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Rynes, Schmidt Find Benefits Of Corporate Responsibility

A story about the growing sense of corporate social responsibility among businesses notes research by the University of Iowa's SARA RYNES and FRANK SCHMIDT that looked at 52 studies covering 34,000 companies worldwide on corporate social responsibility over a 30-year period. Their 2004 study found that well-run, profitable businesses also boasted strong social and environmental records, and vise versa. Overwhelmingly, firms that rewarded employees with good work climates and higher pay and benefits ultimately saw stronger sales and stock prices, plus less employee turnover. "It's a virtuous cycle," Rynes says. "As a company becomes more socially responsible, its reputation and financial performance go up, which causes them to become even more socially responsible."

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