An Empirical Analysis of the Strategic Use of Corporate Social Responsibility
25 Pages Posted: 11 May 2006
Date Written: April 2006
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
Suggested Citation: Suggested Citation