CORPORATE SOCIAL RESPONSIBILITY STRATEGIC IMPLEMENTATION IN FOREIGN MARKET: GLOBAL VS. LOCAL POLICY

Danuta Diskienė,Daria Krapchilo

doi:10.15388/ekon.2012.0.903

Abstract

Corporate social responsibility (CSR), understood as a concept of socially responsible business behaviour, is becoming one of the important and actual business practices. Globally more and more MNEs are engaging themselves into CSR activities and see CSR as part of their corporate strategy. This paper presents an analysis of existing CSR strategic options for international companies to choose, and reveals what influences international companies’ decision what strategy and instruments to choose for implementing in a host country or market. In particular, the implementation of CSR strategic options and instruments in Belarus are analysed. The concept of this paper is based on the integration of a theoretical idea and business management practices. Since the object of the research is complex, it required the application of different research methods, such as theory analysis, system analysis, meta-analysis, survey, content-analysis, and expert interview methods. The findings of the study could be useful for foreign companies deciding to enter the Belarusian market, make M&A with local companies, for local managers responsible for CSR at their company, as well for researchers interested in CSR implementation in Eastern Europe.

Highlights

The need for a business company to act in a socially responsible way has turned into a universal requirement of present-day society
As the survey brought more quantitative data on companies / industries participating in Corporate social responsibility (CSR) in Belarus, on the factors influencing it, stakeholders’ group-mapping and social issues when deciding on CSR instruments, the interview added to the research more qualitative data on the strategy of a foreign company after M&A and CSR instruments were chosen for Belarus, depending on its social, cultural and political environment
The theoretical analysis of the social responsibility of business has turned from the question of its existence to the question of strategic implementation

Summary

Introduction

The need for a business company to act in a socially responsible way has turned into a universal requirement of present-day society. A short overview of the main theories in the field of business SR is presented in the first section in which the seminal works of Freidman, Freeman, Carroll and Wood are analysed It is followed by an overview of the four CSR strategic options offered by J. In the second section of the paper, an analysis of how the cultural, economic, and social development in a specific country could influence the success, failure, or a lack of result for foreign companies is presented. Since the main aspects influencing implementation in the host country are evaluated and the CSR tools are described, the paper could be useful for company managers operating on the Belarusian market or going there, as well for the researchers interested in the Eastern Europe region

Theoretical overview of social responsibility of business companies

Research design

Research findings

Findings

Conclusions