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The role of public information in corporate social responsibility

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dc.contributor.author Calveras, Aleix
dc.contributor.author Ganuza, Juan José
dc.contributor.other Universitat Pompeu Fabra. Departament d'Economia i Empresa
dc.date.accessioned 2017-07-26T12:07:59Z
dc.date.available 2017-07-26T12:07:59Z
dc.date.issued 2015-02-01
dc.identifier https://econ-papers.upf.edu/ca/paper.php?id=1491
dc.identifier.uri http://hdl.handle.net/10230/24945
dc.description.abstract Many of the attributes that make a good 'socially responsible' are credence attributes that cannot be learned by consumers either through search or experience. Consumers, then, use for their purchasing decisions 'noisy' information about these attributes obtained from potentially contradictory channels (media, advertisement, NGOs). In this paper we model such informational framework and show the positive relationship between the accuracy of the information transmitted to consumers and corporate social responsibility (CSR). We also show that a firm may be tempted to add noise to the information channel (through lobbying of the media), which might reduce the supply of the CSR attributes and even harm the firm itself (with lower profits). It might then be profitable to the firm to commit ex-ante to not manipulate the information regarding the firm's business practices (e.g., with a partnership with an NGO). Finally, we extend our model to a competition framework endogenizing the number of firms active in the CSR segment. We show both that in more transparent markets a larger number of firms will be CSR, and that in a market with more intense competition, a higher degree of transparency is required in order to sustain a given number of CSR firms.
dc.format.mimetype application/pdf
dc.language.iso eng
dc.relation.ispartofseries Economics and Business Working Papers Series; 1491
dc.rights L'accés als continguts d'aquest document queda condicionat a l'acceptació de les condicions d'ús establertes per la següent llicència Creative Commons
dc.rights.uri http://creativecommons.org/licenses/by-nc-nd/3.0/es/
dc.title The role of public information in corporate social responsibility
dc.type info:eu-repo/semantics/workingPaper
dc.date.modified 2017-07-23T02:17:07Z
dc.subject.keyword credence good
dc.subject.keyword information asymmetry
dc.subject.keyword corporate social responsibility
dc.subject.keyword regulation
dc.subject.keyword ngo
dc.subject.keyword competition.
dc.subject.keyword Business Economics and Industrial Organization
dc.rights.accessRights info:eu-repo/semantics/openAccess

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