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This paper aims to examine the performance of corporate social responsibility (CSR) portfolio at the Warsaw Stock Exchange.

This paper uses the CSR portfolio of public companies that was selected in a three-step procedure. In total, 23 companies were selected and formed a CSR portfolio that is traded on the Warsaw Stock Exchange under the Respect Index. The Capital Asset Pricing Model (CAPM) is used to compare returns of CSR companies with respect to the market. The performance of this portfolio is measured in the period from 2010 to 2012.

This paper finds that the CSR portfolio measured under the Respect Index outperformed market in all time periods from 2010 to 2012. In addition, in 2010, the CSR portfolio exceptionally outperformed the market by almost 80 per cent. In 2011, even though the market was down, the CSR portfolio reported lesser losses: −0.93 vs −1.73 per cent. In the following year, the market regained and the CSR portfolio again outperformed the market by 14 per cent. This paper also finds that the CSR portfolio is more sensitive to systematic risk than to specific risk. In addition, the CSR securities move according to the market trend.

The limitation of this paper is attributed to a cause-and-effect relationship. In other words, it did not answer whether adopting CSR led to higher profitability or profitability reflected an awareness of market conditions that favored the adoption of CSR. The future research should focus on this issue and indicate whether investors prioritize CSR over profits or vice versa.

The results indicate that investments in CSR portfolio companies bring abnormal returns to investors. In addition, the CSR portfolio may resist market downturns and even bring exceptional profits to investors.

This study explains the CSR portfolio’s performance on the Warsaw Stock Exchange by using the CAPM.

The purpose of this paper is to introduce and test a portfolio view of a firm’s corporate social responsibility (CSR) activities. Drawing from stakeholder theory and the dynamic capabilities literature, the authors introduce CSR portfolio diversity and dynamism as key portfolio characteristics that have differential impacts across short- and long-term performance contexts.

The study draws from the Kinder, Lydenberg and Domini database to examine CSR portfolio diversity and dynamism across seven dimensions of CSR activities. The authors test the direct and indirect relationships between CSR portfolio characteristics and both short- and long-term performance outcomes to assess the opportunities and challenges associated with managing a diverse and dynamic CSR portfolio.

The findings suggest that a diverse portfolio of CSR activities positively impacts long-term performance; however, CSR portfolio diversity yields negative performance outcomes in the short-term. The authors also find that CSR portfolio dynamism moderates the relationship between CSR level and firm performance, such that a dynamic portfolio of CSR positively moderates the relationship between a firm’s CSR level and long-term performance; however, it negatively moderates the relationship between CSR level and short-term performance.

This study integrates insights from the literature that examine the independent effects of individual CSR activities and the broader perspective that assesses the aggregated summation of CSR activities in relation to firm performance. By taking a portfolio perspective, the present study provides a unique integration of these two research streams to examine the performance implications of engaging in a diverse and dynamic range of CSR activities.

The purpose of this paper is to examine the relationship between corporate social responsibility (CSR) performance communication and stocks’ performance using socially responsible investment (SRI) portfolio management approach.

The authors used the multi-factors models to examine the impact of CSR performance communication on the ex post monthly returns of three distinctly formed portfolios as well as their differential performance from 2001 to 2013 in a small economy of New Zealand.

The results show that SRS portfolio comprising of the stocks that demonstrate a relatively less proactive approach to the social and environmental concerns outperforms a stock portfolio that comprises of companies that have a relatively proactive approach to stakeholder engagement referred to as SVS portfolio. Furthermore, the authors’ findings show a positive relationship between social performance and market valuation. This indicates that the market values more stakeholder engagement in regard to social issues than environmental issues.

The authors’ findings imply that the SRI does make perfect financial sense in a small economy such as New Zealand. The perception of the CSR communication as an “insurance” for mitigation of social and environmental risks is one of the factors driving the valuation of SRI portfolios in New Zealand.

The authors collected CSR data from the publicly available sources such as the annual reports, the CSR reports and sustainability reports because a layman investor is more likely to rely on these sources in a small economy.

The purpose of this paper is to explain people's divergent perceptions of companies' corporate social responsibility (CSR) activities in order to help organizations strategically manage their global responsibilities.

Combining institutional theory and role‐theory, the authors examine how people's expectations for the role of business (RoB) in society define the standard by which corporate activities are judged. Where conformity to institutional models confers “legitimacy” and compliance to social scripts constitutes “appropriate” behavior, the authors contend that congruence with RoB expectations is what defines corporate responsibility. This research utilized a quasi‐experimental method to explore the effects of stakeholder status and individuals' RoB expectations on their assessments of CSR activities.

Significant differences were found between stakeholder groups on all but one of the CSR activities scales. Of substantially more impact, subjects' RoB expectations were found to significantly shape their assessment on all CSR activities scales. A factor analysis of the RoB items identified five dimensions to the role business plays in society, which together define a holistic model for global responsibility.

Subjects were recruited by convenience and randomly assigned to the four experimental conditions, so they are not representative of the general population. Future research would benefit from cross‐cultural, longitudinal and qualitative explorations into people's RoB expectations.

The five RoB components provide managers with a tool to strategically manage a multi‐dimensional portfolio of corporate CSR activities.

This research applies role‐theory concepts to the study of CSR, thereby introducing some emergent, situational, negotiated and idiosyncratic dynamics to our understanding of global responsibility.

The purpose of this paper is to analyse whether the concept of societal marketing being practised in developed countries can be directly applied to countries in transition, such as Belarus, and what adjustments would be beneficial to achieve this. The paper takes a comprehensive view of the complex linkages between the implementation of corporate social responsibility (CSR) principles by examining elements of societal marketing in the European Union (EU) countries and in Belarus.

Data are provided by the web sites of European best practice companies and data from the Global Compact that identifies socially‐responsible companies in the EU and Belarus. The results for Belarus are combined with the insights from capacity building activities on societal marketing organised by the Local Network Global Compact (LNGC) Belarus, for private and public enterprises.

The research presents two groups of companies in Belarus: Start‐up companies see their CSR activities as philanthropic actions; and On‐the‐way companies integrate elements of societal marketing such as vision and stakeholder management into their practices. The European societal marketing experience can act as a mechanism for further integrating CSR principles into business practices in Belarus. This depends on the aptitude of the companies for social innovation, the level of stakeholder involvement and the governmental support for CSR policy creation.

The scope of the research should be broadened out to other industries and tested with a larger sample, including small‐and medium‐sized firms. It is also necessary to analyse other key drivers of the CSR in Belarus, which can impact on further use of societal marketing components.

This research has implications for practitioners, specifically the groups of stakeholders involved in CSR programmes in Belarus. The results suggest how stakeholders can apply societal marketing and differentiate themselves from competitors in the EU and in Belarus.

The paper proposes a framework on societal marketing that considers the factors that influence CSR development and provides recommendations for businesses operating in Belarus on how to achieve a competitive advantage in a country in transition.

The purpose of this paper is to determine whether consumers’ attitude toward sporting goods retailers depends on who engages in corporate social responsibility (CSR) activities and where CSR takes place. The study aims to replicate previous findings on football teams (Kulczycki and Koenigstorfer, 2016) for for-profit sporting goods retailers by looking at how organization size and proximity of the supported cause to the retailers’ headquarters interact with consumers’ motive attributions for CSR (philanthropic vs profit).

In total, 200 participants took part in the experimental study. The study applied a between-participant design manipulating both the proximity of the supported social cause (local vs distant CSR) and the size of the organization (small- vs large-sized organization) and measured perceived motives for CSR as independent variables. Attitude toward retailers was the dependent variable.

The results of regression analyses showed that perceived philanthropic motives increased attitude toward retailers. This relationship became stronger for large-sized sporting goods retailers, in particular when they engaged in CSR activities at distant locations. For small-sized retailers, the proximity of CSR did not impact on the relationship between motive attribution and attitude toward the retailer.

Large-sized retailers are encouraged to take particular care that consumers perceive CSR activities as philanthropy-driven, especially when supporting social causes at distant locations.

The study replicates previous findings and shows that not only for sports teams, but also for sporting good retailers, CSR can increase consumer attitudes even when the consumer population at the organization headquarters’ location does not directly benefit from CSR.

Over the past decades, corporate social responsibility (CSR) has been considered as a significant corporate strategy and also has been documented as a main information dissemination mechanism of corporations to shareholders, creditors and other external stakeholders. This fact makes the CSR activities and CSR performance interconnected with the quality of firms’ financial reporting. The purpose of this paper is to study the impact of CSR performance on the earnings management (EM) behaviour using a sample from 24 European Union (EU) countries summing up to 121,154 firm-year observations over the period 2003–2018.

The study uses a multi-country data set with various dimensions of CSR performance including indexes regarding workforce, community relations, product responsibility and human rights protection. The empirical analysis is conducted with panel data regressions.

Evidence supports the negative association between CSR and EM indicating that high CSR performing firms are associated with less income smoothing and discretionary accruals, thus with higher financial reporting quality.

Regulatory agencies in the EU could use the findings of the study for the improvement of the accounting framework via enhancing the use and publications of social and environmental responsibility information and reports.

Also, the current paper could be of interest not only to academic researchers but also to potential and existing investors in European corporations. The negative association between CSR performance and EM could be used by investors in assessing the risk of firms and the quality and reliability of their financial information.

This is the first study within the EU, which considers the multi-facet characteristics of CSR on the quality of accounting earnings and offers useful policy implications for regulators and investors.

Over the past two decades, the topics of Environmental, Social and Corporate Governance (ESG) and Corporate Social Responsibility (CSR) have attracted an increasing amount of interest, reflecting a growing sensitivity of investors and corporations towards environmental, social and governance issues.

This survey offers an overview of the academic literature on ESG/CSR through the lens of investors, institutions and firms. We first discuss the definitions of ESG and CSR and their relationship to each other.

We next describe how ESG is measured and note problems with the measurement of and quality of ESG data and discrepancies between different measures of ESG. We then turn our attention to investors, examining what types of investors invest in ESG and the role of institutional investors in ESG. From the firm's perspective, we discuss why firms themselves conduct ESG. We also summarize the literature on the impact of ESG on firms: how ESG affects firms' financing, disclosure and reporting activities and firm performance. Finally, we describe other consequences of the focus of ESG and CSR on firms and investors.

This survey offers an overview of the academic literature on ESG/CSR through the lens of investors, institutions and firms.

This paper aims to investigate the effect of corporate social responsibility (CSR) ratings on the ex ante cost of capital of more than 2,300 listed US companies in a panel from 2003 to 2010. It examines whether financial markets value continuous investment in CSR activities through higher market capitalization and lower cost of capital.

The measure of the cost of capital reflects the perceived riskiness of individual companies expressed in the unobserved internal rate of return that investors expect to hold a risky asset. Based on descriptive portfolio estimations, panel and quantile regressions, the authors model the cost of equity capital as a function of CSR strengths and concerns obtained from the KLD-database and accounting controls.

The authors show that firms' CSR strategies differ significantly across industry sectors. Customer-orientated companies such as telecommunications and automobile outperform asset-driven sectors such as real estate or chemical companies. Furthermore, the authors find a 10-bp positive effect for one standard deviation of firms' intensive allocation of resources in sustainable activities.

Since the authors are interested in the effect environmental, social and governance activities have on the firm's perceived market valuation rate, the authors apply the Fama-French model because of its efficiency in explaining realized returns, rather than incorporating analyst's long-term growth forecasts into the proxy for the equity premium.

Managers of companies with low or intermediate CSR scores may consider the financial benefits of improving their social and environmental performance. A good starting point is usually to draw up a company-wide CSR agenda, possibly guided by a dedicated CSR task force, mapping out the potential costs and benefits of such measures. In addition, by improving their CSR ratings, a company may get access to additional resources, ranging from the growing ethical investment industry to employees for whom CSR performance matters when choosing an employer.

The authors expand the existing literature by considering firm's CSR level to be in relation to the overall CSR performance and decompose firm's CSR agenda into strengths and concerns rather than counting the number of activities a firm is involved in. The applied methodology allows a better understanding of firm's CSR agenda and its implication for capital markets and investors on both long and short investment terms.