Skip to Main content Skip to Navigation
Journal articles

Firms’ social responsibility and workers’ motivation at the industry equilibrium

Abstract : We consider an industry in which firms compete at two levels: the labor market and the product market. In the labor market, two types of workers coexist: socially responsible workers or not. Firms may strategically use responsible activities (CSR) to screen and elicit greater effort from responsible workers. By doing so, virtuous firms lower their production costs and display a competitive advantage in the product market. As a consequence, CSR strategies by firms shape the toughness of the competition in that market. In turn, incentives that firms have to invest in CSR are dampened when competition becomes harsher. Hence, we identify a twofold relationship between CSR and competition. Given the feedback effects on the competitive pressure, an increase in workers’ social awareness may reduce the overall level of socially responsible investment in the industry. We also show that an exogenous increase in competition may positively or negatively affect the corporate social performance depending on pre-existing market conditions.
Document type :
Journal articles
Complete list of metadatas

https://hal-normandie-univ.archives-ouvertes.fr/hal-02876970
Contributor : Natacha Raffin <>
Submitted on : Sunday, June 21, 2020 - 9:23:32 PM
Last modification on : Saturday, October 17, 2020 - 3:14:04 AM

Identifiers

Citation

Victor Hiller, Natacha Raffin. Firms’ social responsibility and workers’ motivation at the industry equilibrium. Journal of Economic Behavior and Organization, Elsevier, 2020, 174, pp.131-149. ⟨10.1016/j.jebo.2020.03.017⟩. ⟨hal-02876970⟩

Share

Metrics

Record views

41