Column 17 · Stakeholders and Sustainability · Era 5, Assets and Accountability (2000s)
CSR and Market Value
Outputs: performance · Landmark · Cluster VI, Context
Description
Maignan and Ferrell integrated corporate social responsibility into marketing through a stakeholder framework, and Luo and Bhattacharya showed that CSR raises market value through customer satisfaction, with the effect contingent on innovativeness and product quality.
Managerial Implications
Corporate social responsibility raises market value through customer satisfaction, but only when the firm has the innovation and product capability to back it; CSR without quality can reduce value. Managers should treat CSR as a stakeholder strategy that must be consistent with what the firm actually delivers, communicate it credibly, and measure its effect through satisfaction and loyalty rather than through reputation surveys alone.