Agric. Econ. - Czech, 2017, 63(12):539-547 | DOI: 10.17221/177/2016-AGRICECON

Effects of corporate social responsibility on food safetyOriginal Paper

You-Hua CHEN*,1, Pu-Yan NIE2, Yong-Cong YANG3
1 College of Economics & Management and Guangdong Center for Rural Economic Studies, South China Agricultural University, Guangzhou, China
2 Guangdong University of Finance & Economics, Guangzhou, China
3 Guangdong University of Foreign Studies, Guangzhou, China

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.

Keywords: food quality, game theory, quality regulation, social welfare

Published: December 31, 2017  Show citation

ACS AIP APA ASA Harvard Chicago Chicago Notes IEEE ISO690 MLA NLM Turabian Vancouver
CHEN Y, NIE P, YANG Y. Effects of corporate social responsibility on food safety. Agric. Econ. - Czech. 2017;63(12):539-547. doi: 10.17221/177/2016-AGRICECON.
Share...
Download citation
  • BibTeX (.bib)
  • Bookends (.ris)
  • EasyBib (.ris)
  • EndNote (.enw)
  • EndNote 8 (.xml)
  • ISI WoS (.isi)
  • Medlars (.medlars)
  • Mendeley (.ris)
  • MODS (.xml)
  • Papers (.ris)
  • RefWorks (.txt)
  • RefManager (.ris)
  • RIS (.ris)
  • MS Word (.xml)
  • Zotero (.ris)
    • Open full article

    References

    1. Anderson K., Rausser G., Swinnen J. (2013): Political economy of public policies: Insights from distortions to agricultural and food markets. Journal of Economic Literature, 51: 423-477. Go to original source...
    2. Assefa T.T., Meuwissen M.P.M., Oude Lansink A.G.J.M. (2015): Price volatility transmission in food supply chains: A literature review. Agribusiness, 31: 3-13. Go to original source...
    3. Baron D.P. (2008): Managerial contracting and corporate social responsibility. Journal of Public Economics, 92: 268-288. Go to original source...
    4. BBC News (2011). Who, what, why: Why are Indians dying from alcohol poisoning? Available at http://www.bbc.co.uk/news/magazine-16197280?print=true
    5. Brammer S., Millington A. (2008): Does it pay to be different? An analysis of the relationship between corporate social and financial performance. Strategic Management Journal, 29: 1325-1343. Go to original source...
    6. Chen Y. H., Nie P.Y. (2016): Duopoly competition in food industry considering corporate social responsibility. Quality Assurance and Safety of Crops & Foods, 8: 33-40. Go to original source...
    7. Chen Y.H., Wan J.Y., Wang C. (2015): Agricultural subsidy with capacity constraints and demand elasticity. Agricultural Economics - Czech, 61: 39-49. Go to original source...
    8. Chen Y.H., Wen X.W., Lou M.Z. (2016): Corporate social responsibility spillover and competition effects on the food industry. Australian Economics Paper, 55: 1-13. Go to original source...
    9. Chen Y.H., Wen X.W., Wang B., Nie P.Y. (2017): Agricultural pollution and regulation How to subsidize agriculture? Journal of Cleaner Production, 164: 258-264. Go to original source...
    10. Dakeishi M., Murata K., Grandjean P. (2006): Long-term consequences of arsenic poisoning during infancy due to contaminated milk powder. Environmental Health: A Global Access Science Source, 5, Article 31. Go to original source...
    11. Diagne M., Demont M., Seck P.A., Diaw A. (2013): Selfsufficiency policy and irrigated rice productivity in the Senegal River Valley. Food Security, 5: 55-68. Go to original source...
    12. Dixit A. (1979): Quality and quantity competition Review of Economic Studies, 46: 587-599. http://en.wikipedia.org/wiki/Food_safety_incidents_in_the_People's_Republic_of_China Go to original source...
    13. Kitzmueller M., Shimshack J. (2012): Economic perspectives on corporate social responsibility. Journal of Economic Literature, 50: 51-84. Go to original source...
    14. Kong D.M. (2012): Does corporate social responsibility matter in the food industry? Evidence from a nature experiment in China. Food Policy, 37: 323-334. Go to original source...
    15. Kopel M., Brand B. (2012): Socially responsible firms and endogenous choice of strategic incentives. Economic Modelling, 29: 982-989. Go to original source...
    16. Mohr L.A., Webb D.J., Harris K.E. (2001): Do consumers expect companies to be socially responsible? The impact of corporate social responsibility on buying behavior. The Journal of Consumer Affairs, 35: 45-72. Go to original source...
    17. Nie P.Y., ChenY.H. (2014): A general equilibrium analysis of food industry considering the food quality, Agricultural Economics - Czech, 60: 301-308. Go to original source...
    18. Nocella G., Hubbard L., Scarpa R. (2010): Farm animal welfare, consumer willingness to pay, and trust: results of a cross-national survey. Applied Economic Perspectives and Policy, 32: 275-297. Go to original source...
    19. Orlitzky M., Schmidt F., Rynes S. (2003): Corporate social and financial performance: a meta analysis. Organization Studies, 24: 403-441. Go to original source...
    20. Sheshinski E. (1976): Quality and quantity regulation in monopoly situation. Economica, 43: 127-137. Go to original source...
    21. Starks L.T. (2009): Corporate governance and corporate social responsibility: what do investors care about? What should investors care about? The Financial Review, 44: 461-468. Go to original source...
    22. Tirado M.C., Clark R., Jaykus L.A., McQuatters-Gollop A., Frank J.M. (2010): Climate change and food safety: A review. Food Research International, 43: 1745-1765. Go to original source...
    23. Wang C., Chen Y.H., He X.G. (2015): Quality regulation and competition in China's milk industry. Custos e Agronegócio on Line, 11: 128-141.
    24. Webb M., Morancie A. (2015): Food safety knowledge of foodservice workers at a university campus by education level, experience, and food safety training. Food Control, 50: 259-264. Go to original source...

    This is an open access article distributed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International (CC BY NC 4.0), which permits non-comercial use, distribution, and reproduction in any medium, provided the original publication is properly cited. No use, distribution or reproduction is permitted which does not comply with these terms.


    Return to the content