How Corporate Social Responsibility Affects Audit Fees

The past two decades have witnessed a dramatic increase in firms’ engagement with Corporate Social Responsibility (CSR) in response to the needs and expectations of a wide range of stakeholders. CSR practices can be understood as voluntary steps to improve social or environmental conditions. Examples of CSR practices include offering employees child day care or paid parental leave, reducing the carbon footprint or donating to charity. Together with the increasing attention, an important debate about CSR has emerged between two opposing sides. Proponents of CSR argue that socially responsible practices can have a positive impact by enabling firms to secure … Read more