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The Corporate Social Responsibility is just a twist in a Möbius Strip

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Listed:
  • Solferin, Nazaria

    (Associazione Italiana per la Cultura della Cooperazione e del Non Profit)

  • Solferino, Viviana

    (Associazione Italiana per la Cultura della Cooperazione e del Non Profit)

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 Möbius 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 indifferent 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

  • Solferin, Nazaria & Solferino, Viviana, 2015. "The Corporate Social Responsibility is just a twist in a Möbius Strip," AICCON Working Papers 142-2015, Associazione Italiana per la Cultura della Cooperazione e del Non Profit.
  • Handle: RePEc:ris:aiccon:2015_142
    as

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    References listed on IDEAS

    as
    1. 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.
    2. 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.
    3. 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.
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    More about this item

    Keywords

    Corporate social responsibility; Econophysics; Firm Behavior;
    All these keywords.

    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • Z10 - Other Special Topics - - Cultural Economics - - - General

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