Abstract
Although social sustainability is an important component of sustainable agricultural production, little research has been conducted to assess social sustainability performance at the farm level. This study measures farmers’ social sustainability performance using (in)efficiency measures derived from a non-parametric dynamic directional distance function approach. It further examines the relationship between social (in)efficiency and financial performance measured by profitability, which is crucial to understand the financial impact of engaging in socially responsible activities. The empirical application focuses on a sample of Wisconsin dairy farms over the period 2007–2017. Results show that sample farms could have (decreased/)increased their social (in)efficiency by an average of 14%. Social (in)efficiency was found to be (negatively/)positively related to farm profitability, implying that social objectives can be achieved in tandem with economic goals.
Highlights
IntroductionSustainable farming is limited to sustaining the economic viability of farm operations and protecting the natural environment under which farms operate
This study extends the literature on the measurement of farm socialefficiency by computing farmers’ social inefficiency with respect to their contribution to socially responsible employment practices
A nonparametric dynamic directional distance function approach accounting for adjustment costs in quasi-fixed inputs was used to model social inefficiency along with technical input and output inefficiency
Summary
Sustainable farming is limited to sustaining the economic viability of farm operations and protecting the natural environment under which farms operate. It involves achieving social sustainability or responsibility goals such as promoting animal well-being and improving the quality of life of farmers, farm workers, and society [1,2]. One way to measure farmers’ social sustainability performance is to use the tools available in the efficiency and productivity literature. These tools allow researchers to treat socially responsible activities as part of the firm’s production process.
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