Abstract

In the process of their market globalization efforts in Korea, they have been positively utilizing corporateinternational diversification strategies to increase sales in overseas markets or reduce risks based on businessdiversification strategies. However there is mixed empirical results have been made on whether the corporateinternational diversification strategy made a positive or negative impact to the firm value. Extending Priorliteratures, this study investigates the impacts of the level of corporate international diversification of Koreanfirms onto that of their corporate social responsibility activities.Empirical result suggest that there is negative (-) association between the level of corporate internationaldiversification and corporate social responsibility activities. In particular, this study is meaningful indemonstrating an empirical result that, even if the Korean firms pushed forward corporate internationaldiversification strategies actively due to the stagnant domestic market in the 2000s, they actually reducedcorporate social responsibility activities more greatly as they were recognized as the short-term expenses.

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