Abstract:
The motive behind our research for was to identify how ‘corporate social responsibility’
affects shareholders wealth. In this study we were able to identify whether ‘corporate
social responsibility’ adds any value to the company’s shareholders for the companies
investing in this process.
There was evidence in our research which indicates that ‘corporate social responsibility’
does have positive impacts on the company’s profile as well as earnings. We used
multiple methods for the collection of data which included the primary and secondary
methods.
In the primary approach we conducted formal and informal interviews with the managers
of the company which was very useful as it set a strong baseline for us to work with. In
the secondary approach we collected data from the websites and annual reports of
companies which were involved in the process of ‘Corporate Social responsibility’.
The results of our research indicated that companies who invest in ‘corporate social
responsibility’ have increased earnings per share which in turn reflects to an increase in
their return on equity.