| The relationship between Corporate Social Responsibility (CSR) and firm value has been studied extensively and recent studies have found a strong positive correlation. Further, researchers have found that social responsibility supports crisis management of certain externally-generated negative events. While these findings have proven both interesting and useful, questions remain regarding the impact of social responsibility when other valuable firm resources suddenly dissipate. Specifically, does the market value a firm's CSR when an unexpected IT failure occurs? This exploration considers the effect of CSR on the market's response to an IT failure, expecting CSR to mitigate the market's negative reaction. In addition, we expect the market to place greater value on CSR investments targeting secondary stakeholders, than those aligned with the interest of primary ones. Thus, we offer a theoretical framework which can be applied in future research to advance CSR and IT literatures. |
Updated 03/19/2014