CSR concept focuses on corporate self-regulation mainly associated with ethical issues, human rights,

health and safety, environmental protection, social and environmental reporting, and voluntary
initiatives involving support for community projects and philanthropy.

Carroll’s definition : Carroll defines social responsibility of business as encompassing the economic,
legal, ethical, and discretionary expectations that society has of organizations at a given point in
time.

economic – produce goods and services that society desires to sell them at a profit

legal -

ethical –

philanthropic –

Arguments in favor of CSR

Studies have shown that corporate social responsibiltiy provides measurable benefits to businesses.

가장 많이 하는 말 ==> One of the arguments made in favor of CSR usually begins with the notion
that it is in a business’s long-term self-interest to be socailly responsible.

1) If business is to have a healthy environment in which to function in the future, it must take action
now that will ensure its long-term survival

2) CSR based on notion that future government intervention can be avoided if business policies
fulfill societies expectations

3) being proactive is better than being reactive, in the sense that anticipation planning and initiation
are more practical and less costly than simply reacting to social problems once they have appeared.

1) company reputation

2) competitive advantage (can differentiate from its competitors)

a firm may be able to build strong relationships with its stakeholders and garner their support in
the form of lower levels of employee turnover, access to higher talent pool, and customer loyalty.
3) equal employment opportunity and cost and risk reduction

4) creating win-win situations (이해관계자들의

# Reputation (기업의 평판 유지)

Maintaining a good reputation remains an important benefit that affects almost all levels of
organizational funtion. .... CSR programs can efectively build and enhance a firm’s reputation.

companies can expand their business, attract new customers, improve shareholder value, and
develop better relationships with local communities, can achieve a competitive advantage by
attracting additional loyal customers because of its positive image.

ex) Cause Marketing (a strategy where, in addition to emphasizing product advantages, product
benefits are linked to appeals for charitable giving) --> creates purchasing incentives and enhancing
company and product images --> through cause marketing, companies are able to illustrate that
they can mutually pursue their profitability goals and meet the needs of different stakeholders in
society.

요플레 Breast Cancer Initiative (요플레 뚜껑 하나 마다 10센트)

# Competitive Advantage

CSR initiatives can also contribute to strenghtening a firm’s competitive advantage through
enhancing its relationships with its customers. --> CSR initiatives enhance brand loyalty, attracting
investment.

Many institutional investors avoid companies that violate their organizational mission, values or
principles.

Porter and Kramer (2002) a business may gain competitive advantages through CSR, such as its
philanthropic activities, when such activities are directed at cause where there is a common interest
between the economic gains and social benefits

ex) Deutsche Lufthansa AG / McDonald --> Ronald McDonald House Charities, McKinsey & Co.
offers free consulting services to non-profit organizations in social, cultural and educational fields.
Home Depot Inc. has been providing rebuilding know-how to the companies victimized by Hurricane
Katrina.

#EEO and cost reduction

- engaging in certain CSR activities will reduce the firm’s inefficient capital expenditures and
exposure to risks.

- being environmentally proactive results in cost and risk reduction. Being proactive on
environmental issues can lower the cost of complying with present and future environmental
regulations and may enhance efficiencies and drive down operating costs.

- EEO statements are necessary to illustrate an inclusive policy that reduces employee turnover
through improving morale.

# Win-Win

순환 ==> 기업이 특정 local community에 기여 --> local community의 성장, 그 기업의 상품 구

매해줌

결론적으로: CSR has a positive economic impact on a firm’s financial performance

https://link.springer.com/content/pdf/10.1007%2F978-3-642-40975-2.pdf

Okpara, J. O., & Idowu, S. O. (Eds.). (2013). Corporate social responsibility: challenges, opportunities
and strategies for 21st century leaders. Springer Science & Business Media.

Peloza, J. (2006). Using corporate social responsibility as insurance for financial

performance. California Management Review, 48(2), 52-72.

Using Corporate Social Responsibility as Insurance for Financial Performance

An important yet underemphasized benefit from CSR is insurance against negative events that would
otherwise harm financial performance

여기서는 CSR을 charity로 국한해서 볼 것이다. Corporates support for charity is often expected to
deliver financial returns as well as social returns,and also used to define the social agenda of the firm.

단순히 CSR의 도덕적인 측면 때문에 CSR을 정당화해서는 안된다. (Smith)

Critics have long argued that firm investments in socially responsible but unprofitable ventures will
ultimately lead to the demise of the firm at worst and, at best, lead to unsustatinable support for
nonprofit organizations.

movement to justify CSR has also led to volumes of research over the past 30 years examining the
relationship between CSR and CFP

“Does CSR complement or conlfict with economic objectives?”

Although corporate support for social initiatives (사회적 행동) is widespread, there remains debate
over whether or not coporate engagement in CSR returns a financial benefit to the firm.

1) Either the firm misapporpriates the investment away from rightful claimants, such as shareholders,
2) or the firm misallocates resources because they are simply unable to make wise decisions
concerning social initiative sthat are outside their core competencies. (윈윈과 반대되는 시각)

CSR is not a discretionary(재량) expense, but a necessary cost of running the business.

Several researchers have recently begun to extend the time horizon with which they consider the
ability for CSR to affect CFP. In quadrant 3, for example, would be Stavins, who argued that although
the impact of environmental regulations on financial performance would be limited, there would be
a longterm effect in the form of a productivity slowdown.16 Similarly, some researchers have noted
that when a firm engages in socially responsible behavior, the activity will eventually be matched
by competitors. Indeed, previous researchers have found that peer pressure is an important factor
for firms donating funds to social causes.17 The result is a vicious cycle in which firms continue to
invest socially to match competitors’ investments, with a subsequent increased cost base and lower
profitability for all firms in an industry. 18 In addition, some authors have taken the perspective that
CSR is very much like a tax or a license for doing business. In a recent survey of consumer attitudes
toward the social responsibilities of global firms, one respondent noted: “McDonald’s pays back
locally, but it’s their duty. They are making so much money, they should be giving back.”19 These
perspectives provide support for previous researchers who have argued that CSR is not a
discretionary expense, but a necessary cost of running the business

애초에 CSR을 통해 얻게 되는 재정적 이득을 계산하는 것 자체가 어려운 일이다.

http://journals.sagepub.com/doi/pdf/10.2307/41166338