Strategic use of CSR as a signal for good management
AbstractMore than thirty years of research exploring the link between corporate social responsibility (CSR) and corporate financial performance (CFP) could not provide a satisfying resolution to the tension exists between economic and social objectives. In this paper, we have contributed to the existing CSR literature both theoretically and empirically. On the theoretical side, we challenged the assumption that managers consider all stakeholders equally important and we contend that managers prioritize stakeholders instead. We also extend agency theory by suggesting that CSR may actually reduce monitoring costs since it has informative value about the quality of management.
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Bibliographic InfoPaper provided by Instituto de Empresa, Area of Economic Environment in its series Working Papers Economia with number wp08-25.
Length: 28 pages
Date of creation: Apr 2008
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This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-05-17 (All new papers)
- NEP-CSE-2008-05-17 (Economics of Strategic Management)
- NEP-SOC-2008-05-17 (Social Norms & Social Capital)
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