A Real Options Reasoning Approach to Corporate Social Responsibility (<scp>CSR</scp>): Integrating Real Option Sensemaking and <scp>CSR</scp> Orientation

Abstract

Abstract In this article we explore the conceptual relationship between corporate social responsibility ( CSR ) orientation and real option reasoning. We argue that the firm's attitude, communication, and behavior toward CSR will act as significant determinants to the firm's sensemaking approach to real options; that is, if and how it (the firm) acknowledges, receives, and manages strategic real options. Integrating the previous work of Basu and Palazzo with Barnett, we propose a new model that extends the influence of CSR orientation/character to general strategic decision making while simultaneously developing the attention‐based view to real options.