The Link Between Corporate Citizenship and Financial Performance

  • Authors:
    Stephen Garone
  • Publication Date:
    February 1999
  • Report Number:
    R-1234-99-RR

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How do economic performance and citizenship performance relate to each other? What research does exist tends to show that the effect of corporate citizenship on business economic performance is not harmful to shareholder  value, and highlights specific instances exist in which citizenship activity has added to the bottom line. The evidence is even clearer that egregiously poor corporate citizenship that invites regulatory or legal sanctions has negative consequences for shareholders. Significant losses in shareholder wealth have been found at affected companies.

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