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Corporate social responsibility, business strategy, and the environment

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Author Info

  • Forest L. Reinhardt
  • Robert N. Stavins

Abstract

We examine the concept of firms sacrificing profits in the social interest within the environmental realm, with particular focus on the case of the United States by addressing four key questions. May they do so within the scope of their fiduciary responsibilities to their shareholders? Can they do so on a sustainable basis, or will the forces of a competitive marketplace render such efforts and their impacts transient at best? Do firms, in fact, frequently or at least sometimes behave this way, reducing their earnings by voluntarily engaging in environmental stewardship? Should firms carry out such profit-sacrificing activities (i.e. is this an efficient use of social resources)? We address these questions through the lens of economics, including insights from legal and business scholarship. Copyright 2010, Oxford University Press.

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File URL: http://hdl.handle.net/10.1093/oxrep/grq008
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Bibliographic Info

Article provided by Oxford University Press in its journal Oxford Review of Economic Policy.

Volume (Year): 26 (2010)
Issue (Month): 2 (Summer)
Pages: 164-181

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Handle: RePEc:oup:oxford:v:26:y:2010:i:2:p:164-181

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Web page: http://oxrep.oupjournals.org/

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Cited by:
  1. Patricia Crifo & Vanina Forget, 2012. "The Economics of Corporate Social Responsibility: A Survey," Working Papers hal-00720640, HAL.
  2. Christian Le Bas & Nicolas Poussing, 2013. "Firm voluntary measures for environmental changes, eco-innovations and CSR : Empirical analysis based on data surveys," Working Papers halshs-00838005, HAL.
  3. Scholtens, Bert & Kleinsmann, Renske, 2011. "Incentives for subcontractors to adopt CO2 emission reporting and reduction techniques," Energy Policy, Elsevier, vol. 39(3), pages 1877-1883, March.
  4. Patricia Crifo & Vanina Forget, 2013. "La responsabilité sociale et environnementale des entreprises : mirage ou virage ?," Working Papers hal-00830642, HAL.

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