A Comparative Study on Company’s Corporate Social Responsibility and Its Effects in Korea and Japan

Recently, many companies are focusing on CSR. There are two reasons that the number of companies concentrating on CSR is increasing. First, a company has more opportunities to receive fund from investors who choose CSR as one of the evaluation criteria when auditing a company. The second reason is that a company has a high expectation to prevent the decrease in consumers’ trust by carrying out CSR even when its scandals are discovered. The study focused on the effect of the CSR of corporations. They do CSR for several reasons. And the one is for reducing loss when they are faced with scandal which can possibly be harmful for them. The corporation would be considerably damaged when they got caught with a scandal but it expects that CSR would offset the damage.