Benefiting society benefits the firm: the effect of corporate citizenship on bank loans
Banks consider firms with strong corporate citizenship performance to be better at risk management and stakeholder engagement, both of which offer financial benefits. Firms that are exceptional corporate citizens鈥攁nd engage in activities that benefit the communities they serve and society at large鈥攁re offered lower interest rates on bank loans, even when it鈥檚 a long-term loan, or the firm has high levels of debt.
This document is for members only; you must be logged in to view it.