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The Role of Income Distribution in the Diffusion of Corporate Social Responsibility

Author

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  • Simone D'Alessandro
  • Domenico Fanelli

Abstract

The purpose of this paper is to investigate the link between corporate social responsibility (CSR) growth and income distribution. We present a general equilibrium model where social responsibility enters both firms' and consumers' decisions. At equilibrium, different degrees of CSR diffusion may arise. We study the conditions under which there exists a virtuous circle which ties increases in the diffusion of CSR to reductions in income inequality. Under certain circumstances, any policy which promotes CSR diffusion induces a reduction in income inequality. By contrast, when such conditions are not satisfied, only redistributive policies may generate the virtuous circle.

Suggested Citation

  • Simone D'Alessandro & Domenico Fanelli, 2015. "The Role of Income Distribution in the Diffusion of Corporate Social Responsibility," Metroeconomica, Wiley Blackwell, vol. 66(2), pages 187-212, May.
    • Handle: RePEc:bla:metroe:v:66:y:2015:i:2:p:187-212
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    Cited by:

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    2. Ee, Mong Shan & Chao, Chi-Chur & Wang, Leonard F.S. & Yu, Eden S.H., 2018. "Environmental corporate social responsibility, firm dynamics and wage inequality," International Review of Economics & Finance, Elsevier, vol. 56(C), pages 63-74.
    3. Hede, Shantesh & Nunes, Manuel Jose Lopes & Ferreira, Paula Fernanda Varandas & Rocha, Luis Alexandre, 2013. "Incorporating sustainability in decision-making for medical device development," Technology in Society, Elsevier, vol. 35(4), pages 276-293.

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    More about this item

    JEL classification:

    • D50 - Microeconomics - - General Equilibrium and Disequilibrium - - - General
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • D30 - Microeconomics - - Distribution - - - General

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