The provided academic excerpts examine the relationship between a firm's Corporate Social Responsibility (CSR) efforts and its shareholder wealth, focusing on the moderating influence of marketing capability. The authors utilize data from 1,725 firms over ten years to argue that while overall CSR efforts alone do not significantly impact stock returns or idiosyncratic risk, they become significant when coupled with a strong marketing capability, defined as a firm's efficiency in converting marketing resources into sales. Furthermore, the study differentiates between six types of CSR, finding that marketing capability positively complements CSR activities with verifiable benefits to stakeholders (like environment and employee efforts), but has no significant interactive effect with community-based philanthropic efforts. The research seeks to bridge the debate between neoclassical economists, who view CSR as a cost, and marketing scholars who see it as a source of competitive advantage, ultimately suggesting that marketing capability is essential for leveraging CSR into financial gains.
