Abstract
This paper investigates the corporate social responsibility (CSR) management strategies in multinational enterprises’ (MNEs) subsidiaries. Despite the various efforts of MNEs in the area of CSR, very little is known about the CSR management strategies that MNE subsidiaries adopt, particularly in the context of developing countries, and how such strategies either constrain or facilitate the realization of the wider global commitment towards sustainable development. In addressing these questions, the paper considers stakeholder theory and institutional theory to establish factors that influence CSR management strategies; in particular, the formulation and implementation of CSR programmes in the host country subsidiaries. Semi-structured interviews with senior managers responsible for CSR in eight MNEs operating in Bangladesh reveal that institutional pressure is the most important influence for MNE subsidiaries in their design of CSR programmes and that MNE subsidiaries in the host countries suffer from ‘institutional duality’ when designing and implementing their CSR programmes. While most of the CSR programmes are designed and managed directly by the parent company, they often resemble the more legitimate and successful CSR programmes of local enterprises (emulative isomorphism). Interestingly, the CSR formulation process very rarely engages external local stakeholders and when they do, stakeholders’ roles are principally limited to programme implementation. Although a handful of MNE subsidiaries, originating from the same home country, were found to collaborate with each other in their CSR initiatives, no such partnership between MNE subsidiaries and local enterprises was evident. In order to ensure that MNEs’ CSR programmes have a sustainable impact, the paper urges MNEs to revisit their current CSR management approach, and adopt broader strategies incorporating engagement of local stakeholders, building partnerships with local enterprises, and the capacity building of local subsidiaries.
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Notes
- 1.
The author would like to thank Professor Brian West, Federation Business School, Federation University Australia for his valuable comments and assistance to improve the quality of this paper.
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Moyeen, A. (2018). CSR Management Strategies, Stakeholder Engagement and MNE Subsidiaries Efforts to Foster Sustainable Development. In: Crowther, D., Seifi, S., Moyeen, A. (eds) The Goals of Sustainable Development . Approaches to Global Sustainability, Markets, and Governance. Springer, Singapore. https://doi.org/10.1007/978-981-10-5047-3_3
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