CORRECTED GAME MODEL IN CSR: MNC STRATEGIES AND CHINESE PRACTICE

Jifu Wang, Vipin Gupta, Liza Lybolt and Xiuli Wang
Additional contact information
Jifu Wang: University of Houston, Victoria, USA
Vipin Gupta: California State University, USA
Liza Lybolt: Texas A&M International University, USA
Xiuli Wang: Qilu University of Technology, China

Studies in Business and Economics, 2022, vol. 17, issue 3, 269-287

Abstract: Multinational Corporation (MNC) behaviors (Hoffman et al, 2017) have come under growing scrutiny, and many MNCs have been found to be following lax corporate social responsibility (CSR) standards. MNCs are being held to a standard of new sustainability paradigm, which is challenging them to develop new models of CSR decision making. We represent the CSR decision making challenges of MNCs with the help of a game theoretical model. The model specifies alternative strategies and payoffs for the MNCs and the stakeholders and examines the dominant strategies in the Nash equilibrium. To identify solutions for the future, we propose a corrected game model, where the incentive structure is revised so that the stakeholders are able to signal rewards and penalties for CSR behavior. In this corrected game model, the dominant strategy for the MNCs is to step up their CSR compliance, and for the stakeholders is to offer rewards for the CSR behavior

Keywords: corporate social responsibility; game theory (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://magazines.ulbsibiu.ro/eccsf/RePEc/blg/journl/17319wang.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:blg:journl:v:17:y:2022:i:3:p:269-287

Access Statistics for this article

More articles in Studies in Business and Economics from Lucian Blaga University of Sibiu, Faculty of Economic Sciences Lucian Blaga University of Sibiu, Faculty of Economic Sciences Dumbravii Avenue, No 17, postal code 550324, Sibiu, Romania. Contact information at EDIRC.
Bibliographic data for series maintained by Mihaela Herciu ().