Tailoring CSR based on relational networks with stakeholders

This study examines corporate social responsibility (CSR) through relational networks involving internal, external, and social stakeholders. The empirical analysis uses panel data from 152 Korean listed firms between 2019 and 2021, combining ESG ratings from the Korea Institute of Corporate Governance and Sustainability (KCGS) with financial data (KIS-VALUE) provided by NICE Information Service. Path analysis indicates that CSR directed toward employees as internal stakeholders positively affects relationships with external stakeholders—partners and consumers—which subsequently strengthens the firm’s relationship with the local community as a social stakeholder. These findings suggest that responsibility toward internal stakeholders fosters cooperative ties with external stakeholders and that these interconnected relationships ultimately build trust with local communities. By testing a research model grounded in stakeholder theory and embeddedness theory, this study moves beyond prior research focused on single stakeholder groups. It demonstrates how CSR expands stakeholder networks across different stakeholder types and offers both theoretical and practical implications for the design and implementation of CSR strategies.