Corporate Social Responsibility and Corruption from The Perspective of Rationality

The core assumption of the traditional economic theory that the result of the individual's effort to achieve maximal benefit is at the same time the growth of social well-being has its limits not only due to market failures but it is also problematic in connection with such phenomena as corporate social responsibility (CSR) and corruption. The first part of the contribution deals with CSR. The core question is how firms, respectively decision-makers are motivated to implement the CSR into companies' behaviour. The second part of the paper examines corruption, the causes, and consequences of corruption, and attention is here given to subjects' motivation to accept or actively participate in corrupt practices. In both cases, institutions are essential in order to influence positively ethical and responsible behaviour.