Corporate Social Responsibility (CSR) is becoming a common strategy within medium and large companies, which explains the growing number of studies and disciplines focusing on it. One stream of research examines the effects of CSR on a firm's performance, such as its market value, suggesting that the financial performance outcomes of responsible corporate behavior may vary depending on firm-specific and industry-related factors. This study attempts to explain why the impact of CSR initiatives may be different and/or more firm performance that is higher for service firms than for product-based firms. As for practical implications, these findings suggest that CSR may be an especially valuable tool for differentiation in the service context.