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A micro-economic model of corporate social responsibility
Umeå University, Faculty of Social Sciences, Umeå School of Business.
2011 (English)In: Metroeconomica, ISSN 0026-1386, E-ISSN 1467-999X, Vol. 62, no 1, 69-95 p.Article in journal (Refereed) Published
Abstract [en]

This paper explores the economic mechanisms behind corporate social responsibility (CSR) in a microeconomic model of the firm. The study’s motivation is to shed light on the potential causes of the observed phenomena of voluntary over-compliance among firms. We investigate how assumptions about costs and benefits affect CSR behavior through a stock of goodwill capital. In optimum, the firm must balance marginal costs and benefits of investing in CSR. We characterize the equilibrium and examine comparative statics and dynamics from a parameterized model. Finally, we link some of the model’s results to the empirical literature on CSR.

Place, publisher, year, edition, pages
Wiley , 2011. Vol. 62, no 1, 69-95 p.
National Category
Economics and Business
Research subject
Business Studies
Identifiers
URN: urn:nbn:se:umu:diva-47684DOI: 10.1111/j.1467-999X.2010.04087.xOAI: oai:DiVA.org:umu-47684DiVA: diva2:443808
Available from: 2011-09-27 Created: 2011-09-27 Last updated: 2017-12-08Bibliographically approved

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