IDEAS home Printed from https://ideas.repec.org/a/eme/srjpps/v6y2010i4p593-610.html
   My bibliography  Save this article

Incorporating stakeholder approach in corporate social responsibility (CSR): a case study at multinational corporations (MNCs) in Penang

Author

Listed:
  • Wong Lai Cheng
  • Jamilah Ahmad

Abstract

Purpose - The purpose of this research is to gain deeper understanding on how the stakeholders' relationship is incorporated in multinational corporations' (MNCs') corporate social responsibility (CSR) approach. Design/methodology/approach - Stakeholder theory by Freeman was used as the theoretical framework of this research. A case study of two established MNCs in Penang, Malaysia, were conducted and analysed through within‐case and cross‐case analysis. Three research questions focusing on aspects of CSR (internal and external), concerns of primary and secondary stakeholders based on Carroll's three‐domain approach and factors that influence CSR practices within each stakeholder group were developed. Findings - A main theoretical contribution of the study found that MNCs in developing countries are increasingly addressing new ways to incorporate CSR internal and external aspects in their operations which will eventually alter the fundamental process of evaluation among their stakeholders. Given the tendency among developing countries to regard all forms of CSR concerns, economic, ethical and legal concerns are equally important. Another main theoretical contribution of this study highlighted that different locality between home country and foreign country operation does affect the CSR work. Findings of this study show that the view of increasing investor clout on CSR in the country where they do business does not affect the MNCs and the influence of CSR activist as top CSR issues does not directly influence MNCs' actual CSR work. Research limitations/implications - The study has clearly projected the use of stakeholder theory by Freeman. Internal and external aspects of CSR were supported by these organisations as their standard practices. MNCs need to assume these concerns (economic, ethical and legal) for meeting the obligations towards their stakeholders. Stakeholders are significant drivers of CSR which can affect, or is affected by, the achievement of the organisations' objectives. Practical implications - The study presents practical implications for policy makers and MNCs in developing countries on new ways of incorporating CSR internal and external aspects in their operations and various concerns (economic, ethical, legal) of stakeholders that have been accepted as necessary for the proper functioning of business. Originality/value - This research paper provides a strong base for MNCs and academicians to understand the various aspects, concerns and factors that influence CSR practices within each stakeholder group.

Suggested Citation

  • Wong Lai Cheng & Jamilah Ahmad, 2010. "Incorporating stakeholder approach in corporate social responsibility (CSR): a case study at multinational corporations (MNCs) in Penang," Social Responsibility Journal, Emerald Group Publishing Limited, vol. 6(4), pages 593-610, October.
    • Handle: RePEc:eme:srjpps:v:6:y:2010:i:4:p:593-610
    DOI: 10.1108/17471111011083464
    as

    Download full text from publisher

    File URL: https://www.emerald.com/insight/content/doi/10.1108/17471111011083464/full/html?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://www.emerald.com/insight/content/doi/10.1108/17471111011083464/full/pdf?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://libkey.io/10.1108/17471111011083464?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Schwartz, Mark S. & Carroll, Archie B., 2003. "Corporate Social Responsibility: A Three-Domain Approach," Business Ethics Quarterly, Cambridge University Press, vol. 13(4), pages 503-530, October.
    2. Knox, Simon & Maklan, Stan, 2004. "Corporate Social Responsibility:: Moving Beyond Investment Towards Measuring Outcomes," European Management Journal, Elsevier, vol. 22(5), pages 508-516, October.
    3. Arthaud-Day, Marne L., 2005. "Transnational Corporate Social Responsibility: A Tri-Dimensional Approach to International CSR Research," Business Ethics Quarterly, Cambridge University Press, vol. 15(1), pages 1-22, January.
    4. Freeman, R. Edward & Liedtka, Jeanne, 1991. "Corporate social responsibility: A critical approach," Business Horizons, Elsevier, vol. 34(4), pages 92-98.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Talat Islam & Saima Ahmad & Ishfaq Ahmed, 2023. "Linking environment specific servant leadership with organizational environmental citizenship behavior: the roles of CSR and attachment anxiety," Review of Managerial Science, Springer, vol. 17(3), pages 855-879, April.
    2. Gang Tian & Gabriel Dodzi Pekyi & Haojia Chen & Huaping Sun & Xiaoling Wang, 2021. "Sustainability-Conscious Stakeholders and CSR: Evidence from IJVs of Ghana," Sustainability, MDPI, vol. 13(2), pages 1-23, January.
    3. Sadaat Ali Yawar & Stefan Seuring, 2017. "Management of Social Issues in Supply Chains: A Literature Review Exploring Social Issues, Actions and Performance Outcomes," Journal of Business Ethics, Springer, vol. 141(3), pages 621-643, March.
    4. Zarzycka Ewelina & Krasodomska Joanna & Dobija Dorota, 2021. "Stakeholder Engagement in Corporate Social Practices and Non-Financial Disclosures: A Systematic Literature Review," Journal of Management and Business Administration. Central Europe, Sciendo, vol. 29(1), pages 112-135, March.
    5. Park, Byung Il & Ghauri, Pervez N., 2015. "Determinants influencing CSR practices in small and medium sized MNE subsidiaries: A stakeholder perspective," Journal of World Business, Elsevier, vol. 50(1), pages 192-204.
    6. Tafadzwa Mark Wasara & Fortune Ganda, 2019. "The Relationship between Corporate Sustainability Disclosure and Firm Financial Performance in Johannesburg Stock Exchange (JSE) Listed Mining Companies," Sustainability, MDPI, vol. 11(16), pages 1-23, August.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jill Brown & William Forster, 2013. "CSR and Stakeholder Theory: A Tale of Adam Smith," Journal of Business Ethics, Springer, vol. 112(2), pages 301-312, January.
    2. Mario La Torre & Sabrina Leo & Ida Claudia Panetta, 2021. "Banks and environmental, social and governance drivers: Follow the market or the authorities?," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(6), pages 1620-1634, November.
    3. Ina Freeman & Amir Hasnaoui, 2011. "The Meaning of Corporate Social Responsibility: The Vision of Four Nations," Journal of Business Ethics, Springer, vol. 100(3), pages 419-443, May.
    4. Sanjukta Choudhury Kaul & Quamrul Alam & Manjit Singh Sandhu, 2022. "Why Disability Mainstreaming is Good for Business: A New Narrative," Journal of Business Ethics, Springer, vol. 177(4), pages 861-873, May.
    5. repec:dau:papers:123456789/1059 is not listed on IDEAS
    6. Stephen Chen, 2009. "Corporate Responsibilities in Internet-Enabled Social Networks," Journal of Business Ethics, Springer, vol. 90(4), pages 523-536, December.
    7. Meyer, Margit & Waßmann, Jan, 2011. "Strategische Corporate Social Responsibility. Konzeptionelle Entwicklung und Implementierung in der Praxis am Beispiel 'dm-drogerie markt'," Research Papers on Marketing Strategy 3/2011, Julius-Maximilians-Universität Würzburg, Lehrstuhl für BWL und Marketing.
    8. Maria Lam, 2009. "Beyond Credibility of Doing Business in China: Strategies for Improving Corporate Citizenship of Foreign Multinational Enterprises in China," Journal of Business Ethics, Springer, vol. 87(1), pages 137-146, April.
    9. Jared Peifer, 2014. "Fund Loyalty Among Socially Responsible Investors: The Importance of the Economic and Ethical Domains," Journal of Business Ethics, Springer, vol. 121(4), pages 635-649, June.
    10. Nir Halevy & Sora Jun & Eileen Y. Chou, 2020. "Intergroup Conflict is Our Business: CEOs’ Ethical Intergroup Leadership Fuels Stakeholder Support for Corporate Intergroup Responsibility," Journal of Business Ethics, Springer, vol. 162(1), pages 229-246, February.
    11. Miethlich, Boris & Oldenburg, Anett G., 2019. "Social Inclusion Drives Business Sales: A Literature Review on the Case of the Employment of Persons With Disabilities," EconStor Conference Papers 200752, ZBW - Leibniz Information Centre for Economics.
    12. Onyeka Osuji, 2011. "Fluidity of Regulation-CSR Nexus: The Multinational Corporate Corruption Example," Journal of Business Ethics, Springer, vol. 103(1), pages 31-57, September.
    13. Monica Thiel, 2010. "Innovations in Corporate Social Responsibility from Global Business Leaders at Panasonic, Thomson Reuters and Nanyang Business School," American Journal of Economics and Business Administration, Science Publications, vol. 2(2), pages 194-200, September.
    14. Marcelo Royo-Vela & Jonathan Cuevas Lizama, 2022. "Creating Shared Value: Exploration in an Entrepreneurial Ecosystem," Sustainability, MDPI, vol. 14(14), pages 1-23, July.
    15. Ruth Alas & Külliki Tafel, 2008. "Conceptualizing the Dynamics of Social Responsibility: Evidence from a Case Study of Estonia," Journal of Business Ethics, Springer, vol. 81(2), pages 371-385, August.
    16. Leonardo Becchetti & Emanuele Bobbio & Federico Prizia & Lorenzo Semplici, 2022. "Going Deeper into the S of ESG: A Relational Approach to the Definition of Social Responsibility," Sustainability, MDPI, vol. 14(15), pages 1-22, August.
    17. André, Kévin, 2013. "Why Should Business Education Care About Care? Toward an Educare Perspective," ESSEC Working Papers WP1315, ESSEC Research Center, ESSEC Business School.
    18. Siying Cai & Wenzhong Zhu & Yuting Wang, 2023. "Corpus analysis of evaluative language and framework implementation for pharmaceutical industry CSR reports," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(4), pages 2037-2052, July.
    19. Heidi Reed, 2024. "“When money is more valuable than people…”: The pandemic as a call for business to care," Gender, Work and Organization, Wiley Blackwell, vol. 31(2), pages 435-455, March.
    20. Tomina Saveanu & Daniel Badulescu & Sorana Saveanu & Maria-Madela Abrudan & Alina Badulescu, 2021. "The Role of Owner-Managers in Shaping CSR Activity of Romanian SMEs," Sustainability, MDPI, vol. 13(20), pages 1-19, October.
    21. Layla Branicki & Senia Kalfa & Alison Pullen & Stephen Brammer, 2023. "Corporate Responses to Intimate Partner Violence," Journal of Business Ethics, Springer, vol. 187(4), pages 657-677, November.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eme:srjpps:v:6:y:2010:i:4:p:593-610. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Emerald Support (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.