It is possible to hypothesize that if a company is producing products that are harmful to society, it may be charged with failing to keep socially responsible. However, Hellsten and Mallin (2006) argue that people cannot think of a company is without controversy because some activities may pollute environments and perceptions differ across individuals and cultures. People also have different beliefs on what beneﬁts, and what does not beneﬁt society. Few firms can be considered non-controversial in all aspects. For example, legal medicines can save lives, however, some criticisms of ‘big pharma’ for its impact on prescribers and comments on drug efﬁcacy. (Schwartz 2003) The discussion is limited to the areas such as tobacco, alcohol and gambling, which are controversial, but are legal here.
Numerous studies emphasize the importance of corporate social responsibility in controversial industry sectors. Cai, Jo, and Pan (2012) find stocks from