Competitive Corporate Social Responsibility

44 Pages Posted: 27 Nov 2017 Last revised: 7 Dec 2018

See all articles by Neal Stoughton

Neal Stoughton

Vienna University of Economics and Business; Vienna Graduate School of Finance (VGSF)

Kit Pong Wong

University of Hong Kong

Long Yi

Hong Kong Baptist University (HKBU) - Department of Finance and Decision Sciences

Date Written: December 1, 2018

Abstract

This paper presents a theoretical model for corporate social responsibility (CSR) in a fully rational framework. CSR is a strategic commitment to emphasize either consumer or employee interests in a multi-stage product market game against rival firms. We find that low cost firms in concentrated industries engage in higher levels of CSR and have higher profits. Empirical tests of the main hypotheses are confirmatory: low cost firms use more CSR; market to book increases in CSR and a dynamic test of firms migrating to less concentrated industries exhibit reductions in CSR.

Keywords: social responsibility, competitive, commitment

JEL Classification: G30

Suggested Citation

Stoughton, Neal M. and Wong, Keith Kit Pong and Yi, Long, Competitive Corporate Social Responsibility (December 1, 2018). Available at SSRN: https://ssrn.com/abstract=3074776 or http://dx.doi.org/10.2139/ssrn.3074776

Neal M. Stoughton (Contact Author)

Vienna University of Economics and Business ( email )

Austria

Vienna Graduate School of Finance (VGSF) ( email )

Austria

Keith Kit Pong Wong

University of Hong Kong ( email )

Faculty of Business and Economics
University of Hong Kong
Hong Kong, Nil Nil
Hong Kong
(852) 2859-1044 (Phone)
(852) 2548-1152 (Fax)

Long Yi

Hong Kong Baptist University (HKBU) - Department of Finance and Decision Sciences ( email )

Hong Kong

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
103
Abstract Views
638
rank
281,010
PlumX Metrics