This paper examines the influence of corporate diversification strategy on corporate social responsibility. I suggest that diversifiers will have to spend more attention on attending to corporate social responsibility. Because diversifiers are likely to face much more diverse stakeholder demands about social issues than non-diversifiers. This study also examines whether socially responsible firms behave differently from other firms in their financial reporting. Specifically, I propose that firms that exhibit corporate social responsibility also behave in a responsible manner to constrain earnings management, thereby delivering more transparent earnings information to investors as compared to firms that do not meet the same social criteria. I find the results as follows. Results show that for firms with higher level of business diversification and highly international diversified firms are more likely to engage in active corporate social responsibility. This findings suggest that wide range of stakeholder demands are likely to drive managers to engage in more active corporate social responsibility. I also find evidence that socially responsible firms are less likely to manage earnings through discretionary accruals. This evidence support that corporate social responsibility activities are motivated by managers’ incentives to be honest and ethical and support to the argument that socially responsible firms are more prudent in financial reporting to serve the interests of all stakeholders. Further, socially responsible firms seem to consider the long term view, which begs the empirical question of socially responsible firms’ longer term corporate financial performance.