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A dynamic by-production framework for analyzing inefficiency associated with corporate social responsibility

Tadesse Getacher Engida, Xudong Rao and Alfons G.J.M. Oude Lansink

European Journal of Operational Research, 2020, vol. 287, issue 3, 1170-1179

Abstract: This article integrates corporate social responsibility (CSR) into a dynamic by-production framework and examines the factors associated with CSR performance. The application focuses on panel data of European food and beverage firms over the period 2013-2017. The results show that material input, labour input and undesirable output can be contacted by 11.3%, 12.0% and 10.4% respectively while marketable output can be expanded by 66.35%, socially responsible output by 4.3% and the potential of doing investment by 25.46% of the value of the capital stock. Higher CSR performance was associated with a larger firm size, and a higher R&D intensity. Furthermore, firms in network-oriented systems (Germanic or Latin) tend to have a better corporate social responsibility performance than firms in market oriented systems (Anglo-Saxon).

Keywords: Corporate social responsibility; dynamic by-production model; data envelopment analysis; inefficiency; food and beverage manufacturing industry (search for similar items in EconPapers)
Date: 2020
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DOI: 10.1016/j.ejor.2020.05.022

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