Corporate Social Responsibility of Foreign Multinationals in a Developing Country Context: Insights from Pakistan
Abstract
:1. Introduction
2. Relevant Theoretical Perspectives
2.1. Proposed Model for This Research: A Global CSR Model
- MNCs should make profit according to expectations of the international community (including the international business community).
- MNCs should comply with international and host country laws.
- MNCs should consider both global and host country ethical standards.
- MNCs should meet host country expectations in relation to good corporate citizenship.
2.2. Contextual Background-Pakistan
3. Research Methodology
4. Research Findings
4.1. CSR Conceptualisation
4.2. Motivation for CSR Practices
4.3. Corporate Social Responsiveness Strategies
4.4. Outcomes of CSR Practices
5. Discussion on Empirical Findings
6. Conclusions
Author Contributions
Funding
Conflicts of Interest
References
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Principles of Corporate Social Responsibility |
---|
Institutional principle: legitimacy |
Organizational principle: public responsibility |
Individual principle: managerial discretion |
Processes of Corporate Social Responsiveness |
Environmental assessment |
Stakeholder management |
Issues management |
Outcomes of Corporate Behavior |
Social impacts |
Social programs |
Social policies |
Company | Operations | Managerial Position | Duration of Interview | Subsidiary Office Location | Origin |
---|---|---|---|---|---|
A | Tobacco & Cigarettes | CSR Manager | 55 m | Islamabad, Pakistan | UK |
B | Oil & Gas Exploration and Production | CSR Manager | 90 m | Islamabad, Pakistan | Austria |
C | Telecommunication Service Provider | Strategy Head | 50 m | Islamabad, Pakistan | China |
D | Food and Beverages | CSR Manager | 77 m | Lahore, Pakistan | Switzerland |
E | Telecommunication Hardware | Marketing Head | 140 m | Islamabad, Pakistan | China |
F | Oil & Gas Exploration and Production | Production Manager | 110 m | Islamabad, Pakistan | US |
G | Banking Services | CSR Manager | 78 m | Islamabad, Pakistan | UAE |
H | Software Solutions | Marketing Manager | 110 m | Lahore, Pakistan | US |
I | International retail | Marketing Manger | 80 m | Lahore, Pakistan | UAE |
J | Auto/Car manufacturer and distributor | CSR Manager | 98 m | Lahore, Pakistan | Japan |
CSR Domains | Empirical Focus |
---|---|
Philanthropic/Discretionary | All MNC managers explicitly motioned voluntary action or philanthropic activities. |
Ethical | Most of the MNC managers (B, E, F, and J) mentioned the ethical dimension of responsibility. |
Legal | Not a single respondent mentioned the legal dimension of responsibility. |
Economic | Only one respondent focused on net profit and revenue (Company H). |
Principles of Motivation | Empirical Focus |
---|---|
Legitimacy | Giving back to the society (Companies B, E D, F, J) |
Meeting interests and needs of societal expectations (Company A.I) | |
Acceptance in the local community (Company C) | |
Accountability to society (Company G) | |
Managerial discretion | Explicit positive interest and encouragement of CEO and senior management (Companies A, E, J) |
Implicit negative discretion (Companies H, B) | |
Public responsibility | Core business value (Company D, I) |
CSR linked with primary or secondary operations (companies E, F) |
Wood’s (1991) perspective | Environmental Scanning process: Generally MNCs are not involved in systematic environmental scanning process (Companies A, B, C, E, F, H, I, J) |
Stakeholder Management: Mixed views (Companies E, C, I, J), mostly engagement is at an operational level, not systematic and continuous. Mistrust of stakeholders (Companies C, D, E) | |
Issue Management: Often on an ad hoc basis | |
Carroll (1979) Responsiveness | No evidence of proactive responsiveness strategy |
All MNCs are involved in reactive and defensive strategy to maintain legitimacy |
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Yunis, M.S.; Jamali, D.; Hashim, H. Corporate Social Responsibility of Foreign Multinationals in a Developing Country Context: Insights from Pakistan. Sustainability 2018, 10, 3511. https://doi.org/10.3390/su10103511
Yunis MS, Jamali D, Hashim H. Corporate Social Responsibility of Foreign Multinationals in a Developing Country Context: Insights from Pakistan. Sustainability. 2018; 10(10):3511. https://doi.org/10.3390/su10103511
Chicago/Turabian StyleYunis, Mohammad Sohail, Dima Jamali, and Hina Hashim. 2018. "Corporate Social Responsibility of Foreign Multinationals in a Developing Country Context: Insights from Pakistan" Sustainability 10, no. 10: 3511. https://doi.org/10.3390/su10103511
APA StyleYunis, M. S., Jamali, D., & Hashim, H. (2018). Corporate Social Responsibility of Foreign Multinationals in a Developing Country Context: Insights from Pakistan. Sustainability, 10(10), 3511. https://doi.org/10.3390/su10103511