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Corporate Social Responsibility

The Connection Between Competition and Corporate Social Responsibility

Prof. Ross Levine’s new working paper is the first study of how an increase in competition affects the way companies respond to Corporate Social Responsibility (CSR) activities.

CSR activities and competitive advantage

You might think, when faced with increased competition, companies would pull back from investments in employee safety training, environmental protections, and their local communities. The very activities that show them to be good corporate citizens, but not directly contribute to their financial returns.

But an analysis of companies found how competition increases corporate social responsibility. With an increase in competition, companies increased their corporate social responsibility or CSR activities as a strategy to build loyalty and trust.

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