Corporate Social Responsibility and the Environment: A Theoretical Perspective
40 Pages Posted: 15 Feb 2008
Date Written: October 2007
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.
Keywords: corporate social responsibility, environment, self-regulation, preemption, private politics
JEL Classification: Q58, D21
Suggested Citation: Suggested Citation