WHAT IS CSR AND WHY BOTHER? A REVIEW OF ITS DEFINITION, DRIVERS, AND SOCIAL-FINANCIAL OUTCOMES

Kittisak Wongmahesak — 2025-11-03

This review synthesizes evidence on Corporate Social Responsibility (CSR) and firm performance, spanning 2015-2024, addressing the following questions: What constitutes CSR, and why do organizations prioritize responsible practices? Drawing on meta-analytic findings, the review maps definitions, theoretical perspectives (stakeholder, legitimacy, RBV, signaling, institutional), and methodological considerations (endogeneity, measurement). CSR dimensions related to environmental, social, and governance performance yield heterogeneous effects on value and risk, contingent on the proxy (disclosures, scores, investments) and local contexts. The study illustrates examples from diverse sectors and regions, as well as crisis periods. The review emphasizes governance mechanisms (boards, committees, and incentives) and disclosure practices (quality and assurance) in translating CSR initiatives into outcomes, particularly in emerging markets. For Thailand and ASEAN, aligning CSR with strategic priorities, enhancing disclosure credibility via assurance, and fostering stakeholder engagement are crucial for value. The paper proposes a forward-looking agenda linking CSR to governance design, disclosure practices, and stakeholder engagement, calling for multi-proxy approaches and rigorous causal identification. The goal is to provide a coherent synthesis that helps managers, investors, and policymakers understand the circumstances in which CSR yields durable value, resilience, and social legitimacy.

Thai Man and Society Review

WHAT IS CSR AND WHY BOTHER? A REVIEW OF ITS DEFINITION, DRIVERS, AND SOCIAL-FINANCIAL OUTCOMES