IDEAS home Printed from https://ideas.repec.org/a/kap/jbuset/v130y2015i4p805-817.html
   My bibliography  Save this article

Being Good When Being International in an Emerging Economy: The Case of China

Author

Listed:
  • Yan-Leung Cheung
  • Dongmin Kong
  • Weiqiang Tan
  • Wenming Wang

Abstract

The importance imposed on corporate social responsibility (CSR) is greater in developed economies than in emerging markets. The pressures from various stakeholder groups on the CSR are expected to have substantial spillover impact on companies domiciled in emerging economies that obtain revenues from companies in developed economies. Based on the data from 1,330 listed companies in China, the largest emerging economy in the world, this study provides evidence that the CSR performance of China firms is positively related to the degree of their internationalization, and such a positive association is less pronounced for state-owned enterprises. Our findings support the hypothesis that internationalized companies in emerging economies are motivated to improve their CSR practices to address concerns from their importers or outsourcers in developed economies. Copyright Springer Science+Business Media Dordrecht 2015

Suggested Citation

  • Yan-Leung Cheung & Dongmin Kong & Weiqiang Tan & Wenming Wang, 2015. "Being Good When Being International in an Emerging Economy: The Case of China," Journal of Business Ethics, Springer, vol. 130(4), pages 805-817, September.
    • Handle: RePEc:kap:jbuset:v:130:y:2015:i:4:p:805-817
    DOI: 10.1007/s10551-014-2268-7
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/s10551-014-2268-7
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s10551-014-2268-7?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. Wenjing Li & Ran Zhang, 2010. "Corporate Social Responsibility, Ownership Structure, and Political Interference: Evidence from China," Journal of Business Ethics, Springer, vol. 96(4), pages 631-645, November.
    2. Vanessa M Strike & Jijun Gao & Pratima Bansal, 2006. "Being good while being bad: social responsibility and the international diversification of US firms," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 37(6), pages 850-862, November.
    3. Haiyang Li & Yan Zhang, 2007. "The role of managers' political networking and functional experience in new venture performance: Evidence from China's transition economy," Strategic Management Journal, Wiley Blackwell, vol. 28(8), pages 791-804, August.
    4. Lucas, Robert E.B. & Wheeler, David & Hettige, Hemamala, 1992. "Economic development, environmental regulation, and the international migration of toxic industrial pollution : 1960-88," Policy Research Working Paper Series 1062, The World Bank.
    5. Alan Muller & Ans Kolk, 2010. "Extrinsic and Intrinsic Drivers of Corporate Social Performance: Evidence from Foreign and Domestic Firms in Mexico," Journal of Management Studies, Wiley Blackwell, vol. 47(1), pages 1-26, January.
    6. Sanjay Sharma & Irene Henriques, 2005. "Stakeholder influences on sustainability practices in the Canadian forest products industry," Strategic Management Journal, Wiley Blackwell, vol. 26(2), pages 159-180, February.
    7. Petra Christmann & Glen Taylor, 2006. "Firm self-regulation through international certifiable standards: determinants of symbolic versus substantive implementation," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 37(6), pages 863-878, November.
    8. Mike W. Peng, 2004. "Outside directors and firm performance during institutional transitions," Strategic Management Journal, Wiley Blackwell, vol. 25(5), pages 453-471, May.
    9. Margarethe F. Wiersema & Harry P. Bowen, 2008. "Corporate diversification: the impact of foreign competition, industry globalization, and product diversification," Strategic Management Journal, Wiley Blackwell, vol. 29(2), pages 115-132, February.
    10. Michael N. Young & Mike W. Peng & David Ahlstrom & Garry D. Bruton & Yi Jiang, 2008. "Corporate Governance in Emerging Economies: A Review of the Principal–Principal Perspective," Journal of Management Studies, Wiley Blackwell, vol. 45(1), pages 196-220, January.
    11. Low, P., 1992. "International Trade and the Environment," World Bank - Discussion Papers 159, World Bank.
    12. Farok J. Contractor, 2007. "Is international business good for companies? The evolutionary or multi-stage theory of internationalization vs. the transaction cost perspective," Management International Review, Springer, vol. 47(3), pages 453-475, June.
    13. Guofu Tan & Justin Yifu Lin, 1999. "Policy Burdens, Accountability, and the Soft Budget Constraint," American Economic Review, American Economic Association, vol. 89(2), pages 426-431, May.
    14. Justin Tan & Mike W. Peng, 2003. "Organizational slack and firm performance during economic transitions: two studies from an emerging economy," Strategic Management Journal, Wiley Blackwell, vol. 24(13), pages 1249-1263, December.
    15. Yadong Luo & Rosalie L Tung, 2007. "International expansion of emerging market enterprises: A springboard perspective," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 38(4), pages 481-498, July.
    16. Glen Dowell & Stuart Hart & Bernard Yeung, 2000. "Do Corporate Global Environmental Standards Create or Destroy Market Value?," Management Science, INFORMS, vol. 46(8), pages 1059-1074, August.
    17. Joanna Tochman Campbell & Lorraine Eden & Stewart R Miller, 2012. "Multinationals and corporate social responsibility in host countries: Does distance matter?," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 43(1), pages 84-106, January.
    18. Amy J. Hillman & Gerald D. Keim, 2001. "Shareholder value, stakeholder management, and social issues: what's the bottom line?," Strategic Management Journal, Wiley Blackwell, vol. 22(2), pages 125-139, February.
    19. Neeraj Arora & Ty Henderson, 2007. "Embedded Premium Promotion: Why It Works and How to Make It More Effective," Marketing Science, INFORMS, vol. 26(4), pages 514-531, 07-08.
    Full references (including those not matched with items on IDEAS)

    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. Sahasranamam, Sreevas & Arya, Bindu & Mukundhan, K.V., 2022. "Dual institutional embeddedness and home country CSR Engagement: Evidence from Indian MNEs," Journal of Business Research, Elsevier, vol. 141(C), pages 163-174.
    2. Ji Li & Ying Zhang & Yanghong Hu & Xiaolong Tao & Wanxing Jiang & Lei Qi, 2018. "Developed market or developing market?: A perspective of institutional theory on multinational enterprises’ diversification and sustainable development with environmental protection," Business Strategy and the Environment, Wiley Blackwell, vol. 27(7), pages 858-871, November.
    3. Pisani, Niccolò & Kourula, Arno & Kolk, Ans & Meijer, Renske, 2017. "How global is international CSR research? Insights and recommendations from a systematic review," Journal of World Business, Elsevier, vol. 52(5), pages 591-614.
    4. Shirodkar, Vikrant & Liedong, Tahiru Azaaviele & Rajwani, Tazeeb & Lawton, Thomas C., 2024. "MNE nonmarket strategy in a changing world: Complexities, varieties, and a values-based approach," International Business Review, Elsevier, vol. 33(2).
    5. Maoliang Bu & Marcus Wagner, 2016. "Racing to the bottom and racing to the top: The crucial role of firm characteristics in foreign direct investment choices," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 47(9), pages 1032-1057, December.
    6. Mike W. Peng & Sunny Li Sun & Lívia Markóczy, 2015. "Human Capital and CEO Compensation during Institutional Transitions," Journal of Management Studies, Wiley Blackwell, vol. 52(1), pages 117-147, January.
    7. Xuelin Bu & Limin Chen, 2023. "From efficiency to legitimacy: the changing logic of internal CSR in emerging multinationals during internationalization," Asian Business & Management, Palgrave Macmillan, vol. 22(4), pages 1418-1453, September.
    8. Sadok El Ghoul & Omrane Guedhami & Yongtae Kim, 2017. "Country-level institutions, firm value, and the role of corporate social responsibility initiatives," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 48(3), pages 360-385, April.
    9. Tang, Zhi & Tang, Jintong, 2012. "Stakeholder–firm power difference, stakeholders' CSR orientation, and SMEs' environmental performance in China," Journal of Business Venturing, Elsevier, vol. 27(4), pages 436-455.
    10. Valentina Marano & Tatiana Kostova, 2016. "Unpacking the Institutional Complexity in Adoption of CSR Practices in Multinational Enterprises," Journal of Management Studies, Wiley Blackwell, vol. 53(1), pages 28-54, January.
    11. Pei Sun & Jonathan P. Doh & Tazeeb Rajwani & Donald Siegel, 2021. "Navigating cross-border institutional complexity: A review and assessment of multinational nonmarket strategy research," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 52(9), pages 1818-1853, December.
    12. Sun, Sunny Li & Peng, Mike W. & Lee, Ruby P. & Tan, Weiqiang, 2015. "Institutional open access at home and outward internationalization," Journal of World Business, Elsevier, vol. 50(1), pages 234-246.
    13. Tai-Hsi Wu & Hsiang-Lin Chih & Mei-Chen Lin & Yi Hua Wu, 2020. "A Data Envelopment Analysis-Based Methodology Adopting Assurance Region Approach for Measuring Corporate Social Performance," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 148(3), pages 863-892, April.
    14. Chen, Shihua & Chen, Yulin & Jebran, Khalil, 2021. "Trust and corporate social responsibility: From expected utility and social normative perspective," Journal of Business Research, Elsevier, vol. 134(C), pages 518-530.
    15. Jijun Gao & Pratima Bansal, 2013. "Instrumental and Integrative Logics in Business Sustainability," Journal of Business Ethics, Springer, vol. 112(2), pages 241-255, January.
    16. Ahsan, Faisal Mohammad & Fuad, Mohammad & Sinha, Ashutosh Kumar, 2021. "Seeking strategic assets within cross-border acquisition waves: a study of Indian firms," Journal of International Management, Elsevier, vol. 27(4).
    17. Valentina Marano & Peter Tashman & Tatiana Kostova, 2017. "Escaping the iron cage: Liabilities of origin and CSR reporting of emerging market multinational enterprises," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 48(3), pages 386-408, April.
    18. Jingtao Yi & Jiatao Li & Liang Chen, 2023. "Ecosystem social responsibility in international digital commerce," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 54(1), pages 24-41, February.
    19. Barkemeyer, Ralf & Preuss, Lutz & Lee, Lindsay, 2015. "On the effectiveness of private transnational governance regimes—Evaluating corporate sustainability reporting according to the Global Reporting Initiative," Journal of World Business, Elsevier, vol. 50(2), pages 312-325.
    20. Rainer Lueg & Maria Medelby Pedersen & Søren Nørregaard Clemmensen, 2015. "The Role of Corporate Sustainability in a Low‐Cost Business Model – A Case Study in the Scandinavian Fashion Industry," Business Strategy and the Environment, Wiley Blackwell, vol. 24(5), pages 344-359, July.

    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:kap:jbuset:v:130:y:2015:i:4:p:805-817. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.