
What retailers can learn about social responsibility from Toms and Patagonia
According to a new study in the INFORMS journal Management Science, companies choosing to engage in corporate social responsibility (CSR) have higher profit margins and valuation, but lower risk. These benefits are amplified when the corporation already has high product differentiation, but at the same time, high CSR helps boost product differentiation. Companies with high CSR also have more stable returns on their assets.