Through globalization, businesses are gaining more power, since stakeholder demands to behave ethically and socially responsible (CSR) are increasing dramatically. Acting ethically from a sense of social responsibility is a competitive advantage that improves economically an organization’s financial performance in the long term. This chapter analyzes the relationship between an organization’s focus on ethical/corporate social responsibility (CSR) behaviors and financial performance based on share price analysis proceeding from public announcement of ethical/CSR commitment. The methodology used in this study is based on both the event study method in efficient markets and the market model. The calculation of unexpected returns and the analysis of the impact of public announcements on the share price value of the Generali Insurance Company (GIC) case study are presented (historical data taken from S&Pmib). The results show that there is a tendency toward share value increasing and decreasing, but these changes are not significant in the light of public information related to CSR.
Vargas, L. (2016), "Corporate Social Responsibility and Financial Performance: GIC’s Share Prices Value Impact – Event Study", Corporate Responsibility and Stakeholding (Developments in Corporate Governance and Responsibility, Vol. 10), Emerald Group Publishing Limited, pp. 165-177. https://doi.org/10.1108/S2043-052320160000010012Download as .RIS
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