Does a multi-product firm adopt environmental corporate social responsibility voluntarily?

Chia-Chi Wang

Applied Economics, 2022, vol. 54, issue 59, 6797-6808

Abstract: This paper considers a vertically related market to analyse the effect of implementing environmental corporate social responsibility (ECSR) for a multi-product firm. A downstream multi-product firm that implements ECSR needs to buy a key component from an upstream monopolist. We present some interesting results. First, the effect of implementing ECSR on a firm’s profit is ambiguous. Adopting ECSR may increase the multi-product firm’s profit if the production causes mild environmental damage. In other words, a multi-product firm may benefit from implementing ECSR. Second, a multi-product firm implementing ECSR may alleviate the problem of double marginalization. Third, implementing ECSR may even bring about a triple-win (win-win-win) situation where the multi-product firm is able to simultaneously improve its total profit, environmental quality, and social welfare.

Date: 2022
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1080/00036846.2022.2083766 (text/html)
Access to full text is restricted to subscribers.

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:taf:applec:v:54:y:2022:i:59:p:6797-6808

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/RAEC20

DOI: 10.1080/00036846.2022.2083766

Access Statistics for this article

Applied Economics is currently edited by Anita Phillips

More articles in Applied Economics from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().