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Strategic use of CSR as a signal for good management

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  • LUIS GOMEZ - MEJIA

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    (Instituto de Empresa)

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    Abstract

    More 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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    File URL: http://latienda.ie.edu/working_papers_economia/WP08-25.pdf
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    Bibliographic Info

    Paper provided by Instituto de Empresa, Area of Economic Environment in its series Working Papers Economia with number wp08-25.

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    Length: 28 pages
    Date of creation: Apr 2008
    Date of revision:
    Handle: RePEc:emp:wpaper:wp08-25

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    Cited by:
    1. Choi, Jong-Seo & Kwak, Young-Min & Choe, Chongwoo, 2010. "Corporate Social Responsibility and Corporate Financial Performance: Evidence from Korea," MPRA Paper 22159, University Library of Munich, Germany.

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