Corporate Social Responsibility of Foreign Multinationals in a Developing Country Context: Insights from Pakistan

Hina Hashim,Dima Jamali,Mohammad Yunis

doi:10.3390/su10103511

Abstract

This paper aims to explore the dynamics of corporate social responsibility (CSR) of multinational companies (MNCs) subsidiaries operating in Pakistan. To do this, the corporate social performance (CSP) model, has been modified and integrated with the relevant models of CSR for multinational companies (MNCs). Empirical evidence from MNCs operating in the developing country context was collected and analyzed from MNCs operating in Pakistan. Findings from semi-structured interviews uncover that CSR is yet to institutionalize and most MNC executives understand CSR in narrow philanthropic and ethical terms and ignore the legal and economic aspects. Interestingly, there is evidence that MNCs are able to modify global CSR strategies to respond to local contexts and issues. In addition, the sample MNCs lack systematic environmental scanning, stakeholder management and demonstrate a short-term reactive approach to CSR. We believe that the proposed theoretical framework of the study can be utilized to understand MNCs CSR practices in both developed and developing countries. However, these empirical findings are context bound and cannot be generalized.

Highlights

Globalisation is a new buzz of the recent world
The sample of respondents on the basis of purposeful sampling was selected on the basis of four criteria: (1) the company is a subsidiary of a foreign multinational companies (MNCs) operating in Pakistan; (2) the sample MNC subsidiary is involved in corporate social responsibility (CSR) activities; (3) accessibility to the respondents; and (4) the respondents in the sample must be responsible for CSR in their companies
The step involved presentation of MNCs responsiveness strategies followed by outcome of CSR practices in the context of Pakistan

Summary

Introduction

Globalisation is a new buzz of the recent world. It is a multi-dimensional process that has interlinking yet contradicting interaction of local, global and regional dimensions of social life [1]. Globalisation has provided an opportunity for MNCs to become an influential and powerful actor in society [2,3]. MNCs have the power and latitude to choose the location and legal system within which they want to operate and as a result they can influence the social and political events of the host country or countries [4,5]. Concern over the influence and power of MNCs has been growing, due to the vast expansion of MNCs in developing countries [6,7]

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Conclusion