Corporate Social Responsibility in Multinational Enterprises
Summary
Corporate social responsibility (CSR) in multinational enterprises addresses the obligation of global firms to integrate social and environmental considerations into their strategic decision-making beyond legal requirements. With operations spanning diverse jurisdictions, MNEs confront a complex array of stakeholder expectations, regulatory regimes and cultural norms. Theoretical perspectives such as stakeholder theory, legitimacy theory and the resource-based view have shaped understanding of why and how MNEs adopt CSR practices—ranging from risk management and reputation enhancement to sustainable competitive advantage. Key dimensions of CSR include environmental stewardship, social equity and robust governance mechanisms, collectively assessed as environmental, social and governance (ESG) performance. MNEs seek to harmonise global CSR frameworks with local adaptations, navigating institutional duality, political influences and supply-chain intricacies. Empirical research highlights that proactive CSR strategies can mitigate operational risks, foster community development and contribute to global sustainable-development goals, while also posing managerial challenges in balancing standardisation with sensitivity to host-country contexts.
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Corporate Social Responsibility in Multinational Enterprises publication trend
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Technical terms
Institutional duality: The tension MNEs face when reconciling home and host country institutional demands in CSR activities.
Environmental, Social and Governance (ESG) performance: A set of metrics assessing corporate sustainability across environmental, social and governance dimensions.
Stakeholder theory: A management framework positing that firms should account for the interests of all parties affected by corporate actions.
Corporate legitimacy: The perception that a company’s behaviour is appropriate and desirable within a socially constructed system of norms.
References
- The Internationalization–Environmental Performance Relationship: Does it Differ between MNEs in Advanced and Less Advanced Economies?. Business Strategy and the Environment (2024).
- Environmental, Social and Governance Performance of Chinese Multinationals: A Comparison of State- and Non-State-Owned Enterprises. Sustainability (2021).
- Politically connected firms and corporate social responsibility implementation expenditure in sub‐Saharan Africa: Evidence from Ghana. Corporate Social Responsibility and Environmental Management (2020).
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