The Nature Of Corporate Social Responsibility

2194 Words9 Pages
1. Introduction The nature of corporate social responsibility (CSR) is based on the interests and connections of the external relations between the stakeholders such as the company, operators and its shareholders, and how they see and expect the realization of the sustainable development of the company. It is beneficial for companies to carry out the social responsibility because it can help them get the support from investors, stakeholders, and thus get good internal and external environments for their sustainable development. The field of CSR has become a fast-growing part of long-lasting enterprises in the recent decade. And nowadays, companies not only consider their reputation, but also consider the monetary incentives when they keep up with corporate social responsibility. Milton Friedman (1970) argued that the social responsibility of business is to increase its profit. As we know, the economic prospect of one company is reflected by its stock return and volatility. Will the corporate social responsibility affect the stock returns and efficiency of the capital market? The answer for this question will help improve the performance of the U.S. stock market. In this study, I will be exploring and testing the correlation between corporate social responsibility strength and U.S. stock returns, based on the performance of S&P 500 stock market. Also, if possible, I will be testing the best level for public corporations to practice CSR, or keep balance between CSR
Open Document