Abstract:

We use synthetic control group methods to analyze the economic performance of a small set of Italian single establishment manufacturing firms that underwent SA8000 certification in 2009 or 2010. We find positive and weakly significant effects of SA8000 certification on firms’ turnover to assets ratios, but no evidence of a positive or negative impact of SA8000 certification on firm profitability and wages. We conclude that SA8000 certification may be a viable marketing tool that increases company sales but has no strong impact on firm profitability and wage costs.