CSR behaviour of firms & its ripple effect
CSR behaviour of firms & its ripple effect
Published 1 January, 2020
[For] every one per cent increase in a company's CSR activity, there is a much larger effect in the whole economy. This is an implication for policymakers.
Liang Hao
Associate Professor of Finance
In brief
- Corporate Social Responsibility (CSR) is an evolving business practice incorporating sustainable development or 'doing good' into a company's business model. Customers and employees pay a premium on spending their money with or working for businesses prioritising CSR.
- When a company passes a CSR proposal, its rival firms will also increase their CSR in the next year. Corporate customers also make a real effort to ensure their suppliers also engage in similar CSR standards.
- When implementing a CSR strategy, Managers should consider its competitive advantage and how their firms' performance can be affected by other firms' CSR adoption. For every one per cent increase in a company's CSR activity, there is a much more significant effect on the whole economy.
In this podcast, Assistant Professor Liang Hao from SMU’s Lee Kong Chian School of Business shares how a firms’ CSR behaviour can influence that of its suppliers and peer firms.
Corporate Social Responsibility, or CSR in short, is an evolving business practice that incorporates sustainable development or ‘doing good’ into a company's business model. In today's socially conscious environment, customers and employees place a premium on spending their money with or working for businesses that prioritise CSR. As such, socially responsible companies can cultivate positive brand recognition, increase customer loyalty, and attract top-tier employees.
Taking a fresh approach on CSR research, Assistant Professor of Finance and DBS Sustainability Fellow LIANG Hao from the SMU Lee Kong Chian School of Business, has written two award-winning papers that studied how a firms’ CSR behaviour can influence that of its suppliers as well as its peer firms.
In this podcast, he shares the findings and implications of these studies.