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Private Politics, Corporate Social Responsibility, and Integrated Strategy

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Author Info
David P. Baron
Abstract

This paper provides a theory of private politics in which an activist seeks to change the production practices of a firm for the purpose of redistribution to those whose interests it supports. The source of the activist's influence is the possibility of support for its cause by the public. The paper also addresses the issue of corporate social responsibility by distinguishing among corporate redistribution as motivated by profit maximization, altruism, and threats by the activist. Private politics and corporate social responsibility not only have a direct effect on the costs of the firm, but also have a strategic effect by altering the competitive positions affirms in an industry. From an integrated-strategy perspective the paper investigates the strategic implications of private politics and corporate social responsibility for the strategies of rival firms when one or both are targets of an activist campaign. Implications for empirical analysis are derived from the theory. Copyright (c) 2001 Massachusetts Institute of Technology.

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Publisher Info
Article provided by Blackwell Publishing in its journal Journal of Economics & Management Strategy.

Volume (Year): 10 (2001)
Issue (Month): 1 (03)
Pages: 7-45
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Handle: RePEc:bla:jemstr:v:10:y:2001:i:1:p:7-45

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Web page: http://www.kellogg.northwestern.edu/research/journals/JEMS/

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  1. Baron, David P., 2006. "Managerial Contracting and Corporate Social Responsibility," Research Papers 1945, Stanford University, Graduate School of Business. [Downloadable!]
  2. Claudia Alves & Luís Santos-Pinto, 2008. "A Theory of Corporate Social Responsibility in Oligopolistic Markets," Cahiers de Recherches Economiques du Département d'Econométrie et d'Economie politique (DEEP) 09.04, Université de Lausanne, Faculté des HEC, DEEP. [Downloadable!]
  3. Witold J. Henisz & Bennet A. Zelner, 2004. "Interest Groups, Veto Points And Electricity Infrastructure Deployment," William Davidson Institute Working Papers Series 2004-711, William Davidson Institute at the University of Michigan Stephen M. Ross Business School. [Downloadable!]
    Other versions:
  4. Thomas P. Lyon & John W. Maxwell, 2004. "Astroturf: Interest Group Lobbying and Corporate Strategy," Working Papers 2004-18, Indiana University, Kelley School of Business, Department of Business Economics and Public Policy. [Downloadable!]
    Other versions:
  5. Donald S. Siegel & Donald F. Vitaliano, 2006. "An Empirical Analysis of the Strategic Use of Corporate Social Responsibility," Rensselaer Working Papers in Economics 0602, Rensselaer Polytechnic Institute, Department of Economics. [Downloadable!]
    Other versions:
  6. Evangelos Mitrokostas & Emmanuel Petrakis, 2008. "Private CSR Activities in Oligopolistic Markets: Is there any room for Regulation?," Working Papers 0816, University of Crete, Department of Economics. [Downloadable!]
  7. Baron, David P. & Harjoto, Maretno A. & Jo, Hoje, 2008. "The Economics and Politics of Corporate Social Performance," Research Papers 1993, Stanford University, Graduate School of Business. [Downloadable!]
  8. Baron, David P., 2001. "Private Politics," Research Papers 1689, Stanford University, Graduate School of Business. [Downloadable!]
  9. Donald Siegel, 2009. "Green Management Matters Only If It Yields More Green: An Economic/Strategic Perspective," Working Papers 8, Jerusalem Institute for Market Studies (JIMS). [Downloadable!]
  10. Hediger, Werner, 2008. "Agriculture’s Multifunctionality, Sustainability, and Social Responsibility," 82nd Annual Conference, March 31 - April 2, 2008, Royal Agricultural College, Cirencester, UK 36854, Agricultural Economics Society. [Downloadable!]
  11. Catherine J. Morrison-Paul & Donald S. Siegel, 2006. "Corporate Social Responsibility and Economic Performance," Rensselaer Working Papers in Economics 0605, Rensselaer Polytechnic Institute, Department of Economics. [Downloadable!]
    Other versions:
  12. Peter Rodriguez & Donald S. Siegel & Amy Hillman & Lorraine Eden, 2006. "Three Lenses on the Multinational Enterprise: Politics, Corruption and Corporate Social Responsibility," Rensselaer Working Papers in Economics 0608, Rensselaer Polytechnic Institute, Department of Economics. [Downloadable!]
    Other versions:
  13. Thomas P. Lyon & John W. Maxwell, 2007. "Corporate Social Responsibility and the Environment: A Theoretical Perspective," Working Papers 2007-16, Indiana University, Kelley School of Business, Department of Business Economics and Public Policy. [Downloadable!]
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  14. A. Balboni & F. Balboni, 2008. "A Duopoly Model of Corporate Social Responsibility and Location Choice," Working Papers 641, Dipartimento Scienze Economiche, Universita' di Bologna. [Downloadable!]
  15. Daniel Fernandez & Juan Santalo, 2008. "When Necessity Becomes a Virtue: The Effect of Product Market Competition on CSR," Working Papers Economia wp08-27, Instituto de Empresa, Area of Economic Environment. [Downloadable!]
  16. Aleix Calveras & Juan José Ganuza, 2004. "Responsabilidad Social Corporativa. Una Visión desde la Teoría Económica," Economics Working Papers 797, Department of Economics and Business, Universitat Pompeu Fabra. [Downloadable!]
    Other versions:
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