When Necessity Becomes a Virtue: The Effect of Product Market Competition on CSR
AbstractWe report evidence that Product Market Competition is positively associated to widely-used Corporate Social Responsibility ratings. In particular we show that different market concentration measures are negatively associated to social impact ratings. We also provide evidence that changes in import penetration rates instrumented by import tariffs are positively associated to these social ratings. Finally we report that firm pollution levels are negatively associated to market concentration measures. Our results suggest that -all else constant- doubling competition in the marketplace would increase CSR ratings of an average company between 184% and 800%.
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Bibliographic InfoPaper provided by Instituto de Empresa, Area of Economic Environment in its series Working Papers Economia with number wp08-27.
Length: 32 pages
Date of creation: Jul 2008
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Strategy ; Corporate social responsibility; Product market competition;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-12-01 (All new papers)
- NEP-BEC-2008-12-01 (Business Economics)
- NEP-COM-2008-12-01 (Industrial Competition)
- NEP-SOC-2008-12-01 (Social Norms & Social Capital)
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