The role of the firm: how corporate social responsibility affects income inequality

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2020-07-06
Language
en
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Even though overall inequality has decreased over the past decade and the number of people living of less than a dollar a day is decreasing, income inequality is still globally increasing. Corporate social responsibility practices by firms could be of help in decreasing income inequality within a country. This study aims to reveal a relationship between CSR levels within a country and the country’s income inequality and assesses the discussion on the responsibility of the firm for addressing income inequality. Building on existing work on drivers of income inequality, it asks: does corporate social responsibility influence the income inequality within a country? A data analysis using data of the OECD databank of 30 countries from all over the world was performed using STATA. A regression showed that its results could not provide conclusive conclusions due to insignificance as a result of small sample size but concluded was that there is an effect. The size of the effect remains unknown. On this basis, it is recommended that further research is performed with a different type of analysis to provide conclusive conclusions regarding the effect of CSR on income inequality, which could provide guidance to firms and governments regarding their CSR practices.
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Faculteit der Managementwetenschappen
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