Eco-Firms and Sequential Adoption of Environmental Corporate Social Responsibility in the Managerial Delegation

Sang-Ho Lee () and Chul-Hi Park ()

MPRA Paper from University Library of Munich, Germany

Abstract: This article investigates the strategic environmental corporate social responsibility (ECSR) of polluting firms in the presence of eco-firms. When the firms decide ECSR sequentially within the framework of the managerial incentive design and then face simultaneous price competition, we show that firms will adopt ECSR and purchase abatement goods to mitigate competition if the products are more substitutable, but the late adopter chooses lower ECSR and thus earns higher profit. It can partially explain the current expansive adoption of ECSR as an industry-wide wave.

Keywords: environmental corporate social responsibility; eco-firms; abatement goods; late adopter advantage (search for similar items in EconPapers)
JEL-codes: L13 L21 M14 (search for similar items in EconPapers)
Date: 2017-06-26
New Economics Papers: this item is included in nep-agr, nep-bec, nep-com, nep-env and nep-mkt
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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https://mpra.ub.uni-muenchen.de/79881/1/MPRA_paper_79881.pdf original version (application/pdf)
https://mpra.ub.uni-muenchen.de/85735/1/MPRA_paper_79881.pdf revised version (application/pdf)
https://mpra.ub.uni-muenchen.de/92229/1/MPRA_paper_79881.pdf revised version (application/pdf)

Related works:
Journal Article: Eco-Firms and the Sequential Adoption of Environmental Corporate Social Responsibility in the Managerial Delegation (2019)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:79881

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