The value of being socially responsible: A primal-dual approach

Daniela Puggioni*, Spiro E. Stefanou

*Corresponding author for this work

Research output: Contribution to journalArticleAcademicpeer-review

18 Citations (Scopus)


This study attempts to formalize and explain the process through which Corporate Social Responsibility (CSR) is created incorporating it into a production model as one of the outputs comprising the technology. Our framework allows for analyzing technical efficiency and deriving a system of internal shadow prices to quantify the overall value as well as the marginal impact of implementing socially responsible activities. The empirical application focuses on the food and beverage manufacturing sector where we encounter high levels of technical efficiency among the firms included in the analysis. Our findings also document a positive average shadow price of CSR activities, implying that the net value of implementing these activities is positive as their benefit exceeds the cost. Regarding the value at the margin, we show that increasing the socially responsible commitment positively contributes to the creation of firm value. Conversely, reducing the CSR engagement has a negative marginal impact, indicating that firms perceive lower levels of CSR as very costly and damaging.

Original languageEnglish
Pages (from-to)1090-1103
JournalEuropean Journal of Operational Research
Issue number3
Early online date11 Feb 2019
Publication statusPublished - Aug 2019


  • Corporate social responsibility
  • Data envelopment analysis
  • Decision processes
  • Productivity and competitiveness
  • Shadow values


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