Corporate Social Responsibility and Firm Reputation Risk: Bettering Firm Reputational Risk Through Socially Responsible Activities

61 Pages Posted: 10 Aug 2017 Last revised: 18 Aug 2017

See all articles by Jamey Darnell

Jamey Darnell

Pennsylvania State University - Smeal College of Business; University of South Florida - Sarasota Campus

Date Written: August 4, 2017

Abstract

This study aims to extend the literature on CSR as insurance like in relation to firm performance. Socially responsible activities may provide insurance against reputational crises for firms. Specifically, a positive relationship is found between CSR and reputational risk demonstrating an additional reason why pursuing socially responsible activities makes fundamental sense for managers. This study also fills a gap in the literature by examining CSR in a multilevel model and examining an alternative data source to measure CSR beyond traditional KLD data.

Keywords: corporate social responsibility, reputational risk, ESG, stakeholder theory, multilevel models

JEL Classification: M14, Y40

Suggested Citation

Darnell, Jamey, Corporate Social Responsibility and Firm Reputation Risk: Bettering Firm Reputational Risk Through Socially Responsible Activities (August 4, 2017). Available at SSRN: https://ssrn.com/abstract=3015973 or http://dx.doi.org/10.2139/ssrn.3015973

Jamey Darnell (Contact Author)

Pennsylvania State University - Smeal College of Business ( email )

University Park, PA 16802
United States

University of South Florida - Sarasota Campus ( email )

Sarasota, FL
United States

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