Industrial Engineering Journal ›› 2013, Vol. 16 ›› Issue (4): 44-48.

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Game Theory-Based Analysis of Corporate Social Responsibility Mechanism with Government Involvement

  

  1. School of Economics and Commerce, Guangdong University of Technology, Guangzhou 510520, China
  • Online:2013-08-31 Published:2013-11-22

Abstract: To strengthen corporate social responsibility, theories, such as bargaining models and replicated dynamic equations, are used to analyze corporate social responsibility with relative data collected in China. Both asymmetric and evolutionary game models are developed for this problem. With them, mechanism of strategy equilibrium implemented by related parties and “governmentcorporate” game stable strategy implementation process in unequal power condition are analyzed. Results indicate that effective government involvement is the key for reversing the situation where enterprises fail to bear social responsibility in unequal conditions. This evolution trend depends on the co-integration among the reputation gains from the positive behavior of the enterprises, the cost of the illegal behaviors, and the reputation loss from negative behaviors.

Key words: bargaining model, strength unequal game, replicated dynamic equation