Certification of Environmental Corporate Social Responsibility Activities in Differentiated Duopoly Market

Abstract

In this paper, by environmental Nongovernmental Organizations certification we research corporate social responsibility in the impacts of competition structures on corporate incentives. The research explained that, to induce firms to adopt certified environmental corporate social responsibility, the certifier will set a standard lower than the optimal one. The environmental certification corporate social standard is equal to that in Cournot competition and Bertrand competition, but Bertrand competition structure will make the firm get more benefits than Cournot competition. In addition, the research also shows that firms and consumers all will get benefit from environmental corporate social responsibility.