Does Corporate Social Responsibility Pay?

8 Pages Posted: 28 Mar 2012

See all articles by Sergio Vergalli

Sergio Vergalli

University of Brescia - Department of Economics; Fondazione Eni Enrico Mattei (FEEM), Milan

Laura Poddi

University of Ferrara

Date Written: February 9, 2012

Abstract

Our work would like to discover whether certain performance indicators are affected by a firm’s social responsible behavior and their certifications by looking at panel data. The novelty of our analysis is due to its dynamic aspect and from a CSR index that intersects two of the three main international indices (Domini 400 Social Index, Dow Jones Sustainability World Index, FTSE4Good Index), to be objective and obtain a representative sample. The main results seem to support the idea that CSR firms which are more virtuous, have better long run performance. They have some initial costs but obtain higher sales and profits due to several causes reputation effect, a reduction of long run costs and increased social responsible demand.

Keywords: corporate social responsibility, growth

JEL Classification: M14, C23, O10

Suggested Citation

Vergalli, Sergio and Poddi, Laura, Does Corporate Social Responsibility Pay? (February 9, 2012). FEEM (Fondazione Eni Enrico Mattei), Review of Environment, Energy and Economics (Re3), February 2012. Available at SSRN: https://ssrn.com/abstract=2030219

Sergio Vergalli (Contact Author)

University of Brescia - Department of Economics ( email )

Via San Faustino 74B
Brescia, 25122
Italy

Fondazione Eni Enrico Mattei (FEEM), Milan ( email )

Corso Magenta 63
20123 Milan
Italy

Laura Poddi

University of Ferrara ( email )

Via del Gregorio 13
Ferrara, 44100
Italy

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