Corporate Social Responsibility, Product Strategy, and Firm Value

This study examines the role of a firm’s product strategy on the relationship between corporate social responsibility (CSR) and firm value. Using a sample of 1287 firm‐year observations of Korean listed manufacturing firms from 2005 to 2016, we find that a firm’s product differentiation strategies strengthen the association between CSR and firm value, whereas cost‐leadership strategies weaken such a relationship. Our findings demonstrate the importance of attaining a strategic fit between CSR activities and product strategies, and highlight the importance of considering a firm’s product strategy when evaluating a firm’s CSR investment.