A Paper Information Full Working Paper Text Working Paper Publication Date May HBS Working Paper Numr NR Working Paper No. Faculty Unit s Finance Why Good Des Invite Bad Publicity by Michael Blanding Many executives assume that investments in corporate social responsibility create public goodwill. But do they Felix Orholzer Gee and colleagues find surprising results when it comes to oil spills.
Do companies with reputations
Acting in socially responsible ways receive public goodwill when unpleasant news hits The question of how much or even if corporate social responsibility CSR policies nefit companies yond the knowlge that they are good corporate citizens is much debat. There is next to Singapore Phone Number List no evidence that CSR positively adds to a company s bottom line according to Felix Orholzer Gee the Andreas Andresen Professor of Business Administration at Harvard Business School. You cannot find a robust direct link tween CSR and financial performance. “YOU CANNOT FIND A ROBUST DIRECT LINK TWEEN CSR AND FINANCIAL PERFORMANCE.
It is true that in areas such
As environmentally sustainable practices customers have en willing to pay responsible producers a premium for products take organic cotton for example. For the Israel Phone Number most part however companies have had to content themselves with thinking that even if there isn t an immiate payoff for doing the right thing then at least the goodwill they build up with the public will provide a buffer to offset negative publicity when something goes wrong. operates exactly like fire insurance. On any given day you won t see any nefit.
