Arbeitspapier
Corporate Social Responsibility along the Global Value Chain
Firms are under increasing pressure to meet stakeholders' demand for Corporate Social Responsibility (CSR) along their global value chains. We study the incentives for and investments in CSR at different stages of the production process. We analyze a model of sequential production with incomplete contracts where CSR by independent suppliers differentiates the final product in the eyes of caring consumers. The model predicts an increasing CSR profile for suppliers along the value chain: from upstream suppliers with low CSR to downstream suppliers with higher CSR. We confirm this prediction using Indian firm-level data. We compute a firm's value chain position combining product-level information in our data with the World Input-Output Database. We find that more downstream firms have higher CSR expenditures as measured by a combination of staff welfare spending and social community spending.
- Language
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Englisch
- Bibliographic citation
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Series: CESifo Working Paper ; No. 9498
- Classification
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Wirtschaft
Organizational Behavior; Transaction Costs; Property Rights
Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
Empirical Studies of Trade
Trade and Environment
Economic Impacts of Globalization: Microeconomic Impacts
Economic Impacts of Globalization: Economic Development
Organization of Production
Corporate Culture; Diversity; Social Responsibility
Microeconomic Analyses of Economic Development
- Subject
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corporate social responsibility
global value chains
incomplete contracts
property rights theory
GVC positioning
India
emerging markets
- Event
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Geistige Schöpfung
- (who)
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Herkenhoff, Philipp
Krautheim, Sebastian
Semrau, Finn Ole
Steglich, Frauke
- Event
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Veröffentlichung
- (who)
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Center for Economic Studies and ifo Institute (CESifo)
- (where)
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Munich
- (when)
-
2021
- Handle
- Last update
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10.03.2025, 11:45 AM CET
Data provider
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ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Herkenhoff, Philipp
- Krautheim, Sebastian
- Semrau, Finn Ole
- Steglich, Frauke
- Center for Economic Studies and ifo Institute (CESifo)
Time of origin
- 2021
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