Risk management, real options, corporate social responsibility uri icon

Abstract

  • The relationship of corporate social responsibility to risk management has been treated sporadically in the business society literature. Using real options theory, I develop the notion of corporate social responsibility as a real option its implications for risk management. Real options theory allows for a strategic view of corporate social responsibility. Specifically, real options theory suggests that corporate social responsibility should be negatively related to the firm's ex ante downside business risk. © Springer 2005.

Publication date

  • August 1, 2005