A dynamic by‐production framework for measuring productivity change in the presence of socially responsible and undesirable outputs: Evidence from European food processors

In the past decade, corporate firms have globally increasingly adopted social responsibility (CSR) practices; however, so far less is known about how productivity change in presence of socially responsible and undesirable output can be evaluated. This paper develops a framework that integrates CSR dynamic by-production technology which captures transformation multiple inputs into marketed outputs, while accounting for adjustment costs quasi-fixed inputs. The illustrates method using sample European food beverage manufacturing firms. results empirical application show there decline Luenberger indicators mainly due to technical inefficiency change. Hence, should devise strategies enhance utilization resources reduce inefficiency. regression on firm-specific factors showed more indebted experienced lower growth output, whereas profitable variable higher investments. [EconLit Citations: C02, C14, C6, D24]