Corporate social responsibility and competitive advantage - flammer c 2013
19 important questions on Corporate social responsibility and competitive advantage - flammer c 2013
What does this study investigate concerning shareholders and corporations' environmental footprints?
- Companies with responsible environmental actions see significant stock price increases.
- Firms with eco-harmful behavior face stock price declines.
- The study also explores internal and external factors that influence these reactions.
How do external pressures affect shareholder reactions to corporate environmental behavior?
- Greater penalties for eco-harmful actions.
- Decreased rewards for eco-friendly initiatives.
- An overall trend toward higher environmental consciousness among stakeholders, influencing corporate behavior.
- More stringent regulations and heightened media scrutiny contribute to these pressures.
What implications do the study's findings have for corporate management?
- Strategy & Governance
Shareholders value eco-friendly behavior, so managers and boards should design and implement strong environmental CSR policies as part of their long-term strategy. - Innovation & R&D
Investments in green innovation and R&D can enhance environmental performance and create shareholder value. - Decision-Making in Management
Since both eco-friendly and eco-harmful strategies significantly affect shareholders, environmental considerations should be explicitly integrated into managerial decision-making. - Policy & Regulation
Legislators and shareholders share similar environmental concerns. Better coordination between policymakers and companies could improve the effectiveness of environmental regulations.
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What limitations are noted in this study's findings?
- Focus solely on short-term stock market reactions.
- Lack of exploration on the long-term effects of environmental CSR.
- Challenges in addressing the endogeneity between CSR and firm value or performance.
What does the study aim to examine regarding shareholders and corporations?
How do shareholders react to eco-friendly corporate initiatives according to the study?
What is the reaction of shareholders to eco-harmful corporate events as per the study?
What external pressures are mentioned that influence environmental CSR?
- Increased environmental regulations
- Growing media scrutiny/inspection
- Enhanced customer sensitivity toward environmental issues
- An upswing in shareholder proposals regarding environment-related actions
How has shareholder proposal activity related to environmental CSR changed over time?
What are the implications of external pressures on shareholders' reactions to eco-harmful behavior?
What does the theory propose about the value of environmental CSR over time?
What is the relationship between a company's environmental performance and shareholder reactions to eco-friendly initiatives?
How do environmental strengths affect shareholder reactions to eco-harmful behavior?
What is the significance of the cumulative abnormal return (CAR) variable in the study?
What managerial implications arise from the study's findings regarding environmental CSR?
What limitations does the study acknowledge about its focus?
How do changes in institutional conditions impact companies' engagement in environmental CSR?
In what ways has environmental consciousness among shareholders evolved?
What are the key hypotheses presented in the study?
- React positively to eco-friendly events
- React negatively to eco-harmful events
- Show increasing negative reactions over time to harmful behaviors
- Exhibit decreasing positive reactions to eco-friendly initiatives over time
The question on the page originate from the summary of the following study material:
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