Are firms doing good? And, if so, why do they engage in social responsibility? To find out, we model corporate social responsibility (CSR) as a choice of the firm to self-restrain from the full exploitation of a production set that contains negative externalities. Compared to such an...

Fossil fuel divestment campaigns urge investors to sell their stakes in companies that supply coal, oil, and gas. However, avoiding investments in such companies can be expected to impose a financial cost on the investor because of reduced opportunities for portfolio diversification. We compare...