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.
The concept of corporate social responsibility (CSR) has dominated the academic space with a significant number of studies focusing on attempting to establish the relationship between corporate responsibility and firm performance. Minimal empirical attention is, however, accorded to attempting to establish what drives corporate responsibility among firms. This study sought to examine the institutional drivers for CSR practices of firms in Ghana using a mixed-method approach. An interview was conducted with personnel in charge of executing their respective firm’s corporate responsibility initiatives to obtain a firsthand insight into the level of appreciation for CSR among Ghanaian firms as well as to identify the drivers for CSR. The drivers for CSR were classified into internal and external institutional drivers. The study sourced for data for its analysis by administering questionnaires to 100 respondents. Responses were quantitatively analyzed using a regression technique. Among the internal drivers for CSR, it was found that only board commitment to CSR was a significant and positive driver of corporate responsibility. International trade relations, the media, and the local community were similarly found to be significant and positive drivers of CSR among the external drivers. Regulations was found to be a significant driver for CSR but impacted on corporate responsibility negatively. It is recommended that incentives by the government, award schemes, and enforcement of CSR reporting be implemented to drive a broad adoption of CSR among firms in developing nations.
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