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Corporate social responsibility diffusion by multinational subsidiaries in Indonesia: organisational dynamic and institutional effect

Author

Listed:
  • Melia Famiola
  • Siti Adiprigandari Adiwoso

Abstract

Purpose - – The purpose of this study is to explore the extent of relational and institutional pressures’ influence on both the motivation for and diffusion of corporate social responsibility (CSR) practices of multinational corporation (MNC) subsidiaries in the food industries in Indonesia. Design/methodology/approach - – This study uses qualitative approach, and the data were collected by interviewing CSR managers and investigating the CSR practices and the annual reports of six subsidiaries of food-manufacturing MNCs in Indonesia. Findings - – This study found that internal pressures within MNC organisations are the main drivers of their CSR practices. These finding were, then, refined to account for local cognitive and normative institutional pressures. It was also found that while regulation in a host country was critical to its subsidiary compliance, it did not contribute appreciably to the precise types of CSR practices. The (isomorphic) similarity of CSR patterns had less to do with the institutional pressures but more with sector- or field-level pressures in food manufacturing. Most MNC subsidiaries focused on issues such as agricultural or rural development (related to their supply chain) or health and nutrition (related to their core business). Research limitations/implications - – This study focuses on a specific industrial sector (food and beverage manufacture); therefore, the isomorphic patterns could not be concluded as an influential effect of the institutional context of Indonesia; rather, they are due to sectoral- or field-level pressure in food and beverage manufacturing. To confirm this study results, a multi-sectoral involvement in future studies is suggested. Originality/value - – This study uses organisational dynamics and institutional theory to explore CSR adoption in multinational subsidiaries in Indonesia.

Suggested Citation

  • Melia Famiola & Siti Adiprigandari Adiwoso, 2016. "Corporate social responsibility diffusion by multinational subsidiaries in Indonesia: organisational dynamic and institutional effect," Social Responsibility Journal, Emerald Group Publishing Limited, vol. 12(1), pages 117-129, March.
  • Handle: RePEc:eme:srjpps:v:12:y:2016:i:1:p:117-129
    DOI: 10.1108/SRJ-10-2013-0128
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    Citations

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    Cited by:

    1. Bambang Rudito & Melia Famiola & Prameshwara Anggahegari, 2022. "Corporate Social Responsibility and Social Capital: Journey of Community Engagement toward Community Empowerment Program in Developing Country," Sustainability, MDPI, vol. 15(1), pages 1-12, December.
    2. 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.
    3. Bojana Kalenjuk Pivarski & Stefan Šmugović & Dragana Tekić & Velibor Ivanović & Aleksandra Novaković & Dragan Tešanović & Maja Banjac & Bojan Đerčan & Tatjana Peulić & Beba Mutavdžić & Jasmina Lazarev, 2022. "Characteristics of Traditional Food Products as a Segment of Sustainable Consumption in Vojvodina’s Hospitality Industry," Sustainability, MDPI, vol. 14(20), pages 1-19, October.
    4. Waris Ali & Maha Faisal Alsayegh & Zubair Ahmad & Zeeshan Mahmood & Javed Iqbal, 2018. "The Relationship between Social Visibility and CSR Disclosure," Sustainability, MDPI, vol. 10(3), pages 1-32, March.

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