The Effect of Local Stakeholder Pressures on Responsive and Strategic CSR Activities. Issue 3 (March 2021)

• Record Type: Journal Article
• Authors: Rhee, Yang Pok; Park, Chansoo; Petersen, Bui
• Is Part Of: Business and society. Volume 60:Issue 3(2021)
• Page Start: 582
• Page End: 613
• Publication Date: 2021-03
• Subjects: corporate social responsibility -- foreign subsidiary -- stakeholder pressures -- strategic CSR; Industries -- Social aspects -- Periodicals; Industrial sociology -- Periodicals; Business ethics -- Periodicals; 306.3
• DOI: 10.1177/0007650318816454
• Languages: English
• ISSNs: 0007-6503

Abstract

This study identifies the relationship between local stakeholder pressures and Korean foreign subsidiaries' corporate social responsibility (CSR). Analyzing the survey data of 177 Korean foreign subsidiaries yielded two important findings. First, local primary stakeholders have a positive impact on responsive CSR activities, but have no influence on strategic CSR activities. Second, local secondary stakeholders in host countries have a strong influence on both responsive and strategic CSR activities. Secondary stakeholders have more influence on strategic than on responsive CSR activities. This article suggests a change in managerial philosophy toward primary and secondary stakeholders, which may have important implications for multinational enterprises (MNEs) in achieving greater success with the design of their CSR activities.