Corporate social responsibility and firm risk

Purpose This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings In an ideal world, business and risk would be mutually exclusive entities. Such a scenario obviously remains a pipedream in the vast majority of cases. Firms must therefore focus on identifying ways to control risk so that any negative fallout for shareholders is minimized. It is feasible to propose that risk might be addressed through corporate social responsibility (CSR). Numerous studies have documented the growing importance of CSR and its potential to impact on the financial well-being of an organization. Today’s consumers are becoming increasingly concerned about society and the environment. These concerns can influence purchase decision making among certain market segments. As a result, some individuals will only patronize companies deemed to act in a socially responsible manner. Practical implications The paper provides strategic insights and practical thinking that have influenced some of the world’s leading organizations. Originality/value The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.