The profits of cause: a new direction for corporate social responsibility in South Korea
An enduring challenge of corporate social responsibility (CSR) in South Korea is that anti corporate attitude remains high among citizens despite the continued growth of CSR practices. To address this challenge, leading corporations in South Korea have established a new model for CSR. While gradually decreasing cash or in kind donations, they create a nonprofit subsidiary directly involved in the delivery of social services. The purpose of the study is to examine the motive behind the introduction of this new CSR strategy, in which a nonprofit social enterprise established by a leading internet provider in South Korea increased its financial performance and changed its human resources. The case suggests that a nonprofit social enterprise owned and supported by a private company is a sustainable model of CSR, as it obtains a continuous flow of financial and technological support from the parent organization. With increasing anti corporate attitude and demand for philanthropic contributions to society, the strategic alliance of a private company with a nonprofit subsidiary may be a viable option for addressing these challenges while meeting business interests.