Author(s)

Homayoon Shalchian^1*, Kais Bouslah², Bouchra M’Zali³

¹School of Commerce, Laurentian University, Sudbury, Canada.
²School of Management, University of St Andrews, St Andrews, UK.
³University of Quebec at Montreal, AICRI, CRSDD-ESG-UQAM, Montreal, Canada.

This study investigates the relation between individual dimensions of corporate social responsibility (CSR) and financial performance in different industries. Using Kinder, Lydenberg and Domini (KLD) social ratings, we find that investors seem to be more sensitive to the dimension “Environment” in mining and manufacturing sectors while they seem to be more sensitive to the dimension “Employees’ welfare” in the service industry. Our results also suggest that investors perceive an additional financial risk from firm’s irresponsible behavior and consequently, they are more pre-occupied by eventual losses caused by firms’ social irresponsibility than by potential financial gains from corporate social performance.

Corporate Social Performance, Corporate Social Irresponsibility, Financial Performance, Portfolio Management

Shalchian, H. , Bouslah, K. and M’Zali, B. (2015) A Multi-Dimensional Analysis of Corporate Social Responsibility: Different Signals in Different Industries. Journal of Financial Risk Management, 4, 92-109. doi: 10.4236/jfrm.2015.42009.