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CSR as Reputation Insurance: Primum Non Nocere

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2011

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Minor, Dylan B., and John Morgan. "CSR as Reputation Insurance: Primum Non Nocere." California Management Review 53, no. 3 (Spring 2011): 40–59.

Abstract

We provide a theoretical framework showing how CSR activities can insure a firm against lost reputation in the face of adverse events. We offer evidence for this linkage through a case study and a multi-year analysis of stock price responses for S&P 500 companies following product recalls. We find that firms with better CSR ratings fare better than those that do not. Furthermore, a firm that is exceptional in both doing good and avoiding harm suffers virtually no reputational damage following events. Using the results of the study, we offer a guide to managers for determining the appropriate amount and mix of CSR to undertake.

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corporate social responsibility, reputation, insurance

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