June 30, 2010 | Working Papers

A New Analysis of Corporate Social Responsibility

Authors: Evgeny Firsov

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To summarize the substantive argument of the paper, corporations participate in the third sector because of the benefits they can reap. In particular, in many cases corporations are in a good position to (partially) correct the third sector’s failure to bring in financial resources (coming from individuals caring about non-profit missions), increase the accountability and thus efficiency of the processes of production in the NPOs, and finally make them more effective. The key advantages of corporations here is their ability to introduce the elements of competition and control into the third sector, simultaneously not changing its voluntary and non-profit nature. The corporations can do all of that not for free (and I believe they do that not for free!). However, as oftentimes happens in the social sciences the mechanisms responsible for such positive outcomes work in the limited set of cases.

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