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The corporate social responsibility is just a twist in a M\uf6bius strip

By Nazaria Solferino and Viviana Solferino

Abstract

In recent years economic agents and systems have become more and more interactive and juxtaposed, therefore the social sciences need to rely on the studies of physical sciences to analyze this complexity in the relationships. According to this point of view, the authors rely on the geometrical model of the M\uf6bius strip used in electromagnetism, which analyzes the movements of the electrons that produce energy. They use a similar model in a Corporate Social Responsibility (CSR) context to devise a new cost-benefit model in order to take into account three positive effects on the efficiency of a socially responsible company: 1) cooperation among stakeholders in the same sector; 2) cooperation among similar stakeholders in different sectors; and 3) the stakeholders' loyalty toward the company. By applying this model to a firm's decision problem the authors find that investing in CSR activities is always convenient, depending on the number of sectors, the stakeholders' sensitivity to these investments and the decay rate to alienation. Their work suggests a new method of analysis which should be developed not only at a theoretical level, but also at an empirical level

Topics: L13, D21, Z1, ddc:330, corporate social responsibility, econophysics, firm behavior
Publisher: Kiel: Kiel Institute for the World Economy (IfW)
Year: 2016
DOI identifier: 10.5018/economics-ejournal.ja.2016-15
OAI identifier: oai:econstor.eu:10419/142260
Provided by: EconStor

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