A case deliberating the impact of corporate social responsibility on share holder wealth

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.