Humphrey, JacquelynLee, Darren DShen, Yaokan2015-12-080929-1199http://hdl.handle.net/1885/31708We investigate whether firms' corporate social performance (CSP) ratings impact their performance (cost of capital) and risk. Using a proprietary CSP ratings database, we find no difference in the risk-adjusted performance of UK firms with high and low CSP ratings. Additionally, the firms do not differ in their amount of idiosyncratic risk. We find some evidence of high-ranked firms being larger. The empirical evidence therefore indicates that investors and managers are able to implement a CSP investment or business strategy without incurring any significant financial cost (or benefit) in terms of risk or return.Keywords: Corporate social performance; Environmental; Governance; Social; Sustainability201210.1016/j.jcorpfin.2012.03.0022016-02-24