英文摘要 |
This paper investigates the feasibility and desirability of foreign manufacturer's consumer-oriented CSR. We analyze a simple bilateral monopoly situation where the foreign manufacturer bargains with a domestic retailer on linear wholesale price. Intuitively, we find that foreign manufacturer's consumer-friendly behavior will realize higher consumer welfare and social welfare. With regard to firm's profitability, the result shows that under free trade, CSR always requires sacrifice of foreign manufacturer's profits: it seems not practicable for a privately beneficial solution. However, when home country sets strategic trade policy, the foreign manufacturer is found to have more incentive to implement CSR, because the consumer-friendly concern can mitigate government’s political hostility. To conclude, our model provides a theoretical rationale for foreign firm's CSR initiatives and bears practical implications for both far-sighted entrepreneurs and regulatory authorities. |