Why do corporations, in particular public corporations, adopt corporate social responsibility (CSR) policies? The CSR adage of “doing well by doing good” suggests that a firm can achieve higher financial returns by balancing the goals of different stakeholders. There are various ways to do that, including by increasing customer awareness, extending the planning horizon, creating a more resilient supply chain, or better addressing employee concerns.
This balancing act, however, depends on how other industry participants respond. For example, a firm may invest in making its supply chain more resilient, but that investment may prove of limited value if its suppliers … Read more