Riyanto, Yohanes E.; Toolsema, Linda A. - Department of Economics, National University of Singapore - 2007
We argue that Corporate Social Responsibility (CSR) may affect the agency relationship inside a firm. We analyze how … CSR and the threat of stakeholder activism influence effort of manager and shareholder, and describe how CSR may arise … endogenously in this context. By engaging in CSR the shareholder can commit to less monitoring, increase the manager’s effort, and …