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The Effect of National Corporate Responsibility Environment on Japanese Foreign Direct Investment

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Abstract

We examine the relationship between Japanese foreign direct investment (FDI) and the national corporate responsibility (NCR) environment in host countries using corporate social responsibility and international business theories. Based on data from the Japanese Government’s Ministry of Finance AccountAbility, and other sources, we find that the level of NCR has a positive relationship with FDI inflow for developing countries. The relationship for developed countries is negative but not statistically significant. The underlying host country development stage moderates the relationship. The results can help deepen understanding of FDI behaviors and have practical implications for host countries in terms of attracting FDI.

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Authors and Affiliations

  1. Richard Ivey School of Business, University of Western Ontario, 1151 Richmond Street N, London, ON, Canada, N6A 3K7

    George Z. Peng & Paul W. Beamish

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  1. George Z. Peng
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  2. Paul W. Beamish
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Correspondence to George Z. Peng.

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Peng, G.Z., Beamish, P.W. The Effect of National Corporate Responsibility Environment on Japanese Foreign Direct Investment. J Bus Ethics 80, 677–695 (2008). https://doi.org/10.1007/s10551-007-9462-9

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