Community Embeddedness, Consumer Voice, Corporate Social Responsibility

Morris Altman

doi:10.1007/978-3-030-83928-4_7

Community Embeddedness, Consumer Voice, Corporate Social Responsibility

Morris Altman (Lead / Corresponding author)

Research output: Chapter in Book/Report/Conference proceeding › Chapter (peer-reviewed) › peer-review

Abstract

I model how community embeddedness and consumer voice can incentivize firms to be more ethical and socially responsible. Building on x-efficiency theory, I also make the case that being more ethical and socially responsible does not imply higher average costs and lower profits as assumed by conventional economic theory. Moreover, being more ethical or socially responsible need not improve profits or reduce average costs. There is no theoretical reason for self-interested firm decision-makers to be more ethical or socially responsible. Therefore, firms that are embedded in their community and where consumers have effective voice should be more ethical and socially responsible. In this environment, such behaviour makes the firm more competitive. Fear of government intervention is another reason for changes in firm behaviour.

Original language	English
Title of host publication	Constructing a More Scientific Economics
Subtitle of host publication	John Tomer's Pluralistic and Humanistic Economics
Editors	Morris Altman
Publisher	Palgrave Macmillan
Chapter	7
Pages	127-145
Number of pages	19
Edition	1
ISBN (Electronic)	9783030839284
ISBN (Print)	9783030839277 (hbk), 9783030839307 (pbk)
DOIs	https://doi.org/10.1007/978-3-030-83928-4_7
Publication status	Published - 19 May 2022

Publication series

Name	Palgrave Advances in Behavioral Economics
ISSN (Print)	2662-3846
ISSN (Electronic)	2662-3854

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 12 Responsible Consumption and Production

Access to Document

10.1007/978-3-030-83928-4_7

Constructing a More Scientific Economics: John Tomer's Pluralistic and Humanistic Economics
Altman, M. (Editor), 19 May 2022, 1 ed. Palgrave Macmillan. 339 p. (Palgrave Advances in Behavioral Economics)
Research output: Book/Report › Book
Introduction
Altman, M. (Lead / Corresponding author), 19 May 2022, Constructing a More Scientific Economics: John Tomer's Pluralistic and Humanistic Economics. Altman, M. (ed.). 1 ed. Palgrave Macmillan, p. 1-15 15 p. (Palgrave Advances in Behavioral Economics).
Research output: Chapter in Book/Report/Conference proceeding › Chapter (peer-reviewed) › peer-review
Obesity, Wellbeing, Freedom of Choice, and Institutional Change
Altman, H. J. R. & Altman, M. (Lead / Corresponding author), 19 May 2022, Constructing a More Scientific Economics: John Tomer's Pluralistic and Humanistic Economics. Altman, M. (ed.). 1 ed. Palgrave Macmillan, p. 197-234 38 p. (Palgrave Advances in Behavioral Economics).
Research output: Chapter in Book/Report/Conference proceeding › Chapter (peer-reviewed) › peer-review

Cite this

@inbook{4da4d73a58df49dca7f835fcfc226501,

title = "Community Embeddedness, Consumer Voice, Corporate Social Responsibility",

abstract = "I model how community embeddedness and consumer voice can incentivize firms to be more ethical and socially responsible. Building on x-efficiency theory, I also make the case that being more ethical and socially responsible does not imply higher average costs and lower profits as assumed by conventional economic theory. Moreover, being more ethical or socially responsible need not improve profits or reduce average costs. There is no theoretical reason for self-interested firm decision-makers to be more ethical or socially responsible. Therefore, firms that are embedded in their community and where consumers have effective voice should be more ethical and socially responsible. In this environment, such behaviour makes the firm more competitive. Fear of government intervention is another reason for changes in firm behaviour.",

author = "Morris Altman",

note = "Copyright: {\textcopyright} 2022 The Author(s), under exclusive license to Springer Nature Switzerland AG.",

year = "2022",

month = may,

day = "19",

doi = "10.1007/978-3-030-83928-4\_7",

language = "English",

isbn = "9783030839277 (hbk)",

series = "Palgrave Advances in Behavioral Economics",

publisher = "Palgrave Macmillan",

pages = "127--145",

editor = "Morris Altman",

booktitle = "Constructing a More Scientific Economics",

edition = "1",

}

Community Embeddedness, Consumer Voice, Corporate Social Responsibility. / Altman, Morris (Lead / Corresponding author).
Constructing a More Scientific Economics: John Tomer's Pluralistic and Humanistic Economics. ed. / Morris Altman. 1. ed. Palgrave Macmillan, 2022. p. 127-145 (Palgrave Advances in Behavioral Economics).

Research output: Chapter in Book/Report/Conference proceeding › Chapter (peer-reviewed) › peer-review

TY - CHAP

T1 - Community Embeddedness, Consumer Voice, Corporate Social Responsibility

AU - Altman, Morris

PY - 2022/5/19

Y1 - 2022/5/19

N2 - I model how community embeddedness and consumer voice can incentivize firms to be more ethical and socially responsible. Building on x-efficiency theory, I also make the case that being more ethical and socially responsible does not imply higher average costs and lower profits as assumed by conventional economic theory. Moreover, being more ethical or socially responsible need not improve profits or reduce average costs. There is no theoretical reason for self-interested firm decision-makers to be more ethical or socially responsible. Therefore, firms that are embedded in their community and where consumers have effective voice should be more ethical and socially responsible. In this environment, such behaviour makes the firm more competitive. Fear of government intervention is another reason for changes in firm behaviour.

AB - I model how community embeddedness and consumer voice can incentivize firms to be more ethical and socially responsible. Building on x-efficiency theory, I also make the case that being more ethical and socially responsible does not imply higher average costs and lower profits as assumed by conventional economic theory. Moreover, being more ethical or socially responsible need not improve profits or reduce average costs. There is no theoretical reason for self-interested firm decision-makers to be more ethical or socially responsible. Therefore, firms that are embedded in their community and where consumers have effective voice should be more ethical and socially responsible. In this environment, such behaviour makes the firm more competitive. Fear of government intervention is another reason for changes in firm behaviour.

U2 - 10.1007/978-3-030-83928-4_7

DO - 10.1007/978-3-030-83928-4_7

M3 - Chapter (peer-reviewed)

SN - 9783030839277 (hbk)

SN - 9783030839307 (pbk)

T3 - Palgrave Advances in Behavioral Economics

SP - 127

EP - 145

BT - Constructing a More Scientific Economics

A2 - Altman, Morris

PB - Palgrave Macmillan

ER -

Community Embeddedness, Consumer Voice, Corporate Social Responsibility

Abstract

Publication series

UN SDGs

Access to Document

Fingerprint

Research output

Constructing a More Scientific Economics: John Tomer's Pluralistic and Humanistic Economics

Introduction

Obesity, Wellbeing, Freedom of Choice, and Institutional Change

Cite this