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Market-Based Solutions to Vital Economic Issues

Institute Insights: Corporate Responsibility and Irresponsibility

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Does practicing corporate social responsibility (CSR) bestow any benefits on how a firm is perceived by the public? Yes, says a study by Olga Hawn, assistant professor of strategy and entrepreneurship and faculty director of the Center for Sustainable Enterprise at UNC Kenan-Flagler Business School, and Catherine Shea, assistant professor of organizational behavior and theory at Carnegie Mellon University Tepper School of Business. Hawn and Shea point to a link between CSR and a company’s’ reputation for warmth and competence, how perceptions of firms’ exhibition of these characteristics affect CSR rewards and CSI (corporate social irresponsibility) penalties and how these effects vary from country to country.

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