CSR effectivity evaluation with usage of game theory
Journal Title: Вісник Житомирського державного технологічного університету. Серія: економіка, управління та адміністрування - Year 2017, Vol 81, Issue 3
Abstract
The article is devoted to the implementation of the game theory for the CSR effectivity evaluation. We proved the fact that zero-sum game cannot be applied to the CSR. Based on the rational nature of players, each of them will choose a dominant strategy, which involves increasing profits and simultaneous social and environmental impact. For a case of socially responsible activity, as a game with a non-zero sum in the long run (repetitive game), the dominant strategy is the Nash’s equilibrium and the use of socially responsible practices in business; creating an unstable balance that involves taking into account the actions of other players, and in the short term (nonrepetitive game) the strategy of maximizing the results is dominant, which involves the use of socially responsible practices; a stable balance is created that does not change regardless of the actions of other players. The selfish thinking of each player in the long-term (strategic) perspective in the Nash’s equilibrium, leads to a general loss. The result is optimal when each player behaves in the best way not only for himself but for other players as well. The player’s decision, which contradicts the Nash’s balance, leads to his defeat. Moreover, the Nash’s equilibrium requires each player to trust another one as CSR is a non-cooperative game, so players can not form coalitions and act together.
Authors and Affiliations
T. V. Botsian
Keywords
Related Articles
- EP ID EP274060
- DOI -
- Views 93
- Downloads 0
Corporate governance effectiveness evaluation at an enterprise
On the base of the conducted research the article proposes the essence of the term «corporate governance» as a system of norms, rules, methods, principles and modern management tools, the use of which provides effective...
Audit stakeholder media market: the need for and characteristics of the organization
Active Ukraine media market development and its integration into the global market space cause a number of problems faced by scientists and practitioners in the fild of audit organizing of firms that saturate this market...
Influence of Shadow Economy on Forming the Indicators of Enterprises’ Financial Statements
The article is devoted to the study of the shadow economy, the common features of such an economy in different countries are clarified, and the ways for solving this problem are presented. After all, shadowing the econom...
Modern tendencies of financial stability of domestic industrial enterprises
The financial stability of an enterprise is one of the decisive criteria for its financial status and successful operation in general. The article analyzes the financial sustainability of industrial enterprises of Ukrain...
Issues of Social Policy Implementation for ATO (OUF) Fallen Servicemen’s Family Members under Conditions of Hybrid War
The article determines the main issues of the social policy implementation for the members of families of the servicemen fallen in the area of the АТО and shows the ways of their solution as a precondition for the social...