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Regaining Legitimacy in an MNC After a Socio-Ecological Crisis: An Un(smart) Business Strategy?

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Sustainable International Business

Part of the book series: Contributions to Management Science ((MANAGEMENT SC.))

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Abstract

Multinational Enterprises (MNEs) are recognised as important and powerful strategic agents for providing momentum to the United Nation’s (UN’s) Agenda 2030 through their ability to implement the Sustainable Development Goals (SDGs) internationally. However, we can also learn from the mistakes of MNEs that cause socio-ecological destruction in their host countries. This chapter develops an understanding of the effects of corporate social responsibility (CSR) legitimisation strategies adopted by an MNE after a crisis event, namely Vale’s Córrego do Feijão mine collapse complex in Brazil, which claimed the lives of over 270 people and caused huge socio-ecological damage. The chapter contributes to growing research on CSR and MNEs by elaborating on the importance of local CSR legitimisation strategies for MNEs to regain legitimacy in the immediate aftermath of crisis events in the affected communities. This requires MNEs moving beyond communicating CSR as empty rhetoric from a more pragmatic legitimacy stance, which serves a global legitimisation function, towards MNEs acting upon their CSR promises in local contexts for legitimacy to be regained. Additionally, the chapter suggests the potential for local crisis events to shape global CSR strategies in industries that positively contribute to the SDGs through the learnings made.

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Notes

  1. 1.

    Cognitive legitimacy would mean that an MNE’s CSR approach would be considered appropriate if it aligns with pre-constructed beliefs within a society of accepted practices and taken for granted assumptions (see Suchman, 1995).

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Author notes

  1. Both authors contributed equally to the book chapter. Emilene Leite came up with the initial idea for the chapter, identified and selected the business case, and wrote the first draft of the background and literature review. Meanwhile, Leanne Johnstone wrote the method section, conducted the empirical analysis, and revised the initial version of the book chapter in response to peer review. Both authors discussed the case, contributed to the conclusions, and reviewed each other’s parts, as well as approved the final version.

Authors and Affiliations

  1. Örebro University School of Business, Örebro, Sweden

    Emilene Leite & Leanne Johnstone

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  1. Emilene Leite
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  2. Leanne Johnstone
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Correspondence to Emilene Leite .

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Editors and Affiliations

  1. Northumbria University, Newcastle-upon-Tyne, UK

    Pratik Arte

  2. University of Southern Denmark, Odense, Denmark

    Yi Wang

  3. University of Houston-Downtown, Houston, TX, USA

    Cheryl Dowie

  4. University of Southern Denmark, Odense, Denmark

    Maria Elo

  5. Technical University of Denmark, Kongens Lyngby, Denmark

    Salla Laasonen

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Leite, E., Johnstone, L. (2023). Regaining Legitimacy in an MNC After a Socio-Ecological Crisis: An Un(smart) Business Strategy?. In: Arte, P., Wang, Y., Dowie, C., Elo, M., Laasonen, S. (eds) Sustainable International Business. Contributions to Management Science. Springer, Cham. https://doi.org/10.1007/978-3-031-43785-4_12

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