Certifier competition and audit grades: An empirical examination using food safety certification. Issue 1 (17th November 2021)

• Record Type: Journal Article
• Authors: Zheng, Yuqing; Bar, Talia
• Is Part Of: Applied economic perspectives and policy. Volume 45:Issue 1(2023)
• Page Start: 182
• Page End: 196
• Publication Date: 2021-11-17
• Subjects: audit grade -- BRC -- certification body -- competition -- food safety certification; Agriculture -- Economic aspects -- Periodicals; Agriculture and state -- Periodicals; 338.105
• DOI: 10.1002/aepp.13211
• Languages: English
• ISSNs: 2040-5790

Abstract

Abstract: Third‐party certification bodies (CBs) audit companies to determine compliance with standards. Using panel data from the British Retail Consortium food program, a leading international food safety standard for manufacturers, we empirically examine determinants of audit grades. We show that on average, audit grades are lower the first‐time manufacturers certify, consistent with certification improving food safety practices. Small manufacturers are disadvantaged compared with large (multisite) producers who obtain on average higher grades. We also test and support the hypothesis that a higher degree of CB competition leads to higher grades, raising concern for a potential conflict of interest in certification. Abstract : Related Content: The market for private food safety certifications: Conceptual framework, review and future research directions