| Abstract [eng] |
Academic Summary: Corporate social responsibility (CSR) is a key strategy to achieving (e.g., environmental) sustainability. While many studies report a positive effect of CSR on firm value, growing evidence suggests practice often fails to unlock such effect. This equivocality may arise from conflicting theoretical perspectives, insufficient consideration of granular CSR activities, and/or neglecting the role of new product development (NPD). We address this equivocality through a theoretically unprejudiced exploration of the effects of a comprehensive set of CSR activities on firm value and by investigating the underexplored moderating role of NPD alongside that of marketing moderators. Econometric analysis of 3,107 firms across industries unveils that the largely overlooked CSR activities addressing social concern avoidance (e.g., by protecting stakeholders from environmental hazards) account for the greatest number of significant effects on firm value. Second, all significant effects of CSR activities on firm value are negative. Third, while all significant interaction effects of CSR activities and NPD on firm value are positive, most interactions with marketing instruments are negative. Overall, the findings highlight the critical role of NPD in potentially unlocking a positive effect of CSR on firm value. Even more so, they suggest treating CSR and firm value as separate strategic goals—akin to sustainability's people, planet, and profit objectives. Managerial Summary: While many firms invest in corporate social responsibility (CSR) initiatives not only to advance sustainability but also to drive firm value, this research shows that only a subset of CSR activities has a significant effect on firm value and that these effects are predominantly negative. Many of the CSR activities with significant effects relate to avoiding social or environmental harm, but their impact varies markedly across stakeholders, rendering aggregate CSR strategies misleading for managerial decision-making. Further, whether CSR activities undermine or support firm value depends critically on how they are implemented. For innovation and R&D managers, the findings suggest that CSR activities are most effective when embedded in new product development. For marketing managers, the findings urge caution, as heavy reliance on branding and other marketing tools to advance the firm's CSR objectives can amplify negative effects on firm value. For senior executives, the results suggest a need to treat CSR and firm value as distinct strategic goals and carefully balancing specific CSR activities rather. |
