Title
When do firms invest in corporate social responsibility? A real option frameworkWhen do firms invest in corporate social responsibility? A real option framework
Author
Faculty/Department
Faculty of Law
Institute of Development Policy and Management
Research group
Social Competition and Law
Development processes, actors and policies
Faculteit Toegepaste Economische Wetenschappen
Publication type
article
Publication
Dordrecht,
Subject
Sociology
Economics
Source (journal)
Journal of business ethics. - Dordrecht
Volume/pages
137(2016):1, p. 15-29
ISSN
0167-4544
ISI
000381976200002
Carrier
E
Target language
English (eng)
Full text (Publishers DOI)
Affiliation
University of Antwerp
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.
Full text (open access)
https://repository.uantwerpen.be/docman/irua/fbbf77/9204.pdf
E-info
https://repository.uantwerpen.be/docman/iruaauth/91030b/9c1809f78f1.pdf
Handle