EconPapers    
Economics at your fingertips  
 

Private versus public companies with strategic CSR

Alessandro Gioffré, Alessandro Tampieri () and Antonio Villanacci ()
Additional contact information
Antonio Villanacci: University of Florence

Journal of Economics, 2021, vol. 133, issue 2, No 2, 129-166

Abstract: Abstract We analyze the effects of strategic Corporate Social Responsibility (CSR) on social welfare in an industry where firms are owned by consumers (publicly owned) and CSR commitment takes the form of a fraction of the consumer surplus into the firms’ objective function. We compare this market configuration with the standard case of firms owned by entrepreneurs (privately owned). In line with the empirical evidence, consumers’ ownership gives an incentive to adopt a socially responsible, welfare improving statute. While privately-owned companies are limited in the level of social concern to implement, publicly-owned companies are not, and CSR is welfare-improving for any level of social concern. Surprisingly, a market configuration of publicly-owned CSR companies decreases welfare compared to an oligopoly of privately-owned CSR companies. The analysis is then extended by considering asymmetric oligopolies with different company types.

Keywords: CSR; Consumers’ firm ownership; Pareto optimum (search for similar items in EconPapers)
JEL-codes: H23 L13 O31 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://link.springer.com/10.1007/s00712-020-00729-1 Abstract (text/html)

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:kap:jeczfn:v:133:y:2021:i:2:d:10.1007_s00712-020-00729-1

DOI: 10.1007/s00712-020-00729-1

Access Statistics for this article

Journal of Economics is currently edited by Giacomo Corneo

More articles in Journal of Economics from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().

 
Page updated 2022-09-09
Handle: RePEc:kap:jeczfn:v:133:y:2021:i:2:d:10.1007_s00712-020-00729-1