Abstract
Corporate social responsibility (CSR) has become an important component of strategic management, yet whether it enhances firm value remains a debated question. This Critically Appraised Topic (CAT) synthesizes the most recent peer-reviewed evidence to examine the relationship between CSR and the firm value of U.S. publicly traded companies. The guiding research question is: Does corporate social responsibility improve firm value? Findings indicate that CSR does not consistently improve firm value. Rather, its impact depends on factors such as strategic alignment, governance quality, transparency, stakeholder perceptions, and market conditions. Evidence suggests that strategically integrated, employee-centered CSR initiatives are more likely to create value than symbolic or purely philanthropic activities. Overall, the findings indicate that executives should view CSR not as a compliance obligation or reputational exercise, but as a strategic investment that is most effective when aligned with organizational objectives and stakeholder needs.
Recommended Citation
Byrd, Shinika L.
(2026)
"Corporate Social Responsibility and Firm Value: A Critically Appraised Topic,"
Engaged Management ReView: Vol. 10
:
Iss.
1
, Article 2.
Available at: https://doi.org/10.28953/2375-8643.1172
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