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The Corporate Social Responsibility is just a twist in a M\"obius Strip

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  • Nazaria Solferino
  • Viviana Solferino

Abstract

In recent years economics agents and systems have became more and more interacting and juxtaposed, therefore the social sciences need to rely on the studies of physical sciences to analyze this complexity in the relationships. According to this point of view we rely on the geometrical model of the M\"obius strip used in the electromagnetism which analyzes the moves of the electrons that produce energy. We use a similar model in a Corporate Social Responsibility context to devise a new cost function in order to take into account of three positive crossed effects on the efficiency: i)cooperation among stakeholders in the same sector, ii)cooperation among similar stakeholders in different sectors and iii)the stakeholders' loyalty towards the company. By applying this new cost function to a firm's decisional problem we find that investing in Corporate Social Responsibility activities is ever convenient depending on the number of sectors, the stakeholders' sensitivity to these investments and the decay rate to alienation. Our work suggests a new method of analysis which should be developed not only at a theoretical but also at an empirical level.

Suggested Citation

  • Nazaria Solferino & Viviana Solferino, 2015. "The Corporate Social Responsibility is just a twist in a M\"obius Strip," Papers 1510.03398, arXiv.org.
  • Handle: RePEc:arx:papers:1510.03398
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    1. Becchetti, Leonardo & Palestini, Arsen & Solferino, Nazaria & Elisabetta Tessitore, M., 2014. "The socially responsible choice in a duopolistic market: A dynamic model of “ethical product” differentiation," Economic Modelling, Elsevier, vol. 43(C), pages 114-123.
    2. Diewert, W E, 1971. "An Application of the Shephard Duality Theorem: A Generalized Leontief Production Function," Journal of Political Economy, University of Chicago Press, vol. 79(3), pages 481-507, May-June.
    3. J. Barkley Rosser, 2008. "Econophysics And Economic Complexity," Advances in Complex Systems (ACS), World Scientific Publishing Co. Pte. Ltd., vol. 11(05), pages 745-760.
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