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Journal Article

Corporate Social Responsibility: A Theory of the Firm Perspective

Abagail McWilliams and Donald Siegel
The Academy of Management Review
Vol. 26, No. 1 (Jan., 2001), pp. 117-127
Published by: Academy of Management
Stable URL:
Page Count: 11
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We outline a supply and demand model of corporate social responsibility (CSR). Based on this framework, we hypothesize that a firm's level of CSR will depend on its size, level of diversification, research and development, advertising, government sales, consumer income, labor market conditions, and stage in the industry life cycle. From these hypotheses, we conclude that there is an "ideal" level of CSR, which managers can determine via cost-benefit analysis, and that there is a neutral relationship between CSR and financial performance.

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