An Analysis of How CSR Affect Stock Price Based on Virtue Ethics Character: Estée Lauder Case

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.