What are the research questions?
There is little to no research on the degree to which, or even if, stock price performance during a crisis is related to the amount of trust and social capital (CSR) attributed to a company. The World Business Council for Sustainable Development (2000), defines CSR as ”…the commitment of a business to contribute to sustainable economic development, working with employees, their families, the local community and society at large to improve the quality of life.”
The impact of these corporate practices are the central theme of this study. The performance of 1,673 nonfinancial firms is analyzed over the period August 2008-March 2009. The MSCI ESG database is used to extract variables as indicators of social capital.
Research suggests that the corporate social responsibility (CSR) practices of firms does create trust and social capital in the minds of investors. Data on geographic regions was obtained from the 2006 General Social Survey at the University of Chicago.Survey data was gather by the National Opinion Research Center, indicating regions where individuals are more or less trusting.
What are the Academic Insights?
