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The corporate social responsibility is just a twist in a Möbius strip

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  • Solferino, Nazaria
  • Solferino, Viviana

Abstract

In recent years economic agents and systems have become more and more interactive and juxtaposed, therefore the social sciences need to rely on the studies of physical sciences to analyze this complexity in the relationships. According to this point of view, the authors rely on the geometrical model of the Möbius strip used in electromagnetism, which analyzes the movements of the electrons that produce energy. They use a similar model in a Corporate Social Responsibility (CSR) context to devise a new cost-benefit model in order to take into account three positive effects on the efficiency of a socially responsible company: 1) cooperation among stakeholders in the same sector; 2) cooperation among similar stakeholders in different sectors; and 3) the stakeholders' loyalty toward the company. By applying this model to a firm's decision problem the authors find that investing in CSR activities is always convenient, depending on the number of sectors, the stakeholders' sensitivity to these investments and the decay rate to alienation. Their work suggests a new method of analysis which should be developed not only at a theoretical level, but also at an empirical level.

Suggested Citation

  • Solferino, Nazaria & Solferino, Viviana, 2016. "The corporate social responsibility is just a twist in a Möbius strip," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 10, pages 1-24.
  • Handle: RePEc:zbw:ifweej:201615
    DOI: 10.5018/economics-ejournal.ja.2016-15
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    References listed on IDEAS

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    1. Michael C. Jensen, 2010. "Value Maximization, Stakeholder Theory, and the Corporate Objective Function," Journal of Applied Corporate Finance, Morgan Stanley, vol. 22(1), pages 32-42, January.
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    4. Patricia Crifo & Vanina D. Forget, 2015. "The Economics Of Corporate Social Responsibility: A Firm-Level Perspective Survey," Journal of Economic Surveys, Wiley Blackwell, vol. 29(1), pages 112-130, February.
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    7. Becchetti, Leonardo & Palestini, Arsen & Solferino, Nazaria & Elisabetta Tessitore, M., 2014. "The socially responsible choice in a duopolistic market: A dynamic model of “ethical product” differentiation," Economic Modelling, Elsevier, vol. 43(C), pages 114-123.
    8. Leonardo Becchetti & Nazaria Solferino & Maria Elisabetta Tessitore, 2016. "Corporate social responsibility and profit volatility: theory and empirical evidence," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 25(1), pages 49-89.
    9. Diewert, W E, 1971. "An Application of the Shephard Duality Theorem: A Generalized Leontief Production Function," Journal of Political Economy, University of Chicago Press, vol. 79(3), pages 481-507, May-June.
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    Cited by:

    1. Ignacio Alvarez Mon & Patricia Gabaldón & Margarita Nuñez, 2022. "Social entrepreneurs: making sense of tensions through the application of alternative strategies of hybrid organizations," International Entrepreneurship and Management Journal, Springer, vol. 18(2), pages 975-997, June.
    2. Lopez Arceiz, Francisco & Solferino, Nazaria & Solferino, Viviana & Tortia, Ermanno C., 2016. "Corporate social responsibility is just a twist in a Möbius Strip: An empirical test on Italian cooperatives," MPRA Paper 74776, University Library of Munich, Germany.

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    More about this item

    Keywords

    corporate social responsibility; econophysics; firm behavior;
    All these keywords.

    JEL classification:

    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • Z1 - Other Special Topics - - Cultural Economics

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