IDEAS home Printed from https://ideas.repec.org/a/udc/esteco/v46y2019i1p227-244.html
   My bibliography  Save this article

Corporate social responsibility in a unionised duopoly

Author

Listed:
  • Luciano Fanti
  • Domenico Buccella

Abstract

It is commonly believed that the choice of adopting Corporate Social Responsibility (CSR) behaviours is beyond the scope of profit enhancement. In a unionised oligopoly with centralised wage setting and decreasing returns to scale technology, the present paper shows that the owners’ choice of the CSR engagement level is dictated by the firms’ purely selfish profit-seeking objective. In fact, profits under CSR are higher than under the standard profit-maximising rule. Moreover, the union, consumers and the social welfare on the whole with CSR are higher than without CSR: the firms’ owners social concern leads to a Pareto-superior outcome.

Suggested Citation

  • Luciano Fanti & Domenico Buccella, 2019. "Corporate social responsibility in a unionised duopoly," Estudios de Economia, University of Chile, Department of Economics, vol. 46(2), pages 227-244, December.
    • Handle: RePEc:udc:esteco:v:46:y:2019:i:1:p:227-244
    as

    Download full text from publisher

    File URL: https://estudiosdeeconomia.uchile.cl/index.php/EDE/article/view/55274/58218
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mariana Dubravská & Martina Marchevská & Petra Vašaničová & Rastislav Kotulič, 2020. "Corporate Social Responsibility and Environmental Management Linkage: An Empirical Analysis of the Slovak Republic," Sustainability, MDPI, vol. 12(13), pages 1-18, July.
    2. Bárcena-Ruiz, Juan Carlos & Sagasta, Amagoia, 2022. "International trade and environmental corporate social responsibility," Energy Economics, Elsevier, vol. 115(C).
    3. Laszlo Goerke, 2022. "Trade unions and corporate social responsibility," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 93(1), pages 177-203, March.
    4. Vrankić Ilko, 2022. "Conflict and Corporate Social Responsibility in Duopoly," Business Systems Research, Sciendo, vol. 13(3), pages 36-46, October.
    5. Bárcena-Ruiz, Juan Carlos & Sagasta, Amagoia, 2021. "Environmental policies with consumer-friendly firms and cross-ownership," Economic Modelling, Elsevier, vol. 103(C).

    More about this item

    Keywords

    Cournot Duopoly; labour union; corporate social responsibility;
    All these keywords.

    JEL classification:

    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:udc:esteco:v:46:y:2019:i:1:p:227-244. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Verónica Kunze (email available below). General contact details of provider: https://edirc.repec.org/data/deuclcl.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.