Investment in corporate social initiatives is escalating in accordance with the increasing recognition of the vast potential of such initiatives. For example, although it represents only a small proportion of overall corporate expenditure on social initiatives, U.S. corporate spending on...

Marketers and investors face a heated, provocative debate over whether excelling in social responsibility initiatives hurts or benefits firms financially. This study develops a theoretical framework that predicts (1) the impact of corporate social performance (CSP) on firm-idiosyncratic risk and...