The Implications of Corporate Social Responsibility for Investors: An Overview and Evaluation of the Existing CSR Literature

52 Pages Posted: 19 Aug 2014

See all articles by Gordon L. Clark

Gordon L. Clark

Oxford University - Smith School of Enterprise and the Environment

Michael Viehs

Oxford University Smith School of Enterprise and the Environment; European Centre for Corporate Engagement (ECCE)

Date Written: August 17, 2014

Abstract

This paper reviews the most important academic studies on CSR and ESG to show where the current research on this topic is standing. Along these lines we provide our assessment of the CSR literature where appropriate.

Key questions of this report are: What are the effects of superior CSR on corporate financial performance? What are the effects that particular aspects of ESG have on the cost of equity or cost of debt for firms? Does CSR make sense from a strategic management perspective? Are financial markets aware of CSR? And if so, what can investors do with those firms that display inferior CSR and ESG standards? These are questions this research paper endeavours to answer while reviewing the most important research studies on CSR and ESG.

Keywords: Corporate Social Responsibility, ESG, active ownership

JEL Classification: G23, G30, M14

Suggested Citation

Clark, Gordon L. and Viehs, Michael, The Implications of Corporate Social Responsibility for Investors: An Overview and Evaluation of the Existing CSR Literature (August 17, 2014). Available at SSRN: https://ssrn.com/abstract=2481877 or http://dx.doi.org/10.2139/ssrn.2481877

Gordon L. Clark

Oxford University - Smith School of Enterprise and the Environment ( email )

South Parks Road
Oxford, OX1 3QY
United Kingdom
+44 1865 285197 (Phone)
+44 1865 285073 (Fax)

HOME PAGE: http://www.geog.ox.ac.uk/staff/glclark.html

Michael Viehs (Contact Author)

Oxford University Smith School of Enterprise and the Environment ( email )

South Parks Road
Oxford, OX1 3QY
United Kingdom
+44-1865-614938 (Phone)

European Centre for Corporate Engagement (ECCE) ( email )

Tongersestraat 53
Maastricht, 6211LM
Netherlands

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