Journal of Business Ethics

, Volume 60, Issue 2, pp 175–183

Risk Management, Real Options, Corporate Social Responsibility

Authors

    • Tecnológico de Monterrey Instituto de EmpresaITESM/EGADE
Article

DOI: 10.1007/s10551-005-3777-1

Cite this article as:
Husted, B.W. J Bus Ethics (2005) 60: 175. doi:10.1007/s10551-005-3777-1

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.

Keywords

corporate social responsibilityreal optionsrisk management
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© Springer 2005