performance and risk.

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ResearchBrief_1483653945_144

Perceptions of corporate motives for CSR affect consumer behavior

This study looked at how perceptions of cause-related marketing initiatives influence consumers’ beliefs, attitudes, and intentions. Researchers found that consumers’ perceptions of a firm’s motivations and how well a cause fits with a brand are extremely important to consumers’ opinions of a firm.

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ResearchBrief_1483653945_144

Consumer choice and context influence effectiveness of cause-related marketing

This research examines how giving consumers choice of a cause to support influences their response to cause marketing. It also considers how consumer and campaign characteristics impact the effectiveness of cause marketing.

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ResearchBrief_1483653945_144

Positive stakeholder relations are an asset for companies during good and bad times

In this study researchers analyzed the impact of stakeholder relations on the financial performance of firms. Their findings suggest that good stakeholder relations can have a positive impact on financial performance whether a firm is performing well or poorly.

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ResearchBrief_1483653945_144

To gain support from senior executives for corporate citizenship initiatives, use rational arguments, data, and analysis that demonstrate benefits of the proposed program

This study looked at how performance on a strategic initiative was affected by its compatibility with an organization’s characteristics and capabilities. Researchers found it was particularly important for groups pursuing innovative strategic initiatives to demonstrate their benefits using data, analysis and/or arguments to gain organizational support.

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ResearchBrief_1483653945_144

Good corporate citizenship behavior toward all stakeholders can help build trust in a firm among employees and customers

Researchers looked at how corporate responsibility-related experiences and beliefs influence stakeholder trust and positive intent toward a firm. They found that companies need to balance a variety of issues and that CR activities can have impacts in multiple directions on a wide variety of stakeholders.

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ResearchBrief_1483653945_144

Consumer resistance to negative information

Researchers investigated how positive beliefs about various aspects of a company shield it against various types of negative information. The study results suggest that there is no crossover effect from one aspect to another but favorable opinions about a company in one area result in increased resistance to negative information in that same area.

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ResearchBrief_1483653945_144

Short-term thinking leaves long-term value on the table

In a May 2011 speech, Andrew G. Haldane and Richard Davies illustrate that pressure to return value on a short time horizon causes investors to seek deals with higher initial returns despite the fact that investments with longer return horizons, such as infrastructure and alternative technology or supply chain management initiatives, often have higher cumulative returns over time.

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ResearchBrief_1483653945_144

Building trust requires understanding stakeholder relationships

This study looked at how stakeholder trust in organizations differs based on the depth of the relationship and whether the relationship is internal or external. Researchers found that stakeholder perceptions of whether the values and behavior of an organization are aligned with their own play a significant role in trust in all relationships.

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ResearchBrief_1483653945_144

Established corporate reputation mediates market response to a firm’s addition or deletion from CSR indices

In this study researchers looked at how being added to or removed from an index of socially responsible companies affects a firm’s financial performance. Results show that inclusion in a socially responsible index is mediated by the firm’s reputation prior to inclusion.

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