Corporate social responsibility mandates within German multinational enterprises in Sub-Saharan Africa

Abstract

Multinational enterprises operating in Sub-Saharan Africa (SSA) exist within an environment marked by complexity, inequality and socio-economic challenges, yet also sustained economic growth. This research focuses on how German multinationals define a Corporate Social Responsibility (CSR) mandate that is relevant to the local context and responds to the demands of stakeholders in their host countries within SSA. We find that the broad CSR mandate is defined at headquarters but that it contains a discretionary and a non-discretionary component. This is to ensure that, while global standards are adhered to, the local CSR engagements remain relevant and impactful. CSR in SSA tends to focus on activities that aim for long-term development which indicates a high level of local embeddedness and recognition of the meaningful impact that CSR can have in developing countries. We find that, organisationally, subsidiaries can extend their autonomy in pursuing CSR by building capacities that can be leveraged in the corporations globally. The study contributes to our understanding of multinationals operating in emerging markets and adapting to unique environments, and more specifically to CSR engagement in developing countries.