The Impacts and Decision of Community-friendly Corporate Social Responsibility Based on the Duopoly Model

Abstract

There are multiple relationships between enterprises and communities, and the community-friendly corporate social responsibility (CSR) is unique. This paper constructs a duopoly model composed of two enterprises and a community, examines the impacts of community-friendly CSR on stakeholders, and analyzes the CSR decision. The results show that the level of community-friendly CSR, negative externalities, tax rate, and consumer sensitivity have multiple effects on profits, consumers, and social welfare, and the impacts of each factor are affected by the other factors; whether the competitors implement CSR affect the CSR decision of the other one; under certain circumstances, the implementation of CSR is conducive to achieving a win-win situation for the enterprises and the community.