Corporate Social Responsibility in the Context of Multiple Environments

Abstract

The aim of this paper is to specify the strengths and limitations of 'transnational' or 'glocal' CSR strategy formulation of multinational companies (MNCs). Bartlett & Ghoshal's typology of international business strategies has become a popular focal point for research into MNCs' strategic approaches to international CSR. Previous studies suggest that the transnational strategy type is best suited to address the multitude of global and local CSR challenges the modern MNC faces. However, the partially decentralized network structure the transnational CSR strategy aims to establish is unlikely to be achieved in a North/South context. Instead, as a result of the lack of stakeholder salience among Southern actors and the increasingly dominant role of corporate headquarters, the transnational CSR strategy is more likely to reflect a traditional hub-and-spoke model. Using the stakeholder literature and organisational legitimacy theory as theoretical lenses, we argue that in a North/South context, the transnational CSR strategy fails to empower developing country stakeholders and reinforces a skewed CSR agenda. From a corporate perspective, the transnational CSR strategy can still be considered the most suitable strategy type. From a societal perspective, however, it is likely to replicate a company's domestic priorities: global integration crowds out local adaptation.