Antecedents of CSR Practices in MNCs' Subsidiaries: A Stakeholder and Institutional Perspective [Book Review]
David Bourget (Western Ontario)
David Chalmers (ANU, NYU)
Rafael De Clercq
Jack Alan Reynolds
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Journal of Business Ethics 86 (2):155 - 169 (2009)
This study investigates antecedents of corporate social responsibility (CSR) in multinational corporations' (MNCs') subsidiaries. Using stakeholder theory and institutional theory that identify internal and external pressures for legitimacy in MNCs' subsidiaries, we integrate international business and CSR literatures to create a model depicting CSR practices in MNCs' subsidiaries. We propose that MNCs' subsidiaries will be likely to adapt to local practices to legitimize themselves if they operate in host countries with different institutional environments and demanding stakeholders. We also predict that MNCs' subsidiaries will be likely to adapt to local practices to avoid spillover effects if their parent companies suffer major legitimacy problems at home or abroad. However, we speculate that MNCs' subsidiaries will be less likely to adapt to local practices if they are strongly annexed to their parent companies and the benefit to gain internal legitimacy outweighs external legitimacy. This article contributes to the discourse on CSR across borders by exploring the antecedents of CSR practices in MNCs' subsidiaries at social and organizational levels, and integrating institutional and stakeholder views. We provide a number of propositions for future studies and explore implications for practitioners.
|Keywords||corporate social responsibility emerging economies institutions international legitimacy multinational corporations’ subsidiaries stakeholders|
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References found in this work BETA
Archie B. Carroll (1999). Corporate Social Responsibility Evolution of a Definitional Construct. Business and Society 38 (3):268-295.
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Citations of this work BETA
Kristin Hah & Susan Freeman (2013). Multinational Enterprise Subsidiaries and Their CSR: A Conceptual Framework of the Management of CSR in Smaller Emerging Economies. Journal of Business Ethics 122 (1):1-12.
Eshani Beddewela & Jenny Fairbrass (forthcoming). Seeking Legitimacy Through CSR: Institutional Pressures and Corporate Responses of Multinationals in Sri Lanka. Journal of Business Ethics.
Felix Reimann, Johan Rauer & Lutz Kaufmann (forthcoming). MNE Subsidiaries’ Strategic Commitment to CSR in Emerging Economies: The Role of Administrative Distance, Subsidiary Size, and Experience in the Host Country. Journal of Business Ethics.
Rajat Panwar, Erlend Nybakk, Eric Hansen & Jonatan Pinkse (forthcoming). Does the Business Case Matter? The Effect of a Perceived Business Case on Small Firms’ Social Engagement. Journal of Business Ethics.
Jie Wu & Zhenzhong Ma (forthcoming). Export Intensity and MNE Customers’ Environmental Requirements: Effects on Local Chinese Suppliers’ Environment Strategies. Journal of Business Ethics.
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