The Role of Income Distribution in the Diffusion of Corporate Social Responsibility

Simone D'Alessandro () and Domenico Fanelli

Metroeconomica, 2015, vol. 66, issue 2, 187-212

Abstract: The purpose of this paper is to investigate the link between corporate social responsibility (CSR) growth and income distribution. We present a general equilibrium model where social responsibility enters both firms' and consumers' decisions. At equilibrium, different degrees of CSR diffusion may arise. We study the conditions under which there exists a virtuous circle which ties increases in the diffusion of CSR to reductions in income inequality. Under certain circumstances, any policy which promotes CSR diffusion induces a reduction in income inequality. By contrast, when such conditions are not satisfied, only redistributive policies may generate the virtuous circle.

Date: 2015
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Working Paper: The Role of Income Distribution in the Diffusion of Corporate Social Responsibility (2009)
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