CSR as a signal to inform collective action
Title: CSR as a signal to inform collective action
Author: TZAVARA, Dionisia
Series/Report no.: EUI RSCAS; 2009/43
Collective action in the form of a boycott or a campaign or any other threat that affects the operations of a firm is considered an instrument in the hands of organizations and consumers to control firm behaviour and to apply pressure on firms to behave in a socially responsible manner. This paper adds to existing literature on collective action in the context of CSR by looking at firms’ incentives to signal their true technology through the choice of CSR in order to avoid collective action of a higher magnitude than that corresponding to their true type of technology. It is shown that collective action does not always succeed to provide incentives to firms to engage in CSR and finds conditions for collective action to be successful.
Subject: Signalling; Collective action; Corporate Social Responsibility
Type of Access: openAccess