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A dynamic by-production framework for analyzing inefficiency associated with corporate social responsibility

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  • Engida, Tadesse Getacher
  • Rao, Xudong
  • Oude Lansink, Alfons G.J.M.

Abstract

This article integrates corporate social responsibility (CSR) into a dynamic by-production framework and examines the factors associated with CSR performance. The application focuses on panel data of European food and beverage firms over the period 2013-2017. The results show that material input, labour input and undesirable output can be contacted by 11.3%, 12.0% and 10.4% respectively while marketable output can be expanded by 66.35%, socially responsible output by 4.3% and the potential of doing investment by 25.46% of the value of the capital stock. Higher CSR performance was associated with a larger firm size, and a higher R&D intensity. Furthermore, firms in network-oriented systems (Germanic or Latin) tend to have a better corporate social responsibility performance than firms in market oriented systems (Anglo-Saxon).

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  • Engida, Tadesse Getacher & Rao, Xudong & Oude Lansink, Alfons G.J.M., 2020. "A dynamic by-production framework for analyzing inefficiency associated with corporate social responsibility," European Journal of Operational Research, Elsevier, vol. 287(3), pages 1170-1179.
    • Handle: RePEc:eee:ejores:v:287:y:2020:i:3:p:1170-1179
    DOI: 10.1016/j.ejor.2020.05.022
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    7. Theodoros Skevas & Ioannis Skevas & Victor E. Cabrera, 2021. "Examining the Relationship between Social Inefficiency and Financial Performance. Evidence from Wisconsin Dairy Farms," Sustainability, MDPI, vol. 13(7), pages 1-14, March.

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