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Corporate Social Responsibility and the Environment: A Theoretical Perspective

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  • Thomas P. Lyon

    (Ross School of Business, University of Michigan)

  • John W. Maxwell

    (Department of Business Economics and Public Policy, Indiana University Kelley School of Business)

Abstract

We survey the growing theoretical literature on the motives for and welfare effects of corporate greening. We show how both market and political forces are making environmental CSR profitable, and we also discuss morally-motivated or altruistic CSR. Welfare effects of CSR are subtle and situation-contingent, and there is no guarantee that CSR enhances social welfare. We identify numerous areas in which additional theoretical work is needed.

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File URL: http://www.bus.indiana.edu/riharbau/RePEc/iuk/wpaper/bepp2007-16-lyon-maxwell.pdf
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Bibliographic Info

Paper provided by Indiana University, Kelley School of Business, Department of Business Economics and Public Policy in its series Working Papers with number 2007-16.

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Date of creation: 2007
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Handle: RePEc:iuk:wpaper:2007-16

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Keywords: corporate social responsibility; environment; self-regulation; preemption; private politics;

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