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Working paper

Добрые дела и коммерческая выгода: корпоративная благотворительность в свете теории отраслевых рынков

Polishchuk L., Фирсов Е. В.
The paper explores a possible business rationale for corporate social responsibility which requires that private companies purse social, environmental and other causes unrelated to their primary operations and not required by law on the books. A popular version of corporate social responsibility, known as cause-related marketing, is considered. Cause-related marketing which can serve as a proxy for other types of socially responsible corporate conduct is a business strategy where firms bundle their products and brands with contributions to designated charities. The paper explores the origins and incidence of economic gains of cause-related marketing. It identifies two sources of its profitability – first, corporations utilize their advantages over households in covering transaction costs of philanthropy, and second, can exploit cause-related marketing as a price-discrimination tool. The ability to earn market reward while contributing to social causes exemplifies the modern interpretation of corporate social responsibility as a means “to do well by doing good”.