Certifier competition and audit grades: An empirical examination using food safety certification

Yuqing Zheng, Talia Bar

Research output: Contribution to journalArticlepeer-review

4 Scopus citations

Abstract

Third-party certification bodies (CBs) audit companies to determine compliance with standards. Using panel data from the British Retail Consortium food program, a leading international food safety standard for manufacturers, we empirically examine determinants of audit grades. We show that on average, audit grades are lower the first-time manufacturers certify, consistent with certification improving food safety practices. Small manufacturers are disadvantaged compared with large (multisite) producers who obtain on average higher grades. We also test and support the hypothesis that a higher degree of CB competition leads to higher grades, raising concern for a potential conflict of interest in certification.

Original languageEnglish
Pages (from-to)182-196
Number of pages15
JournalApplied Economic Perspectives and Policy
Volume45
Issue number1
DOIs
StatePublished - Mar 2023

Bibliographical note

Publisher Copyright:
© 2021 Agricultural & Applied Economics Association.

Keywords

  • BRC
  • audit grade
  • certification body
  • competition
  • food safety certification

ASJC Scopus subject areas

  • Development
  • Economics and Econometrics

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