Publication
Title
When do firms invest in corporate social responsibility? A real option framework
Author
Abstract
In this paper, the process for firms to decide whether or not to invest in corporate social responsibility is treated from a real option perspective. We extend the Husted (J Bus Ethics 60:175183, 2005) framework with an important extra parameter that allows us to understand the timing of CSR investment and explain why some companies drag their feet over CSR investments. Our model explicitly allows for the impact of the opportunity cost of delaying the CSR investment decision, providing firms with tools to determine the optimal moment of exercising the CSR investment option. We illustrate our timing model through a case study and analyze governmental support strategies for CSR from a real options perspective.
Language
English
Source (journal)
Journal of business ethics. - Dordrecht
Publication
Dordrecht : 2016
ISSN
0167-4544
Volume/pages
137:1(2016), p. 15-29
ISI
000381976200002
Full text (Publishers DOI)
Full text (open access)
Full text (publishers version - intranet only)
UAntwerpen
Faculty/Department
Research group
Publication type
Subject
Affiliation
Publications with a UAntwerp address
External links
Web of Science
Record
Identification
Creation 19.01.2015
Last edited 27.03.2017
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