Corporate Social Responsibility and Shareholder Relations

Abstract

Abstract-The diffusion of social responsibility principles, together with the globalization of financial market highlight the importance of the value creation in the long run for both companies and investors. Stable relations with investors are based on corporate decision making processes privileging the creation of greater value in the future instead of maximizing immediate profits, when a trade-off between long and short run exists. These corporate behaviours reduce both the business risk of companies and the investment risk of shareholders. This conceptual article aims to highlight the importance of the relationships between the assertion of corporate social responsibility by companies and investors, according to a management model able to create sustainable value optimizing the satisfaction of the interests of shareholders and other stakeholders.