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
Corporate Social Responsibility as a Conflict Between Shareholders.Amir Barnea & Amir Rubin - 2010 - Journal of Business Ethics 97 (1):71 - 86.
Citations of this work BETA
Corporate Environmental Responsibility and Firm Performance in the Financial Services Sector.Hoje Jo, Hakkon Kim & Kwangwoo Park - 2015 - Journal of Business Ethics 131 (2):257-284.
Exploring the Valuation of Corporate Social Responsibility—A Comparison of Research Methods.Alan Gregory & Julie Whittaker - 2013 - Journal of Business Ethics 116 (1):1-20.
Corporate Environmental Responsibility and Firm Risk.Li Cai, Jinhua Cui & Hoje Jo - forthcoming - Journal of Business Ethics.
Corporate Environmental Responsibility: A Legal Origins Perspective.Hakkon Kim, Kwangwoo Park & Doojin Ryu - 2017 - Journal of Business Ethics 140 (3):381-402.
Analyst Coverage, Corporate Social Responsibility, and Firm Risk.Hoje Jo & Maretno Harjoto - 2014 - Business Ethics: A European Review 23 (3):272-292.
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