ABSTRACT
Corporate social responsibility (CSR) has increased in prominence in today’s business environment. For instance, after a great deal of upheaval leading to a consumer ban on Nike products, “citizen” Nike had to abolish its unethical business practices (Levenson 2008). Other firms, such as Starbucks and IKEA, have gained goodwill through CSR engagement and have built CSR into their business models, using CSR to differentiate themselves from their competitors (Robins 2005). Subsequently, the research on CSR has been divided into several streams: (1) research on CSR as a tool for enhancing firm-level competitive advantage (Neville et al. 2005; Porter and Kramer 2006); (2) research on CSR rankings and ratings as industry differentiators (Waddock 2008); and (3) research on the relationship between CSR and firm performance outcomes (Donaldson and Preston 1995; McWilliams et al. 2006). Despite the increased quantity of research on CSR, empirical studies have often presented inconclusive findings on CSR and performance, and the debate on firm preferences regarding CSR continues (Schwartz and Carrol 2003). Furthermore, research into CSR has been predominantly Western-focused and the understanding of CSR practices in Asia has been conspicuous by its absence (Birch and Moon 2004). Given that the institutional context of business can influence firms’ CSR activity because the role of CSR in society may be different from country to country, industry to industry, and product to product (Li et al. 2010; Schwartz and Carrol 2003), the need for an understanding of CSR in Asian societies becomes paramount. Particularly interesting in this respect is how CSR is implemented in emerging markets with different governance environments (Alon et al. 2010).
