This paper investigates whether superior performance in corporate social responsibility (CSR) leads to better access to finance. The authors hypothesize that better access to finance can be attributed to reduced agency costs due to enhanced stakeholder engagement and reduced informational asymmetry due to increased transparency. Using a large cross-section of firms, they find that firms with better CSR performance face significantly lower capital constraints. The results are confirmed using various measures of capital constraints, a paired analysis based on a ratings shock to CSR performance, instrumental variables, and simultaneous equations models. The study also shows that the relationship is driven by both the social and environmental dimensions of CSR. The findings suggest that CSR can generate long-term value by lowering idiosyncratic constraints on financing operations and strategic projects, allowing firms to undertake profitable investments they might otherwise bypass.This paper investigates whether superior performance in corporate social responsibility (CSR) leads to better access to finance. The authors hypothesize that better access to finance can be attributed to reduced agency costs due to enhanced stakeholder engagement and reduced informational asymmetry due to increased transparency. Using a large cross-section of firms, they find that firms with better CSR performance face significantly lower capital constraints. The results are confirmed using various measures of capital constraints, a paired analysis based on a ratings shock to CSR performance, instrumental variables, and simultaneous equations models. The study also shows that the relationship is driven by both the social and environmental dimensions of CSR. The findings suggest that CSR can generate long-term value by lowering idiosyncratic constraints on financing operations and strategic projects, allowing firms to undertake profitable investments they might otherwise bypass.