Corporate social responsibility and the bottom line

Abstract

Purpose

To clarify the relationship between corporate social responsibility (CSR) and profits.

Design/methodology/approach

Explicates CSR against the background of a larger thesis (Coase) about the role of firms in a market economy.

Findings

There 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 implications

There are four areas in which supplementary obligations contribute directly to the bottom line: the environment, marketing, recruitment, and international.

Originality/value

This paper overcomes false dualisms between CSR and profits, avoids hidden political agendas, and offers persuasive arguments for firms to engage in relevant CSR activity.

Citation

Capaldi, N. (2005), "Corporate social responsibility and the bottom line", International Journal of Social Economics, Vol. 32 No. 5, pp. 408-423. https://doi.org/10.1108/03068290510591263