CSR and brand value - is doing good linked to brand value?

Abstract

Purpose: To show a link between brand value and CSR performance. Originality: The link between CSR and Corporate Financial Performance (CFP) is a topic that has created discussion across disciplines and links research from marketing, ethics, sustainability and finance. This paper proposes that the link between CSR and financial performance should be explored via brand value.Key literature/theoretical perspective: Branding and corporate social responsibility literature, resourced based view of the firm. Design/methodology/approach: Using data from BrandFinance and JustMeans a sample of 175 companies was used in a linear regression model. Findings: The results confirm the hypothesis that there is a positive relationship between CSR rating and brand value of a company (beta 0.005, significance 0.042). Research limitations/implications: The sample consisted of only 175 companies for which both data on brand value and CSR ratings were available and companies for which neither a CSR rating or a brand value was available had to be excluded. This may have created some bias in the sample. Further investigation is needed with a larger sample. Practical and social implications: Recent scandals and lapses in corporate behaviour, such as the Gulf of Mexico oil spill and ongoing discussions about global warming and sustainability have led to heightened interest in corporate social responsibility. A shift to service economies has increased the importance of intangibles such as brands and shareholders are increasingly concerned about long term threats to the firms that they invest in.

2 page(s)