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Certification of Corporate Social Responsibility Activities in Oligopolistic Markets

Author

Listed:
  • Constantine Manasakis
  • Evangelos Mitrokostas
  • Emmanuel Petrakis

    () (Department of Economics, University of Crete, Greece)

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.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Constantine Manasakis & Evangelos Mitrokostas & Emmanuel Petrakis, 2011. "Certification of Corporate Social Responsibility Activities in Oligopolistic Markets," Working Papers 1103, University of Crete, Department of Economics.
  • Handle: RePEc:crt:wpaper:1103
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    File URL: http://economics.soc.uoc.gr/wpa/docs/1103.pdf
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    References listed on IDEAS

    as
    1. Aleix Calveras & Juan-José Ganuza, 2016. "The Role of Public Information in Corporate Social Responsibility," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 25(4), pages 990-1017, December.
    2. Constantine Manasakis & Evangelos Mitrokostas & Emmanuel Petrakis, 2013. "Certification of corporate social responsibility activities in oligopolistic markets," Canadian Journal of Economics, Canadian Economics Association, vol. 46(1), pages 282-309, February.
    3. Jonathan P. Doh & Terrence R. Guay, 2006. "Corporate Social Responsibility, Public Policy, and NGO Activism in Europe and the United States: An Institutional‐Stakeholder Perspective," Journal of Management Studies, Wiley Blackwell, vol. 43(1), pages 47-73, January.
    4. Paolo Garella & Emmanuel Petrakis, 2008. "Minimum quality standards and consumers’ information," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 36(2), pages 283-302, August.
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    More about this item

    Keywords

    Corporate Social Responsibility; Oligopoly; Vertical Differentiation; Certification;

    JEL classification:

    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L5 - Industrial Organization - - Regulation and Industrial Policy
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility

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