An overlooked but important benefit of CSR is to insure a company against a decline in standing in the face of adverse events. Through a case study along with a multi-year evaluation of stock price responses for S&P 500 businesses following product recalls, we find that businesses that have high CSR evaluations do better than those that do not. Also, a firm that's extraordinary in both doing good and avoiding harm endures virtually no reputational damage following adverse media publicity. Utilizing the results of this study, we provide a guide for ascertaining the proper amount and mixture of CSR actions, to supervisors.
PUBLICATION DATE: May 01, 2011 PRODUCT #: CMR483-PDF-ENG
This is just an excerpt. This case is about STRATEGY & EXECUTION
Related Case Solutions & Analyses:
Entrepreneurial Family
Value-At-Risk
Siam Canadian Foods Co. Ltd.
Lynton V. Harris & Madison Scare Garden (A)
Acid Rain: Burlington Northern Inc. (B)
Philip Morris Companies Inc. (B)
Transportation Displays Inc. (A)
The High West Distillery
The Beauty of Sorbet
Bonnier: Digitalizing the Media Business
