According to a new study, corporate social responsibility (CSR) initiatives do bring one very important benefit to their companies -- a superior ability to raise money for strategic investments and initiatives.
Researchers at the Harvard and London Business Schools analyzed the corporate social responsibility scores of 2,439 publicly traded companies. They found that companies with high CSR scores have a much easier time raising money than their less socially-responsible competitors.
They suggest that firms with great CSR scores can access capital at better interest rates than other firms, starting a ‘virtuous cycle’: Companies with great CSR scores are better able to raise money for their strategic investments and initiatives, which in turn improve their stock market returns -- and that makes it easier for them to raise money.
Read more at BNET
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