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Effects of corporate social responsibility on food safety

Author

Listed:
  • You-Hua CHEN

    (College of Economics & Management and Guangdong Center for Rural Economic Studies, South China Agricultural University, Guangzhou, China)

  • Pu-Yan NIE

    (Guangdong University of Finance & Economics, Guangzhou, China)

  • Yong-Cong YANG

    (Guangdong University of Foreign Studies, Guangzhou, China)

Abstract

This paper develops the theory of corporate social responsibility (CSR) in the food industry. The effects of CSR on the food industry are captured. First, we argue that CSR reduces the profits of a CSR firm under monopoly. Second, under complete information, regulation does not improve social welfare. We find that both active price regulation and active quality regulation reduce a monopolist's profits, consumer surplus and social welfare. Finally, under incomplete information, the monopolist exaggerates quality as much as possible. With quality regulation, CSR reduces exaggerated quality in the food industry.

Suggested Citation

  • You-Hua CHEN & Pu-Yan NIE & Yong-Cong YANG, 2017. "Effects of corporate social responsibility on food safety," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 63(12), pages 539-547.
    • Handle: RePEc:caa:jnlage:v:63:y:2017:i:12:id:177-2016-agricecon
    DOI: 10.17221/177/2016-AGRICECON
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    References listed on IDEAS

    as
    1. Pu-Yan NIE & You-Hua CHEN, 2014. "A general equilibrium analysis of food industry considering the food quality," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 60(7), pages 301-308.
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    6. Kong, Dongmin, 2012. "Does corporate social responsibility matter in the food industry? Evidence from a nature experiment in China," Food Policy, Elsevier, vol. 37(3), pages 323-334.
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    8. Kopel, Michael & Brand, Björn, 2012. "Socially responsible firms and endogenous choice of strategic incentives," Economic Modelling, Elsevier, vol. 29(3), pages 982-989.
    9. You-Hua Chen & Xiao-Wei Wen & Ming-Zhong Luo, 2016. "Corporate Social Responsibility Spillover and Competition Effects on the Food Industry," Australian Economic Papers, Wiley Blackwell, vol. 55(1), pages 1-13, March.
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