CSR Management Strategies, Stakeholder Engagement and MNE Subsidiaries Efforts to Foster Sustainable Development View Full Text


Ontology type: schema:Chapter     


Chapter Info

DATE

2018

AUTHORS

Abdul Moyeen

ABSTRACT

This paper investigates the corporate social responsibility (CSR) management strategies in multinational enterprises’ (MNEs) subsidiaries. Despite the various efforts of MNEs in the area of CSR, very little is known about the CSR management strategies that MNE subsidiaries adopt, particularly in the context of developing countries, and how such strategies either constrain or facilitate the realization of the wider global commitment towards sustainable development. In addressing these questions, the paper considers stakeholder theory and institutional theory to establish factors that influence CSR management strategies; in particular, the formulation and implementation of CSR programmes in the host country subsidiaries. Semi-structured interviews with senior managers responsible for CSR in eight MNEs operating in Bangladesh reveal that institutional pressure is the most important influence for MNE subsidiaries in their design of CSR programmes and that MNE subsidiaries in the host countries suffer from ‘institutional duality’ when designing and implementing their CSR programmes. While most of the CSR programmes are designed and managed directly by the parent company, they often resemble the more legitimate and successful CSR programmes of local enterprises (emulative isomorphism). Interestingly, the CSR formulation process very rarely engages external local stakeholders and when they do, stakeholders’ roles are principally limited to programme implementation. Although a handful of MNE subsidiaries, originating from the same home country, were found to collaborate with each other in their CSR initiatives, no such partnership between MNE subsidiaries and local enterprises was evident. In order to ensure that MNEs’ CSR programmes have a sustainable impact, the paper urges MNEs to revisit their current CSR management approach, and adopt broader strategies incorporating engagement of local stakeholders, building partnerships with local enterprises, and the capacity building of local subsidiaries. More... »

PAGES

43-54

References to SciGraph publications

  • 2011. A Rawlsian View of CSR and the Game Theory of its Implementation (Part I): the Multi-stakeholder Model of Corporate Governance in CORPORATE SOCIAL RESPONSIBILITY AND CORPORATE GOVERNANCE
  • 2006-11. Corporate social responsibility in the multinational enterprise: strategic and institutional approaches in JOURNAL OF INTERNATIONAL BUSINESS STUDIES
  • 2014-06. Multinational Enterprise Subsidiaries and their CSR: A Conceptual Framework of the Management of CSR in Smaller Emerging Economies in JOURNAL OF BUSINESS ETHICS
  • 2009-03. Antecedents of CSR Practices in MNCs’ Subsidiaries: A Stakeholder and Institutional Perspective in JOURNAL OF BUSINESS ETHICS
  • 2011-02. MNC Strategic Responses to Ethical Pressure: An Institutional Logic Perspective in JOURNAL OF BUSINESS ETHICS
  • 2006-11. Three lenses on the multinational enterprise: politics, corruption, and corporate social responsibility in JOURNAL OF INTERNATIONAL BUSINESS STUDIES
  • 2007-05. Corporate Social Responsibility (CSR): Theory and Practice in a Developing Country Context in JOURNAL OF BUSINESS ETHICS
  • 2009-08. “Society is Out There, Organisation is in Here”: On the Perceptions of Corporate Social Responsibility Held by Different Managerial Groups in JOURNAL OF BUSINESS ETHICS
  • 2005-09. Corporate Social Responsibility: Exploring Stakeholder Relationships and Programme Reporting across Leading FTSE Companies in JOURNAL OF BUSINESS ETHICS
  • 2005-05. The determinants of MNE subsidiaries' political strategies: evidence of institutional duality in JOURNAL OF INTERNATIONAL BUSINESS STUDIES
  • 2012-05. Institutional distance and local isomorphism strategy in JOURNAL OF INTERNATIONAL BUSINESS STUDIES
  • 2008-10. A Survey of Managers’ Perceptions of Corporate Ethics and Social Responsibility and Actions that may Affect Companies’ Success in JOURNAL OF BUSINESS ETHICS
  • 2009-02. Multinational Firms’ Leadership Role in Corporate Social Responsibility in Latin America in JOURNAL OF BUSINESS ETHICS
  • Book

    TITLE

    The Goals of Sustainable Development

    ISBN

    978-981-10-5046-6
    978-981-10-5047-3

    Author Affiliations

    Identifiers

    URI

    http://scigraph.springernature.com/pub.10.1007/978-981-10-5047-3_3

    DOI

    http://dx.doi.org/10.1007/978-981-10-5047-3_3

    DIMENSIONS

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    39 schema:description This paper investigates the corporate social responsibility (CSR) management strategies in multinational enterprises’ (MNEs) subsidiaries. Despite the various efforts of MNEs in the area of CSR, very little is known about the CSR management strategies that MNE subsidiaries adopt, particularly in the context of developing countries, and how such strategies either constrain or facilitate the realization of the wider global commitment towards sustainable development. In addressing these questions, the paper considers stakeholder theory and institutional theory to establish factors that influence CSR management strategies; in particular, the formulation and implementation of CSR programmes in the host country subsidiaries. Semi-structured interviews with senior managers responsible for CSR in eight MNEs operating in Bangladesh reveal that institutional pressure is the most important influence for MNE subsidiaries in their design of CSR programmes and that MNE subsidiaries in the host countries suffer from ‘institutional duality’ when designing and implementing their CSR programmes. While most of the CSR programmes are designed and managed directly by the parent company, they often resemble the more legitimate and successful CSR programmes of local enterprises (emulative isomorphism). Interestingly, the CSR formulation process very rarely engages external local stakeholders and when they do, stakeholders’ roles are principally limited to programme implementation. Although a handful of MNE subsidiaries, originating from the same home country, were found to collaborate with each other in their CSR initiatives, no such partnership between MNE subsidiaries and local enterprises was evident. In order to ensure that MNEs’ CSR programmes have a sustainable impact, the paper urges MNEs to revisit their current CSR management approach, and adopt broader strategies incorporating engagement of local stakeholders, building partnerships with local enterprises, and the capacity building of local subsidiaries.
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