Columbia Business School: Mandated Corporate Good Behavior Hurts Bottom Line & Reduces Efforts to “Do Good”

Ethics and Leadership News | May 1, 2018

NEW YORK—When government forces the business sector to “do good,” it hurts the bottom line and actually reduces voluntary efforts to be good corporate neighbors. Those are the findings of research unveiled today by Columbia Business School, which examines the viability of mandatory Corporate Social Responsibility (CSR) as a business practice, finding that enforced activity –efforts by governments to make CSR spending mandatory by law– is a value-decreasing proposition for shareholders, and a disincentive for corporate good behavior.

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