An Empirical Analysis of the Strategic Use of Corporate Social Responsibility

Abstract:     
Recent theories of the strategic use of corporate social responsibility (CSR) emphasize the role of information asymmetry and how CSR is likely to be matrixed into a firm's product differentiation strategy. A key empirical implication of these theories is that firms selling experience or credence goods and services are more likely to be socially responsible than firms selling search goods. Using firm-level data, we report evidence that is consistent with this hypothesis.

Number of Pages in PDF File: 25

Keywords: Corporate Social Responsibility (CSR), Search Goods, Experience Goods, Credence Goods

JEL Classification: M14, D21

working papers series