Research Notes. CORPORATE SOCIAL RESPONSIBILITY AND STOCK MARKET PERFORMANCE.

Abstract
The article examines the relationship between social responsibility and stock market performance of corporations in the U.S. for the period 1970-1974. Risk measures and differential returns of the securities in the social responsibility surveys were calculated for the five-year sample period 1970-1974 and a three-year subperiod 1971-1973. The measures of differential return were ranked in descending order over the five and three-year periods. Rank order correlations were calculated between survey rank and differential return rank. These correlations indicate a low insignificant relationship between risk-adjusted performance and degree of social responsibility.