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.

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

JEL Classification: M14, D21