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CSR Research: The Value of Corporate Citizenship

ResearchBrief_1483653945_144

Consistent commitment to causes increases consumer purchase intent

RESEARCH BRIEF - A company鈥檚 long-term commitment to corporate citizenship efforts improves customer purchase intentions and perceptions of social responsibility, especially when it remains consistent during difficult economic times

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ResearchBrief_1483653945_144

Corporate citizenship keeps investors in the know about your company

RESEARCH BRIEF - Firms that engage in corporate citizenship also work actively to communicate transparently about operations, policies, and CSR commitments. The additional information available to outside investors, leads to more consistent forecasts and stronger liquidity.

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ResearchBrief_1483653945_144

Environmental investments鈥攁nd communication about them鈥攍ead to improved financial performance

RESEARCH BRIEF - To maximize short- and long-term financial performance, companies investing in environmental initiatives should communicate their efforts with stakeholders more frequently.

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ResearchBrief_1483653945_144

All-in: Companies that go deep with CSR integrated with their business strategy are better able to achieve both business and social value

RESEARCH BRIEF - Much has been written about the relationship between corporate social performance (CSP) and corporate financial performance (CFP). Companies with higher levels of cost-leadership (lower cost operations) and product differentiation are more capable of synergizing the value-added and value creation associated with their CSR projects to enhance firm financial performance.

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ResearchBrief_1483653945_144

Companies with strong cost leadership and differentiation are likely leaving value on the table if they don鈥檛 invest in CSR

RESEARCH BRIEF - Much has been written about the relationship between corporate social performance (CSP) and corporate financial performance (CFP). Companies with higher levels of cost-leadership (lower cost operations) and product differentiation are more capable of synergizing the value-added and value creation associated with their CSR projects to enhance firm financial performance.

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ResearchBrief_1483653945_144

Corporate citizenship appears to contribute to lower equity costs and improve balance sheet performance

RESEARCH BRIEF - Firms that engage in corporate citizenship activities are more likely to benefit from lower equity costs and therefore are more likely to see higher returns on investment overall.

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ResearchBrief_1483653945_144

Institutional investors help drive positive environmental and social performance

RESEARCH BRIEF - Firms with greater institutional ownership have higher firm-level social and environmental scores, indicating that institutional investors are prioritizing corporate citizenship performance.

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ResearchBrief_1483653945_144

Corporate social responsibility reduces the risks of high leverage

RESEARCH BRIEF - Investing in corporate citizenship may provide a risk management benefit to highly leveraged firms, as positive citizenship behavior reduces the costs of debt and reduces potential opportunity cost by helping to maintain customer trust that can lead to sales growth.

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ResearchBrief_1483653945_144

Cross-sector agreements regarding performance targets lead to improved environmental performance

RESEARCH BRIEF - The development of performance targets improves the environmental performance rates of cross-sector partnerships.

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LGBTQ Supportive policies

LGBTQ-supportive policies lead to improved firm performance

RESEARCH BRIEF - The implementation of LGBTQ-supportive policies is positively associated with firm performance.

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ResearchBrief_1483653945_144

Marketing strategy that includes multiple stakeholder interests leads to financial results

RESEARCH BRIEF - Across most firm types, a marketing approach that pursues a broader spectrum of stakeholders may lead to better financial results.

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ResearchBrief_1483653945_144

Product type and sequence matters in point of sale campaigns

RESEARCH BRIEF - In cause marketing and other corporate giving campaigns, consumers are more likely to donate more money to a nonprofit partner after considering the purchase of an indulgence product.

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