The Socially Responsible Choice in a Duopolistic Market: A Dynamic Model of 'Ethical Product' Differentiation

Are Ethical and Social Banks Less Risky? Evidence from a New Dataset

“…Supporting this line of thought, Becchetti et al (2013) develop a model where profit maximizing firms may find it optimal to adopt measures of corporate social responsibility when socially responsible, not profit maximizing, firms enter the market.…”

Pourquoi s’engager volontairement dans la transition énergétique ? Enseignements de la littérature sur la responsabilité sociale et environnementale des entreprises

“…Dans ce cadre, les firmes ont intérêt à offrir de manière privée des biens publics (ou des biens générant des externalités environnementales plus faibles) pour attirer des consommateurs ayant un consentement à payer plus élevé pour des biens ayant des caractéristiques environnementales meilleures (Besley et Ghatak, 2007 ;Baron, 2007 ;Becchetti et al, 2005 ;Graff Zivin et Small, 2005). Empiriquement, les sondages d'opinion confirment l'intérêt croissant des consommateurs pour des biens dits éthiques (De Pelsmacker et al, 2005).…”

Applying the Möbius Strip Model to Corporate Social Responsibility: Survey-Based Findings from Italian Social Enterprises

“…47 In Economics, this interdependence among systems and among agents is just the core of the models of Corporate Social Responsibility (CSR), which consider the global integration between¯rms and their stakeholders, including workers, customers and the whole socio-economic and natural environment. 5 Sacconi 42 discusses CSR for the generality of businesses and de¯nes it within the social contractarian tradition as enlarged governance that extends the ful¯lment of the¯rm's¯duciary duties towards all of its stakeholder groups. 2,9 CSR is a norm that emerges spontaneously as a contractarian solution in an equilibrium selection process, leading to the creation of a corporate governance institution.…”

“…In turn, this creates bene¯ts also for businesses. For instance, Becchetti et al 5 show that, since more and more pro¯t maximizing¯rms are adopting CSR practices, there must be pecuniary bene¯ts to such practices. The authors also document that CSR has the potential to generate several value increasing e®ects by attracting better employees, and enhancing their intrinsic motivation and loyalty, by reducing turnover rates, by improving production e±ciency and by reducing operating costs.…”

“…26 All the above mentioned advantages can be seen as a sort of ethical capital accumulated trough CSR practices, which also requires the payment of additional costs. Becchetti et al 5 underline, by using a dynamic model, the conditions required to obtain that such bene¯ts overrun the costs. These advantages can also be understood as the result of the synergy which relates each subsystem's and each agent's performance.…”