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Exploring the Dual Nature of Corporate Social Responsibility (CSR) and Corporate Social Irresponsibility (CSI)
Abstract
This chapter explores the dual nature of Corporate Social Responsibility (CSR) and Corporate Social Irresponsibility (CSI), arguing that these constructs often coexist within firms and form a behavioral continuum. Drawing on psychological and organizational dynamics, the chapter examines how CSR practices can generate moral credit, enabling later irresponsible actions—a process known as moral licensing. This challenges the assumption that CSR necessarily fosters ethical conduct. Theoretical models, empirical findings, and practical concerns are analyzed to highlight the risks of insincere CSR and the importance of strategies to contain moral complacency. Stakeholders often reward social contributions but respond negatively to perceived hypocrisy. Ethical leadership and integrity-based cultures are key to preventing such backlash. The chapter also discusses the role of communication and regulation in managing this tension. By adopting a dual perspective, it offers a conceptual foundation for aligning authentic CSR with robust internal controls to mitigate CSI.
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