The effects of the financial crisis on corporate social responsibility


International Journal of Business and Social Science, vol.3, no.3, pp.292-300, 2012 (Peer-Reviewed Journal)


It is impossible to consider enterprises apart from the society in which they exist. The concept of corporate social responsibility, prescribing that organizations engage in responsible behavior towards each of their shareholders in the society, has become a necessity today for all businesses although not at the same level for all. Despite the important benefits corporate social responsibility practices have for businesses such as gaining competitive advantage by increasing brand awareness and thus increasing profitability in the longterm, they also require additional financial resources. Similarly, since periods of crisis bring along certain dangers and opportunities, their effects on corporate social responsibility may be in different directions. In this study, the effects of the crisis on corporate social responsibility activities have been evaluated in the light of the developments following the 2008 global financial crisis and a model is proposed. As a result of the identifications regarding the theoretical background for perception of the crisis as a threat or opportunity for corporate social responsibility activities, both two situations are presented together in the proposed model.