A comparative analysis of corporate social responsibility development in the USA and China

Purpose This paper aims to conduct a comparative study between the historical development of corporate social responsibility (CSR) in both the USA and China. It is motivated by the phenomenon that CSR is developing in two different directions (global vs local). Design/methodology/approach A comparative study on sustainability-linked compensation illustrates how CSR in the USA is driven by firm-level economic decisions, in which the manifestations of CSR are usually those which prove to be the most profitable financially. Moreover, a case analysis on the green bond market in China contrarily illustrates how CSR in China is usually based more on alignment with top-down, state-led initiatives in which the state directs the ways in which CSR is manifested. Findings This paper reveals that despite globalizing trends are attempting to unify definitions of CSR, they inevitably become localized to fit the societal needs in which they are located. Originality/value By understanding how CSR development in these two countries has changed over time, this paper shows that future developments in CSR will likely be influenced more by local practices than by converging global forces.