Good Neighbors but Bad Employers: Two Faces of Corporate Social Responsibility Programs

Using two firm-level datasets in Korea, we analyzed the effects of corporate social responsibility (CSR) on employment relations. We propose that participation in corporate social activity may not necessarily reflect an ethical commitment to do “the right thing,” but instead can be associated with m...

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Bibliographic Details
Authors: Jung, Heung-Jun (Author) ; Kim, Dong-One (Author)
Format: Electronic Article
Language:English
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Published: Springer Science + Business Media B. V 2016
In: Journal of business ethics
Year: 2016, Volume: 138, Issue: 2, Pages: 295-310
Further subjects:B Labor costs
B Corporate social responsibility
B Efficiency-based works
B Resource Allocation
B Performance-based pay
B Employment relations
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Summary:Using two firm-level datasets in Korea, we analyzed the effects of corporate social responsibility (CSR) on employment relations. We propose that participation in corporate social activity may not necessarily reflect an ethical commitment to do “the right thing,” but instead can be associated with mobilizing internal resources to offset the costs imposed by external CSR involvement undertaken because of social pressure. Analysis of the two datasets showed similar results. The results demonstrate that socially responsible actions facilitate employer tendency to use performance-based pay and efficiency-based work practices. We also find that CSR has a negative association with employment growth and increased labor flexibility through contingent employment. These findings shed light on the internal impact of CSR involvement on a firm’s employment policies with respect to resource allocation.
ISSN:1573-0697
Contains:Enthalten in: Journal of business ethics
Persistent identifiers:DOI: 10.1007/s10551-015-2587-3