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Distribution of responsibility, ability and competition

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  • Graafland, J.J.

Abstract

This paper considers the distribution of responsibility for prevention of negative social or ecological effects of production and consumption. Responsibility is related to ability and ability depends on welfare. An increase in competition between Western companies depresses their profitability, but increases the welfare of Western consumers, and hence their ability, to acknowledge social values. Therefore, an increase in competition on consumer markets shifts the balance in responsibility from companies to consumers to prevent negative external effects from production and consumption patterns. An increase in competition on investor markets will shift the balance in an opposite direction.

Suggested Citation

  • Graafland, J.J., 2003. "Distribution of responsibility, ability and competition," MPRA Paper 20731, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:20731
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    References listed on IDEAS

    as
    1. McGuire, Thomas G., 2000. "Physician agency," Handbook of Health Economics, in: A. J. Culyer & J. P. Newhouse (ed.), Handbook of Health Economics, edition 1, volume 1, chapter 9, pages 461-536, Elsevier.
    2. Graafland, J.J., 2001. "Profts and principles: Four perspectives," MPRA Paper 21134, University Library of Munich, Germany.
    3. Graafland, J.J., 2002. "Modelling the trade-off between profits and principles," MPRA Paper 20752, University Library of Munich, Germany.
    4. Graafland, J.J., 2002. "Sourcing ethics in the textile sector: The case of C&A," MPRA Paper 20769, University Library of Munich, Germany.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. J.J. Graafland & H. Smid, 2004. "Reputation, Corporate Social Responsibility and Market Regulation," Review of Business and Economic Literature, KU Leuven, Faculty of Economics and Business (FEB), Review of Business and Economic Literature, vol. 0(2), pages 271-308.
    2. Cristina Longo & Avi Shankar & Peter Nuttall, 2019. "“It’s Not Easy Living a Sustainable Lifestyle”: How Greater Knowledge Leads to Dilemmas, Tensions and Paralysis," Journal of Business Ethics, Springer, vol. 154(3), pages 759-779, February.
    3. Sarit Nisim & Orly Benjamin, 2008. "Power and Size of Firms as Reflected in Cleaning Subcontractors’ Practices of Social Responsibility," Journal of Business Ethics, Springer, vol. 83(4), pages 673-683, December.
    4. J. Graafland, 2010. "Do Markets Crowd Out Virtues? An Aristotelian Framework," Journal of Business Ethics, Springer, vol. 91(1), pages 1-19, January.
    5. Oana Branzei & Jeff Frooman & Brent Mcknight & Charlene Zietsma, 2018. "What Good Does Doing Good do? The Effect of Bond Rating Analysts’ Corporate Bias on Investor Reactions to Changes in Social Responsibility," Journal of Business Ethics, Springer, vol. 148(1), pages 183-203, March.
    6. Faruk Bhuiyan & Kevin Baird & Rahat Munir, 2022. "The associations between management control systems, market orientation and CSR use," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 33(1), pages 27-79, March.

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    More about this item

    Keywords

    Corporate social responsibility; ability; fairness; distribution; externalities; competition; ethics;
    All these keywords.

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • L19 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Other
    • D49 - Microeconomics - - Market Structure, Pricing, and Design - - - Other

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