A dynamic by-production framework for analyzing inefficiency associated with corporate social responsibility

This article integrates corporate social responsibility (CSR) into a dynamic by-production framework and examines the factors associated with CSR performance. The application focuses on panel data of European food and beverage firms over the period 2013-2017. The results show that material input, labour input and undesirable output can be contacted by 11.3%, 12.0% and 10.4% respectively while marketable output can be expanded by 66.35%, socially responsible output by 4.3% and the potential of doing investment by 25.46% of the value of the capital stock. Higher CSR performance was associated with a larger firm size, and a higher R&D intensity. Furthermore, firms in network-oriented systems (Germanic or Latin) tend to have a better corporate social responsibility performance than firms in market oriented systems (Anglo-Saxon). (C) 2020 Elsevier B.V. All rights reserved.