Individual and Corporate Social Responsibility

Roland Benabou and Jean Tirole

No 4570, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: Society's demands for individual and corporate social responsibility as an alternative response to market and distributive failures are becoming increasingly prominent. We first draw on recent developments in the "psychology and economics" of prosocial behavior to shed light on this trend, which reflects a complex interplay of genuine altruism, social or self image concerns, and material incentives. We then link individual concerns to corporate social responsibility, contrasting three possible understandings of the term: the adoption of a more long-term perspective by firms, the delegated exercise of prosocial behavior on behalf of stakeholders, and insider-initiated corporate philanthropy. For both individuals and firms we discuss the benefits, costs and limits of socially responsible behavior as a means to further societal goals.

Keywords: image concerns; socially responsible investment; corporate social responsibility; shareholder value (search for similar items in EconPapers)
JEL-codes: D64 D78 H41 L31 (search for similar items in EconPapers)
Pages: 27 pages
Date: 2009-11
New Economics Papers: this item is included in nep-cfn, nep-ltv and nep-soc
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (15)

Published - published in Economica, 2010, 77 (305) , 1-19.

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Related works:
Journal Article: Individual and Corporate Social Responsibility (2010)
Working Paper: Individual and Corporate Social Responsibility (2010)
Working Paper: Individual and Corporate Social Responsibility (2010)
Working Paper: Individual and Corporate Social Responsibility (2009)
Working Paper: Individual and Corporate Social Responsibility (2009)
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