Corporate social performance can act as an effective insurance mechanism which mitigates a firm's loss of shareholder value when negative events occur. This paper advances the risk management perspective by examining conditions under which CSP as an ex ante insurance mechanism influences firm value. These conditions include the potential litigation risk, whether or not a firm operates in a socially irresponsible industry, and the extent to which a firm is experiencing financial distress. Good social performance was found to generate greater shareholder value for firms with higher litigation risks, but to bring less benefit to firms operating in socially irresponsible industries and to those experiencing financial distress. In addition, the value of CSP as insurance against litigation risk was shown to be practically significant, adding between 2-4% to total shareholder value.