Nexus between corporate social responsibility performance and stakeholder value

Abstract

This paper explores the link between corporate social responsibility (CSR) and stakeholder value using multiple regression analysis. We construct a panel datasets for non-financial listed companies in Europe STOXX 600, covering the period 2008–2016. Our findings are consistent with our expectation that the development of CSR strategy leads to generate more stakeholder value. Moreover, this positive relation is conducted by both social and environmental dimension of CSR. Specifically, we find that firms that exhibit a particular concern for environmental issues, philanthropic, product quality, safety, human rights, diversity, equal opportunities and training are more likely to create stakeholder value. In contrast, providing high-quality employment helps firms to generate trust and loyalty with its workforce, but such practices are less interesting for stakeholder value.