Publications
Publications
- Spring 2011
- California Management Review
CSR as Reputation Insurance: Primum Non Nocere
By: Dylan B. Minor and John Morgan
Abstract
We provide a theoretical framework showing how CSR activities can insure a firm against lost reputation in the face of adverse events. We offer evidence for this linkage through a case study and a multi-year analysis of stock price responses for S&P 500 companies following product recalls. We find that firms with better CSR ratings fare better than those that do not. Furthermore, a firm that is exceptional in both doing good and avoiding harm suffers virtually no reputational damage following events. Using the results of the study, we offer a guide to managers for determining the appropriate amount and mix of CSR to undertake.
Keywords
Corporate Social Responsibility; Insurance; Risk Management; Marketing Strategy; Corporate Social Responsibility and Impact; Reputation
Citation
Minor, Dylan B., and John Morgan. "CSR as Reputation Insurance: Primum Non Nocere." California Management Review 53, no. 3 (Spring 2011): 40–59.