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Strategic Corporate Social Responsibility and Value Creation

A Study of Multinational Enterprises in Mexico

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Abstract

  • This paper examines the conditions under which corporate social responsibility (CSR) is related to value creation in the multinational enterprise (MNE).

  • Following prior work by Burke and Logsdon (1996), we examine the relationship of centrality, appropriability, proactivity, visibility, and voluntarism to value creation.

  • The results of a survey of 111 MNEs in Mexico suggest that centrality, visibility, and voluntarism are related to value creation.

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Notes

  1. One of the anonymous reviewers pointed out that the wording of this item is somewhat ambiguous. The item may only test the extent to which the firm’s mission includes the solution of social problems. In future research, we would recommend asking how social objectives coincide or fit with the firm’s business mission.

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Acknowledgements

The first author thanks the Tecnológico de Monterrey, where he was a professor of management, and the Instituto de Empresa, where he was the Alumni Association Chair of Business Ethics and Corporate Social Responsibility. These institutions actively supported this research. In addition, this research was made possible by a grant from the Consejo Nacional de Ciencia y Tecnología (Conacyt) of the Mexican Federal Government. The authors appreciate the comments of the anonymous mir reviewers.

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Authors and Affiliations

  1. Erivan K. Haub Chair in Business and Sustainability, Schulich School of Business, York University, Toronto, Canada

    Bryan W. Husted

  2. Strategy Department, Instituto de Empresa Business School, Madrid, Spain

    David B. Allen

Authors
  1. Bryan W. Husted
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  2. David B. Allen
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Correspondence to Bryan W. Husted.

Appendix: Survey Questions

Appendix: Survey Questions

Centrality

To what extent do the following objectives of social programs coincide with your firm’s mission?

  • Collaborate with community projects

  • Protect the environment

  • Support social causes

Specificity

Please indicate the extent to which you agree with the following statements:

  • The fulfillment of the firm’s social objectives is necessary to achieve its profit objectives.

Proactivity

  • We scan the social environment in order to promote our firm’s compliance with social expectations.

  • We are usually one of the first to adapt our corporate practices to reflect changing social expectations.

  • We track the development of legislation/regulation in order to have corporate compliance mechanisms in place by the time legislation is enacted.

  • We want to be a pioneer in adopting company policies which comply with new social expectations.

Visibility

The purpose of participating in social action programs is to:

  • Improve the image of the firm

  • Increase the presence of the firm in the media

Voluntarism (note: these items were reverse scaled)

The purpose of participating in social action programs is to:

  • Fulfill legal obligations

  • Follow a regular practice in the industry

  • Obtain favorable tax treatment

Value Creation

  • Influence customer purchase decisions

  • Obtain new customers

  • Develop new products and services

  • Open new markets

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Husted, B., Allen, D. Strategic Corporate Social Responsibility and Value Creation. Manag Int Rev 49, 781–799 (2009). https://doi.org/10.1007/s11575-009-0016-5

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