ABSTRACT
In recent years. China has experienced many crises related to food safety which have challenged the legitimacy of food production companies and damaged the reputation of relevant state law enforcement agencies, as well as influenced consumer confidence. Based on recent interviews with 20 food and drink production companies in the Shanghai region, this paper aims to address a key research question: what are the institutional and organizational factors that influence the production systems in general and the quality and safety of products in particular? The outcome of this research indicates that the pressure to minimize costs driven by price competition, changing consumer expectations, as well as a lack of enforcement of state regulation, cause companies to struggle to stay afloat and impede their commitment to social responsibility.
