Corporate Social Responsibility and Strategic Managerial Delegation

Abstract: This thesis examines the strategic delegation model in a duopoly market. A strategic analysis is used to integrate Corporate Social Responsibility (CSR) into managerial incentive design. We develop and examine two different scenarios of the delegation game. The first scenario is the model of simultaneous managerial delegation in which firms compete sequentially in quantities (Stackelberg fashion), while the second scenario is the model of sequential managerial delegation in which firms compete in quantities simultaneously (Cournot fashion). In light of this, the purposes of this thesis is to measure the business performance of the quantity competing firms and clarify under which circumstances the first mover has the advantage of commitment or not in these two scenarios.