Do socially responsible managers forecast sales more accurately?

Purpose - This paper aims to examine whether corporate social responsibility (CSR) is related to management sales forecast accuracy. Design/methodology/approach - Use KLD measures of corporate responsibility combined with forecast accuracy regression model, including controls for management skills and expertise. Findings - Socially responsible firms commit forecast errors of lower magnitude and sales forecast accuracy is positively related to the level of CSR. Research limitations/implications - A strong motive for research on the field of CSR topic under the scope of reporting quality. Future research could focus on alternative measures of CSR; such as announcements included into the financial statements or separately disclosed expenses. Examine the magnitude of confirmed relation, among different economies worldwide. Practical implications - CSR effect on manager sales forecasting activity, highlight the impact of brand awareness and customer loyalty, as created by implementing CSR strategies, on firm growth and sales expansion. Social implications - The research enhances the era towards more socially responsible firms, presenting evidence of such an adoption on corporate fundamentals. Originality/value - To the knowledge there is no prior research examining the implications of CSR on sales forecast accuracy.