Value-Enhancing Capabilities of CSR: A Brief Review of Contemporary Literature

47 Pages Posted: 10 Jun 2013 Last revised: 3 Oct 2013

See all articles by Mahfuja Malik

Mahfuja Malik

Sacred Heart University; Boston University

Date Written: June 1, 2013

Abstract

This study reviews and synthesizes contemporary business literature that focuses on the role of Corporate Social Responsibility (CSR) to enhance firm value. The main objective of this review is to proffer a precise understanding of what has already been investigated and the findings of those investigations regarding the value-enhancing capabilities of CSR. In addition, this review identifies gaps in existing literature, evaluates inconsistent findings, discusses possible data sources for empirical researchers, and provides direction for exploring other promising avenues in future studies. The thrust of the CSR literature largely acknowledges the value-enhancing capabilities of firms’ social and environmental activities. However, the predominance of inconsistent theoretical grounds in major CSR-benefits-related areas suggests that there is ample room for future research to contribute to extant literature. Anecdotal evidence, the prevalence of theoretical arguments, and the availability of large cross-sectional firm-level data suggest that future research will enrich the literature by investigating the real insights behind several unanswered questions, by establishing implicit understandings regarding recognized findings, and by developing new theories in this emerging field.

Keywords: Corporate social responsibility, CSR reporting, firm performance, cost of capital, financial reporting, corporate governance, auditability

Suggested Citation

Malik, Mahfuja, Value-Enhancing Capabilities of CSR: A Brief Review of Contemporary Literature (June 1, 2013). Available at SSRN: https://ssrn.com/abstract=2276803 or http://dx.doi.org/10.2139/ssrn.2276803

Mahfuja Malik (Contact Author)

Sacred Heart University ( email )

5151 Park Ave
Fairfield, CT 06432
United States

Boston University ( email )

595 Commonwealth Avenue
Boston, MA 02215
United States

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