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

Yuqing Zheng; Talia Bar

doi:10.1002/aepp.13211

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

Yuqing Zheng, Talia Bar

Agricultural Economics

Research output: Contribution to journal › Article › peer-review

1 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 language	English
Pages (from-to)	182-196
Number of pages	15
Journal	Applied Economic Perspectives and Policy
Volume	45
Issue number	1
DOIs	https://doi.org/10.1002/aepp.13211
State	Published - Mar 2023

Bibliographical note

Funding Information:
The authors are grateful to Antony Harrison, Directory Services Manager at the BRC global standards, and Samuel Crome, Senior Directory Network Administrator for providing data and for their insights about the program. The authors are indebted to Haim Bar, Steven Buck, and Craig Landry for their comments. The authors thank Brendan Costello and Joe Roessler for outstanding research assistance. This work was supported by the USDA National Institute of Food and Agriculture Hatch project 1011683. 1

Funding Information:
The authors are grateful to Antony Harrison, Directory Services Manager at the BRC global standards, and Samuel Crome, Senior Directory Network Administrator for providing data and for their insights about the program. The authors are indebted to Haim Bar, Steven Buck, and Craig Landry for their comments. The authors thank Brendan Costello and Joe Roessler for outstanding research assistance. This work was supported by the USDA National Institute of Food and Agriculture Hatch project 1011683.

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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10.1002/aepp.13211

Cite this

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title = "Certifier competition and audit grades: An empirical examination using food safety certification",

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.",

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author = "Yuqing Zheng and Talia Bar",

note = "Funding Information: The authors are grateful to Antony Harrison, Directory Services Manager at the BRC global standards, and Samuel Crome, Senior Directory Network Administrator for providing data and for their insights about the program. The authors are indebted to Haim Bar, Steven Buck, and Craig Landry for their comments. The authors thank Brendan Costello and Joe Roessler for outstanding research assistance. This work was supported by the USDA National Institute of Food and Agriculture Hatch project 1011683. 1 Funding Information: The authors are grateful to Antony Harrison, Directory Services Manager at the BRC global standards, and Samuel Crome, Senior Directory Network Administrator for providing data and for their insights about the program. The authors are indebted to Haim Bar, Steven Buck, and Craig Landry for their comments. The authors thank Brendan Costello and Joe Roessler for outstanding research assistance. This work was supported by the USDA National Institute of Food and Agriculture Hatch project 1011683. Publisher Copyright: {\textcopyright} 2021 Agricultural & Applied Economics Association.",

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AB - 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.

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

Abstract

Bibliographical note

Keywords

ASJC Scopus subject areas

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