Corporate social responsibility and shareholder reaction: The environmental awareness of investors

Academy of Management Journal

Volumn 56, Issue 3, 2013, Pages 758-781

  Flammer, Caroline ^a  

^a UNIVERSITY OF WESTERN ONTARIO   (Canada)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 84880308611     PISSN: 00014273     EISSN: None     Source Type: Journal    
DOI: 10.5465/amj.2011.0744     Document Type: Article

References (66)

1. Accenture & UNGC. 2010. A new era of sustainability: UN Global Compact-Accenture CEO study 2010. New York: United Nations Global Compact and Accenture.
2. Agle, B. R., Donaldson, T., Freeman, R. E., Jensen, M. C., Mitchell, R. K., & Wood, D. J. 2008. Dialogue: Towards superior stakeholder theory. Business Ethics Quarterly, 18(2):153-190.
3. Allen, D. T., & Shonnard, D. R. 2011. Sustainable engineering: Concepts, design and case studies. Upper Saddle River, NJ: Prentice Hall.
4. Ambec, S., Cohen, M. A., Elgie, S., & Lanoie, P. 2011. The Porter hypothesis at 20: Can environmental regulation enhance innovation and competitiveness? Discussion Paper 11-01. Washington, DC: Resources for the Future.
5. Ambec, S., & Lanoie, P. 2008. Does it pay to be green? A systematic overview. Academy of Management Perspectives, 22(4):45-62.
6. Bansal, P. 2005. Evolving sustainably: A longitudinal study of corporate sustainable development. Strategic Management Journal, 26:197-218.
7. Bansal, P., & Clelland, I. 2004. Talking trash: Legitimacy, impression management, and unsystematic risk in the context of the natural environment. Academy of Management Journal, 47:93-103.
8. Bansal, P., & Roth, K. 2000. Why companies go green: A model of ecological responsiveness. Academy of Management Journal, 43:717-736.
9. Barnett, M. L., & King, A. A. 2008. Good fences make good neighbors: A longitudinal analysis of an industry self-regulatory institution. Academy of Management Journal, 51:1150-1170.
10. Baron, D. 2009. A positive theory of moral management, social pressure, and corporate social performance. Journal of Economics and Management Strategy, 18:7-43.
11. Baron, D., & Diermeier, D. 2007. Strategic activism and nonmarket strategy. Journal of Economics and Management Strategy, 16:599-634.
12. Berchicci, L., & King, A. A. 2007. Postcards from the edge: A review of the business and environment literature. In J. P. Walsh & A. P. Brief (Eds.), Academy of Management annals, vol. 1:513-547. Essex, UK: Routledge.
13. Brown, S., & Warner, J. 1980. Measuring security price performance. Journal of Financial Economics, 8:205-258.
14. Brown, S., & Warner, J. 1985. Using daily stock returns: The case of event studies. Journal of Financial Economics, 14:3-31.
15. Campbell, J., Lo, A., & MacKinlay, A. C. 1997. The econometrics of financial markets. Princeton, NJ: Princeton University Press.
16. Carhart, M. M. 1997. On persistence in mutual fund performance. Journal of Finance, 52:57-82.
17. Chatterji, A. K., & Toffel, M. W. 2010. How firms respond to being rated. Strategic Management Journal, 31:917-945.
18. Clelland, I. J., Dean, T. J., & Douglas, T. J. 2000. Stepping towards sustainable business: An evaluation of waste minimization practices in U. S. manufacturing. Interfaces, 30(3):107-124.
19. Delmas, M., & Toffel, M. W. 2004. Stakeholders and environmental management practices: An institutional framework. Business Strategy and the Environment, 13:209-222.
20. Economist. 2011. Why firms go green. November 12. http://www.economist. com/node/21538083.
21. Etzion, D. 2007. Research on organizations and the natural environment, 1992-present: A review. Journal of Management, 33:637-664.
22. Fama, E. F., & French, K. R. 1993. Common risk factors in the returns on stocks and bonds. Journal of Financial Economics, 33:3-56.
23. Fama, E. F., & French, K. R. 1997. Industry costs of capital. Journal of Financial Economics, 43:153-193.
24. Fombrun, C. J., Gardberg, N. A., & Barnett, M. L. 2000. Opportunity platforms and safety nets: Corporate citizenship and reputational risk. Business and Society Review, 105:85-106.
25. Freeman, R. E. 1984. Strategic management: A stakeholder approach. Boston: Pitman.
26. Friedman, M. 1962. Capitalism and freedom. Chicago: University of Chicago Press.
27. Friedman, M. 1970. The social responsibility of business is to increase its profits. New York Times Magazine, September 13.
28. Godfrey, P. C. 2005. The relationship between corporate philanthropy and shareholder value: A risk management perspective. Academy of Management Review, 30:777-798.
29. Godfrey, P. C., Merrill, C. B., & Hansen, J. M. 2009. The relationship between corporate social responsibility and shareholder value: An empirical test of the risk management hypothesis. Strategic Management Journal, 30:425-445.
30. Gunthorpe, D. L. 1997. Business ethics: A quantitative analysis of the impact of unethical behavior by publicly traded corporations. Journal of Business Ethics, 16:537-543.
31. Hall, J., Daneke, G., & Lenox, M. J. 2010. Sustainable development and entrepreneurship: Past contributions and future directions. Journal of Business Venturing, 25:439-448.
32. Hamilton, J. 1995. Pollution as news: Media and stock market reactions to the TRI data. Journal of Environmental Economics and Management, 28:98-113.
33. Hart, S. L. 1995. A natural resource-based view of the firm. Academy of Management Review, 20:986-1014.
34. Hart, S. L., & Dowell, G. 2011. A natural resource-based view of the firm: Fifteen years after. Journal of Management, 37:1464-1479.
35. Hoffman, A. J. 1999. Institutional evolution and change: Environmentalism and the U. S. chemical industry. Academy of Management Journal, 42:351-371.
36. Hoffman, A. J. 2001. Linking organizational and fieldlevel analyses: The diffusion of corporate environmental practice. Organization and Environment, 14:133-156.
37. Jennings, P., & Zandbergen, P. 1995. Ecologically sustainable organizations: An institutional approach. Academy of Management Review, 20:1015-1052.
38. Jones, T. M. 1995. Instrumental stakeholder theory: A synthesis of ethics and economics. Academy of Management Review, 20:404-437.
39. Kassinis, G., & Vafeas, N. 2006. Stakeholder pressures and environmental performance. Academy of Management Journal, 49:145-159.
40. Klassen, R. D., & McLaughlin, C. P. 1996. The impact of environmental management on firm performance. Management Science, 42:1199-1214.
41. KLD. 2006. Getting started with KLD stats and KLD's ratings definitions. Boston: KLD Research & Analytics.
42. Kothari, S. P., & Warner, J. B. 2007. Econometrics of event studies. In B. E. Eckbo (Ed.), Handbook of corporate finance: Empirical corporate finance: 3-36. North Holland: Elsevier.
43. Lenox, M. J., King, A. A., & Ehrenfeld, J. R. 2000. An assessment of design-for-environment practices in leading U. S. electronics firms. Interfaces, 30(1):83-94.
44. Linton, J. D., Klassen, R., & Jayaraman, V. 2007. Sustainable supply chains: An introduction. Journal of Operations Management, 25:1075-1082.
45. MacKinlay, A. C. 1997. Event studies in economics and finance. Journal of Economic Literature, 35:13-39.
46. Margolis, J. D., Elfenbein, H. A., & Walsh, J. P. 2007. Does it pay to be good? A meta-analysis and redirection of research on the relationship between corporate social and financial performance. Working paper, Harvard Business School. Cambridge, MA.
47. Margolis, J. D., & Walsh, J. P. 2001. People and profits: The search for a link between a company's social and financial performance. Mahwah, NJ: Erlbaum.
48. Margolis, J. D., & Walsh, J. P. 2003. Misery loves companies: Rethinking social initiatives by business. Administrative Science Quarterly, 48:268-305.
49. McWilliams, A., & Siegel, D. 1997. Event studies in management research: Theoretical and empirical issues. Academy of Management Journal, 40:626-657.
50. Melnyk, S. A., Sroufe, R. P., & Calantone, R. 2003. Assessing the impact of environmental management systems on corporate and perceived environmental performance. Journal of Operations Management, 21:329-351.
51. Miles, M. P., & Covin, J. G. 2000. Environmental marketing: A source of reputational, competitive, and financial advantage. Journal of Business Ethics, 23:299-312.
52. New York Times. 2010. Wal-Mart unveils plan to make supply chain greener. February 26:B3.
53. Orlitzky, M., Schmidt, F. L., & Rynes, S. L. 2003. Corporate social and financial performance: A meta-analysis. Organization Studies, 24:403-441.
54. Peloza, J. 2006. Using corporate social responsibility as insurance for financial performance. California Management Review, 48(2):52-73.
55. Porter, M. E. 1991. America's green strategy. Scientific American, 264:168.
56. Porter, M. E., & van der Linde, C. 1995a. Towards a new conception of environment-competitiveness relationship. Journal of Economic Perspectives, 9:97-118.
57. Porter, M. E., & van der Linde, C. 1995b. Green and competitive: Ending the stalemate. Harvard Business Review, 73(5):120-134.
58. Rusinko, C. A. 2007. Green manufacturing: An evaluation of environmentally sustainable manufacturing practices and their impact on competitive outcomes. IEEE Transactions on Engineering Management, 54:445-454.
59. Russo, M. V., & Fouts, P. A. 1997. A resource-based perspective on corporate environmental performance and profitability. Academy of Management Journal, 40:534-559.
60. Russo, M. V., & Harrison, N. S. 2005. Organizational design and environmental performance: Clues from the electronics industry. Academy of Management Journal, 48:582-593.
61. Shane, P. B., & Spicer, B. H. 1983. Market response to environmental information produced outside the firm. Accounting Review, 58:521-538.
62. Sharma, S., & Henriques, I. 2005. Stakeholder influences on sustainability practices in the Canadian forest products industry. Strategic Management Journal, 26:159-180.
63. Sroufe, R. P. 2003. Effects of environmental management systems on environmental management practices and operations. Production and Operations Management, 12:416-431.
64. Waage, S. 2007. Re-considering product design: A practical "road-map" for integration of sustainability issues. Journal of Cleaner Production, 15:638-649.
65. Wall Street Journal. 2012. U. S. nears BP settlements. June 28. http://online.wsj.com/article/SB100014240 52702304830704577494864058303808.html.
66. Walmart. 2009. Walmart 2009 global sustainability report. Bentonville, AR: Walmart.