In recent years, the call for corporate social responsibility has grown louder, and many companies have committed to serious CSR programs.However, a big question for companies is to what extent CSR—specifically behavior that affects the environment—actually alters shareholder value. Is it better to pursue a single bottom line, or do shareholders benefit more when a company supports the “triple bottom line” that includes people, the planet, and profits?
It’s easy to see that a company’s environmental footprint can sometimes make a big difference in shareholder value, as when the BP oil spill, in April 2010, sent BP’s stock price plummeting from $59.50 that day to $28.90 by the end of June, reducing shareholder value by half. But that was a dramatic event, the biggest offshore oil spill in U.S. history. What about lesser happenings at other companies?
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