Leniency and Loyalty in the Choice of Certifiers: Evidence from the BRC Food Safety Standard
Standards play a vital role in promoting food safety. Certification bodies audit manufacturing sites to certify them for a standard. Using data from the British Retail Consortium global standards program, we offer a glimpse at the market for and examine manufacturers’ choices of certification bodies. Manufacturers prefer geographically close certifiers and those that assigned a higher share of A grades in the previous year. This behavior provides an incentive for lenient grading. We also find a strong tendency of manufacturers to return to the same certification body that audited their site in the previous year.
|Date of creation:||Oct 2016|
|Note:||Talia Bar is the corresponding author|
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