David Bourget (Western Ontario)
David Chalmers (ANU, NYU)
Rafael De Clercq
Ezio Di Nucci
Jack Alan Reynolds
Learn more about PhilPapers
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|
|Categories||categorize this paper)|
Setup an account with your affiliations in order to access resources via your University's proxy server
Configure custom proxy (use this if your affiliation does not provide a proxy)
|Through your library|
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.
Similar books and articles
Richard H. Guerrette (1986). Environmental Integrity and Corporate Responsibility. Journal of Business Ethics 5 (5):409 - 415.
Anita Jose & Shang-Mei Lee (2007). Environmental Reporting of Global Corporations: A Content Analysis Based on Website Disclosures. [REVIEW] Journal of Business Ethics 72 (4):307 - 321.
J. Angelo Corlett (1996). Corporate Responsibility for Environmental Damage. Environmental Ethics 18 (2):195-207.
Mao He & Juan Chen (2009). Sustainable Development and Corporate Environmental Responsibility: Evidence From Chinese Corporations. [REVIEW] Journal of Agricultural and Environmental Ethics 22 (4):323-339.
A. Salama, K. Anderson & J. S. Toms (2011). Does Community and Environmental Responsibility Affect Firm Risk? Evidence From UK Panel Data 1994–2006. Business Ethics 20 (2):192-204.
Jacquie L'Etang (1994). Public Relations and Corporate Social Responsibility: Some Issues Arising. [REVIEW] Journal of Business Ethics 13 (2):111 - 123.
Benjamin J. Richardson (2005). Corporate Finance and Environmentally Responsible Business. International Corporate Responsibility Series 2:79-100.
Dwight R. Lee & Richard B. McKenzie (1994). Corporate Failure as a Means to Corporate Responsibility. Journal of Business Ethics 13 (12):969 - 978.
Napoleon M. Mabaquiao (2002). Corporations and the Cause of Environmental Protection. Eubios Journal of Asian and International Bioethics 12 (1):11-15.
Irene Goll & Abdul A. Rasheed (2004). The Moderating Effect of Environmental Munificence and Dynamism on the Relationship Between Discretionary Social Responsibility and Firm Performance. Journal of Business Ethics 49 (1):41-54.
Jessica Nihlén Fahlquist (2009). Moral Responsibility for Environmental Problems—Individual or Institutional? Journal of Agricultural and Environmental Ethics 22 (2):109-124.
Avshalom Madhala Adam & Tal Shavit (2008). How Can a Ratings-Based Method for Assessing Corporate Social Responsibility (Csr) Provide an Incentive to Firms Excluded From Socially Responsible Investment Indices to Invest in Csr? Journal of Business Ethics 82 (4):899 - 905.
Wesley Cragg (2012). Ethics, Enlightened Self-Interest, and the Corporate Responsibility to Respect Human Rights. Business Ethics Quarterly 22 (1):9-36.
Jeffery Smith (2011). A Political Account of Corporate Moral Responsibility. Ethical Theory and Moral Practice 14 (2):223 - 246.
Curtis C. Verschoor (1998). A Study of the Link Between a Corporation's Financial Performance and its Commitment to Ethics. Journal of Business Ethics 17 (13):1509-1516.
Added to index2011-12-01
Total downloads25 ( #155,078 of 1,907,521 )
Recent downloads (6 months)6 ( #127,771 of 1,907,521 )
How can I increase my downloads?