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What Relation Exists Between Corporate Social Responsibility (Csr) And Longevity Of Firms?

  • Jean-Michel Sahuta
  • Sandrine Boulerne
  • Medhi Mili
  • Frédéric Teulon

The relation between company longevity and its performance is undeniable; however the relationship between sustainability and performance remains the subject of multiple studies which seem to confirm a positive link. But what type of relationship exists between a firm’s longevity and sustainability? In this paper, we demonstrate that the adoption of corporate social responsibility (CSR) principles explains this link. Therefore, sustainable development policies can create a rampart wall which protects firms against crisis through its three pillars (environmental, social and economic) and thus limit the number of enterprises which go bankrupt. This rampart wall would be even more effective if the principles of sustainable development which companies adopt were guided by a suitable mix of soft law and hard law.

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Paper provided by Department of Research, Ipag Business School in its series Working Papers with number 2014-248.

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Length: 8 pages
Date of creation: 28 Apr 2014
Date of revision:
Handle: RePEc:ipg:wpaper:2014-248
Contact details of provider: Postal: 184 Boulevard Saint-Germain, 75006 Paris
Phone: 33 1 53 63 36 00
Web page: http://www.ipag.fr

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  1. Darren D. Lee & Robert W. Faff, 2009. "Corporate Sustainability Performance and Idiosyncratic Risk: A Global Perspective," The Financial Review, Eastern Finance Association, vol. 44(2), pages 213-237, 05.
  2. Constantin Belu, 2009. "Ranking corporations based on sustainable and socially responsible practices. A data envelopment analysis (DEA) approach," Sustainable Development, John Wiley & Sons, Ltd., vol. 17(4), pages 257-268.
  3. Christel Decock-Good, 2001. "L'engagement mécénique des entreprises:mesure de l'une des expressions de leur responsabilité sociétale," Revue Finance Contrôle Stratégie, revues.org, vol. 4(4), pages 29-57, December.
  4. Cohen, Boyd & Winn, Monika I., 2007. "Market imperfections, opportunity and sustainable entrepreneurship," Journal of Business Venturing, Elsevier, vol. 22(1), pages 29-49, January.
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