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Corporate Social Responsibility in the work place - Experimental evidence on CSR from a gift-exchange game

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Author Info

  • Hannes Koppel

    ()
    (Max Planck Institute of Economics, Jena)

  • Tobias Regner

    (Max Planck Institute of Economics, Jena)

Abstract

We analyze the effect of investments in corporate social responsibility (CSR) on workers' motivation. In our experiment, a gift exchange game variant, CSR is captured by donating a certain share of profits to a charity. We are testing for CSR effects by varying the possible share of profits given away. Additionally, we investigate the effect of a mission match, i.e., a worker prefering the same charity the firm is actually donating to. Our results show that on average workers reciprocate investments into CSR with increased effort. A mission match does result in higher effort, but only when investment into CSR is high.

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Bibliographic Info

Paper provided by Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics in its series Jena Economic Research Papers with number 2011-030.

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Date of creation: 2011
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Handle: RePEc:jrp:jrpwrp:2011-030

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Keywords: Corporate Social Responsibility; gift-exchange game; experiment; labor market; incentives; moral hazard; principal agent;

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References

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  1. Benabou, Roland & Tirole, Jean, 2009. "Individual and Corporate Social Responsibility," IZA Discussion Papers 4570, Institute for the Study of Labor (IZA).
  2. Timothy Besley & Maitreesh Ghatak, 2003. "Competition and incentives with motivated agents," LSE Research Online Documents on Economics 2202, London School of Economics and Political Science, LSE Library.
  3. Baron, David P., 2008. "Managerial contracting and corporate social responsibility," Journal of Public Economics, Elsevier, vol. 92(1-2), pages 268-288, February.
  4. Botond Koszegi & Matthew Rabin, 2005. "A Model of Reference-Dependent Preferences," Levine's Bibliography 784828000000000341, UCLA Department of Economics.
  5. Danila Serra & Pieter Serneels & Abigail Barr, 2010. "Intrinsic motivations and the non-profit health sector: Evidence from Ethiopia," Working Paper series, University of East Anglia, Centre for Behavioural and Experimental Social Science (CBESS) 10-01, School of Economics, University of East Anglia, Norwich, UK..
  6. Karine Nyborg & Tao Zhang, 2013. "Is Corporate Social Responsibility Associated with Lower Wages?," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 55(1), pages 107-117, May.
  7. David P. Baron, 2007. "Corporate Social Responsibility and Social Entrepreneurship," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 16(3), pages 683-717, 09.
  8. Fehr, Ernst & Klein, Alexander & Schmidt, Klaus M., 2005. "Fairness and Contract Design," Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems 67, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich.
  9. Brekke, Kjell Arne & Nyborg, Karine, 2008. "Attracting responsible employees: Green production as labor market screening," Resource and Energy Economics, Elsevier, vol. 30(4), pages 509-526, December.
  10. David P. Baron, 2009. "A Positive Theory of Moral Management, Social Pressure, and Corporate Social Performance," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 18(1), pages 7-43, 03.
  11. Mirco Tonin & Michael Vlassopoulos, 2009. "Disentangling the Sources of Pro-social Behavior in the Workplace: A Field Experiment," CESifo Working Paper Series 2757, CESifo Group Munich.
  12. Urs Fischbacher, 2007. "z-Tree: Zurich toolbox for ready-made economic experiments," Experimental Economics, Springer, vol. 10(2), pages 171-178, June.
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  14. Fehr, Ernst, et al, 1998. "When Social Norms Overpower Competition: Gift Exchange in Experimental Labor Markets," Journal of Labor Economics, University of Chicago Press, vol. 16(2), pages 324-51, April.
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Cited by:
  1. Tonin, Mirco & Vlassopoulos, Michael, 2012. "Social Incentives Matter: Evidence from an Online Real Effort Experiment," IZA Discussion Papers 6716, Institute for the Study of Labor (IZA).
  2. Mirco Tonin & Michael Vlassopoulos, 2014. "Corporate Philanthropy and Productivity: Evidence from an Online Real Effort Experiment," CESifo Working Paper Series 4778, CESifo Group Munich.

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