Modelling the trade-off between profits and principles
AbstractCorporations discover that social responsibility pays off. However, sometimes doing what is ethical will prove costly to a company. The purpose of this article is to clarify this trade-off by developing an economic model that describes the choice between profits and principles. The model is used to analyse how external factors like a change in consumer interests and competitiveness affect the relationship between profits and principles.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 20752.
Date of creation: 2002
Date of revision:
Publication status: Published in De Economist 150.2(2002): pp. 129-154
Corporate social responsibility; ethics; competitiveness; profit maximisation; reputation; win-win;
Find related papers by JEL classification:
- D69 - Microeconomics - - Welfare Economics - - - Other
- D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
- M14 - Business Administration and Business Economics; Marketing; Accounting - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
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