The Negative Relationship Between Event-Specific Corporate Social Responsibility and Shareholder Value

Abstract

Previous work has shown that corporate social responsibility (CSR) initiatives can preserve shareholder value after an organization experiences a negative event. I expand on this theory by examining one boundary condition that could lead to the opposite relationship: when the organization has a CSR initiative intended to prevent the type of event that occurs. The author argues that activist pressure will enhance the negative relationship between event-specific CSR and shareholder value. Using an event-study, the author examines the apparel industry after the collapse of Rana Plaza which killed over a thousand apparel supply chain employees.

Citation

Kayser, S.A. (2018), "The Negative Relationship Between Event-Specific Corporate Social Responsibility and Shareholder Value", Briscoe, F., King, B.G. and Leitzinger, J. (Ed.) Social Movements, Stakeholders and Non-Market Strategy (Research in the Sociology of Organizations, Vol. 56), Emerald Publishing Limited, Leeds, pp. 143-171. https://doi.org/10.1108/S0733-558X20180000056007