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dc.contributor.authorHabib, A.
dc.contributor.authorHasan, Mostafa
dc.date.accessioned2017-03-15T22:16:51Z
dc.date.available2017-03-15T22:16:51Z
dc.date.created2017-02-26T19:31:41Z
dc.date.issued2016
dc.identifier.citationHabib, A. and Hasan, M. 2016. Corporate Social Responsibility and Cost Stickiness. Business & Society. 58 (3): pp. 453-492.
dc.identifier.urihttp://hdl.handle.net/20.500.11937/49954
dc.identifier.doi10.1177/0007650316677936
dc.description.abstract

This article examines the effects on cost stickiness of firms’ involvement in corporate social responsibility (CSR) activities. Cost stickiness represents asymmetric cost behavior whereby the magnitude of cost increases in response to an increase in the activity level is greater than the magnitude of cost decreases with a decrease in the activity level. We hypothesize that CSR involvement requires ongoing investments in value-creating activities; hence, it is difficult to scale down committed resources instantly even when the activity declines. We use two different CSR proxies and find support for the CSR-related cost stickiness hypothesis. We further decompose CSR into strategic and tactical CSR and find that cost stickiness is more pronounced for strategic CSR. Finally, we examine the CSR-related cost behavior pattern across business cycles and find some evidence of cost stickiness during an expansionary phase of the economy and cost anti-stickiness during a recessionary phase but only for the tactical CSR component.

dc.publisherSage Publications
dc.titleCorporate Social Responsibility and Cost Stickiness
dc.typeJournal Article
dcterms.source.volume58
dcterms.source.startPage453
dcterms.source.endPage492
dcterms.source.issn0007-6503
dcterms.source.titleBusiness & Society
curtin.departmentDepartment of Finance and Banking
curtin.accessStatusFulltext not available


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