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Open AccessArticle

Corporate Social Responsibility in Global Supply Chains: Deeds Not Words

1
Kiel Centre for Globalization, Kiel Institute for the World Economy, Kiellinie 66, 24105 Kiel, Germany
2
United Nations Industrial Development Organization, 1400 Vienna, Austria
*
Author to whom correspondence should be addressed.
Sustainability 2018, 10(10), 3675; https://doi.org/10.3390/su10103675
Received: 4 September 2018 / Revised: 8 October 2018 / Accepted: 9 October 2018 / Published: 14 October 2018
(This article belongs to the Special Issue Economic Geography: Location, Innovation and Sustainable Development)
The disconnect between the lofty aspirations of firms claiming Corporate Social Responsibility (CSR) and their shortcomings in practice have caused some observers to question its usefulness. The fallout from events like the Rana Plaza catastrophe has highlighted some of these shortcomings—namely, deficiencies in how multinational enterprises (MNEs) transact with suppliers in developing countries. Specifically, our paper aims to investigate whether or not MNEs behave hypocritically by examining the alignment of CSR to business practices in MNE affiliates in developing countries. To answer this question, we apply standard ordinary least squares (OLS) techniques to data for over 1000 MNEs that claim to have a CSR ethos. We find that CSR-active enterprises report significantly higher worker wages, ceteris paribus. Local African suppliers benefit from CSR through knowledge transfer, but only when MNEs make tangible investments in supplier development. View Full-Text
Keywords: corporate social responsibility; corporate hypocrisy; Africa; wages; knowledge transfer corporate social responsibility; corporate hypocrisy; Africa; wages; knowledge transfer
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Görg, H.; Hanley, A.; Seric, A. Corporate Social Responsibility in Global Supply Chains: Deeds Not Words. Sustainability 2018, 10, 3675.

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