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Corporate Social Responsibility and the Environment: A Theoretical Perspective

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Author Info
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)

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

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Find related papers by JEL classification:
Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
D51 - Microeconomics - - General Equilibrium and Disequilibrium - - - Exchange and Production Economies

This paper has been announced in the following NEP Reports:

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Manzini, Paola & Mariotti, Marco, 2003. "A bargaining model of voluntary environmental agreements," Journal of Public Economics, Elsevier, vol. 87(12), pages 2725-2736, December. [Downloadable!] (restricted)
  2. McCubbins, Mathew D & Noll, Roger G & Weingast, Barry R, 1987. "Administrative Procedures as Instruments of Political Control," Journal of Law, Economics and Organization, Oxford University Press, vol. 3(2), pages 243-77, Fall.
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    Other versions:
  4. Glachant, Matthieu, 2007. "Non-binding voluntary agreements," Journal of Environmental Economics and Management, Elsevier, vol. 54(1), pages 32-48, July. [Downloadable!] (restricted)
  5. Thomas P. Lyon & John W. Maxwell, 2004. "Astroturf: Interest Group Lobbying and Corporate Strategy," Journal of Economics & Management Strategy, Blackwell Publishing, vol. 13(4), pages 561-597, December. [Downloadable!] (restricted)
    Other versions:
  6. Brekke, Kjell Arne & Nyborg, Karine, 2005. "Moral hazard and moral motivation: Corporate social responsibility as labor market screening," Memorandum 25/2004, Oslo University, Department of Economics. [Downloadable!]
  7. David P. Baron, 2001. "Private Politics, Corporate Social Responsibility, and Integrated Strategy," Journal of Economics & Management Strategy, Blackwell Publishing, vol. 10(1), pages 7-45, 03. [Downloadable!] (restricted)
  8. Joshua Graff Zivin & Arthur Small, 2005. "A Modigliani-Miller Theory of Altruistic Corporate Social Responsibility," Topics in Economic Analysis & Policy, Berkeley Electronic Press, vol. 5(1), pages 1369-1369. [Downloadable!] (restricted)
  9. Zhihao Yu, 2005. "Environmental Protection: A Theory of Direct and Indirect Competition for Political Influence," Review of Economic Studies, Blackwell Publishing, vol. 72(1), pages 269-286, 01. [Downloadable!] (restricted)
    Other versions:
  10. Timothy J. Feddersen & Thomas W. Gilligan, 2001. "Saints and Markets: Activists and the Supply of Credence Goods," Journal of Economics & Management Strategy, Blackwell Publishing, vol. 10(1), pages 149-171, 03. [Downloadable!] (restricted)
  11. David P. Baron, 2007. "Corporate Social Responsibility and Social Entrepreneurship," Journal of Economics & Management Strategy, Blackwell Publishing, vol. 16(3), pages 683-717, 09. [Downloadable!] (restricted)
  12. Mark Bagnoli & Susan G. Watts, 2003. "Selling to Socially Responsible Consumers: Competition and The Private Provision of Public Goods," Journal of Economics & Management Strategy, Blackwell Publishing, vol. 12(3), pages 419-445, 09. [Downloadable!] (restricted)
  13. Innes, Robert & Bial, Joseph J, 2002. "Inducing Innovation in the Environmental Technology of Oligopolistic Firms," Journal of Industrial Economics, Blackwell Publishing, vol. 50(3), pages 265-87, September. [Downloadable!] (restricted)
  14. Heyes, Anthony G. & Maxwell, John W., 2004. "Private vs. public regulation: political economy of the international environment," Journal of Environmental Economics and Management, Elsevier, vol. 48(2), pages 978-996, September. [Downloadable!] (restricted)
    Other versions:
  15. Blackman, Allen & Lyon, Thomas P. & Sisto, Nicholas, 2006. "Voluntary Environmental Agreements when Regulatory Capacity Is Weak," Discussion Papers dp-06-30, Resources For the Future. [Downloadable!]
  16. Pargal, Sheoli & Wheeler, David, 1996. "Informal Regulation of Industrial Pollution in Developing Countries: Evidence from Indonesia," Journal of Political Economy, University of Chicago Press, vol. 104(6), pages 1314-27, December. [Downloadable!] (restricted)
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  18. Lutz, Stefan & Lyon, Thomas P & Maxwell, John W, 2000. "Quality Leadership When Regulatory Standards Are Forthcoming," Journal of Industrial Economics, Blackwell Publishing, vol. 48(3), pages 331-48, September. [Downloadable!] (restricted)
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  27. Becker, Gary S, 1983. "A Theory of Competition among Pressure Groups for Political Influence," The Quarterly Journal of Economics, MIT Press, vol. 98(3), pages 371-400, August. [Downloadable!] (restricted)
  28. Heinkel, Robert & Kraus, Alan & Zechner, Josef, 2001. "The Effect of Green Investment on Corporate Behavior," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 36(04), pages 431-449, December. [Downloadable!]
Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Robert N. Stavins & Forest L. Reinhardt & Richard H. K. Vietor, 2008. "Corporate Social Responsibility Through an Economic Lens," Working Papers 2008.84, Fondazione Eni Enrico Mattei. [Downloadable!]
    Other versions:
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This page was last updated on 2009-10-19.


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