The profits of cause: a new direction for corporate social responsibility in South Korea

Abstract

An enduring challenge of corporate social responsibility (CSR) in South Korea is that anti-corporate attitude remains high among citizens despite the continued growth of CSR practices. To address this challenge, leading corporations in South Korea have established a new model for CSR. While gradually decreasing cash or in-kind donations, they create a nonprofit subsidiary directly involved in the delivery of social services. The purpose of the study is to examine the motive behind the introduction of this new CSR strategy, in which a nonprofit social enterprise established by a leading internet provider in South Korea increased its financial performance and changed its human resources. The case suggests that a nonprofit social enterprise owned and supported by a private company is a sustainable model of CSR, as it obtains a continuous flow of financial and technological support from the parent organization. With increasing anti-corporate attitude and demand for philanthropic contributions to society, the strategic alliance of a private company with a nonprofit subsidiary may be a viable option for addressing these challenges while meeting business interests.