Explain the connection between the economic model of corporate social responsibility and “free market” or “neoclassical” economic theory.

The economic model of corporate social responsibility is grounded in the neoclassical economic theory, which emphasizes the importance of individual liberty, private enterprise, and free markets. This model suggests that corporations should be responsible not only for generating profits but also for addressing social and environmental issues. It believes that companies should use their resources and capabilities to resolve societal challenges, promote sustainable development, and mitigate negative externalities, such as pollution, inequality, and labor exploitation. Moreover, this model asserts that CSR activities can enhance corporate reputation, build customer loyalty, and foster long-term profitability. Thus, corporations are seen as agents of social progress, whose interests align with those of society as a whole. However, critics argue that CSR may undermine the efficiency of the market, as it imposes additional costs on businesses and may have a negative impact on shareholder value. Nonetheless, the economic model of CSR remains a popular approach to business sustainability, and many firms have adopted CSR practices as part of their corporate strategy.