THE EFFECT OF CORPORATE SOCIAL RESPONSIBILITY ON FIRM PROFITABILITY: A PERSPECTIVE OF ECONOMICS, BUSINESS AND LAW

In the global market, increasing the economic dependence of firm, because of economic, social, technological and political developments, trigger raising of the welfare of countries. In this context, companies have acted with a sense of responsibility like individuals. In particular, with the corporate social responsibility (CSR), transnational organizations provide contributions to the economic and social development. Empirical studies imply that applications of CSR provide the earnings to firms such as brand value and marketing value. Addition to this legal responsibility is one of the basic responsibilities in these contributions. Because the company's commercial activities should be in accord with law, human rights, property rights and morality. On the contrary, there are also opinions stating that the companies should not have social responsibility. According to this view, CSR affects to the basis of the economic system and competition power of firms negatively because of additional costs. Within this regard, the relationship between CSR and firm profitability have been studied according to the perspective of economics, business and law in this study. In addition to this, the examples of CSR have been compared with developed and developing countries. In this way, the differences between social responsibility approaches of countries have been revealed.