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Strategies of legitimation: MNEs and the adoption of CSR in response to host-country institutions

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Abstract

Drawing on institutional theory, this study examines the question of how host country institutions affect corporate social responsibility (CSR) adoption by multinational enterprises (MNEs). I propose that CSR encompasses a set of practices that MNEs draw on to signal legitimacy in different kinds of institutional contexts – contexts that vary in how they shape issue salience and stakeholder power in a given issue field. Building on ideas related to field opacity and the managerial implications of CSR, I study why MNEs adopt two distinct types of CSR policies: standards-based CSR in response to contexts marked by issue salience, and rights-based CSR in response to contexts marked by stakeholder power. To test these hypotheses, I use subsidiary and firm-level data from a sample of 540 Western European MNEs in the issue field of labor rights. Results show that MNEs strategically adopt these CSR policies related to their presence in distinct institutional contexts. The study offers implications for how MNEs manage the legitimacy of their global operations and how CSR, as a form of private governance, can emerge as both a substitute and complement to regulatory institutions.

Abstract

Fondée sur la théorie institutionnelle, cette étude examine la question de comment les institutions du pays d’accueil influencent la responsabilité sociale des entreprises (RSE) adoptée par les entreprises multinationales (EMN). Je propose que la RSE englobe une série de pratiques que les EMN avancent pour signaler leur légitimité dans différents contextes institutionnels – des contextes qui varient dans leur manière de traiter l’importance du sujet et le pouvoir des parties prenantes dans un domaine donné du sujet. En m’appuyant sur des idées liées à l’opacité du domaine et les implications managériales de la RSE, j’étudie pourquoi les EMN adoptent deux types distincts de politiques de RSE : la RSE fondée sur des normes en réponse aux contextes marqués par la prépondérance du sujet, et la RSE fondée sur des droits en réponse aux contextes marqués par le pouvoir des parties prenantes. Pour tester ces hypothèses, j’utilise des données concernant les filiales et les entreprises d’un échantillon de 540 EMN originaires de l’Europe de l’Ouest dans le domaine des droits du travail. Les résultats montrent que, dans une perspective stratégique, les EMN adoptent ces politiques de RSE en fonction de leur présence dans des contextes institutionnels différents. L’étude propose des implications sur la manière dont les EMN gèrent la légitimité de leurs opérations mondiales et dont la RSE, comme une forme de gouvernance privée, peut émerger à la fois comme un substitut et comme un complément aux institutions réglementaires.

Abstract

Con base en la teoría institucional, este estudio examina cómo las instituciones del país anfitrión afectan la adopción de la responsabilidad social empresarial (RSE) por parte de las empresas multinacionales (EMN). Propongo que la RSE contiene un conjunto de prácticas en las que las EMN se basan para dar señales de legitimidad en diferentes clases de contextos institucionales – contextos que varían en cómo determinan la importancia del tema y el poder de las partes interesadas en un aspecto determinado del campo. Avanzando en las ideas relacionadas con la opacidad de campo y en las implicaciones gerenciales de la RSE, estudio porque las EMN adoptan dos tipos distintivos de políticas de RSE en respuesta a los contextos marcos por el poder de las partes interesadas. Para probar estas hipótesis, uso datos de subsidiaria y a nivel de la empresa de una muestra de 540 EMN de Europa Occidental en el cambio de los derechos laborales. Los resultados muestra como las EMN estratégicamente adoptan estas políticas de RSE a su presencia en diferentes contexto. Este estudio ofrece implicaciones para como las EMN administran la legitimidad en sus operaciones globales y como la RSE, como una forma de gobernanza privada, puede emerger tanto como un substituto y como complemento a las instituciones regulatorias.

Abstract

Com base na teoria institucional, este estudo examina a questão de como as instituições do país de acolhimento afetam a adoção da responsabilidade social corporativa (CSR) por empresas multinacionais (MNEs). Proponho que a CSR engloba um conjunto de práticas em que as empresas multinacionais se baseiam para sinalizar legitimidade em diferentes tipos de contextos institucionais - contextos que variam na forma como elas moldam a saliência de um problema e o poder de stakeholders em um determinado campo. Com base em ideias relacionadas com a opacidade do campo e implicações gerenciais da CSR, estudo porque MNEs adotam dois tipos distintos de políticas de CSR: CSR baseada em padrões, em resposta a contextos marcados pela questão da saliência e CSR baseada em direitos, em resposta a contextos marcados pelo poder de stakeholders. Para testar essas hipóteses, eu uso dados de subsidiárias e empresas de uma amostra de 540 MNEs da Europa Ocidental no campo do assunto de direitos trabalhistas. Os resultados mostram que MNEs estrategicamente adotam essas políticas de CSR relacionadas com a sua presença em distintos contextos institucionais. O estudo oferece implicações sobre como MNEs gerem a legitimidade de suas operações globais e como CSR, como uma forma privada de governança, pode emergir tanto como um substituto quanto um complemento às instituições reguladoras.

Abstract

利用制度理论, 这项研究探讨了东道国制度如何影响跨国公司 (MNEs) 企业社会责任 (CSR) 的采用。我提出CSR包含MNEs在不同制度情境下示意合法性的一组实践, 即在一个特定的问题领域他们如何形塑问题显著性和利益相关者权力时不同的情境。建立在有关现场不透明的观点和CSR管理启示上, 我研究MNEs为什么采取两种不同类型的CSR政策: 在回应问题显著情境下的基于标准化的CSR, 和在回应利益相关者权力情境下的基于权利的CSR。为验证这些假设, 我使用来自西欧的540家MNEs的子公司和公司层面的在劳动者权益领域问题的数据。结果表明: MNEs战略上采取的这些CSR政策与他们存在的不同制度情境相关。这项研究为MNEs如何管理他们全球运营的合法性和CSR作为一种私有治理形式如何能够成为兼具替代性和补充性的监管制度提供了启示。

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Acknowledgements

The author would like to thank Area Editor Mona Makhija for her guidance through the review process, as well as three anonymous JIBS reviewers for extremely helpful and developmental comments. The author also owes many thanks to Gregory Jackson for his invaluable support with the dissertation upon which this article is based. The comments of seminar participants at the Society for the Advancement of Socio-Economics, the Academy of International Business, and the Oxford Centre for Corporate Reputation are gratefully acknowledged.

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Correspondence to Nikolas Rathert.

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Accepted by Mona Makhija, Area Editor, 28 February 2016. This article has been with the author for three revisions.

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Rathert, N. Strategies of legitimation: MNEs and the adoption of CSR in response to host-country institutions. J Int Bus Stud 47, 858–879 (2016). https://doi.org/10.1057/jibs.2016.19

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