INTRODUCTION Foreign Direct Investment and Global Corporate Social Leadership - Ubaya Repository

4.1 max , , , � + � + � − � , − � , − � , The effect of on aggregate profits of increasing pollution indicates that increasing pollution lowers the cost of producing but raises the costs of producing fish for each of the fisheries. The appropriate optimally condition for the profit-maximizing problem is 4.2 ∆ ̂, ̂ ∆ + ∆ � ̂, ̂ ∆ = This equation means that the sum of the marginal costs of pollution over the three firms should equal to zero. Just as in the case of a public consumption good, it is the sum of the marginal benefits or costs over the economic agent that is relevant for determining the Pareto efficient provision of a public good. In common model, profit maximization by X producers requires maximizing net revenue from the joint product less the cost of primary input. The maximizing profit model for given level of output is associated with labor, land and level of waste generated , , . This model is equivalent to treating waste disposal as an intermediate input into the production process for x and minimizing the cost of primary and intermediate inputs. Hence, the unit cost function corresponding to H is 4.3 � , , � = min � , , [ + + � ] . . , , = ] The variables of the models are wage, rent on land and price of waste in which w represent wage, r is the rent on land, and � is domestic price of disposing one unit of waste. 4.3. DATA DAN VARIABLES The research adopts the social responsibility measurement data produced by Newsweek and M“CI E“G ‘esea h I stitutio . The ai to assess ea h o pa s a tual e i o e tal footprint and management of that footprint, along with its reputation among environmental experts. The Global 100 list covers the largest public companies based in developed and emerging markets. Company size was associated with revenue, asset, and market capitalization. Changes resulting from various corporate actions, such as mergers, were taken into account until July 1, 2010, when the company lists were finalized to allow time for the rankings to be calculated and compiled. Green Score: This score is derived from three component scores: the Environmental Impact Score EIS, the Green Policies Score GPS, and the Reputation Survey Score RSS, weighted at 45 percent, 45 percent and 10 percent, respectively. The Green Score, as well as each component score, is published on a scale from 100 highest performing to one lowest performing. Environmental Impact: The data source of environmental impact score is trucost a consultant company which provides services such as identifying true cost of business. The total