The Role of Income Distribution in the Diffusion of Corporate Social Responsibility1. (5th November 2014)

• Record Type: Journal Article
• Authors: D'Alessandro, Simone; Fanelli, Domenico
• Is Part Of: Metroeconomica. Volume 66:Number 2(2015:May)
• Page Start: 187
• Page End: 212
• Publication Date: 2014-11-05
• Subjects: Economics -- Periodicals; 330
• DOI: 10.1111/meca.12066
• Languages: English
• ISSNs: 0026-1386

Abstract

<abstract abstract-type="main"> <title>Abstract</title> <p>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.</p> </abstract>