their responsible workers, and in turn engage in CSR through self-regulation, provided that regulatory oversight is poor … for profit-maximizing entrepreneurs; and 2) CSR arises endogenously as a response to imperfect regulatory oversight … enough - and hence regulation is loose enough - to make self-regulation worthwhile. The key prediction of the model is a …

We study a model in which corporate social responsibility (CSR) arises as a response to inefficient regulation. In our … attenuated through government regulation, which is set endogenously and may or may not be socially optimal. Governments may … choose suboptimal levels of regulation if they face lobbying pressure from companies. Companies can, in turn, hire socially …