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

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  • D'Alessandro, Simone
  • Fanelli, Domenico

Abstract

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

Suggested Citation

  • D'Alessandro, Simone & Fanelli, Domenico, 2009. "The Role of Income Distribution in the Diffusion of Corporate Social Responsibility," MPRA Paper 18659, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:18659
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    Cited by:

    1. Farah Zamir & Abubakr Saeed, 2020. "Location matters: Impact of geographical proximity to financial centers on corporate social responsibility (CSR) disclosure in emerging economies," Asia Pacific Journal of Management, Springer, vol. 37(1), pages 263-295, March.
    2. 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.
    3. 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.

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    More about this item

    Keywords

    CSR; ethical consumption; income distribution; non-linear dynamics; general equilibrium;
    All these keywords.

    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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