TITLE:
An Analysis of How CSR Affect Stock Price Based on Virtue Ethics Character: Estée Lauder Case
AUTHORS:
Zhihua Yang
KEYWORDS:
CSR, Virtue, Warmth, Ethical Behaviour, Stock Price
JOURNAL NAME:
Modern Economy,
Vol.13 No.9,
September
23,
2022
ABSTRACT: A company’s value can be
determined by its stock price, which is influenced by a variety of factors, one
of which is corporate social responsibility (CSR). This paper aims to
demonstrate the real-world gains and losses received in applying virtue ethics
character through a case study of one of the cosmetic companies—Estée Lauder,
and to show how organizational factors affect the impact of corporate social
responsibility on the share price of the soap and cosmetics industry. According
to the research and case study findings, it has found that the company’s
ethical and unethical behaviour does have some bearing on its stock price in
the soap and cosmetics market. The study also makes the case that ethical
behaviour has a minor positive impact on its stock price while the variation
cannot be noticed immediately; unethical behaviour may negatively impact the
company’s stock price directly and quickly. To put it another way, Estée Lauder
company’s unethical behaviour that negatively affects stock prices may have to
serve as a signal to other businesses to deal with management and the market.