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CSR in a Model of Heterogeneous Firms, Financial Constraints and Economic Crisis

In: Corporate Social Responsibility in the Global Business World

Author

Listed:
  • Luisa Giallonardo

    (University of L’Aquila)

  • Marcella Mulino

    (University of L’Aquila)

Abstract

The paper develops a model considering strategic CSR and vertical product differentiation in the context of heterogeneous firms and monopolistic competition, based on the strand of literature on heterogeneous firms in international trade pioneered by Mélitz (2003). We seek to provide some understanding as to which of the features influence corporate CSR performance, factors which motivate firms to engage it and the strategies firms adopt in order to approach it. The results change if we introduce more realistic hypothesis, for example, the financial constraint firms face or the presence of economic cycles. We suggest that it is possible in times of crisis under certain conditions that firms attention for CSR can in fact be strengthened.

Suggested Citation

  • Luisa Giallonardo & Marcella Mulino, 2014. "CSR in a Model of Heterogeneous Firms, Financial Constraints and Economic Crisis," Springer Books, in: Asli Yüksel Mermod & Samuel O.Idowu (ed.), Corporate Social Responsibility in the Global Business World, edition 127, chapter 0, pages 77-91, Springer.
    • Handle: RePEc:spr:sprchp:978-3-642-37620-7_4
    DOI: 10.1007/978-3-642-37620-7_4
    as

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