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Corporate social responsibility (CSR) is much discussed by researchers and executives and often occupies a prominent position on corporate Internet sites. Yet, little is known about CSR initiatives in franchising, although there are significant organizational differences between corporate firms and franchised chains. Building on the strategic view of CSR and using data from 76 franchise systems, this study explores the prevalence and performance outcomes of CSR in franchising. We focus on system-specific, industry, and competitive factors that determine the degree to which franchise systems behave in a socially responsible manner and on performance effects of CSR initiatives targeted toward various stakeholder groups.