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The market acceptance of corporate social responsibility: a comparison across six countries/regions

Author

Listed:
  • Ron Bird

    (Paul Woolley Centre for the Study Capital Market Dysfunctionality, University of Technology Sydney, Australia)

  • Francesco Momenté

    (Bocconi University, Italy)

  • Francesco Reggiani

    (Bocconi University, Italy)

Abstract

Information on the link between market performance and corporate social responsibility (CSR) activities provides an indication of the extent of acceptance by investors of these types of activities. The nature of this relationship is of critical importance for management trying to reconcile the demands of the company’s shareholders with those of a much wider group of stakeholders and for investors pursuing a socially responsible investing strategy. Using an international database we investigate the extent to which expenditures on CSR activities are valued across market in six countries/regions. We find that CSR activities are highly valued by the investors in the European markets, where our findings clearly indicate that such activities lead to higher market valuations. In the US, Japan and Australia expenditures on CSR activities have a neutral impact on company valuation, which is still a good outcome for management who wish to incorporate into their decision process the objectives of a wide spectrum of stakeholders and for investors wishing to tilt their investments towards the more socially responsible companies.

Suggested Citation

  • Ron Bird & Francesco Momenté & Francesco Reggiani, 2012. "The market acceptance of corporate social responsibility: a comparison across six countries/regions," Australian Journal of Management, Australian School of Business, vol. 37(2), pages 153-168, August.
  • Handle: RePEc:sae:ausman:v:37:y:2012:i:2:p:153-168
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Jeremy Galbreath, 2013. "ESG in Focus: The Australian Evidence," Journal of Business Ethics, Springer, vol. 118(3), pages 529-541, December.
    2. Karen Benson & Peter M Clarkson & Tom Smith & Irene Tutticci, 2015. "A review of accounting research in the Asia Pacific region," Australian Journal of Management, Australian School of Business, vol. 40(1), pages 36-88, February.
    3. Abhishek Mukherjee & Ron Bird, 2016. "Analysis of mandatory CSR expenditure in India: a survey," International Journal of Corporate Governance, Inderscience Enterprises Ltd, vol. 7(1), pages 32-59.
    4. Gariet WS Chow & Robert B Durand & SzeKee Koh, 2014. "Are ethical investments good?," Australian Journal of Management, Australian School of Business, vol. 39(4), pages 645-665, November.
    5. Ron Bird & Geeta Duppati & Abhishek Mukherjee, 2016. "Corporate social responsibility and firm market performance: a study of Indian listed companies," International Journal of Business Governance and Ethics, Inderscience Enterprises Ltd, vol. 11(1), pages 68-88.

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