The Role of Income Distribution in the Diffusion of Corporate Social Responsibility
AbstractThe 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.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 18659.
Date of creation: 16 Nov 2009
Date of revision:
CSR; ethical consumption; income distribution; non-linear dynamics; general equilibrium;
Find related papers by JEL classification:
- D50 - Microeconomics - - General Equilibrium and Disequilibrium - - - General
- M14 - Business Administration and Business Economics; Marketing; Accounting - - Business Administration - - - Corporate Culture; Social Responsibility
- D30 - Microeconomics - - Distribution - - - General
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