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CSR Research: The Value of Corporate Citizenship

ResearchBrief_1483653945_144

Corporate citizenship adds value among firms with entrenched management in liberal market economies

RESEARCH BRIEF - For firms based in liberal market economies such as United States and Hong Kong, the combination of strong polices promoting managerial control and corporate citizenship initiatives (such as policy changes and implementation practices) creates shareholder value.

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ResearchBrief_1483653945_144

In economic recession, companies maintain corporate citizenship investments

RESEARCH BRIEF - Evidence suggests that firms maintain their overall corporate citizenship investments during financial crises, however the mix of investments may shift.

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ResearchBrief_1483653945_144

Does gender diversity influence firm performance? Depends on your context

RESEARCH BRIEF - Societal norms around gender diversity in a company鈥檚 industry, country, and regulatory environment shape how gender diversity affects firm performance.

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ResearchBrief_1483653945_144

The details in environmental product labeling that may increase likelihood of purchase

RESEARCH BRIEF - Customers are more likely to purchase sustainably marketed products when labeling includes traceability information.

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ResearchBrief_1483653945_144

Aligning CSR to core business capabilities and operating context can improve financial performance, especially in hard times

RESEARCH BRIEF - Strategic alignment between a company鈥檚 core business and the type of corporate citizenship it engages in鈥攃ommunity or environment鈥攊s more likely to benefit the financial bottom line, particularly during economic crises.

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ResearchBrief_1483653945_144

Risky executive compensation incentives discourage corporate citizenship

RESEARCH BRIEF - Firms that remove executive compensation at risk鈥攕uch as equity-based incentives鈥攁re less likely to perform poorly on corporate citizenship. Firms that behave less responsibly also have a higher risk of stock price volatility.

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The effectiveness of UNGC

The effectiveness of United Nations Global Compact (UNGC) participation depends on the type of firm ownership

RESEARCH BRIEF - Research suggests that private firms significantly reduce their number of negative environmental, social, or governance (ESG) incidents after signing onto the United Nations Global Compact (UNGC).

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ResearchBrief_1483653945_144

With investment in governance, corporate citizenship improves financial performance

RESEARCH BRIEF - Researchers found that corporate citizenship impacts financial performance positively only after a threshold amount of investment has been made.

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ResearchBrief_1483653945_144

CSR-based executive compensation works best for stakeholder-focused companies

RESEARCH BRIEF - CSR-based incentives for executives improve corporate citizenship performance for all companies. However, a firm whose governance emphasizes stakeholders over shareholders is more likely to benefit financially from such executive compensation structures.

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best in class CSR

Best-in-class CSR firms financially outperform their peers

RESEARCH BRIEF - Firms with top CSR programs receive higher relative market valuations than their industry peers.

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ResearchBrief_1483653945_144

Communicating CSR鈥攅specially responsible business practices鈥攃an influence consumer purchase decisions

RESEARCH BRIEF - Consumers who learn about a brand鈥檚 environmental or social initiatives at point-of-sale are more likely to purchase its products. This effect is even more pronounced when the messaging focuses on responsible business practices and operations.

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ResearchBrief_1483653945_144

What makes a global company more likely to disclose environmental data?

RESEARCH BRIEF - Multinational corporations with more independent directors on their boards are more likely to make environmental disclosures, but this relationship is impacted by the national cultural context.

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