기업의 사회적 책임 활동이 기업의 위험에 미치는 영향

The Effect of Corporate Social Responsibility on the Risk of the Firm

This study empirically analyzes the effect of corporate social responsibility (CSR) activities on the risk of the firm by looking at their influences on total risk, systematic risk, idiosyncratic risk and business risk, respectively. The main results are as follows. First, there exists a significant negative relationship between the level of CSR activities and the total risk of the firm. This result is consistent with those of previous researches that assert the positive role of CSR activities. Second, there is a negative relationship between the level of CSR activities and systematic risk. This implies that firms with higher levels of CSR activities are likely to have less sensitivity to the risks associated with economic fluctuations. Third, there is also a negative relationship between the level of CSR activities and idiosyncratic risk. This may result from the fact that CSR activities lessen firm specific inefficiencies by reducing firm specific risks (such as litigation risk, brand and reputation risk, labor dispute, and consumer boycott) which are important factors of a firm’s profitability. Finally, we find that there is a significant negative relationship between the level of CSR activities and business risk. This result suggests that CSR activities have a real effect on the performance factors of the firm such as customer loyalty.