Csr And Csr Investing

Springer 2006 Journal of Business Ethics (2007) 70:165–174 DOI 10.1007/s10551-006-9103-8 Corporate Social Responsibility and Socially Responsible Investing: A Global Perspective ABSTRACT. This research examines the relationship between corporate social responsibility (CSR) and company stock valuation across three regions of the world. After a brief introduction, the article gives an overview of the evolving definition of CSR as well as a discussion of the ways in which this construct has been operationalized. Presentation of the potential impact of corporate social performance on firm financial performance follows, including investor characteristics, the rationale behind their choices, and their influence on the marketplace for securities worldwide. The unique method used to select socially responsible investments is then provided that also includes a description of the quantitative techniques employed in the analyses. Results are offered subsequently, and the close describes implications for global enterprises as socially responsible investments. KEY WORDS: Corporate social responsibility, global investments The obligation to work for social betterment is the essence of the notion of corporate social responsibility. (Frederick, 1994, p. 151) Contentious debate over the modern relevance of corporate social responsibility was spawned by the economist Milton Friedman (1970), who argued that public companies possess only minimal ethical obligations (e.g., to operate within the societal ethical frame, to avoid deception and fraud) beyond maximizing profits and obeying the law. However, this position has few adherents, especially among the scholarly community interested in practical ethics, moral maturity, and/or the intersection between business and society. For example, business ethicists often discuss the essential role of multiple interests in the decision calc