Thesis Statement:

Corporate Social Responsibility (CSR) is an aid for a business to achieve a sustainable

development through ensuring returns to shareholders, and as well as for responding to
societal and environmental concerns. In order to experience long-run growth, the
business objectives must not be merely for profit, but also for the welfare of the people
and of the community as a whole. This paper develops a synthesis about the
implications of CSR activities on reaching customer satisfaction and its relationship with
firm value. In certain circumstances, CSR enhances the satisfaction of the consumers,
but in others, it could reduce their consumption, therefore, harms the firm value.
Furthermore, we explore the boundary conditions under which firms may derive positive
or negative market value from CSR.

Key words: Corporate Social Responsibility, Customer Satisfaction, Firm Value,

Financial Performance, Reputation.

Corporate Social Responsibility: Its Implications on Customer

Satisfaction and Firm Value

References:

Bagwell K (2007) The economic analysis of advertising. Armstrong M, Porter R, eds.

Handbook of Industrial Organization, Vol. 3 (North-Holland, Amsterdam), 1701
1844.
Barnett ML (2007) Stakeholder influence capacity and the variability of financial returns
to corporate social responsibility. Acad. Management Rev. 32:794816.
Jensen MC (2001) Value maximization, stakeholder theory, and the corporate objective
function. Eur. Financial Management 7:297317.

Corporate Social Responsibility: Its Implications on Customer

Satisfaction and Firm Value