How corporate social responsibility affects company value

flaskey-800xx1463-822-0-15

Having a defined and active CSR initiative can increase marketplace respect for a company, potentially resulting in:

  • Enhanced ability to attract qualified personnel
  • Greater employee engagement
  • Increased sales and profitability

From a valuation perspective, how do you devise a formula that will convert consumer respect into a quantifiable increase in sales or profitability? Maybe a better question is, “Will investors pay a premium to invest in a socially responsible company?” The answer is yes.

Comments are closed.