Lu (2016)

Lu, Weijie. “Corporate social responsibility and firm risk: implications from employee satisfaction.” Asian Finance Association (AsianFA) 2016 Conference, February 2016.

From the authors’ abstract: “The paper addresses the issue of whether employee satisfaction influences employee turnovers, firms’ operating performances and financial risk. Consistent with human relations theories of the firm, results show that firms’ corporate social responsibility (CSR) scores are positively related to employee satisfaction measured by Fortune reputation scores. Specifically, higher CSR scores of overall attributes, attributes in employee relations and employee related lead to lower employee turnovers through the channel of employee satisfaction. Moreover, higher CSR scores in the aforementioned attributes also lead to lower systematic risk and better operating performances.”

Link: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2727172