Economics and Corporate Social Responsibility

Corporate Social Responsibility (CSR) is an important economic phenomenon with broad implications for .rms, employees, consumers, investors, governments and NGOs alike. This paper collects, structures and combines scattered pieces of economic theory and empirical evidence in novel ways that shed light on various fundamental economic questions related to CSR. The main conjecture presents individual preferences as the ultimate driving force behind any form of CSR. In the presence of social stakeholder preferences, firms may use strategic CSR to maximize profits, while not-for-profit CSR may satisfy shareholders. social ambitions. Only if managers take CSR beyond strategic levels or shareholder preferences, does CSR constitute moral hazard. Incentives and mechanisms underlying for-profit CSR will be outlined in greater detail. Six frameworks for the analysis of strategic CSR are proposed and analyzed. Finally, some empirical issues related to measurement and estimation of CSR are briefly discussed.Corporate Social Responsibility, Public Goods Provision, Preferences, Strategic CSR

Economic Perspectives on Corporate Social Responsibility.

What is Corporate Social Responsibility (CSR) and how can we explain the phenomenon from an economic perspective? Is there a business case for CSR and was Milton Friedman right when writing in the New York Times in 1970 that "the social responsibility of business is to increase its profits"? Chapter 1 of this thesis will address all these questions and create a coherent conceptual framework for further analysis in the subsequent chapters. In this function it will serve as a natural introduction to the economics of CSR. One of the main issues emerging from the literature on CSR is the need to identify and explore a new kind of classical dichotomy, i.e. the trade o¤ between market provision of public goods via CSR and its public counterpart via regulation. The two theoretical essays that follow will focus on novel and potentially unexpected interaction between ?rm strategy and classical regulation in light of CSR and imperfect information, thereby suggesting the need to revise and eventually adapt the traditional use of public policy or to think about completely new policy tools.Social responsibility of business; Corporate governance;

Corporate Social Responsibility and Islamic Financial Institutions (IFIs): Management Perceptions from IFIs in Bahrain

Islamic finance is gaining greater attention in the finance industry, and this paper analyses how Islamic financial institutions (IFIs) are responding to the welfare needs of society. Using interview data with managers and content analysis of the disclosures, this study attempts to understand management perceptions of corporate social responsibility (CSR) in IFIs. A thorough understanding of CSR by managers, as evident in the interviews, has not been translated fully into practice. The partial use of IFIs’ potential role in social welfare would add further challenges in the era of financialisation

Introduction

This collected volume gives a concise account of the most relevant scientific results of the COST Action IS1104 "The EU in the new complex geography of economic systems: models, tools and policy evaluation", a four-year project supported by COST (European Cooperation in Science and Technology). It is divided into three parts reflecting the different perspectives under which complex spatial economic systems have been studied: (i) the Macro perspective looks at the interactions among international or regional trading partners; (ii) the Meso perspective considers the functioning of (financial, labour) markets as social network structures; and, finally, (iii) the Micro perspective focuses on the strategic choices of single firms and households. This Volume points also at open issues to be addressed in future research

Topical diacerein for epidermolysis bullosa: a randomized controlled pilot study

Blistering in epidermolysis bullosa simplex type Dowling-Meara (EBS-DM) is associated with an inflammatory phenotype, which can be disrupted by diacerein in vitro. In this pilot study we hypothesized, that a topical formulation of diacerein 1% reduces blistering. Five patients initially applied diacerein underneath both armpits. Then, each participant received 1% diacerein-cream for one armpit, and placebo for the other (randomized withdrawal). The number of blisters was reduced significantly (left: -78%; right: -66% of baseline) within two weeks and remained significantly below the initial level even during withdrawal in four patients. These findings point to a relevant effect of diacerein and provide important information for a confirmative study

Is Corporate Social Responsibility an Agency Problem? Evidence from CEO Turnovers

We empirically examine two competing claims: first, if a firm’s Corporate Social Responsibility (CSR) activity is driven by its CEO’s private rent extraction (i.e. an agency problem), firms with higher CSR ratings are poorly governed and their managers are less likely to be dismissed for poor financial performance. In contrast, if CSR reflects owners’ preferences, CEOs of firms with higher CSR ratings are more likely to be removed in light of poor financial performance. We find that CEO turnover-financial performance sensitivity increases in firm CSR scores during the last years of both the outgoing CEO as well as his predecessor. Further, firm CSR ratings do not change following CEO turnover suggesting that CSR ratings are a firm characteristic. Our findings are consistent with the view that CSR is driven by shareholder preferences