Relation between a firm's social responsibility and agency problems - research from the Nordics

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School of Business | Bachelor's thesis
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Date

2020

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Mcode

Degree programme

Rahoitus

Language

en

Pages

25

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Abstract

Corporate social responsibility (“CSR”) has become an essential part of companies’ strategy in the last decade. The motives for companies to engage in CSR has been subject to extensive research, yet no conclusive results have been found. Using instrumental approach, I aim to examine whether CSR engagement stems from agency problems, that is whether CRS engagement is motivated by managerial interests. However, due to empirical challenges in finding sufficient instruments, I also test this relation using the ordinary least squares (“OLS”) method and find no evidence either supporting or conflicting the agency theory. These inconclusive results suggest that there is need for further research on this relation in the future in order to shed light on possible motives for CSR engagement.

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Thesis advisor

Spickers, Theresa

Keywords

corporate social responsibility, CSR, agency problems, ESG performance

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