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

Simone D'Alessandro () and Domenico Fanelli ()

MPRA Paper from University Library of Munich, Germany

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

Keywords: CSR; ethical consumption; income distribution; non-linear dynamics; general equilibrium (search for similar items in EconPapers)
JEL-codes: D30 D50 M14 (search for similar items in EconPapers)
Date: 2009-11-16
New Economics Papers: this item is included in nep-mic
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Related works:
Journal Article: The Role of Income Distribution in the Diffusion of Corporate Social Responsibility (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:18659

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