Think twice before investing in a social welfare initiative at your company, study says

Tuesday, June 13, 2017

If you’re chief executive, promoting corporate responsibility may sound like a good idea. A new study from Florida Atlantic University’s College of Business, however, says it may not be so great, from a return-on-investment standpoint.

Published this month in the Journal of Corporate Finance, the study, conducted by finance assistant professor David Javakhadze and doctorate student Avishek Bhandari, finds that the relationship between “corporate social responsibility” initiatives and ROI is unclear and should be a red flag to shareholders and possible investors.

Source: South Florida Business Journal (link opens in a new window)

corporate social responsibility, impact investing