Social Responsibility and Corporate Governance as the Factors of Company’s Market and Financial Risks

The paper presents a study on corporate social responsibility, corporate governance, and agency conflicts in order to assess its impact on the market (systematic) and financial risk of the company. Within the rapidly evolving research area of CSR the question of whether there is a business case for CSR is of key importance for the business society. Perceptions of a positive or negative direct or indirect relationship between a corporation's social responsibility and its bottom line promote the implementation of CSR principles in both corporate and investment strategies. The study includes the review of existing approaches to CSR definition, examines the corporate governance structure and types of agency conflicts that company is exposed to. The result of the work is the econometric analysis with the application of Bloomberg data that allows to determine how the CSR and CG related to the risks of the company. It is expected that implementation of CSR and CG mechanism leads to decrease in the systematic risk.