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Journal of Business Economics

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01.10.2014 | Original Paper

Corporate social responsibility: a strategic and profitable response to entry?

verfasst von: Christoph Graf, Franz Wirl

Erschienen in: Journal of Business Economics | Ausgabe 7/2014

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Abstract

This paper investigates whether an incumbent has an incentive to introduce corporate social responsibility (CSR) activities only as a response to entry by a competitor, i.e., the incumbent would eschew CSR if left uncontested. We assume that the entrant cannot provide CSR at least at the outset for two reasons: (1) it would not be credible due to its lack of recognition and (2) due to high fixed cost to pay e.g., for licensing. More precisely, this paper shows that monopolistic firms can have indeed the incentive to introduce CSR activities only as a response to entry. Therefore, increased competition can turn a firm “green”, providing a “win–win” for business as well as for the environment.

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Titel: Corporate social responsibility: a strategic and profitable response to entry?
verfasst von: Christoph Graf
Franz Wirl
Publikationsdatum: 01.10.2014
Verlag: Springer Berlin Heidelberg
Erschienen in: Journal of Business Economics / Ausgabe 7/2014
Print ISSN: 0044-2372
Elektronische ISSN: 1861-8928
DOI: https://doi.org/10.1007/s11573-014-0739-z

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