The Theoretical analysis and consideration on the Corporate Social Responsibility(CSR)

Focus on Economic perspective

Abstract

CSR is a part of the expenditure element of Corporation, so it should be considered based on the profit maximizaition. However, Economic theoretical analysis or relationship research between profit and CSR, much less studies in Japan and Korea.Therefore, in this paper, using previous studies on Economic theoretical analysis, Ianalyzed for the relationship between profit and CSRAs a result, it could explaine why do spending CSR. At first, based on the Theoretical Model of profit maximization, Corporations to select the CSR spending in order to increase the long-term profit. Also, expense of the CSR is defined by the level of the same for marginal cost and marginal revenue spontaneously. In addition, based on the Theoretical Model of Investment, because of the CSR is the one of the characteristics with a product, Corporate investment for CSR stragically.Thus, to promote the CSR, it is important in improving awareness of CSR from charity to investment. So, I suggest that the information offering or evaluation system about the CSR has to be instituted for the Corporations. And than, it is important that the continue to strengthen not only importance and reliability of CSR product for the consumer. Lastly, it is required to the Empirical analysis or Factor analyses using CSR data.