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Strategic CSR of Foreign Subsidiary

CSR approach is getting noticed by more and more scholars and practitioners to assist MNC subsidiaries¡¦ performance and survival. Prahalad (2004) argued MNCs need to be able to explore and exploit opportunities from undeveloped or developing countries in pursuit of their continuous profitability and sustainability. However, how MNC subsidiaries can be organized to approach and discover the local people and social needs from emerging economies is still a question to be answered.
Porter & Kramer (2002) proposed strategic CSR approach for firms to getting into sustainability. By all means of strategic CSR, firms truly realize sustainability that simultaneously obtaining economic, social and environmental performance when the CSR activities are practiced from inside out that involves the whole organization, structure, and system, and meanwhile links with firm strategies. This research adopted system perspective incorporating RBV and stakeholder perspective to systematically examine how internal CSR-related processes interact to influence MNC subsidiaries¡¦ sustainability in host country.
We accordingly looked into the CSR practices and the related management processes implemented by XI MNC subsidiaries in China and Taiwan through case interviews. We identified that CSR international coordination mechanism, HRM, and TMT leadership are all important processes through which MNC subsidiaries reach sustainability in host countries by CSR practices. Besides, we found that a strong corporate social culture within subsidiaries built up through the abovementioned processes is an important factor that leads to subsidiaries¡¦ sustainability. In addition, we identified stakeholder relational capital derived from these CSR-related processes is another critical, firm-specific resource to facilitate MNC subsidiaries¡¦ sustainable performance. On the whole, the findings upon the case studies of our research proposed a systematic MNC subsidiaries CSR framework that explains how, why, and under which influential factors CSR practices are implemented. This research therefore can contribute to the theoretical developments in CSR theories, RBV, and international management theories as well as firms¡¦ management practices in conducting CSR for sustainability.

Identiferoai:union.ndltd.org:NSYSU/oai:NSYSU:etd-0630109-103924
Date30 June 2009
CreatorsChen, Chin-min
ContributorsWang, Christina Yu-Ping, Yu, Ming-Chu, JAW, BIH-SHIAW
PublisherNSYSU
Source SetsNSYSU Electronic Thesis and Dissertation Archive
LanguageCholon
Detected LanguageEnglish
Typetext
Formatapplication/pdf
Sourcehttp://etd.lib.nsysu.edu.tw/ETD-db/ETD-search/view_etd?URN=etd-0630109-103924
Rightsnot_available, Copyright information available at source archive

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