How Domestic and Transnational Governmental Corporate Social Responsibility Strategies Interplay: From Selective Cooptation to Proactive Coordination in Korea

Although recent research shows that Corporate Social Responsibility (CSR) is a strategic space for governmental interventions both at the national and the global level, little is known about how domestic and transnational governmental CSR strategies are related. Combining insights from the CSR and government literature, transnational governance studies, and power transition theory, we investigate how domestic and transnational governmental CSR strategies interacted in the South Korean context over a period of about 30 years. By analyzing 34 interviews and multiple sources of secondary data, we identified three mechanisms bridging domestic and transnational strategies – selective cooptation, reactive coordination and proactive coordination – that explain how South Korea has shifted its position from rule-taker to rule-maker in the transnational CSR governance space. The paper conceptualizes how domestic and transnational governmental CSR strategies interact, and shows that middle powers can use CSR as a diplomatic tool to support their transition to a rule-maker position.