Certification of Corporate Social Responsibility Activities in Oligopolistic Markets

Constantine Manasakis (), Evangelos Mitrokostas () and Emmanuel Petrakis

No 2012/06, Working Papers from Economics Department, Universitat Jaume I, Castellón (Spain)

Abstract: We investigate the impact of alternative certifying institutions on firms’ incentives to engage in costly Corporate Social Responsibility (CSR) activities as well as their relative market and societal implications. We find that the CSR certification standard is the lowest under for-profit private certifiers and the highest under a Non Governmental Organization (NGO), with the standard of a welfare maximizing public certifier lying in between. Yet, regarding industry output, this ranking is reversed. Certification of CSR activities is welfare enhancing for consumers and firms and should be encouraged. Finally, the market and societal outcomes of CSR certification depend crucially on whether certification takes place before or after firms’ CSR activities.

Keywords: Corporate Social Responsibility; Oligopoly; Vertical Differentiation; Certification (search for similar items in EconPapers)
JEL-codes: L13 L5 M14 (search for similar items in EconPapers)
Pages: 34 pages
Date: 2012
New Economics Papers: this item is included in nep-bec, nep-com and nep-mkt
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Citations: View citations in EconPapers (5)

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Related works:
Journal Article: Certification of corporate social responsibility activities in oligopolistic markets (2013)
Journal Article: Certification of corporate social responsibility activities in oligopolistic markets (2013)
Working Paper: Certification of Corporate Social Responsibility Activities in Oligopolistic Markets (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:jau:wpaper:2012/06

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