In this study, we aim to investigate how multinational corporations (MNCs) balance ethical pressures from both the home and host countries. Drawing on theories from institutional theory, international business, and business ethics, we build a theoretical framework to explain the ethical behavior of MNCs. We apply the institutional logic concept to examine how MNCs with established logics and principles that have grown in the home country respond to local ethical expectations in the host country. We differentiate the core values from (...) the peripheral components of a MNCs institutional logic and propose that a MNC will pursue distinctive ethical strategies under different scenarios and choose the "right" configuration of core values and peripheral components that align with institutional environment in host countries. (shrink)

This study investigates antecedents of corporate social responsibility in multinational corporations' subsidiaries. Using stakeholder theory and institutional theory that identify internal and external pressures for legitimacy in MNCs' subsidiaries, we integrate international business and CSR literatures to create a model depicting CSR practices in MNCs' subsidiaries. We propose that MNCs' subsidiaries will be likely to adapt to local practices to legitimize themselves if they operate in host countries with different institutional environments and demanding stakeholders. We also predict that MNCs' subsidiaries (...) will be likely to adapt to local practices to avoid spillover effects if their parent companies suffer major legitimacy problems at home or abroad. However, we speculate that MNCs' subsidiaries will be less likely to adapt to local practices if they are strongly annexed to their parent companies and the benefit to gain internal legitimacy outweighs external legitimacy. This article contributes to the discourse on CSR across borders by exploring the antecedents of CSR practices in MNCs' subsidiaries at social and organizational levels, and integrating institutional and stakeholder views. We provide a number of propositions for future studies and explore implications for practitioners. (shrink)

ABSTRACT:The literatures of business ethics and international business have generally had little influence on each other. Nevertheless, the decline in the power of nation states, the emergence of non-governmental organizations, the proliferation of self-regulatory bodies, and the changing responsibilities, roles, and structure of multinational corporations make constructive engagement between these two disciplines imperative. This changing institutional landscape creates many areas of common concern. In this article, we describe the changing institutional context of global business and suggest ways in which both (...) business ethics and international business may inform each other more fruitfully. (shrink)

The Corporate Social Responsibility (CSR) field presents not only a landscape of theories but also a proliferation of approaches, which are controversial, complex and unclear. This article tries to clarify the situation, mapping the territory by classifying the main CSR theories and related approaches in four groups: (1) instrumental theories, in which the corporation is seen as only an instrument for wealth creation, and its social activities are only a means to achieve economic results; (2) political theories, which concern themselves (...) with the power of corporations in society and a responsible use of this power in the political arena; (3) integrative theories, in which the corporation is focused on the satisfaction of social demands; and (4) ethical theories, based on ethical responsibilities of corporations to society. In practice, each CSR theory presents four dimensions related to profits, political performance, social demands and ethical values. The findings suggest the necessity to develop a new theory on the business and society relationship, which should integrate these four dimensions. (shrink)

A critical literature on mulitnational corporate social responsibility has developed in recent years. Many authors addressed the issue in the Third World countries. This paper reviews the literature, focusing on the relationship between the multinational corporations (MNCs) and Third World governments in fulfilling the social responsibility, based on the underlying ethical imperative.There is a growing consensus that both corporations and governments should accept moral responsibility for social welfare and individual interests in their economic transactions. A collaborative relationship is proposed where (...) the MNCs share information based on global experiences and offer input into host government developmental policies, and aid their implementation. The government, in turn, provides a reasonable regulatory environment. This calls for ongoing interactions among officials at all levels of the two institutions, with the local corporate subsidiary playing a pivotal role. The desired conduct of the parties is reinforced by international organizations and other constituents, representing common human concerns across cultures. These relationships are examined and an agenda for policy and action by the MNCs and the Third World governments is developed. (shrink)

This study examines how multinational corporations (MNCs) from the retail sector deal with four challenges they face when adopting Corporate Social Responsibility (CSR) policies: the challenge of developing well-performing CSR projects and programs, building competitive advantages based on CSR, responding to local stakeholder issues in the host countries and learning from different CSR experiences on a worldwide basis. Based on in-depth case studies of two globally leading retail MNCs (with strong operations in Latin America), the concept of Transverse CSR Management (...) emerged. Transverse CSR Management is defined as a distinctive form of organizational configuration that crosses different functional areas, country operations, and the boundaries of the firm. In particular, this article makes three main contributions: (1) we identify four central challenges faced by MNC managers when developing their CSR strategies; (2) we propose the concept of Transverse CSR Management to face these central challenges (together, at the same time) and identify its key elements (top management, external stakeholders, functional areas, and country subsidiaries); and (3) we propose four mechanisms (hierarchical, relational, cultural, and collaborative) through which the concept of Transverse CSR Management can be implemented by practicing managers. This study provides valuable insights for MNC managers in headquarters and subsidiaries on the issues they need to address in order to successfully deal with the four CSRrelated challenges. (shrink)

With the advent of globalization, the track record of multinational corporations (MNCs) has been mixed at best in relation to their Corporate Social Responsibility (CSR) involvement in developing countries. This article attempts to cross-fertilize insights from the business-society and international business political behavior literature streams to identify relevant dimensions and contingencies that can be used to analyze the CSR of MNCs in developing countries and the extent of standardization or localization of their strategies. The article makes use of the new (...) theoretical framework in the context of an interpretive research methodology to examine the CSR orientations of a sample of MNC subsidiaries in Lebanon. The findings reveal patterns of global CSR being diffused to developing countries, but also being diluted along the way in view of specific subsidiary endowments and host market characteristics. (shrink)

Abstract:Comparatively few studies have analyzed the social behavior of multinational corporations (MNCs) at a cross-national level. To address this gap in the literature, we propose a “transnational” model of corporate social responsibility (CSR) that permits identification of universal domains, yet incorporates the flexibility and adaptability demanded by international research. The model is tri-dimensional in that it juxtaposes: 1) Bartlett and Ghoshal’s (1998, 2000) typology of MNC strategies (multinational, global, “international,” and transnational); 2) the three conceptual domains of CSR (human rights, (...) labor, and the environment) proposed by the UN Global Compact (Compact 2003); and 3) Zenisek’s (1979) description of three CSR perspectives (ideological, societal, and operational). The end result is a multidimensional typology that permits the organization and development of empirical CSR research in an international setting. (shrink)

Stakeholder theory has gained currency in the business and society literature in recent years in light␣of its practicality from the perspective of managers and scholars. In accounting for the recent ascendancy of␣stakeholder theory, this article presents an overview of␣two traditional conceptualizations of corporate social␣responsibility (CSR) (Carroll: 1979, ‹A Three-Dimensional Conceptual Model of Corporate Performance', The Academy of Management Review 4(4), 497–505 and Wood: 1991, ‹Corporate Social Performance Revisited', The Academy of Management Review 16(4), 691–717), highlighting their predominant inclination toward providing (...) static taxonomic CSR descriptions. The article then makes the case for a stakeholder approach to CSR, reviewing its rationale and outlining how it has␣been integrated into recent empirical studies. In light of this review, the article adopts a stakeholder framework – the Ethical Performance Scorecard (EPS) proposed by Spiller (2000, ‹Ethical Business and Investment: A Model For Business and Society', Journal of Business Ethics 27, 149–160) – to examine the CSR approach of a sample of␣Lebanese and Syrian firms with an interest in CSR␣and␣test relevant hypotheses derived from the CSR/stakeholder literature. The findings are analyzed and implications drawn regarding the usefulness of a stakeholder approach to CSR. (shrink)

This article attempts to understand the state of teaching, training and research in business ethics in the South and South East Asian region. The countries surveyed are Bangladesh, Bhutan, Cambodia, India, Laos, Malaysia, Myanmar, Nepal, Pakistan, Sri Lanka, Thailand and Vietnam. The diversity across countries in the region is high in terms of economic development, political structuring and human development. The degree of privatization and globalization is varied across countries since each of them is in a different phase of transition. (...) In an earlier survey on Business Ethics, published in 1997, India was the only country from this region that was represented. In the current survey, 12 countries from the South and South East Asia are represented. While Business Ethics in academia is widely present, Corporate Social Responsibility, Governance and Sustainability though relatively new appear to be growing rapidly. Business Ethics courses tend to focus on functional ethics, managerial ethics and implementing codes of ethical conduct. Across the 12 countries, Business Ethics is taught either as an elective or a core course in most institutions. Training emphasis across countries is varied. While training institutions in India appear to be high, the presence of multinational consultants in Thailand, Malaysia, Bangladesh and Sri Lanka is significant. The research focus across countries in the region is weak. The high convergence on the top issues in Business Ethics, across respondents in different countries, is worthy of mention. (shrink)