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

  • Hannes Koppel


    (Max Planck Institute of Economics, Jena)

  • Tobias Regner

    (Max Planck Institute of Economics, Jena)

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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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
Date of revision:
Handle: RePEc:jrp:jrpwrp:2011-030
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  1. Jean Tirole & Roland Bénabou, 2010. "Individual and Corporate Social Responsibility," Working Papers 2010.23, Fondazione Eni Enrico Mattei.
  2. Baron, David P., 2008. "Managerial contracting and corporate social responsibility," Journal of Public Economics, Elsevier, vol. 92(1-2), pages 268-288, February.
  3. Fehr, Ernst & Kirchsteiger, George & Riedl, Arno, 1993. "Does Fairness Prevent Market Clearing? An Experimental Investigation," The Quarterly Journal of Economics, MIT Press, vol. 108(2), pages 437-59, May.
  4. 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.
  5. Abigail Barr & Danila Serra & Pieter Serneels, 2010. "Intrinsic motivations and the non-profit health sector: Evidence from Ethiopia," Economics Series Working Papers CSAE WPS/2010-04, University of Oxford, Department of Economics.
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  7. Tim Besley & Maitreesh Ghatak, 2005. "Competition and incentives with motivated agents," LSE Research Online Documents on Economics 928, London School of Economics and Political Science, LSE Library.
  8. Botond Koszegi & Matthew Rabin, 2005. "A Model of Reference-Dependent Preferences," Levine's Bibliography 784828000000000341, UCLA Department of Economics.
  9. Fehr, Ernst & Klein, Alexander & Schmidt, Klaus M., 2007. "Fairness and contract design," Munich Reprints in Economics 20618, University of Munich, Department of Economics.
  10. Nyborg, Karine & Zhang, Tao, 2011. "Is corporate social responsibility associated with lower wages?," Memorandum 01/2011, Oslo University, Department of Economics.
  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.
  13. 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.
  14. 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.
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