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The Corporate Social Performance of Developing Country Multinationals

Author

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  • Zyglidopoulos, Stelios
  • Williamson, Peter
  • Symeou, Pavlos

Abstract

In this article, we explore the Corporate Social Performance (CSP) of Developing Country Multinationals (DMNCs). We argue that in competing internationally, DMNCs often face both reputation and legitimacy deficits, which they address by improving their CSP. We develop a series of hypotheses to explain the variation in CSP between DMNCs and domestic-only firms from developing countries and also examine variations in CSP between DMNCs depending on the extent of their multinationality and portfolio of host countries. Our findings support all our hypotheses, which suggest that DMNCs display enhanced levels of CSP compared to their domestic-only counterparts. CSP is also found to be positively related to the DMNCs’ degree of multinationality, but with a declining incremental impact, whereas entry into developed markets leads to a greater improvement in DMNCs’ CSP than expansion into developing markets. We highlight the implications of our findings for managers and researchers.

Suggested Citation

  • Zyglidopoulos, Stelios & Williamson, Peter & Symeou, Pavlos, 2016. "The Corporate Social Performance of Developing Country Multinationals," Business Ethics Quarterly, Cambridge University Press, vol. 26(3), pages 379-406, July.
    • Handle: RePEc:cup:buetqu:v:26:y:2016:i:03:p:379-406_00
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    Citations

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    Cited by:

    1. Ascani, Andrea & Nair, Lakshmi Balachandran & Iammarino, Simona, 2023. "Racing to the bottom or seeking legitimacy? National environmental performance and the location strategies of Chinese MNEs," Journal of International Management, Elsevier, vol. 29(2).
    2. Symeou, Pavlos C. & Zyglidopoulos, Stelios & Gardberg, Naomi A., 2019. "Corporate environmental performance: Revisiting the role of organizational slack," Journal of Business Research, Elsevier, vol. 96(C), pages 169-182.
    3. Luciano Ciravegna & Federica Nieri, 2022. "Business and Human Rights: A Configurational View of the Antecedents of Human Rights Infringements by Emerging Market Firms," Journal of Business Ethics, Springer, vol. 179(2), pages 431-450, August.
    4. Andrija Bariæ & Mislav Ante Omaziæ & Ana Aleksiæ, 2021. "Corporate social responsibility of export organizations: Relation between strategy, activities and communication on foreign markets," Interdisciplinary Description of Complex Systems - scientific journal, Croatian Interdisciplinary Society Provider Homepage: http://indecs.eu, vol. 19(1), pages 120-131.
    5. Symeou, Pavlos C. & Zyglidopoulos, Stelios & Williamson, Peter, 2018. "Internationalization as a driver of the corporate social performance of extractive industry firms," Journal of World Business, Elsevier, vol. 53(1), pages 27-38.
    6. Peng‐Yu Li, 2023. "Determinants of corporate social responsibility performance in emerging markets: An international orientation perspective," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(3), pages 1348-1362, May.
    7. Cuervo-Cazurra, Alvaro & Dieleman, Marleen & Hirsch, Paul & Rodrigues, Suzana B. & Zyglidopoulos, Stelios, 2021. "Multinationals’ misbehavior," Journal of World Business, Elsevier, vol. 56(5).
    8. Anthony Goerzen & Michael Sartor & Kristin Brandl & Stacey Fitzsimmons, 2023. "Widening the lens: Multilevel drivers of firm corporate social performance," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 54(1), pages 42-60, February.
    9. Mazboudi, Mohamad & Sidani, Yusuf M. & Al Ariss, Akram, 2020. "Harmonization of firm CSR policies across national contexts: Evidence from Brazil & Sweden," International Business Review, Elsevier, vol. 29(5).
    10. Chowdhury, Reza H. & Fu, Chengbo & Huang, Qiping & Lin, Nanying, 2021. "CSR disclosure of foreign versus U.S. firms: Evidence from ADRs," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 70(C).
    11. Annika Veh & Markus Göbel & Rick Vogel, 2019. "Corporate reputation in management research: a review of the literature and assessment of the concept," Business Research, Springer;German Academic Association for Business Research, vol. 12(2), pages 315-353, December.
    12. Roger Leonard Burritt & Katherine Leanne Christ & Hussain Gulzar Rammal & Stefan Schaltegger, 2020. "Multinational Enterprise Strategies for Addressing Sustainability: the Need for Consolidation," Journal of Business Ethics, Springer, vol. 164(2), pages 389-410, June.
    13. Shili Chen & Niels Hermes & Reggy Hooghiemstra, 2022. "Corporate Social Responsibility and NGO Directors on Boards," Journal of Business Ethics, Springer, vol. 175(3), pages 625-649, January.
    14. repec:zna:indecs:v:19:y:2021:i:4:p:120-131 is not listed on IDEAS
    15. Thomas, Manoj T., 2018. "Developing a capstone course on ecological and social sustainability in business education," Business Horizons, Elsevier, vol. 61(6), pages 949-958.
    16. Buckley, Peter J & Cui, Lin & Chen, Liang & Li, Yi & Choi, Yoona, 2023. "Following their predecessors’ journey? A review of EMNE studies and avenues for interdisciplinary inquiry," Journal of World Business, Elsevier, vol. 58(2).
    17. Germano Glufke Reis & Carla Forte Maiolino Molento, 2020. "Emerging Market Multinationals and International Corporate Social Responsibility Standards: Bringing Animals to the Fore," Journal of Business Ethics, Springer, vol. 166(2), pages 351-368, October.
    18. Amer, Estefania, 2023. "Internationalization, institutional pressures in foreign markets, and environmental sustainability," Journal of International Management, Elsevier, vol. 29(1).
    19. Runhui Lin & Yuan Gui & Zaiyang Xie & Lu Liu, 2019. "Green Governance and International Business Strategies of Emerging Economies’ Multinational Enterprises: A Multiple-Case Study of Chinese Firms in Pollution-Intensive Industries," Sustainability, MDPI, vol. 11(4), pages 1-32, February.

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