Tsoutsoura, Margarita. "Corporate Social Responsibility and Financial Performance." University of California, Berkeley, Working Paper, March 2004.

Examines the relationship between corporate social responsibility (based on KLD data) and financial performance for 422 S&P 500 companies during the 1996-2000 time period. Financial performance is measured using return on equity (ROE), return on assets (ROA), and return on sales (ROS). Includes adjustments for industry, but not R&D intensity, a procedure that has been criticized by McWilliams and Siegel (2000). Finds a highly significant (p<.001) positive association between the social factors and ROA and ROS, but a much weaker association for ROE (p<0.1).