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Institutional environments, cross-national distances, and MNEs’ corporate social irresponsibility in host countries

In: Research Handbook on International Corporate Social Responsibility

Author

Listed:
  • Raveendra Chittoor
  • Ye He

Abstract

Building on institutional perspectives and the ‘distance’ research in the international business field, our study examines how the institutional characteristics of home and host countries, their interplay, as well as cross-national institutional distances affect multinational enterprises’ (MNEs’) corporate social irresponsibility (CSI) in host countries. We test our hypotheses using panel data of 1,087 listed firms based in 48 countries, with CSI incidents occurring in 150 host countries during 2007-2018. We find that stronger home and host institutions are both negatively associated with CSI occurring in the host markets, but the mitigating effect of host (home) institutions on CSI will be weaker when home (host) institutions are stronger. We further find that as institutional distance between home and host countries increases, MNEs’ involvement in CSI incidents in the host countries grows. We contribute by offering theory and empirical evidence on how MNEs respond to varied institutional pressures in their engagement of CSI.

Suggested Citation

  • Raveendra Chittoor & Ye He, 2023. "Institutional environments, cross-national distances, and MNEs’ corporate social irresponsibility in host countries," Chapters, in: Anthony Goerzen (ed.), Research Handbook on International Corporate Social Responsibility, chapter 13, pages 187-204, Edward Elgar Publishing.
    • Handle: RePEc:elg:eechap:21263_13
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    File URL: https://www.elgaronline.com/doi/10.4337/9781802207040.00019
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