The usefulness of social capital in assessing the welfare effects of private and third-party certification food safety policy standards: trust and networks

Purpose – The aim of this paper is to assess the welfare effects of the newest trends in food safety policies characterised by the shift from public to private intervention. Design/methodology/approach – Food safety policies are analysed through concepts of new economic sociology, with a critical review of the literature on social capital. Findings – The article shows that as food safety and quality attributes responsible for the exchange complexity are simply codified and enforced through standards and third-party certification, the global value chain governance shifts from a relational type to a power-based type, with possible negative welfare effects. Research limitations/implications – Further research would be required to verify the welfare effects suggested on the theoretical ground. Practical implications – The article makes a useful updating of food safety policies and organisational innovation in the food system. Originality/value – The paper introduces some new (with respect to the marketing literature related to the food system) concepts and theories of economic sociology.