From Voids to Sophistication: Institutional Environment and MNC CSR Crisis in Emerging Markets

Zhao, Meng; Tan, Justin; Park, Seung Ho

doi:10.1007/s10551-013-1751-x

Cited by 87 publications

(80 citation statements)

References 47 publications

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“…See, for example: Aguilera and Jackson [107]; Hoskisson, et al [108]; Husted and Allen [109]; Jamali [5]; Namada and Bagirea [40]; and Zhao, et al [110]. The quest for a deeper comparative understanding of institutions and CSR practices for the engineering of innovative solutions to sustainability questions is now imperative.…”

Section: Institutional Void and Differences In Csrmentioning

confidence: 99%

Institutional Voids and the Philanthropization of CSR Practices: Insights from Developing Economies

Ahen

Amankwah‐Amoah

2018

Sustainability

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Corporate social responsibility (CSR) practices and conceptions vary across sectors and nations. However, there is a general tendency among academics and practitioners to present CSR in Africa as activities characterized by philanthropy due to the existence of institutional voids. This review of the current literature demonstrates that weak institutions lead to weaker bargaining powers designed through the historical and geopolitical institutional frameworks of international business and global governance systems. Accordingly, multinational corporations (MNCs) take advantage of such weaknesses to define CSR on their own terms by replacing the ideal responsible and sustainable innovations with ad hoc philanthropy that diverts the attention from the negative consequences of neoliberal 'structures of accumulation'. This is akin to aid that hardly contributes to structural changes, but rather leads to complacency, corruption, dependency, boutique projects, disguised exploitation, and the misuse of corporate political power to achieve corporate bottom lines. The implications of the results are vast, and they are generalizable to all weaker institutional settings. Thus, weaker institutions create the necessary regulatory, political, economic, and governance climate that perpetuates a pattern of abuses and ethical violations that are then masked with philanthropy. It is argued that the fundamental institutional and geopolitical contexts within which MNCs interact with nation states cannot be ignored in any comprehensive analysis that seeks to meaningfully shed light on the comparative differences of CSR practices. The neglect of the web of contextual, historical, and geopolitical issues in which CSR is entrenched and framed diverts attention from the origins of the socio-economic and environmental questions to philanthropy as a final solution, which has hitherto been perpetuated with undesirable outcomes.

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Section: Institutional Void and Differences In Csrmentioning

confidence: 99%

Institutional Voids and the Philanthropization of CSR Practices: Insights from Developing Economies

Ahen

Amankwah‐Amoah

2018

Sustainability

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“…Tan and Wang (2011) argue that MNCs often take advantage of poor regulations and weak institutional pressures in the host countries instead of applying the same ethical standards and CSR practices that they are engaged in in their home country. Zhao et al (2014) collected hundreds of publicized CSR crises from emerging markets (i.e. from China, India, and Russia) where MNCs were accused of conducting social and environmental misdeeds between 2000 and 2011.…”

Section: Introductionmentioning

confidence: 99%

The Online Communication of Corporate Social Responsibility in Subsidiaries of Multinational Companies in Hungary

Szántó

2018

Organizacija

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Background and Purpose:Many studies have explored the differences in the management of corporate social responsibility (CSR) of multinational companies across the globe. The main question of the study was, are there differences between CSR practices between home country and host country operations? Design/Methodology/Approach: This study investigates the differences in online CSR communication between global corporate websites and the webpages of local subsidiaries in Hungary. The sample contains 70 multinational companies (MNCs) and their Hungarian subsidiaries. All the subsidiaries of the sample are listed amongst the largest 200 companies (based on turnover) in Hungary. Both the local (Hungarian) and the global internet sites of these MNCs were visited, and pre-defined categories were sought on the corporate websites. The presence/lack of these CSR themes and topics on the websites were recorded. Results: The findings show that online CSR disclosure of the subsidiaries is usually more limited than the global communication. Moreover, distance from the headquarters seems to matter, the farther the headquarters of the MNC is located, the narrower CSR presence on the websites of the local subsidiary can be observed. Conclusion: The paper's main contribution is to deepen our knowledge about the CSR strategies of the multinational companies across their operations. It was confirmed that their CSR practices significantly differ between the host and home countries.

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“…MNCs in developing countries tend to increase their responsibilities by providing government services such as education (Scherer & Palazzo, ). Thus, MNCs adapt their CSR to this reality (Zhao, Tan, & Park, ).…”

Section: Introductionmentioning

confidence: 99%

Sustainable banking in Latin American developing countries: Leading to (mutual) prosperity

Forcadell

Aracil

2017

Business Ethics: A Eur Rev

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This article examines multinational banks' (MNBs) approaches to corporate social responsibility (CSR) in developing countries' subsidiaries, particularly in Latin America. Building on in-depth case studies of two MNBs that are based in Europe and market leaders in Latin America, we analyze their CSR motivations and outcomes in host countries. We examine institutional environments by applying the national business system framework, and we suggest missing categories in its financial and educational dimensions. We theorize how institutional necessity determines MNBs' CSR in developing countries. Finally, we examine the CSR outcomes in Latin America, where banks' responsible conduct has led to major improvements in educational levels and financial inclusion.These improvements alleviate poverty and enhance both country's social wellbeing and MNBs' legitimacy, leading to mutual prosperity.

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From Voids to Sophistication: Institutional Environment and MNC CSR Crisis in Emerging Markets

Cited by 87 publications

References 47 publications

Institutional Voids and the Philanthropization of CSR Practices: Insights from Developing Economies

Institutional Voids and the Philanthropization of CSR Practices: Insights from Developing Economies

The Online Communication of Corporate Social Responsibility in Subsidiaries of Multinational Companies in Hungary

Sustainable banking in Latin American developing countries: Leading to (mutual) prosperity

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