Skip to main content
SpringerLink
Log in

Beyond Credibility of Doing Business in China: Strategies for Improving Corporate Citizenship of Foreign Multinational Enterprises in China

  • Published:
Journal of Business Ethics Aims and scope Submit manuscript

Abstract

This study examines the perceptions of Chinese executives concerning corporate social responsibilities in their Chinese subsidiaries of foreign multinational corporations in China. These Chinese subsidiaries are found in the elementary stage of corporate citizen development even though their headquarters are in the advanced stage. The key challenges of moving Chinese subsidiaries to be better corporate citizens in China are specific Chinese business culture, intellectual property rights, internal due process, insufficient Chinese government support, and lack of knowledge of Chinese subsidiaries. Through this study, foreign multinational corporations need to invest in social capital that facilitates the transfer of knowledge of comprehensive corporate responsible practices from the headquarters to their Chinese subsidiaries, and to encourage their Chinese subsidiaries to be more actively engaged with external business partners that support corporate social responsibility.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Similar content being viewed by others

References

  • Accountability and Reporting Orbit: 2004, Retrieved August 24, 2006 from http://www.wbcsd.org

  • Arthaud-Day, M. L.: 2005, “Transnational Corporate Social Responsibility: A Tri-Dimensional Approach to International CSR Research. Business Ethics Quarterly 15(1), 1–22

    Google Scholar 

  • Ashridge Centre for Business & Society: 2004, ‹Accountability and Reporting: New Accountabilities, New Networks, New Leaders’, Retrieved August 24, 2006 from http://www.wbcsd.org

  • Bartlett C. A., and Ghoshal, S.: 1987, “Managing Across Borders: New Strategic Requirements”. Sloan Management Review 28(4), 7–17

    Google Scholar 

  • Black, L. D., Hartel, C. E. J.: 2004, “The Five Capabilities of Socially Responsible Companies”. Journal of Public Affairs 4(2), 125–144.

    Article  Google Scholar 

  • Christmann, P., & Taylor, G.: 2001, “Globalization and the Environment: Determinants of Firm Self-Regulation in China”. Journal of International Business Studies 32(3), 439–458

    Article  Google Scholar 

  • Farh, J.-L., Zhong, C.-B., & Organ, D. W.: 2004, “Organizational Citizenships Behavior in the People’s Republic of China”. Organization Science 15(2), 241–253

    Article  Google Scholar 

  • Farley, J. U., Hoenig, S., & Yang, J. Z.: 2004, “Key Factors Influencing HRM Practices of Overseas Subsidiaries in China Transitional Economy”. International Journal of Human Resource Management 15(4), 688–704

    Article  Google Scholar 

  • Hambrick, D. C., & Mason, P. A.: 2001, “Upper Echelons: The Organization as a Reflection of Its Top Managers”. Academy of Management Review 9(2), 193–206

    Article  Google Scholar 

  • Lam, M. L. L.: 2000, Working with Chinese Expatriates in Business Negotiations: Portraits, Issues, and Applications (Quorum Books, Westport), pp. 1–5.

  • Logsdon, J. M., & Wood, D. J.: 2005, “Global Business Citizenship and Voluntary Codes of Ethical Conduct”. Journal of Business Ethics 59, 55–67

    Article  Google Scholar 

  • McWilliams, A., & Siegel, D.: 2001, “Corporate Social Responsibility: A theory of the Firm Perspective”. Academy of Management Review 26(1), 117–127

    Article  Google Scholar 

  • Meyer, K. E.: 2004, “Perspectives on Multinational Enterprises in Emerging Economics”. Journal of International Business Studies 35(4), 259–290

    Article  Google Scholar 

  • Mirvis, P., & Googins, B.: 2006, “Stage of Corporate Citizenship”. California Management Review 48(2), 104–126

    Google Scholar 

  • Murdoch, H., & Gould, D.: 2004, “Corporate Social Responsibility in China: Mapping the Environment”. A Study Commission by the Global Alliance for Communities and Workers. GA Publication Series: Baltimore

    Google Scholar 

  • Nielsen, R. P.: 2000, “Do Internal Due Process Due System Permit Adequate Political and Moral Space for Ethics, Voice, Praxis, and Community”. Journal of Business Ethics 24, 1–27

    Article  Google Scholar 

  • Quazi A. M., O’Brien, D.: 2000, “An Empirical Test of a Cross-National Model of Corporate Social Responsibility”. Journal of Business Ethics 25, 33–51

    Article  Google Scholar 

  • Report on Chinese Entrepreneurs Growth and Evolution: 2007, China Entrepreneurs Survey System edited (China Machine Press) (in Chinese).

  • Sanya, R. N., & Samanta, S. K.: 2004, “Determinants of Bribery in International Business”. Thunderbird International Business Review 46(20), 133

    Article  Google Scholar 

  • Tateisi, N.: 2004, ‹Corporate Social Responsibility Leads to Sustainable Economic Growth in China – Observations from the Leader of the CBCC Dialogue Mission on CSR in the People’s Republic of China. Retrieved Sept. 8, 2006 from http://www.keidanren.or.jp/CBCC/english/report/2004.

  • Vaill P.: 1996, Learning as a Way of Being: Strategies for Survival in a World of Permanent White Water. San Francisco: Jossey-Bass Publishers, pp. 177–188

    Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Malone College, 515 25th St.NW, Canton, OH, 44709, U.S.A.

    Maria Lai-Ling Lam

Authors
  1. Maria Lai-Ling Lam
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Maria Lai-Ling Lam.

Additional information

This article is dedicated to Dr. Peter B. Vaill for his inspiration in this project. The author thanks Dr. Georgia Eshelman, Dr. Martha Cook, Gretchen Sudar, Dr. Yvonne Smith, Simon Lam and Alice Lam for their helpful support and feedback.

Rights and permissions

Reprints and permissions

About this article

Cite this article

Lam, M.LL. Beyond Credibility of Doing Business in China: Strategies for Improving Corporate Citizenship of Foreign Multinational Enterprises in China. J Bus Ethics 87 (Suppl 1), 137–146 (2009). https://doi.org/10.1007/s10551-008-9803-3

Download citation

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s10551-008-9803-3

Keywords

Search

Navigation