[go: up one dir, main page]
More Web Proxy on the site http://driver.im/ Skip to main content

Advertisement

Springer Nature Link
Log in

Corporate Social Responsibility in Emerging Markets

The Importance of the Governance Environment

  • Research Article
  • Published:
Management International Review Aims and scope Submit manuscript

Abstract

  • This study examines how country-level, industry-level, and firm-level factors affect the extent of corporate communications about CSR in Brazil, Russia, India, and China (BRIC). In particular, using data from the 105 largest MNCs in BRIC, we investigate CSR motives, processes, and stakeholder issues discussed in corporate communications.

  • At the country level, based on a newly developed governance environment framework that differentiates between rule-based and relation-based governance, our study reveals that a country’s governance environment is the most important driving force behinds CSR communications intensity.

  • Our results show that firms communicating more CSR tend to be larger firms in the manufacturing industry in more rule-based societies. These firms also tend to have stronger corporate governance as measured by a high proportion of outside board directors and a separation of the roles of the chairman and the CEO.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Subscribe and save

Springer+ Basic
£29.99 /Month
  • Get 10 units per month
  • Download Article/Chapter or eBook
  • 1 Unit = 1 Article or 1 Chapter
  • Cancel anytime
Subscribe now

Buy Now

Price includes VAT (United Kingdom)

Instant access to the full article PDF.

Institutional subscriptions

Similar content being viewed by others

References

  • Abramovitz, M. (1986). Catching up, forging ahead, and falling behind. Journal of Economic History, 46(2), 385–406.

    Article  Google Scholar 

  • Adams, C., Hill, W., & Roberts, C. (1998). Corporate social reporting practices in western Europe: Legitimating corporate behaviour? British Accounting Review, 30(1), 1–21.

    Article  Google Scholar 

  • Alon, I., & McIntyre, J. (Eds.). (2008). The globalization of Chinese enterprises. New York: Palgrave.

    Google Scholar 

  • Alon, I., Fetscherin, M., Lattemann, C., Li, S., & Schneider, A.-M. (2010). Usage of public corporate communications of social responsibility within Brazil, Russia, India and China (BRIC). International Journal of Emerging Markets, 5(1), 6–22.

    Google Scholar 

  • Baskin, J. (2006). Value, values and sustainability: Corporate responsibility in emerging market companies. Working paper, Cambridge Programme for Industry, October 1.

  • Baughn, C., Bodie, N., & McIntosh, J. (2007). Corporate social and environmental responsibility in Asian countries and other geographical regions. Corporate Social Responsibility and Environmental Management, 14(4), 189–205.

    Article  Google Scholar 

  • Bertelsmann Foundation. (2007). The CSR navigator: Public policies in Africa, the Americas, Asia and Europe. Gütersloh: Bertelsmann Foundation.

    Google Scholar 

  • Birch, D., & Moon, J. (2004). Introduction: CSR in Asia. Journal of Corporate Citizenship, 13(Special Issue), 18–23.

    Google Scholar 

  • Black, L., & Härtel, C. (2004). The five capabilities of socially responsible companies. Journal of Public Affairs, 4(2), 125–144.

    Article  Google Scholar 

  • Bogdanich, W. (2008, Apr 10). Heparin is now suspected in 62 fatalities across U.S.. New York Times. http://www.nytimes.com/2008/04/10/health/policy/10heparin.html. Accessed 11 May 2008.

  • Bondy, K., Matten, D., & Moon, J. (2004). The adoption of voluntary codes of conduct in MNCs: A three-country comparative study. Business & Society Review, 109(4), 449–477.

    Article  Google Scholar 

  • Branco, M., & Rodrigues, L. (2006). Corporate social responsibility and resource-based perspectives. Journal of Business Ethics, 69(2), 111–132.

    Article  Google Scholar 

  • Bushman, R., Piotroski, J., & Smith, A. (2004). What determines corporate transparency? Journal of Accounting Research, 42(2), 207–252.

    Article  Google Scholar 

  • Cappellin, P., & Giuliani, G. (2004). The political economy of corporate responsibility in Brazil—Social and environmental dimensions. Programme Paper on Technology, Business and Society [No. 14], United Nations Research Institute for Social Development.

  • Center for Statistical Computing Support. (2008). Multicollinearity in logistic regression, University of Kentucky. http://www.uky.edu/ComputingCenter/SSTARS/MulticollinearityinLogisticRegression.htm. Accessed 17 May 2008.

  • Chahal, H., & Sharma, R. D. (2006). Implications of corporate social responsibility on marketing performance: A conceptual framework. Journal of Services Research, 6(1), 205–216.

    Google Scholar 

  • Chapple, W., & Moon, J. (2005). Corporate social responsibility (CSR) in Asia: A seven-country study of CSR web site reporting. Business & Society, 44(4), 415–441.

    Article  Google Scholar 

  • Chen, C. J. P., & Jaggi, B. (2000). Association between independent non-executive directors, family control and financial disclosures in Hong Kong. Journal of Accounting & Public Policy, 19(4/5), 285–310.

    Article  Google Scholar 

  • Clarkson, M. (1995). A stakeholder framework for analyzing and evaluating corporate social performance. Academy of Management Review, 20(1), 92–117.

    Article  Google Scholar 

  • Cooke, T. E. (1992). The impact of size, stock market listing and industry type on disclosure in the annual report of Japanese listed corporations. Accounting and Business Research, 22(87), 229–237.

    Google Scholar 

  • Dixit, A. (2004). Lawlessness and economics: Alternative modes of governance. Princeton: Princeton University Press.

    Google Scholar 

  • Donaldson, L., & Preston, L. (1995). The stakeholder theory of the corporation: Concepts, evidence, and implications. Academy of Management Review, 20(1), 65–91.

    Article  Google Scholar 

  • Esrock, S., & Leichty, G. (1998). Social responsibility and corporate web pages: Self-presentation or agenda-setting? Public Relations Review, 24(3), 305–319.

    Article  Google Scholar 

  • Esrock, S., & Leichty, G. (2000). Organisation of corporate web pages: Publics and functions. Public Relations Review, 26(3), 327–343.

    Article  Google Scholar 

  • Ewing, M., & Windisch, L. (2007). Contemporary corporate social responsibility in China: An extension of confucian philosophy? Asian Business and Economics Research Unit Discussion Paper [No. 44], Monash University 2007.

  • Fama, E. F., & Jensen, M. C. (1983). Separation of ownership and control. Journal of Law & Economics, 26(2), 301–326.

    Article  Google Scholar 

  • Firth, M. A. (1979). The effect of size, stock market listings, and auditors on voluntary disclosure in corporate annual reports. Accounting & Business Research, 9(36), 273–280.

    Google Scholar 

  • Forbes. (2007). The world’s 2,000 largest public companies, March 29, 2007. http://www.forbes.com/2007/03/29/forbes-global-2000-biz-07forbes2000-cz_sd_0329global_land.html. Accessed from late 2007 to 2008, May 11.

  • Gerson, B. (2007). CSR best practices. China Business Review, 34(3), 20–25.

    Google Scholar 

  • Global Information, Inc. (2006). Targeting profitable consumer trends in Brazil, Russia, India and China, Dec 2006. http://www.datamonitor.com/Products/Free/Report/DMCM4581/010DMCM4581.pdf. Accessed 28 March 2009.

  • Globerman, S., & Shapiro, D. (2003). Governance infrastructure and US foreign direct investment. Journal of International Business Studies, 34(1), 19–39.

    Article  Google Scholar 

  • Godfrey, P. (2005). The relationship between corporate philanthropy and shareholder wealth: A risk management perspective. Academy of Management Review, 30(4), 777–798.

    Google Scholar 

  • Goldman Sachs. (2003). Global economics papers No. 99: Dreaming with BRICs: The path to 2050. http://www2.goldmansachs.com/ideas/brics/book/99-dreaming.pdf. Accessed 29 March 2009.

  • Gul, F. A., & Leung, S. (2004). Board leadership, outside directors’ expertise and voluntary corporate disclosures. Journal of Accounting & Public Policy, 23(5), 351–379.

    Article  Google Scholar 

  • Hair, J., Anderson, R., Tatham, R., & Black, W. (1998). Multivariate data analysis (5th ed.). Upper Saddle River: Prentice Hall.

    Google Scholar 

  • Hart, S. (1995). A natural-resource-based view of the firm. Academy of Management Review, 20(4), 986–1014.

    Article  Google Scholar 

  • Hooghiemstra, R. (2000). Corporate communication and impression management: NEW perspectives why companies engage in corporate social reporting. Journal of Business Ethics, 27(1/2), 55–68.

    Article  Google Scholar 

  • Husted, B., & Allen, D. (2006). Corporate social responsibility in the multinational enterprise: Strategic and institutional approaches. Journal of International Business Studies, 37(6), 838–849.

    Article  Google Scholar 

  • Inglehart, R., & Welzel, C. (2005). Modernization, cultural change and democracy: The human development sequence. Cambridge: Cambridge University Press.

    Book  Google Scholar 

  • Kaufmann, D., Kraay, D., & Zoido-Lobatón, P. (1999). Aggregating governance indicators. World Bank Policy Research Working Paper 2195.

  • Kimber, D., & Lipton, P. (2005). Corporate governance and business ethics in the Asia-Pacific region. Business & Society, 44(2), 178–210.

    Article  Google Scholar 

  • Lattemann, C., Kupke, S., & Schneider, A. M. (2007). Corporate social responsibility and the capabilities based view: A case study of a multinational enterprise. Revue de l’Organisation Responsable, 2(3), 18–29.

    Article  Google Scholar 

  • Lattemann, C., Fetscherin, M., Alon, I., Li, S., & Schneider, A. (2008). CSR communication intensity in Chinese and Indian multinational companies. Paper presented at the Symposium on Corporate Governance in China and India sponsored by Corporate Governance: An International Review, Virginia Beach, Virginia, October 24–25.

  • Li, J. (2003). Relation-based versus rule-based governance: An explanation of the East Asian miracle and Asian crisis. Review of International Economics, 11(4), 651–673.

    Article  Google Scholar 

  • Li, S., & Filer, L. (2007). The effects of the governance environment on the choice of investment mode and the strategic implications. Journal of World Business, 42(1), 80–98.

    Article  Google Scholar 

  • Li, S., Park, S. H., & Li, S. (2004). The great leap forward: The transition from relation-based governance to rule-based governance. Organizational Dynamics, 33(1), 63–78.

    Article  Google Scholar 

  • Lichtenstein, D. R., Drumwright, M. E., & Braig, B. M. (2004). The effect of corporate social responsibility on customer donations to corporate-supported nonprofits. Journal of Marketing, 68(4), 16–32.

    Article  Google Scholar 

  • Logsdon, J., & Wood, D. (2005). Global business citizenship and voluntary codes of ethical conduct. Journal of Business Ethics, 59(1/2), 55–67.

    Article  Google Scholar 

  • Maignan, I., & Ralston, D. (2002). Corporate social responsibility in Europe and the U.S.: Insights from businesses’ self-presentations. Journal of International Business Studies, 33(3), 497–514.

    Google Scholar 

  • Marlin, A., & Marlin, T. J. (2003). A brief history of social reporting, business respect, 51, March 9, 2003. http://www.mallenbaker.net/csr/page.php?Story_ID  = .58 Accessed 29 March 2009.

  • McWilliams, A., Siegel, D., & Wright, P. (2006). Corporate social responsibility: Strategic implications. Journal of Management Studies, 43(1), 1–18.

    Article  Google Scholar 

  • North, D. (1990). Institutions, institutional change and economic performance. Cambridge: Cambridge University Press.

    Google Scholar 

  • Oliviera, J. de. (2006). Corporate citizenship in Latin America: New challenges for business. Journal of Corporate Citizenship, 21, 17–20.

    Google Scholar 

  • Platteau, J. P. (1994). Behind the market stage where real societies exist—Parts I and II. Journal of Development Studies, 30(3), 753–817 and 30(4), 533–577.

    Article  Google Scholar 

  • Porter, M. E., & Kramer, M. R. (2006). Strategy & society: The link between competitive advantage and corporate social responsibility. Harvard Business Review, 84(12), 78–92.

    Google Scholar 

  • Qu, R. (2007). Effects of government regulations, market orientation and ownership structure on corporate social responsibility in China: An empirical study. International Journal of Management, 24(3), 582–591.

    Google Scholar 

  • Reuters. (2007). Company search. http://www.reuters.com/finance/stocks/stocks. Accessed 15 May 2007.

  • Ringov, D., & Zollo, M. (2007). The impact of national culture on corporate social performance. Corporate Governance, 7(4), 476–485.

    Article  Google Scholar 

  • Roper, J., & Weymes, E. (2007). Reinstating the collective: A confucian approach to well-being and social capital development in a globalised economy. Journal of Corporate Citizenship, 26, 135–144.

    Google Scholar 

  • Scott, W. R. (2001). Institutions and Organizations (2nd ed.). Thousand Oaks: Sage.

    Google Scholar 

  • Sen, A. (1999). Development as freedom. New York: Anchor Books.

    Google Scholar 

  • Sen, S., & Bhattacharya, C. B. (2001). Does doing good always lead to doing better? Consumer reactions to corporate social responsibility. Journal of Marketing Research, 38(2), 225–243.

    Article  Google Scholar 

  • Sharma, S., & Vredenburg, H. (1998). Proactive corporate environmental strategy and the development of competitively valuable organizational capabilities. Strategic Management Journal, 19(8), 729–753.

    Article  Google Scholar 

  • Smith, N. C. (2003). Corporate social responsibility: Whether or how? California Management Review, 45(4), 52–76.

    Google Scholar 

  • Society for Human Resource Management (SHRM). (2007). Corporate social responsibility: United States, Australia, India, China, Canada, Mexico and Brazil—A pilot study. Alexandria: SHRM.

    Google Scholar 

  • Staples, C. (2004). What does corporate social responsibility mean for charitable fundraising in the UK? International Journal of Nonprofit & Voluntary Sector Marketing, 9(2), 154–158.

    Article  Google Scholar 

  • Swanson, D. (1995). Addressing a theoretical problem by reorienting the corporate social performance model. Academy of Management Review, 20(1), 43–64.

    Article  Google Scholar 

  • Turban, D., & Greening, D. (1997). Corporate social performance and organizational attractiveness to prospective employees. Academy of Management Journal, 40(3), 658–672.

    Article  Google Scholar 

  • United Nations. (2008). GDP per capita, current international dollars (PPPs). http://unstats.un.org/unsd/cdb/cdb_series_xrxx.asp?series_code = 22992. Accessed 10 May 2008.

  • Welford, R. (2004). Corporate social responsibility in Europe and Asia: Critical elements and best practice. Journal of Corporate Citizenship, 13, 31–47.

    Google Scholar 

  • Xiao, H., & Yuan, J. (2007). Ownership structure, board composition and corporate voluntary disclosure: Evidence from listed companies in China. Managerial Auditing Journal, 22(6), 604–619.

    Article  Google Scholar 

Download references

Acknowledgments

We would like to thank the Alexander von Humboldt Foundation for sponsoring this research and the Rollins China Center. Institutional support by Harvard University and financial support by the National Sun Yat-Sen University are gratefully acknowledged as well. We also acknowledge the helpful comments from Howard Lin (Ryerson University), Rodrigo Canales (Yale University), Philippe Gugler (University of Freiburg), and Anna-Maria Schneider (Humboldt University, Berlin), and the anonymous reviewers of the MIR.

Author information

Authors and Affiliations

  1. Department of Management, College of Business & Public Administration, Old Dominion University, Norfolk, USA

    Shaomin Li

  2. Department of International Business, Rollins College, Winter Park, USA

    Marc Fetscherin

  3. George D. and Harriet W. Cornell Chair of International Business, Rollins College, Winter Park, USA

    Ilan Alon

  4. Business Administration and Information Management, School of Humanities & Social Sciences—SHSS, Jacobs University Bremen, Bremen, Germany

    Christoph Lattemann

  5. Department of Business Management, College of Management, National Sun Yat-Sen University, Kaohsiung, Taiwan

    Kuang Yeh

Authors
  1. Shaomin Li
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Marc Fetscherin
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. Ilan Alon
    View author publications

    You can also search for this author in PubMed Google Scholar

  4. Christoph Lattemann
    View author publications

    You can also search for this author in PubMed Google Scholar

  5. Kuang Yeh
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Marc Fetscherin.

Rights and permissions

Reprints and permissions

About this article

Cite this article

Li, S., Fetscherin, M., Alon, I. et al. Corporate Social Responsibility in Emerging Markets. Manag Int Rev 50, 635–654 (2010). https://doi.org/10.1007/s11575-010-0049-9

Download citation

  • Received:

  • Revised:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s11575-010-0049-9

Keywords

Search

Navigation