This paper presents an industry equilibrium model where firms have a choice to engage in corporate social responsibility (CSR) activities. We model CSR as an investment to increase product differentiation that allows firms to benefit from higher profit margins. The model predicts that CSR...

This paper presents an industry equilibrium model where firms have a choice to engage in corporate social responsibility (CSR) activities. We model CSR as an investment to increase product differentiation that allows firms to benefit from higher profit margins. The model predicts that CSR...

Corporate social responsibility (CSR) has been increasingly embraced by corporations to demonstrate effort to reduce negative environmental and social externalities resulting from their business activities. CSR covers a wide range of issues, including environmental concerns, occupational health...