Private versus public companies with strategic CSR

Abstract We analyze the effects of strategic Corporate Social Responsibility (CSR) on social welfare in an industry where firms are owned by consumers (publicly owned) and CSR commitment takes form a fraction consumer surplus into firms’ objective function. compare this market configuration with standard case entrepreneurs (privately owned). In line empirical evidence, consumers’ ownership gives incentive to adopt socially responsible, improving statute. While privately-owned companies limited level concern implement, publicly-owned not, is welfare-improving for any concern. Surprisingly, decreases compared oligopoly companies. The analysis then extended considering asymmetric oligopolies different company types.