This thesis examines the effect of a responsible investment index (FTSE4Good) on corporate social responsibility (CSR). In the first study I investigate the impact of the FTSE engagement reinforced by the threat of exclusion from the index on companies’ improvements in environmental management. The results show that FTSE involvement doubles the probability that a company will meet stricter environmental management requirements within the three-year period 2002 to 2005. Both the dialogue and the exclusion threat stimulate compliance but the dialogue appears to be more effective where the perceived threat of exclusion is higher. The engagement effect persists for at least five years and is positively related to low concentrated ownership and to domicile in a coordinated market economy. In the second study I examine FTSE4Good’s effect on the probability that a company will implement strong countering bribery practices within the two-year time period 2007 to 2009. The results demonstrate that the combined effect of engagement and exclusion threat is significant in promoting compliance and the two act independently. Stronger anti-bribery provisions are positively associated with companies based in liberal market economies, with better internal governance and higher reputational concerns related to ethical controversies. In the third study I investigate FTSE4Good’s impact on companies’ compliance with climate change criteria. The results show that the index is able to stimulate compliance and the dialogue appears to contribute more than the exclusion threat. I also find that the likelihood of the company adopting the required practices is negatively associated with concentrated ownership and with strong internal governance. Finally, the results offer some evidence that compliance is related to subsequent reduction in greenhouse gas emissions. These studies contribute to the understanding as to how different CSR areas are promoted or discouraged by the managers and the owners, and how the institutional environment influences this. The results are consistent with engagement via a responsible investment index being an effective means of large-scale collective monitoring by institutional investors. The findings are also relevant for policy makers who wish to promote active ownership.

Renneboog et al (2008) argue that it remains to be seen whether corporate social responsibility (CSR) can be priced. In light of this, this thesis tests the performance and market valuation of CSR indicators by using a comprehensive set of KLD indicators. Chapter Three of this thesis examines the effect of CSR on financial performance by incorporating CSR into the investment process. As no clear break point is found for the normalised KLD score, the net KLD score is used as an alternative portfolio metric. In addition, most KLD indicators are found to have insignificant alphas for the high-scoring, low-scoring, and long-short portfolios—meaning that investors do not earn abnormal returns through a long-short strategy. Moreover, insignificant alphas are recorded for most of the indicators under the best-in-class approach—meaning that the application of industry classification does not affect results. Finally, both the conditional Ferson and Schadt (1996) model and conditional three-factor model are used as robustness checks, with most indicators having insignificant alphas for these conditional models. As such, the results imply that there is neither outperformance nor underperformance when using portfolios formed with CSR scores; however, there are significant differences in factor loadings between high-scoring and low-scoring CSR portfolios. Chapter Four uses a framework consistent with the Peasnell (1982) and Ohlson (1995) model to examine whether CSR is reflected in share prices. The CSR indicator is treated as the “other information” variable, and the association between CSR and market price is estimated by controlling for book value of equity, net income and dividends. Although the market is found to value different KLD indicators differently, most of the indicators are found to have positive impact on market value (except for corporate governance and human rights). R&D and advertising expenditure are both added to the valuation model for robustness checking purposes. Some of the CSR indicators—and especially for the case of environment—are not valued during the earlier stages, but become increasingly valued over time. The ten industries are also found to have varying effects on market valuation. In summary, high-scoring CSR firms display higher valuations than low-scoring CSR firms, and thus it can be concluded that a socially responsible agenda does not conflict with maximising shareholder value. Since most of the CSR indicators in Chapter Four lead to positive market price valuations, Chapter Five aims to disaggregate the value effect into the separate components of ROE ratio, the implied cost of capital (ICC) and growth rate. Three different methodologies are used to test the relationship between CSR, ICC and the long-run growth rate. The relationship between CSR and growth rate is positive with all of the methodologies. However, the different methodologies return differing results for the relationship between CSR and ICC, which may be due to the different assumptions made by each approach. Furthermore, it suggests that long-run growth rate differences in general may be more important than ICC differences. Finally, most KLD indicators are found to have significantly higher P/V and ROE1 ratios for the high-scoring CSR portfolios than for the low-scoring CSR portfolios.

This thesis looks at the interdependencies between corporate citizenship, social capital and tacit knowledge in the present epoch of global capitalism. External local communities and society at large are a very significant reservoir of social capital for any organisation and, in a global era of constant change, relations between organisations and these wider communities need constant replenishment and repair. The business literature gives insufficient attention to this vital connection between social and the other forms of capital that have traditionally been given regarded as the mainstay of business enterprise. Through a combination of theoretical debate and field research, this thesis asserts that tacit knowledge is embedded in social capital which is itself acknowledged as the principal source of all human and information capital within organisations. Corporate citizenship programs have a pivotal role to ensure and sustain the flow of social capital and knowledge between organisations and the communities in which they are embedded. Drawing on the prior established connection between social capital and tacit knowledge, the thesis establishes that corporate community involvement by employees has the potential to develop or enhance the propensity to trust, leading to greater effectiveness in teams. Multinational Banks are widely viewed as the agents of transnational capital. The Australian banking sector has also been under constant community pressure in Australia because of rising fees and charges and a few prominent scandals. Using secondary data, practices in one Canadian bank are compared to corresponding programs at two major Australian banks to gauge relative investment strategies in social capital generation. This thesis then proceeds to present primary research data on corporate citizenship practices in two Australian banking institutions, one an Australian multinational bank and the other a self-styled 'community' bank. Literature surveyed on corporate citizenship and community involvement has not revealed awareness by corporations of the possibilities of community involvement by employees as being sources of new knowledge, skills, creativity and innovation. This is further confirmed by the field research which showed communication as being a major hurdle internally and externally. This thesis shows that in the knowledge era where learning organizations will have a definite competitive advantage, structured employee involvement in corporate community initiatives can yield long lasting dividends and sustainable competitive advantage in terms of knowledge acquisition. This can be made possible by investment in social capital of local communities and societies through employee involvement. In turn this can aid recruitment, morale and retention of staff. However, a new approach, perhaps a new 'state of mind' needs to be cultivated in business enterprises and in the business education programs of business schools worldwide.

<p>Corporate Citizenship, Corporate Social Responsibility, socialt ansvarstagande, hållbarhet</p>

Corporate Social Responsibility (CSR) has been around for many years and one of the first definitions of this subject was created in the 1950s. The importance of CSR has increased over the years and today there are several different models and it is a wide spread tool that companies use to improve their business within the area’s economic-, legal- and ethical responsibilities. Companies can use this both as an advantage over competitors and as a way of attracting customers and employees. One of the major points in CSR is the environment and this part is becoming increasingly important in today’s society, where global warming due to CO2 emissions is an increasing concern. Also the interdependence between organizations and society is growing in significance, which also is a reason for the increased interest in CSR. This thesis focuses on what CSR is, to what purpose or goal companies engage in it and how the two chosen logistics companies, DHL and Schenker, work with CSR and what differences there are between them. This thesis is a cross case study of two logistics companies and to acquire the needed information, the authors have conducted document studies and interviews. These document studies and interviews have provided the thesis with a theoretical framework and a deeper understanding of how two of the largest logistics companies work with CSR. The results show that both companies are engaging in similar manner in the environmental responsibilities, but there are some major differences in how they deal with societal responsibilities. DHL uses its size and global presence to aid societies in need and help communities with educating their children. DB Schenker on the other hand focuses on cooperation’s with universities and also donates funds to schools and non-governmental organizations.

To act responsible in relation to environmental, economic and social issues is a trend that is spreading among businesses and their investors. In order to assess business risks, ethical interested investors are calling for open, honest, clear CSR information that can be followed up in corporate sustainability reports. The ability to communicate about risks and to meet investors requests already in the business analytic process can save resources and increase the company’s profitability. The idea that companies should take responsibility for their impact on society from economic, environmental and social perspective is called Corporate Social Responsibility, CSR. In addition to CSR, there is another three-letter abbreviation in this context, PRI – Principles for Responsible Investment – which are principles, signed by ethically interested investors. Owners of shares and securities such as fund management companies and banks have in recent years emerged as a major driving force behind corporate CSR efforts. Companies that is good at reporting their CSR work, is estimated to have a lower investment risk than companies that communicates this work poorly. In this paper, six investors express their expectations on companies CSR reporting. Their responses are analyzed and summarized, which may make it easier for companies wishing to report their CSR work right from the start.

In nowadays, the corporate social responsibility (CSR) plays one kind of social function. The corporate social responsibility means that the corporations use their resources to satisfy all the related people and the morals. Coming to 21st century, people start to request corporations to do more except their professional activities with high CSR standards. After 1949, mainland China (People Republic of China) run planned economic system and didn¡¦t allow any private economies. China government set up state-owned enterprises to produce and distributed all commodities. The state-owned enterprises had to undertake not only the commercial economic responsibility but also the social responsibility. The state-owned enterprise had to take care all the employees¡¦ families from birth to death. After the economic reform, private corporations and transnational enterprises developed rapidly. But like other developing country expanded their economy, people don¡¦t pay attention to CSR until they were aware their living environments were destroyed. The domestic corporations started to do something for the employees, customers, environment, and public welfare.

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Recently ¡§Corporate Social Responsibility (CSR)¡¨ has become one of the corporate competitiveness that international society took. How to combine Corporate Social Responsibility (CSR) with the maximization of profit and how to combine Corporate Social Responsibility (CSR) with operation strategies are an important topic that every enterprise in various countries concerned. This research is a qualitative study undertaken by means of case study and questionnaire/interview. Findings are as follows: Real Estate Brokerage in Taiwan has some cognition of Corporate Social Responsibility (CSR), but still has a big space to improve on carrying out Corporate Social Responsibility (CSR). Real Estate Brokerage is a trust industry which has great deal with people¡¦s property and investment involving a great amount of money, so Corporate Social Responsibility (CSR) has become Real Estate Brokerage¡¦s important factors of sustainable development. The Corporate Social Responsibility (CSR) should integrate into the enterprise¡¦s related domain to reach the Corporate Social Responsibility (CSR) and the enterprise profit maximization both. Employees of company continue to carry out Corporate Social Responsibility (CSR) together and integrate Corporate Social Responsibility (CSR) into company to create core competence. Only to do this, enterprises could reach the goal of sustainable development and be prosperous with society.

Todays’ consumer society has forced companies to work towards a sustainable society. Consumers consider a company’s work with Corporate Social Responsibility (CSR) as necessary and expect companies to work ethically. However, fast fashion consumers’ also demand a low price and rapid changes in trends. Therefore, the purpose of this thesis is to understand fast fashion consumers’ attitude towards, and the importance of, companies working with CSR. By conducting a questionnaire on Cubus’ customers in Uppsala, information has been gained in order to investigate this phenomenon. The results show that the majority of the respondents have a positive attitude towards CSR, but were not a deciding factor when shopping at Cubus. From this study, we can draw the conclusions that even though the majority of the respondents had a positive attitude towards CSR, other factors were of greater importance. This validates the phenomenon about fast fashion customers’ demand for a low price and fast changing trends.