Abstract
For the bigger part of the 20th century, most countries have placed much value on economic growth. Only in the late 20th century they began to pay attention to environmental and social issues. In response to these issues, many US and European NGOs and other organizations have strengthened their oversight of multinational corporations that are causing problems. Social interest in corporate social responsibility (hereinafter, CSR) has also heightened. Modern society emphasizes social concerns in the conduct of business. For instance, the KPMG survey (2017) points out that CSR activities are perceived as an important factor in corporate global management. Nevertheless, it is true that many corporations are burdened by CSR activities because such an activity can lead to higher costs.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Notes
- 1.
While most CSR literature considers a quadric cost function like \(c_{i} (q_{i} )=\frac{1}{2}q_{i}^{2} \), the assumption of constant marginal cost does not significantly affect our analysis.
- 2.
- 3.
Henceforth the superscript i indicates case i for (\(i=1,~2,\text {\, }3)\).
- 4.
The values of each parameter are the same as in Fig. 12.1, i.e., \(\alpha =100\) and \(\gamma =0.5\).
- 5.
We set \(\alpha =100\).
- 6.
The profit values are rounded to the first decimal point.
References
Alves, C., and L. Santos-Pinto. 2008. A theory of corporate social responsibility in oligopolistic markets, DEEP 09.04, Universite de Lausanne, Faculte des HEC, DEEP.
Aurora, G., and N. GeorgantzÃs. 2009. Market effects of changes in consumer’s social responsibility. Journal of Economics & Management Strategy 18 (1): 235–262.
Bian, J.K., W. Li, and X. Guo. 2016. A strategic analysis of incorporating CSR into managerial incentive design. Transportation Research Part E 86: 83–93.
Fanti, L., and D. Buccella. 2017. Corporate social responsibility in a game-theoric context. Economia e Politica Industriale 44: 371–390.
Flores, D., and A. GarcÃa. 2016. On the output and welfare effects of a non-profit firm in a mixed duopoly: A generalization. Economic Systems 40: 631–637.
KPMG. 2017. The KPMG survey of corporate responsibility reporting 2017.
Lambertini, L., and A. Tampieri. 2015. Incentives, performance and desirability of socially responsible firms in a Cournot oligopoly. Economic Modelling 50: 40–48.
Lee, W., and K. Lee. 2018. Strategic behaviors on privatization between regions. Asia-Pacific Journal of Regional Science 2: 227–242.
Liu, Q., L.F.S. Wang, and C.L. Chen. 2017. CSR in an oligopoly with foreign competition: policy and welfare implication, Economic Modelling, 1–7.
Manasakis, C., M. Evangelos, and E. Petrakis. 2013. Certification of CSR activities in oligopolistic markets. Canadian Journal of Economics 46 (1): 282–309.
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2018 Springer Nature Singapore Pte Ltd.
About this chapter
Cite this chapter
Lee, W., Kim, C. (2018). Effect of CSR Promotion on the Market and the Role of Government. In: Hosoe, M., Kim, I., Yabuta, M., Lee, W. (eds) Applied Analysis of Growth, Trade, and Public Policy. Springer, Singapore. https://doi.org/10.1007/978-981-13-1876-4_12
Download citation
DOI: https://doi.org/10.1007/978-981-13-1876-4_12
Published:
Publisher Name: Springer, Singapore
Print ISBN: 978-981-13-1875-7
Online ISBN: 978-981-13-1876-4
eBook Packages: Economics and FinanceEconomics and Finance (R0)