PurposeTo clarify the relationship between corporate social responsibility (CSR) and profits.Design/methodology/approachExplicates CSR against the background of a larger thesis (Coase) about the role of firms in a market economy.FindingsThere are three different senses of CSR: negative – what not to do (illegal); positive – innovative products and services; and supplementary. There is a clear hierarchy or prioritization here: negative > positive > supplementary.Practical implicationsThere are four areas in which supplementary obligations contribute directly to the bottom line: the environment, marketing, recruitment, and international.Originality/valueThis paper overcomes false dualisms between CSR and profits, avoids hidden political agendas, and offers persuasive arguments for firms to engage in relevant CSR activity.
The purpose of this article is to challenge scholars of corporate social responsibility and CSR officers of private corporations to rethink their subject matter and their approach. The fundamental problem that needs to be addressed in CSR scholarship is whether it is descriptive or normative or something else. I maintain that much of the current literature is inadequately descriptive and philosophically deficient with regard to norms. I suggest a number of additional activities for CSR research (e.g., consumer responsibility) compatible with a morally pluralistic world that is hospitable to a market economy.
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