Risk Analysis - 2023 - Bamiatzi - Are the good spared Corporate social responsibility as insurance against cyber security.pdf (171.41 kB)
Are the good spared? Corporate social responsibility as insurance against cyber security attacks
journal contribution
posted on 2023-06-10, 06:14 authored by Vasiliki BamiatziVasiliki Bamiatzi, Michael Dowling, Fabian Gogolin, Fearghal Kearney, Samuel VigneDespite the increasing consensus that socially responsible behaviour can act as insurance against externally induced shocks, evidence in support remains somewhat inconsistent. Our study provides a clear demonstration of the insurance-like properties of corporate social responsibility (CSR) in preserving corporate financial performance (CFP), in the event of a data (cyber) breach. Exploring a sample of 230 breached firms, we find that data breaches lead to significantly negative CFP outcomes for low CSR firms, with the dynamic being particularly pronounced in consumer-sensitive industries. Further, we show that firms increase their CSR activities in the aftermath of a breach, in an attempt to recover lost goodwill and regain stakeholder trust. Overall, our results support the use of CSR as a strategic risk-mitigation tool that can curtail the consequences of data breaches, particularly for firms operating in consumer-centric environments.
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Publication status
- Published
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- Published version
Journal
Risk Analysis: an international journalISSN
0272-4332Publisher
Wiley-BlackwellExternal DOI
Page range
1-16Department affiliated with
- Strategy and Marketing Publications
Full text available
- Yes
Peer reviewed?
- Yes
Legacy Posted Date
2023-02-15First Open Access (FOA) Date
2023-03-07First Compliant Deposit (FCD) Date
2023-02-14Usage metrics
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