Conditions for Value Creation in the Marketplace Through the Management of CSR Issues: A Negative External Effects Framework

Thibault Daudigeos and Bertrand Valiorgue ()
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Thibault Daudigeos: EESC-GEM - Grenoble Ecole de Management
Bertrand Valiorgue: ESC Clermont-Ferrand - École Supérieure de Commerce (ESC) - Clermont-Ferrand

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Abstract: This article contributes to research on strategic corporate social responsibility (CSR) by detailing the condition-sets governing the emergence of market-led demand for CSR. We build on external effects theory to evaluate the strategic options a company can adopt to manage its negative external effects in a way that creates social and economic value. We draw on the economic concepts of rivalry and excludability to categorize different social issues and detail the conditions needed to foster market-led transactions on negative externalities. We demonstrate how different types of negative externalities present firms with different strategic opportunities in terms of harnessing market-driven CSR demand.

Keywords: social acceptability; transaction costs; willingness to pay; negative externalities; value creation; strategic CSR (search for similar items in EconPapers)
Date: 2011-03-01
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Published in Business and Society, 2011, 50 (1), pp.28 - 49. ⟨10.1177/0007650310395544⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-05511795

DOI: 10.1177/0007650310395544

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