We conjecture that there are economies of scope in the provision of CSR, or cost savings that arise from the joint production of CSR characteristics for several related products. A
large, diversified firm can spread the cost of
CSR provision over many different products
and services. For example, the goodwill generated from firm-level CSR-related advertising can be leveraged across a variety of the firm's brands. When scope economies exist, more diversified firms will have lower average costs of providing CSR attributes than firms focusing on one particular industry. Thus, we expect a positive relationship between firm diversification and the provision of CSR attributes, all else being equal.