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This study examines the relationship between corporate social responsibility (CSR), shareholder value, and competition …
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We study the equilibrium effects of the "S" dimension of ESG under imperfect competition in labor or product markets … adopting firms and many stakeholders. Under shareholder primacy, competition in ESG policies generally reduces shareholder … value, while coordination on policies raises new anti-trust concerns. Under stakeholder capitalism, competition in ESG …
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Milton Friedman has famously claimed that the responsibility of a manager who is not the owner of a firm is "to conduct the business in accordance with their [the shareholders'] desires, which generally will be to make as much money as possible." In this paper we argue that when contracts are...
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