The purpose of this study is to add to the literature of CSR research in hopes of filling a gap about the impact of equitable parental leave on financial performance, laying a foundation to fill other CSR-CFP gaps. Gender-neutral parental leave is discussed as a solution to the crippling effects of unequal parental leave policies on both the labor market and companies who seek top talent. To determine whether companies are incentivized to provide a gender-neutral parental leave policy, a two-model approach was used. First, the Leave Impact Model which analyzes the relationship between employee perspectives, including the presence of equitable parental leave, and a company’s ranking in Forbes’ Top 100 Best Places to work in 2018. Then, the Rank Impact Model which analyzes the relationship between that rank and a company’s financial performance using a modified Three Factor Model by Fama and French. The combination of the two results would offer a link between equitable parental leave and financial performance. However, this study is exemplary of the CSR research to date, finding no significance between the presence of equitable parental leave and a company’s financial performance. As such, no claim as to whether companies are incentivized to provide gender-neutral parental leave on the basis of financial performance can be made. Thus, further CSR research and more adequate CSR definitions and data are of paramount importance.
The author has given permission for this work to be deposited in the Digital Archive of Colorado College.
Colorado College Honor Code upheld.
Includes bibliographical references.
The author has given permission for this work to be deposited in the Digital Archive of Colorado College.
Colorado College Honor Code upheld.
