A Portion of Profits to Charity: Corporate Social Responsibility and Firm Profitability.

I develop a model in which a firm can choose to donate a portion of its profits to the provision of a public good. Consumers value this public good and are willing to pay a price premium to a firm which makes such a donation. When this price premium is sufficiently large, the firm can raise its net...

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Detalles Bibliográficos
Publicado en:Southern Economic Journal Vol. 83; no. 2; pp. 380 - 399
Autor principal: Pecorino, Paul
Formato: Artículo
Publicado: Wiley-Blackwell Oct2016
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        atl: A Portion of Profits to Charity: Corporate Social Responsibility and Firm Profitability.
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        au: Pecorino, Paul
        affil: Department of Economics, Finance and Legal Studies, Box 870224, University of Alabama, Tuscaloosa, AL 35487, USA
      su:
        Social responsibility of business
        Business enterprises
        Economic models
        Corporate profits
        Charitable giving
        Valuation
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          Social responsibility of business
          Business enterprises
          Economic models
          All Other Professional, Scientific, and Technical Services
          Corporate profits
          Charitable giving
          Valuation
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        D7
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      ab: I develop a model in which a firm can choose to donate a portion of its profits to the provision of a public good. Consumers value this public good and are willing to pay a price premium to a firm which makes such a donation. When this price premium is sufficiently large, the firm can raise its net profits by pledging a portion of those profits to provision of the public good. This is more likely when the consumer's marginal valuation of contributions to the public good is high and when the firm (in the absence of donations) has a high ratio of fixed costs to operating profits. I also identify circumstances under which corporate social responsibility makes consumers worse off.
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      src: R
    language: English
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