Corporate Social Responsibility as a Pillar of Resilience: Redefining Risk Management Approaches
Adam Arian  1@  , Sudipta Bose  2@  , Lotfi Karoui  3@  , Syed Shams  4@  
1 : Australian Catholic University  (ACU)
1100 Nudgee Road, Banyo QLD 4014 -  Australia
2 : University of Newcastle [Callaghan, Australia]
3 : ISC Paris Business School
ISC Paris Business School, Paris, France
4 : University of Southern Queensland

This study examines how corporate social responsibility (CSR) can help maintain corporate risks portfolio during covid-19 pandemic, as a crucial strategy for maintaining market and financial stability. Analysing data from international firms across 62 countries between 2018 and 2021, the study delves into the pandemic's significant impact on firm risk across total, systematic, and unsystematic dimensions, and evaluates how CSR practices enhance firm resilience. The results show a marked increase in firm risk, especially systematic risk, reflecting the widespread economic turmoil during the pandemic, as was the case in previous crises. However, firms with a strong CSR commitment were found to be better protected, suggesting that CSR's role extends beyond ethical and regulatory compliance to crucially include crisis management and risk mitigation. Our additional analysis reveals that the moderating effects of CSR on risk are influenced by the nature of corporate governance and the economic environment. This study highlights the need for including CSR into corporate strategy as a risk management tools to tackle business hurdles and enhance corporate resilience. The study calls for policy support for CSR initiatives as a mechanism for preparing for and responding to future crises, with its findings providing valuable guidance for managers and policy makers.


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