Social responsibilities of MNCs in downsizing operations

Abstract

PurposeThis paper aims to contribute to the understanding of the social aspects of corporate social responsibility (CSR) by studying a case of organizational downsizing.Design/methodology/approachThe paper uses a theoretical framework consisting of stakeholder theory and legitimacy theory together with the concept of social contract. Textual analysis methods are used to analyse and interpret the empirical data, which consist of mass media articles.FindingsThe main finding is that key stakeholders, especially employees and their representatives and the multinational corporation (MNC) itself perceive social aspects of CSR differently. The economic dimension dominates the social aspect in the corporate representatives' argumentation. Accounting information is used as a rhetorical tool to legitimise the downsizing actions rather than for purposes of accountability and transparent informative content.Research limitations/implicationsThe research is based on a detailed analysis of a specific context. This may limit the wider applicability of the findings. Even so, it adds insights to the academic literature on the varying conceptions of the social responsibilities of corporations, perceived not only by the firm itself, but also by different stakeholders.Originality/valueThe paper contributes to the literature on CSR by investigating understandings of corporate social responsibility in a case where the economic and social responsibilities of a firm are publicly debated. The study also links the theoretical debate on corporate social responsibility to a context with a complex range of political and social factors affecting the construction of the social and economic responsibilities of a firm.