Corporate Social Responsibility along the global value chain
Philipp Herkenhoff,
Sebastian Krautheim,
Finn Semrau and
Frauke Steglich
Open Access Publications from Kiel Institute for the World Economy from Kiel Institute for the World Economy (IfW Kiel)
Abstract:
Locating substantial parts of the production process in developing and emerging economies, many firms face an increasing demand by stakeholders for Corporate Social Responsibility (CSR) along their value chains. Contractual incompleteness between firms and their suppliers at different stages of production can exacerbate the ability to meet these demands. We analyze a model of sequential production with incomplete contracts where CSR by independent suppliers differentiates the final product in the eyes of caring consumers. Progressing down the value chain, our model predicts an increasing CSR profile from upstream suppliers with low CSR to downstream suppliers with higher CSR. We confirm this prediction using Indian firm-level data – computing a firm’s value chain position by combining its product-level sales information with the World Input–Output Database. We find that more downstream firms report higher CSR expenditures as measured by a combination of staff welfare spending and social community spending.
Keywords: Corporate Social Responsibility; Global value chains; Incomplete contracts; Sustainable development; Ethical sourcing; India (search for similar items in EconPapers)
JEL-codes: F12 F61 F63 L23 M14 O12 (search for similar items in EconPapers)
Date: 2024
New Economics Papers: this item is included in nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)
Downloads: (external link)
https://www.econstor.eu/bitstream/10419/301393/1/C ... obal-value-chain.pdf (application/pdf)
Related works:
Journal Article: Corporate Social Responsibility along the global value chain (2024) 
Working Paper: Corporate Social Responsibility along the Global Value Chain (2021) 
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:zbw:ifwkie:301393
DOI: 10.1016/j.jdeveco.2023.103236
Access Statistics for this paper
More papers in Open Access Publications from Kiel Institute for the World Economy from Kiel Institute for the World Economy (IfW Kiel) Contact information at EDIRC.
Bibliographic data for series maintained by ZBW - Leibniz Information Centre for Economics ().