Firms can undertake corporate social performance (CSP) because of social norms or audience effects.

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Social norms and audience effects can influence a firm's decision to undertake corporate social performance, which involves actions that benefit society beyond the requirements of the law and the interests of the firm itself. For example, firms may engage in socially responsible practices to conform to the expectations of their stakeholders or to enhance their reputation and legitimacy in the eyes of their customers, investors, and employees. Social norms and audience effects can create pressures for firms to act in socially responsible ways even when there is no legal requirement to do so.

Firms Can Undertake Corporate Social Performance (CSP) Because of Social