Enríquez García, H. C.

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Vol. 9, núm. 25 / enero abril del 2024 DOI: https://doi.org/10.36791/tcg.v9i25.245

Pp. 2-17

improved reputation, the ability to charge premium prices for their products or services, or using CSR to convince consumers that the company is honest. There are also numerous theoretical studies that highlight the potential for this activity to be integrated as a differentiation strategy among firms and emphasize the importance of information asymmetries.

A recent empirical study in China made by Yuan & Xu (2022) explores the underlying motivations and consequences of CSR from the dual perspectives of active and passive corporations and its social implications. The main goal of a firm is to make a profit, which in practice, few enterprises pay CSR without any return. It might be that some companies actively assume social responsibilities in order to obtain more benefits, while passively assume social responsibilities due to oppression . Also, this research found, (1) when enterprises conduct CSR to obtain excess returns, it is easy to form excess goodwill; (2) under the pressure of the government and society, and enterprises passively assume CSR, thereby crowding out R&D funds.

Additionally, studies on CSR date back to the 1970s, when it was established, they are innovative initiatives or strategies t to generate a better perception and reputation in society. Arlow and Gannon (1982) reviewed the relationship between profitability and corporate social responsibility and identified that all the various studies were based on indices that were questionable in terms of social responsibility. The evaluation of profitability is a relatively clear process, but the evaluation of social responsibility was not.

Aupperle, Carroll and Hatfield (1985) mention that the difficulties in studying corporate social responsibility have been the lack of an effort to empirically test definitions, propositions, and concepts; researchers have tended to create their own measures

rather than use one of the many pre- existing definitions in the literature. This has not only prevented comparisons and analyzes between studies, as well as definitions in the literature. The development of a research base in the area of social problems is limited. The initial purpose of this study was to develop an instrument to overcome the lack of information when large companies advertise their social responsibility. With this and other references, we want to know if social responsibility is really applied, in addition to addressing various elements that make up social responsibility and contrasting it with theoretical aspects.

On the other hand, Brugmann and Prahalad (2007) mention that non-governmental organizations (NGOs) have had an important influence in promoting a culture of social responsibility in the markets, in areas such as chemical regulation, responsibility for oil spills, emissions atmospheric, liquid waste, food standards and child labor. Instead, companies have spent a lot of time and money launching counter-campaigns to protect their reputations.

Biswas, Tortajada, Joshi & Gupta (2013) discuss an example of CSR where Nestlé, a major multinational food and beverage company operating in over 180 countries, assisted Moga farmers in India in various ways to create “shared value. ” However, the company also pursued other incentives such as increased productivity, higher sales, and penetration into new markets.

The European Commission (2022) defines CSR as the responsibility of companies for their impact on society. Companies can demonstrate social responsibility by incorporating social, environmental, ethical, consumer, and human rights concerns into their business strategy and operations while complying with the law.