Corporate social responsibility and firm performance: Investor preferences and corporate strategies

We address the debate about whether firms should engage in socially responsible behavior by proposing a theoretical model in which the supply of and demand for socially responsible investment opportunities determine whether these activities will improve, reduce, or have no impact on a firm's ma...

Full description

Saved in:
Bibliographic Details
Published in:The Academy of Management review 2007-07, Vol.32 (3), p.817-835
Main Authors: Mackey, Alison, Mackey, Tyson B, Barney, Jay B
Format: Article
Language:English
Subjects:
Business investment
Business management
Corporate responsibility
Corporate social responsibility
Correlation analysis
Economic models
Economic performance
Enterprises
Financial performance
Firm theory
Management science
Market value
Social investing
Social responsibility
Studies
Citations: Items that this one cites
Items that cite this one
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:We address the debate about whether firms should engage in socially responsible behavior by proposing a theoretical model in which the supply of and demand for socially responsible investment opportunities determine whether these activities will improve, reduce, or have no impact on a firm's market value. The theory shows that managers in publicly traded firms might fund socially responsible activities that do not maximize the present value of their firm's future cash flows yet still maximize the market value of the firm. [PUBLICATION ABSTRACT]
ISSN:0363-7425
1930-3807
DOI:10.5465/amr.2007.25275676