Can negative externality be internalized within a CSR framework?

The aim of this paper is to probe the possibilities for regulating negative externalities under CSR [Corporate Social Responsibility] by investigating the institutional conditions under which certain negative externalities can be made ‘internalizable’ within corporate-led, corporate-endorsed responsibility initiatives.

Our research is built on a two-step rationale. We begin by tailoring a system for classifying negative externalities that can then be used as a basis for categorizing the various challenges facing the socially-responsible firm.

We then demonstrate how only one category of externalities is potentially integratable into a CSR-based solution, and this under a particularly exclusive set of institutional and marketplace conditions.

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