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Institutions as Determinant Factors of Corporate Responsibility Strategies of Multinational Firms

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  • Juan Jose Duran
  • Nuria Bajo

Abstract

This article examines whether the relative market value and corporate responsibility (CR) performance of multinational corporations (MNCs) that comply with rigorous international standards are explained by the degree of institutional development, the capitalist model of the country of origin, and the industrial sector in which the MNCs operate. Based on a sample of 336 MNCs from 24 countries included in the Dow Jones Sustainability Index and the FTSE4Good Index, we find that the corporate social responsibility (CSR) strategy among large MNCs is primarily determined by the capitalist (and institutional) model of their country of origin and the sector of activity in which such firms operate. Namely, more than four‐fifths of the firms belong to globally integrated sectors. In general, MNCs perform a global (integrated) CR strategy. Copyright © 2012 John Wiley & Sons, Ltd and ERP Environment.

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  • Juan Jose Duran & Nuria Bajo, 2014. "Institutions as Determinant Factors of Corporate Responsibility Strategies of Multinational Firms," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 21(6), pages 301-317, November.
    • Handle: RePEc:wly:corsem:v:21:y:2014:i:6:p:301-317
    DOI: 10.1002/csr.1308
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    2. Meng Ye & Weisheng Lu & Roger Flanagan & Kwong Wing Chau, 2020. "Corporate social responsibility “glocalisation”: Evidence from the international construction business," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(2), pages 655-669, March.
    3. Eduardo Ortas & Isabel Gallego‐Álvarez & Igor Álvarez, 2019. "National institutions, stakeholder engagement, and firms' environmental, social, and governance performance," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 26(3), pages 598-611, May.
    4. Víctor Amor-Esteban & Mª-Purificación Galindo-Villardón & Isabel-María García-Sánchez, 2019. "A Multivariate Proposal for a National Corporate Social Responsibility Practices Index (NCSRPI) for International Settings," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 143(2), pages 525-560, June.
    5. 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.
    6. Laura Corazza & Simone Domenico Scagnelli & Chiara Mio, 2017. "Simulacra and Sustainability Disclosure: Analysis of the Interpretative Models of Creating Shared Value," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 24(5), pages 414-434, September.
    7. 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.
    8. Cinthia Leonora Murillo‐Avalos & Mitzi Cubilla‐Montilla & Miguel Ángel Celestino Sánchez & Purificación Vicente‐Galindo, 2021. "What environmental social responsibility practices do large companies manage for sustainable development?," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(1), pages 153-168, January.
    9. Nuria Calvo & Flora Calvo, 2018. "Corporate social responsibility and multiple agency theory: A case study of internal stakeholder engagement," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 25(6), pages 1223-1230, November.
    10. Gregoria A. Yudarwati & Marianne D. Sison & Ignatius A. Putranto & Putu Wiratsari, 2023. "Enacting institutional drivers towards strategic corporate social responsibility: The sensemaking process in multinational companies," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(4), pages 1782-1793, July.
    11. Paolo Esposito & Emanuele Doronzo & Spiridione Lucio Dicorato, 2023. "The financial and green effects of cultural values on mission drifts in European social enterprises," Business Strategy and the Environment, Wiley Blackwell, vol. 32(1), pages 1-29, January.
    12. Maria-José García-López & Juan-José Durán & Carmen Avilés-Palacios, 2022. "Managing Reputation in MNEs through Intangible Liabilities," Sustainability, MDPI, vol. 14(5), pages 1-15, March.
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    14. Khojastehpour, Morteza & Shams, S.M. Riad, 2020. "Addressing the complexity of stakeholder management in international ecological setting: A CSR approach," Journal of Business Research, Elsevier, vol. 119(C), pages 302-309.

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