Corporate social responsibility
Reciprocal stakeholders, economic incentives, strategic design options
Abstract
obias Hahn examines why and under what conditions it is economically rational for companies to engage in social activities. He shows that not all stakeholders are self-interest maximisers, but reward companies that engage in social causes and sanction those that resist social demands. He derives strategic options for action for companies and stakeholders and offers a behavioural economic explanation for corporate social engagement.