Corporate Social Responsibility and Employee Investment in Company Stock
81 Pages Posted: 25 Jul 2022 Last revised: 6 Nov 2024
Date Written: July 15, 2022
Abstract
Corporate social responsibility (CSR) affects employees’ investments in their company stock. We document this finding exploiting unique data on firm-sponsored savings plans in France. Following a CSR-related incident involving their employer, employees’ propensity to buy their employer’s stock drops by 26 percentage points. This effect is primarily driven by social incidents directly affecting employee working conditions. In contrast, environmental incidents exhibit no impact on these investments. Our findings cannot be fully explained by pecuniary motives and are not driven by CSR-conscious employees. Overall, our results point to employees considering their own well-being when making these investment decisions.
Keywords: employee stock purchase plans, ESOP, CSR, retirement savings
JEL Classification: G11, G41
Suggested Citation: Suggested Citation
Bonelli, Maxime and Briere, Marie and Derrien, François, Corporate Social Responsibility and Employee Investment in Company Stock (July 15, 2022). Available at SSRN: https://ssrn.com/abstract=4164062 or http://dx.doi.org/10.2139/ssrn.4164062
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