Social and Behavioral Sciences


There have been many opinions on corporate social responsibility (CSR) and whether it has a positive impact on a company's financial status. External pressures are certainly present to encourage these behaviors, but the bottom-line impact is still much debated. By examining the long-term abnormal returns of companies before and after being listed in Forbes’ article titled “America’s 100 Best Corporate Citizens” we are able to understand whether being a socially responsible company results in better stock market returns. We also measured the effect the rankings had on riskiness. We found that in the long-term, companies in the rankings have significantly lower abnormal returns when compared to the market as a whole.