| dc.description.abstract | This research investigates the impact of Corporate Social Responsibility (CSR) practices on firms′ behavior and their competitors in terms of production output, market prices, and profits. The study employs models for both monopolistic and duopolistic market structures. For monopolistic firms emphasizing CSR, a reduction in production results in decreased profits. In duopoly markets, firms prioritizing CSR experience reductions in production and profits. However, when both firms intensify their environmental concern, a joint reduction in production may lead to increased profits, resembling collusion outcomes.
The study introduces speculative variables, suggesting that competitor reactions influence the likelihood of profit increase for environmentally conscious firms. Additionally, the research explores the transition from firms caring solely about their own environmental impact to considering the overall societal impact. The findings reveal that the likelihood of profit increase when prioritizing environmental concerns is influenced by competitor reactions.
In conclusion, this research offers insights into the nuanced effects of CSR on firms′ strategies and considers the dynamic interactions in different market scenarios. Understanding how firms, while emphasizing social responsibility, navigate market competition and profit dynamics is crucial for informing sustainable business practices. | en_US |