CSR Research: Corporate Citizenship

RESEARCH BRIEF - Firms with better environmental and social performance had higher stock returns, lower stock volatility, and higher operating profit margins during the pandemic stock market contraction in the first quarter of 2020.

RESEARCH BRIEF - For lesbian, gay, and bisexual employees who feel conflict between their work and home lives, having supportive managers who understand their outside responsibilities and views can increase job satisfaction.

RESEARCH BRIEF - Better CSR performance is linked to better long-term stock performance.

Home country cultural norms may enable or discourage the CSR performance of a global company that acquires a U.S. company. Overall, while CSR performance tends to improve, this change is stronger for firms that started off with lower CSR performance.

Adjust the framing of your cause commitments to maximize consumer goodwill.

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

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.

Longer-term cultures and greater economic freedom correlate to more progressive CSR programs.

RESEARCH BRIEF - Consumers judge corporate citizenship actions more favorably when they are framed in positive and comparative terms employing euphemisms that offer clues about the operating context.

RESEARCH BRIEF - Consumers are more engaged in and believing of corporate citizenship communications that have a narrative style and focus on individuals—and are therefore less skeptical toward the initiatives they convey.

RESEARCH BRIEF - CSR activities that align with the strategic vision and risk preferences of the firm can deliver better performance.

RESEARCH BRIEF - Communicating CSR commitments and results within the context of stories (vs. bulleted list or other stripped down forms) can improve attitudes toward the company and thereby encourage positive attitudes and intentions with the company.