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Corporate social responsibility and the bottom line

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  • Nicholas Capaldi

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.

Suggested Citation

  • Nicholas Capaldi, 2005. "Corporate social responsibility and the bottom line," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 32(5), pages 408-423, May.
    • Handle: RePEc:eme:ijsepp:03068290510591263
    DOI: 10.1108/03068290510591263
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