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Conditions for Value Creation in the Marketplace Through the Management of CSR Issues: A Negative External Effects Framework

Author

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  • Thibault Daudigeos

    (Grenoble Ecole de Management (France, Grenoble) - GEM)

  • Bertrand Valiorgue

    (EM - EMLyon Business School)

Abstract

This article contributes to research on strategic corporate social responsibility (CSR) by detailing the condition-sets governing the emergence of market-led demand for CSR. We build on external effects theory to evaluate the strategic options a company can adopt to manage its negative external effects in a way that creates social and economic value. We draw on the economic concepts of rivalry and excludability to categorize different social issues and detail the conditions needed to foster market-led transactions on negative externalities. We demonstrate how different types of negative externalities present firms with different strategic opportunities in terms of harnessing market-driven CSR demand.

Suggested Citation

  • Thibault Daudigeos & Bertrand Valiorgue, 2011. "Conditions for Value Creation in the Marketplace Through the Management of CSR Issues: A Negative External Effects Framework," Grenoble Ecole de Management (Post-Print) hal-05511795, HAL.
  • Handle: RePEc:hal:gemptp:hal-05511795
    DOI: 10.1177/0007650310395544
    as

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