Propositions for Institutional Diffusion of Corporate Social Responsibility in KOREA: Lessons from Advanced Countries

In advanced countries, CSR has been strongly institutionalized. Managers in such regions as the U.S. and Europe commonly think of CSR as a stringent rule they should conform to. However, unlike those countries, Korea is still suffering from severe debates and conflicts over the roles of the business in society. Why has CSR failed to gain a strong legitimacy in Korea? And how can the Korean society trigger a wide diffusion of CSR among Korean firms? Reflecting the institutional theory, the experience of advanced countries, and the current situation of the country, we argue the roles of three major players may be most critical in the broad diffusion of CSR in Korea; the public, the government and the professional. First, we propose that the social agreement on the strengthened role of the business should be made among the country’s general citizens. Weak roles of NGOs on the issues are both influencing the public awareness, and at the same time, being influenced by that. Second, we argue that the government should show the solid and consistent commitment to the issues. Third, we propose that educational institutions and business associations should be more active in dealing with CSR issues. Unlike in advanced countries, university specialists are not active in providing and teaching the cognitive base for CSR, and manager associations are not active in diffusing the best practices across organizations in Korea.