Determining the Appropriate Level of CSR Investment
The supply and demand framework implies that there is some optimal level of CSR attributes for firms to provide, depending on the demand for these characteristics and the costs of generating them. Companies that do not supply CSR attributes have lower costs, but they face a different (lower at every price) demand curve than firms that do provide them. Firms that supply CSR will have higher costs for every level of output than firms that do not supply CSR
and produce similar goods.