Sustainability-Conscious Stakeholders and CSR: Evidence from IJVs of Ghana

Abstract

Corporate social responsibility (CSR) activities of international joint ventures (IJVs) are considered a way for multinational corporations (MNCs) to be embedded in local communities. Existing literature generally assumes that MNC research applies to IJV, however, the research of IJV’s CSR practices is often ignored. In particular, it is unclear which stakeholders become important factors in influencing the CSR practices of IJVs in developing countries. This paper aims to examine the structural characteristics of IJVs and propose a framework for the CSR practice of IJVs established in Ghana. The theoretical standpoint of this research is built upon the stakeholder and institutional theories. Using stepwise regression, a framework is developed to better understand and identify the forces within the local market that stimulate CSR. Consumers, competitors, and local communities are considered to be the key stakeholders driving IJV CSR actions. In addition, this paper has identified significant differences in CSR practice related to the IJV’s ownership structure. This study contributes to the literature on furthering knowledge of CSR and IJVs. Furthermore, it also provides practical implications for MNCs to better integrate into the local market and the host country in order to promote the development of stakeholders related to IJVs.