ISSN 2736-1721
Global Journal of Business Management ISSN 6731-4538 Vol. 5 (3), pp. 001-008, March, 2011. © International Scholars Journals
Full Length Research Paper
Corporate social responsibility in times of financial crisis
Yasemin Zengin Karaibrahimo lu
Department of Business Administration, Faculty of Economics and Administrative Sciences, Izmir University of Economics, Sakarya Caddesi no: 156, Postal Code 35110, Balcova, Izmir, Turkey. E-mail: [email protected]. Tel: +90 232 488 81 91.
Accepted 10 January, 2010
Abstract
The purpose of this study is to examine the effects of financial crisis on the number and extent of CSR projects. It is presumed that, during a financial crisis, as organizations act more conservatively and defensively (Cheney et al., 1990), they fail to balance the expectations of related parties. Therefore, organizations might choose not to engage in CSR projects. To study this, globally operating companies listed in Fortune 500 were examined by using paired sample t tests on 100 randomly-sampled global companies from the list of Fortune 500. Overall, it was found that there is significant drop in numbers and extent of CSR projects in times of financial crisis. The study contributes to the literature by initiating discussions on CSR and the ways they are affected by financial crisis.
Key words: Corporate social responsibility, financial crisis, contract theory.