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A Multi-Dimensional Analysis of Corporate Social Responsibility: Different Signals in Different Industries

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DOI: 10.4236/jfrm.2015.42009    3,882 Downloads   4,818 Views   Citations


This study investigates the relation between individual dimensions of corporate social responsibility (CSR) and financial performance in different industries. Using Kinder, Lydenberg and Domini (KLD) social ratings, we find that investors seem to be more sensitive to the dimension “Environment” in mining and manufacturing sectors while they seem to be more sensitive to the dimension “Employees’ welfare” in the service industry. Our results also suggest that investors perceive an additional financial risk from firm’s irresponsible behavior and consequently, they are more pre-occupied by eventual losses caused by firms’ social irresponsibility than by potential financial gains from corporate social performance.

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The authors declare no conflicts of interest.

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Shalchian, H. , Bouslah, K. and M’Zali, B. (2015) A Multi-Dimensional Analysis of Corporate Social Responsibility: Different Signals in Different Industries. Journal of Financial Risk Management, 4, 92-109. doi: 10.4236/jfrm.2015.42009.


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