Corporate social responsibility

Abstract

Corporate social responsibility (CSR) refers to the expectation that business is responsible to society, in the sense of being held accountable for its actions, and responsible for society, in the sense of compensating for negative externalities and contributing to social welfare. For decades, researchers have investigated the impact of CSR on the financial performance of companies, with divergent results. While different streams of literature have shown various positive impacts of CSR on different stakeholders, some studies have highlighted conditions under which CSR may backfire for companies and trigger unexpected adverse stakeholder reactions. To conclude, avenues for further research efforts are noted. More research is needed regarding the human, social, and environmental impacts of CSR activities, as well as the political role of companies. In addition, the narrow US and European focus of research on CSR needs to be broadened to better understand CSR and its effects across the globe. © Klement Podnar 2024.