Corporate social responsibility and the bottom line

Purpose - To clarify the relationship between corporate social responsibility (CSR) and profits. Design/methodology/approach - Explicates CSR against the background of a larger thesis (Coase) about the role of firms in a market economy. Findings - There are three different senses of CSR: negative - what not to do (illegal); positive innovative products and services; and supplementary. There is a clear hierarchy or prioritization here: negative. positive. supplementary. Practical implications - There are four areas in which supplementary obligations contribute directly to the bottom line: the environment, marketing, recruitment, and international. Originality/value - This paper overcomes false dualisms between CSR and profits, avoids hidden political agendas, and offers persuasive arguments for firms to engage in relevant CSR activity.