This study aims to understand how CSR is defined in Japan and Korea, both in terms of its conceptualization and the guiding rationale and factors that influence its formation. This study utilized economic sociology perspectives in order to explain the nature of CSR in Japan and Korea in terms of gift exchange, conspicuous consumption, and fictitious commodities. Comparative study of institutional arrangements and CSR in Japan and Korea reveals that although these two countries may share similar historical backgrounds with regard to industrialization, the form and function of their CSR institutional arrangements may differ in terms of how businesses adopt and respond to them: in Japan, companies have tried to implement strategic CSR as a means of gaining profit (based on the logic of commodity), while in Korea, companies remain in a stage of a conspicuous CSR consumption for the sake of legitimacy.