Global Corporate Social Responsibility Research Articles

MNEs’ regional headquarters and their CSR agenda in the African context

Purpose – Corporate social responsibility (CSR) initiatives can provide a mechanism for tapping into the vast consumer markets of developing countries. The purpose of this paper is to investigate how regional headquarters (RHQs) of multinational enterprises (MNEs) in Africa pursue CSR and whether their initiatives are aligned with their own global CSR agendas or tailored to local idiosyncrasies. Design/methodology/approach – Following a secondary data analysis of MNEs’ CSR and sustainability reports and their homepages, in-depth interviews with their CSR managers in African RHQs are conducted. Findings – The paper provides insights into motivations of RHQs to pursue specific CSR initiatives. MNEs need to make considerable adaptations to their global CSR agendas in order to develop initiatives that fit the local setting. The authors further identify key institutions in developing countries and discuss the potential of collaborations with MNEs in their CSR initiatives. Research limitations/implications – Fu...

How Multinational’ Social Performance Influences Performance of Subsidiary in China: The Role of Distance

This paper addresses how corporate social responsibility of multinationals in China influences their Chinese subsidiaries’ performance. Using panel data regression, (1) we investigate the effects of corporate social moderating effects of institutional and geographic distances between their home countries and China. Our findings show, first, that subsidiaries’ corporate social performance is associated positively with their profit in China. Second, we find that the greater the cultural, economic, and geographic distances between the home country and China, the less likely it is that a subsidiary will benefit from corporate social responsibility. We enrich the theoretical understanding of the institutional conditions under which corporate social responsibility leads to specific outcomes by adding new institutional elements—the differences of culture and the economies between multinationals’ host and home countries. Our findings suggest that although corporate social responsibility is still new to China, being socially responsibility provides financial benefits to multinationals. Their global and local corporate social responsibility strategies have to adjust based on local cultures and economic levels, especially with respect to fundamental beliefs about spirituality and values. The paper fulfilled the research gap between multinationals’ social practices and their performance in host countries at the subsidiary level by providing empirical evidence concerning the responses to corporate social responsibility initiatives in emerging markets and clarifying the conditions under which foreign affiliates’ corporate social responsibility engagement in the host country can gain better returns in local markets.

Mandatory corporate social responsibility assurance practices

Purpose– Despite its voluntary nature, the Johannesburg stock exchange (JSE) requires all listed companies to apply the King III principles, including providing independent CSR assurance. King III has accordingly made independent CSR assurance a de facto mandatory requirement, albeit on an “apply or explain” basis. The purpose of this paper is to examine the impact mandatory corporate social responsibility (CSR) assurance practices in South Africa, within a King III context.Design/methodology/approach– To understand the impact of King III on South African CSR assurance practices, a longitudinal study covering reporting periods both before and after King III implementation. The first stage reviewed the annual reports of the 200 largest JSE-listed companies to establish the frequency of CSR assurance provision. The second stage involved performing a content analysis on the CSR assurance reports.Findings– King III is driving the institutionalisation of CSR assurance practices in South Africa, as evidenced by the growth in CSR assurance since the implementation of King III. The study also found that the audit profession’s dominance was being eroded by specialist CSR assurors providing higher levels of assurance, despite concerns about the rigour of their assurance methodologies. Voluntary CSR assurance practices have resulted in the inconsistent application of CSR assurance practices, impairing the ability of stakeholders to understand the nature and scope of CSR assurance engagements. It is argued that this deficiency may be overcome through the imposition of a mandatory CSR assurance regime.Originality/value– The pervasive impact of the King Code of Governance on South African organisations makes it appropriate to examine its impact on South African CSR assurance practices. As such, this paper represents one of the first studies to specifically consider the impact of a mandatory regulatory requirement for independent CSR assurance and suggests a future direction for global CSR assurance practices.

Global production, CSR and human rights: the courts of public opinion and the social licence to operate

This article takes as its starting point the responsibility placed upon corporations by the United Nations’ (UN) Protect, Respect and Remedy Framework as elaborated upon by the Guiding Principles on Business and Human Rights to respect human rights. The overt pragmatism and knowledge of the complex business relationships that are embedded in global production led John Ruggie, the author of the framework, to adopt a structure for the relationship between human rights and business that built on the existing practices of corporate social responsibility (CSR). His intention was that these practices should be developed to embrace respect for human rights by exhorting corporations to move from ‘the era of declaratory CSR' to showing a demonstrable policy commitment to respect for human rights. The prime motivation for corporations to do this was, according to Ruggie, because the responsibility to respect was one that would be guarded and judged by the ‘courts of public opinion' as part of the social expectations imposed upon corporations or to put it another way as a condition of a corporation's social licence to operate. This article sets out the background context to the framework and examines the structures that it puts forward. In its third and final section the article looks at how the framework requires a corporation's social licence to be assembled and how and by whom that social licence will be judged. The success or failure of the framework in persuading corporations to respect human rights is tied to whether ‘the courts of public opinion' can use their ‘naming and shaming power' effectively.

Why Firms Participate in the Global Corporate Social Responsibility Initiatives, 2000–2010

Why Firms Participate in the Global Corporate Social Responsibility Initiatives, 2000–2010

The Rise of Global Corporate Social Responsibility: Mining and the Spread of Global Norms

The Rise of Global Corporate Social Responsibility: Mining and the Spread of Global Norms

CSR in multiple environments: the impact of headquartering

Purpose– This paper aims to argue that the on-going professionalization and dissemination of the current wave of corporate social responsibility (CSR) concepts and instruments leads to a headquartering effect, i.e. the concentration of CSR-related decision-making within corporate headquarters. This headquartering effect casts doubt on earlier studies suggesting that the “transnational” or “glocal” model can effectively address the multitude of global and local CSR challenges modern multinational companies (MNCs) face.Design/methodology/approach– This conceptual paper uses a stakeholder lens, in turn, drawing from resource dependence theory and organizational legitimacy theory to develop under which conditions claims of Southern stakeholders will be considered by Northern MNCs. It provides evidence for the existence of a headquartering effect as a defining characteristic of mainstream CSR approaches.Findings– The authors argue that the increasing professionalization and dissemination of mainstream CSR approaches among MNCs reinforce the headquartering effect, with strategic decision-making increasingly confined to the companies’ headquarters, while the scope of action within the subsidiaries and the supply chain of MNCs becomes increasingly restricted over time. Ultimately, this headquartering effect strengthens a Northern CSR/sustainability agenda and fails to empower developing country stakeholders.Originality/value– The paper contributes by exploring how international CSR follows a different underlying rationale than international business. While international business research follows an instrumental perspective, international CSR is driven by both instrumental and normative considerations. Thus, international business theories may not be directly applicable to international CSR contexts.

Global Governance: CSR and the Role of the UN Global Compact

The article discusses the role of the UN Global Compact (UNGC) in the emerging global corporate social responsibility infrastructure. It evaluates the debate around the effectiveness and legitimacy of the UNGC alongside the arguments of its supporters and critics and thereby introduces the Thematic Symposium contributions. The article further identifies three theoretical perspectives that are used by scholars to discuss the performance of the UNGC: economic, socio-historical, and normative. It proposes that these perspectives can serve as generic distinctions with direct relevance for the evaluation of the UNGC. Once the perspective is chosen, it drives towards a certain purpose which implies assumptions and design features with regard to the UNGC. Finally, the article offers a future research agenda, emphasising the research needed on the UNGC in four areas: the identification of processes and influence mechanisms; legitimacy and effectiveness; local networks and regional development; and the interface of the UNGC and responsible leadership.

Institutional network structure of corporate stakeholders regarding global corporate social responsibility issues

This study examines the institutional network structure of corporate social responsibility (CSR)-related stakeholders. Using two-mode network analyses, this study provides a broad picture of business strategies for hyperlink relationships in terms of CSR. It investigates (1) how CSR-related organizations are positioned in the global CSR system according to their organizational type and (2) which CSR missions are stressed in the CSR system. Results show that local non-profit organizations and intergovernmental and international organizations play key roles in the global CSR system. Among the CSR issues, environmental problems are pressing at the global level. Compared with the CSR system in other regions, in the American CSR system, the role of organizations whose mission is diversity is magnified.

Sustaining the Financial Value of Global CSR: Reconciling Corporate and Stakeholder Interests in a Less Regulated Environment

AbstractIn this article we examine the association between corporate social responsibility (CSR) and firm value. This line of research is important since firms continue to invest in CSR even though past studies reveal a limited linkage between financial value and CSR. However, the business case for CSR or “doing good while making a profit,” appears to be advancing within the business ethics literature as a preferred conception of CSR. We conjecture that the greater unification and refinement of both profit maximization and stakeholder interests through corporate acts, not statements alone, will sustain the financial value of CSR in a less regulated global business environment. We study the triangle of what companies say, what companies do, and firm financial performance. We analyze Fortune 250 firms and find a positive association between what companies do based on KLD Research and Analytics, Inc. (KLD) ratings, and what companies state about ethics in their CSR statements. We then employ regression analysis and find that companies’ socially responsible acts are positively associated with overall firm value and financial performance. Yet we do not find a statistically significant association between what companies say regarding ethics in their CSR statements and their financial outcomes. These results suggest that firm value and financial performance is associated with what companies do and not what they say. Our results seem to be driven by multinational corporations (MNCs) and not by non‐MNCs. This is possibly because MNCs generally operate in a less regulated global business environment that often necessitates strong ethical corporate leadership to further stakeholder interests. Overall, these results help reconcile corporate and stakeholder objectives since evidence of a link between financial performance and doing good sustains global CSR.

The Origination And Control Of Global Csr Initiatives: A Transaction Cost And Institutional Perspective

The question of how multinational corporations pursue and organize corporate social responsibility (CSR) initiatives is one that has received comparatively little attention in the literature of business and society or organization theory. This article seeks to develop a framework to understand the dynamics associated with global CSR. Using institutional theory and transaction cost economics as relevant theoretical determinants, the framework presented here posits that the point of origin, whether the home country headquarters or foreign business units, is dependent upon the nature of normative pressure faced by the company and its ability to resist or shape those pressures. Management and structure of the initiative, in turn, is seen as a function of its origin and the nature of the transaction costs experienced by the home country HQ or foreign business unit. Implications of the framework and directions for future research conclude the discussion.

System dynamics-based modelling and analysis of greening the construction industry supply chain

Increasing concern on global warming and corporate social responsibility have made environmental issues an area of importance to address for governments and businesses across the world. Among the Middle East countries, the United Arab Emirates (UAE) tops the list in terms of per capita energy spending and per capita carbon footprints. The construction industry is the major contributor to environmental pollution due to its size and nature of activity. The rapid growth of construction sector has a significant environmental impact with increase in carbon footprints. This paper analyses the environmental implications of the rapidly growing construction industry in UAE using system dynamics approach. Quantitative modelling of the construction industry supply chain helps to measure the dynamic interaction between its various factors under multiple realistic scenarios. The potential carbon savings and the impact of each factor are calculated using scenario development analysis. The paper has addressed in detail the various drivers and inhibitors of carbon emission in the construction industry supply chain and ways to evaluate the carbon savings. The paper provides an analytical decision framework to assess emissions of all stages applicable to the construction industry supply chain.

The Rise of Global Corporate Social Responsibility: Mining and the Spread of Global Norms, by Hevina S. Dashwood. Cambridge: Cambridge University Press, 2012. ISBN: 978-1107015531

The Rise of Global Corporate Social Responsibility: Mining and the Spread of Global Norms, by Hevina S. Dashwood. Cambridge: Cambridge University Press, 2012. ISBN: 978-1107015531

The Dynamics of Corporate Social Responsibility in Asia: A 6 Country Study

In light of the evidence of the rapidly changing landscape of Corporate Social Responsibility (CSR) in Asia, this paper seeks to analyse the dynamics and evolution of CSR in Asia, including the degree of variation and homogeneity within various Asian countries. We explore one proposition that isomorphism has occurred between 2002 and 2009, due to the adoption global CSR systems such as the UN Global Compact and the Global Reporting Initiative. We compare this to the alternative proposition that distinct national differences remain in Asia, due to differing national characteristics and business systems. This paper analyses CSR data collected from the CSR reports of the top 50 companies in China, India, Malaysia, Philippines, Singapore and Thailand. Our preliminary findings suggest that there has been a significant increase in both the levels and depth of reported CSR during the time period, suggesting an increase in CSR in these 6 Asian countries. However, we do not see standardised patterns, as suggested by the isomorphism argument. Nor do we see each country exhibiting very distinct patterns. Instead we see two very distinct national CSR patterns for two countries, and clusters of similarity in CSR between others.

Dashwood (Hevina S.) – The Rise of Global Corporate Social Responsibility. Mining and the Spread of Global Norms . – New York, Cambridge University Press, 2012 (Business and Public Policy). xiv + 320 p. Bibliogr. Index

Dashwood (Hevina S.) – The Rise of Global Corporate Social Responsibility. Mining and the Spread of Global Norms . – New York, Cambridge University Press, 2012 (Business and Public Policy). xiv + 320 p. Bibliogr. Index

Business and human rights governance and democratic legitimacy: the UN “Protect, Respect and Remedy” Framework and the Guiding Principles

Global Corporate Social Responsibility schemes have assumed an authoritative role in today's diversifying global business and human rights governance regime, yet scholarship has paid scant attention to their democratic credentials. This article analyzes the democratic legitimacy of the UN “Protect, Respect and Remedy” Framework and the corresponding Guiding Principles, as developed by the former UN Special Representative for Business and Human Rights, Professor Ruggie. Applying De Búrca's democracy striving approach, the article provides insights into how the design and actual performance of the six year mandate of the Special Representative meet the democratic ideal of equality, participation and accountability. The findings hold that, to guarantee the continuant striving for the fullest and equal participation of all stakeholders, further steps are warranted to ensure that individuals from the Global South can equally and meaningfully partake in the implementation process of the Guiding Principles and contest their authority if deeming them to fail to meet the normative expectations of the people.

Global, Local, or Glocal: Investigating CSR Strategies of Best Corporate Citizens in India

This study examined the corporate social responsibility (CSR) strategies of 38 multinational corporations with operations in India. Seventy-six global and Indian corporate websites were cross-examined to determine the prominence and extent of CSR reporting as well as the dimensions most salient in the CSR content to determine whether these corporations follow a global, local, or glocal CSR strategy. The findings revealed that most of the companies follow a global approach to CSR management and communication in India. This context-specific examination of CSR strategies expands the knowledge of global CSR practices. Also, it exemplifies how cultural, political, and economic environments can inform strategic communication's understanding of transnational CSR programs, and contribute to theory building in an emerging area of glocalization in a transnational context.

Mitigating global supply chain risks through corporate social responsibility

This paper presents a decision model that captures supply-side disruption risks, social risks, and demand-side uncertainty within an integrated global supply chain and corporate social responsibility (CSR) modelling and analysis framework. The global supply chain decision-makers must decide on the level of investment in CSR activities and the choice of trading partners (manufacturer or retailer) given their CSR consciousness and perceived riskiness in order to maximise profit and minimise their overall risk. The model incorporates individual attitudes towards disruption risks among the manufacturers and the retailers, with the demands for the product associated with the retailers being random. The model allows one to investigate the effects of heterogeneous CSR activities in a global supply chain and to compute the resultant equilibrium pattern of product outputs, transactions, product prices, and levels of social responsibility activities. The results show that CSR activities can potentially be used to mitigate global supply chain risk.

Corporate hyperlink network relationships in global corporate social responsibility system

This study analyzed the hyperlink (co-link) network structure among companies in global Corporate Social Responsibility (CSR) system. This study measured network variables such as density and centrality, including degree centrality, eigenvector centrality, closeness, and betweenness. The results indicated that European companies had relatively central roles in the global CSR system. In addition the higher performing companies are more active their CSR practices. Also, the results revealed that the industrial type of companies was not significantly associated with its CSR practices.

Consumers’ Perception of Corporate Social Responsibility in the United States and China: A Study of Female Cosmetics Consumers

Using survey data from the U.S. and China, this cross-national study examines consumers' corporate social responsibility (CSR) perception from a cultural perspective. The results suggest that CSR is important in China, with Chinese consumers having revealed a higher level of perceived importance of CSR and expectations about CSR than respondents in the United States. The findings also show significant differences between the two countries with respect to purchase intentions. These results are discussed in terms of the role of cultural values in perceptions and behavior towards CSR. Theoretical and practical implications for global CSR strategies in communication are discussed.