What Corporate Social Responsibility Motivations are better for The Environment?

Mauricio Villena

MPRA Paper from University Library of Munich, Germany

Abstract: Is it always the case that an environmental friendly CSR firm will be preferred to a consumer caring CSR-firm in terms of the environmental damage generated in the market?. Will always an environmental friendly CSR firm be preferred to a firm which concerns only with profit maximization?. We explore these questions by analizyng a duopoly market setting in which a CSR firm interacts with a profit maximizing firm. Unlike previous literature, we consider different motivations for the CSR firm: (i) the CSR firm acts as a consumer-friendly firm, cares for not only its profits but also consumer surplus, as a proxy of its concern for its "stakeholders" or consumers; (ii) the CSR firm main objective is a combination of its own profit and the environment, caring for the environmental damage produced by the market in which it interacts; and (iii) the CSR firm is both consumer and environmental friendly. As benchmark we also consider the case in which both firms in the duopoly only concern about material profits, evaluating for all cases the environmental damage generated in their market interaction.

Keywords: Corporate social responsibility; consumer-friendly firm; environment-friendly firm; Mixed Duopoly; Emission Taxation (search for similar items in EconPapers)
JEL-codes: H23 L13 L31 Q50 (search for similar items in EconPapers)
Date: 2019-11-01, Revised 2020-05-01
New Economics Papers: this item is included in nep-bec and nep-env
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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https://mpra.ub.uni-muenchen.de/100281/1/MPRA_paper_100267.pdf revised version (application/pdf)
https://mpra.ub.uni-muenchen.de/100281/8/MPRA_paper_100281.pdf revised version (application/pdf)

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