D'Alessandro, Simone and Fanelli, Domenico (2009): The Role of Income Distribution in the Diffusion of Corporate Social Responsibility.
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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.
|Item Type:||MPRA Paper|
|Original Title:||The Role of Income Distribution in the Diffusion of Corporate Social Responsibility|
|Keywords:||CSR; ethical consumption; income distribution; non-linear dynamics; general equilibrium|
|Subjects:||D - Microeconomics > D5 - General Equilibrium and Disequilibrium > D50 - General
M - Business Administration and Business Economics; Marketing; Accounting > M1 - Business Administration > M14 - Corporate Culture; Social Responsibility
D - Microeconomics > D3 - Distribution > D30 - General
|Depositing User:||Domenico Fanelli|
|Date Deposited:||16. Nov 2009 15:15|
|Last Modified:||20. Feb 2013 22:15|
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