David Bourget (Western Ontario)
David Chalmers (ANU, NYU)
Rafael De Clercq
Ezio Di Nucci
Jack Alan Reynolds
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Journal of Business Ethics 105 (1):115-129 (2012)
Proponents of corporate environmental responsibility argue that corporations shortchange shareholders by investing too little in environmental responsibility. They claim that corporations can improve their financial performance by increasing their investment in environmental responsibility. Opponents of corporate social responsibility argue that corporations shortchange shareholders by investing too much in environmental responsibility. They claim that corporations can improve their financial performance by reducing their investment in environmental responsibility. Yet, others claim that corporations serve their shareholders well by investing just enough in social responsibility, not too little and not too much. If so, corporations increase their investment in environmental responsibility when an increase improves financial performance and reduce their investment in environmental responsibility when a decrease improves financial performance. Our evidence is consistent with this last claim. We find that the behavior of corporations is consistent with the claim that they act in the interest of shareholders, increasing or decreasing their investment in environmental responsibility as necessary to improve their financial performance.
|Keywords||Corporate environmental responsibility Corporate financial performance Causality Corporate social responsibility|
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References found in this work BETA
Amir Barnea & Amir Rubin (2010). Corporate Social Responsibility as a Conflict Between Shareholders. Journal of Business Ethics 97 (1):71 - 86.
Ivar Kolstad (2007). Why Firms Should Not Always Maximize Profits. Journal of Business Ethics 76 (2):137 - 145.
Moses L. Pava (2008). Why Corporations Should Not Abandon Social Responsibility. Journal of Business Ethics 83 (4):805 - 812.
Citations of this work BETA
Hoje Jo, Hakkon Kim & Kwangwoo Park (2015). Corporate Environmental Responsibility and Firm Performance in the Financial Services Sector. Journal of Business Ethics 131 (2):257-284.
Li Cai, Jinhua Cui & Hoje Jo (forthcoming). Corporate Environmental Responsibility and Firm Risk. Journal of Business Ethics.
Alan Gregory & Julie Whittaker (2013). Exploring the Valuation of Corporate Social Responsibility—A Comparison of Research Methods. Journal of Business Ethics 116 (1):1-20.
Hoje Jo & Maretno Harjoto (2014). Analyst Coverage, Corporate Social Responsibility, and Firm Risk. Business Ethics: A European Review 23 (3):272-292.
Alan Gregory, Rajesh Tharyan & Julie Whittaker (2013). Corporate Social Responsibility and Firm Value: Disaggregating the Effects on Cash Flow, Risk and Growth. Journal of Business Ethics 124 (4):1-25.
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