Models of Capitalism, Institutions and Corporate Social Responsibility

Abstract

AbstractThe purpose of the paper is to show that the differences in the level of CSR involvement between countries result from the distinct institutional environments characteristic for the different models of welfare capitalism. These models vary in terms of how the institutional arrangements determine the form and level of public provision of social services such as health care, pensions, education and social assistance. It is argued that companies operating under stronger institutional pressure occurring in countries with an extensive welfare state model are less likely to engage in voluntary provision of social services. In contrast, when companies operate in countries with a relatively minor role of the state in creating and redistributing well-being and a relatively low institutional pressure in this regard, their chances of involvement in socially responsible activities are greater.