Drivers of Global CSR Integration and Local CSR ...faculty.insead.edu/michael-witt/documents/Miska,...
-
Upload
truongcong -
Category
Documents
-
view
223 -
download
1
Transcript of Drivers of Global CSR Integration and Local CSR ...faculty.insead.edu/michael-witt/documents/Miska,...
1
Drivers of Global CSR Integration and Local CSR Responsiveness: Evidence from Chinese
MNEs
Christof Miska*
[email protected] + 43 1 313 36 4346
Michael A. Witt**
[email protected] +65 6799 5253
Günter K. Stahl*
[email protected] + 43 1 313 36 4434
Please cite as: Miska, Christof, Michael A. Witt, & Günter K. Stahl (2016). Drivers of Global CSR Integration and Local CSR Responsiveness: Evidence from Chinese MNEs. Business Ethics Quarterly, 26, 3: 317-345.This document has not been copyedited by the journal. For the definitive, final text, please refer to the official version of record (published version): http://dx.doi.org/10.1017/beq.2016.13
* **
WU Vienna
Department of Global Business and Trade
Institute for International Business
Building D1, Welthandelsplatz 1
1020 Vienna, Austria
INSEAD
1 Ayer Rajah Avenue
Singapore 138676
2
Drivers of Global CSR Integration and Local CSR Responsiveness: Evidence from Chinese
MNEs
Abstract
What drives Chinese MNEs’ global CSR integration and local CSR responsiveness? Drawing on
institutional theory, we argue that both antecedents reflecting globally isomorphic patterns of
adaptation and antecedents mirroring the distinct characteristics of China’s institutional context
are relevant. We support our argument using fuzzy-set qualitative comparative analysis on a
sample of 29 of China’s globally most influential companies. We find that state influence and
global CSR associations affect global CSR integration, whereas presence in the West and
internationalization through mergers and acquisitions predict local CSR responsiveness. Our
study thus suggests that home-country characteristics are an important co-determinant of the CSR
approaches of emerging-market MNEs. We further find that multicultural experience in top
management teams is associated with both global CSR integration and local CSR responsiveness,
supporting notions of transnational CSR.
Keywords: China, emerging-market MNEs, global CSR integration, institutional theory, local
CSR responsiveness, state-owned enterprises
3
Introduction
What factors drive CSR strategies of multinational enterprises (MNEs)? Recent years have
seen a lively debate about this question. In this context, a growing number of scholars (e.g.,
Arthaud-Day, 2005; Filatotchev & Stahl, 2015; Hah & Freeman, 2014; Husted & Allen, 2006;
Muller, 2006) apply the integration-responsiveness framework (Bartlett & Ghoshal, 1989;
Prahalad & Doz, 1987) to studying CSR. It captures the challenge facing MNEs of adopting
globally integrated versus locally responsive CSR strategies.
Extant studies on the drivers of this choice tend to vary in their approaches and
explanations. For example, Cruz and Boehe (2010) emphasized cost-benefit aspects as well as
coordination costs associated with CSR. Similarly, Husted and Allen (2006) identified
correspondence between CSR and MNE organization strategy, in that multi-domestic and
transnational MNEs emphasize country-specific CSR more than global MNEs. Yang and Rivers
(2009) took an MNE subsidiary perspective to underline the importance of local stakeholder
demands and considerations of legitimacy associated with local CSR practices. Jamali (2010)
showed how patterns of global CSR diffusion by headquarters were diluted according to specific
subsidiary features and host-market characteristics. Overall, these studies establish firm grounds
to believe that considerations of consistency and efficiency within the MNE as well as external
legitimacy in host countries are important drivers of MNEs’ CSR postures.
Yet there are reasons to suppose that further drivers of CSR strategies exist. Most prior
research on the topic tends to focus on Western MNEs. However, recent years have seen growth
in emerging-market MNEs (EMNEs) (Cuervo-Cazurra, 2012; Doh, Husted, Matten, & Santoro,
2010, Gammeltoft, Pradhan, & Goldstein, 2010; Luo & Tung, 2007; Ramamurti, 2009), which
may be subject to different or additional drivers of global CSR integration and local CSR
responsiveness. In particular, there is the question whether EMNEs follow predefined patterns of
4
global isomorphic pressures (Liou, Rose, & Ellstrand, 2012; Matten & Moon, 2008) to gain
legitimacy abroad, or if the distinct institutional characteristics of their home countries (Luo &
Tung, 2007; Ramamurti, 2012) affect the enactment of their CSR. Investigating these questions
can help develop a deeper understanding of whether existing theories and approaches can explain
EMNEs’ CSR strategies or whether more institutionally-embedded perspectives (Filatotchev &
Nakajima, 2014) considering the idiosyncratic characteristics of emerging economies are
required.
With this study, we aim to help shed light on this issue by examining Chinese MNEs.
These firms provide an ideal empirical setting for doing so. Having witnessed sweeping changes
in economic structure over the last few decades, China represents an emerging market with a
distinctive institutional environment characterized by government intervention and absence of
rule of law (Park, Li, & David, 2006; Witt & Redding, 2014). From a CSR perspective, the recent
state rubric of “harmonious society” (héxié shèhuì) aims to balance economic objectives against
pressing societal and environmental targets (See, 2009), while the strong economic growth over
the last few decades has resulted in social and environmental challenges (Xu & Yang, 2010). The
development of CSR in China is further relevant in view of growing concern over reputational
damage to Chinese companies both domestically and internationally (Fombrun & Pan, 2006).
Chinese state-owned enterprises (SOEs) operating outside China have endured considerable
criticism for their absence of collaborative business models and sustainable business practices
(Alden & Davies, 2006). In Africa, for example, the extraction of resources by Chinese
companies has been accompanied by concerns over transparency, governance, and protection of
the environment. Equally, though, this development has also increased expectations that local
living standards would improve, putting Chinese companies in the spotlight in terms of their
social and environmental contributions (Tan-Mullins & Mohan, 2013). Overall, Chinese MNEs
5
have been facing increasing tensions between global CSR integration and local CSR
responsiveness. Therefore, these firms provide an ideal empirical setting for investigating the
drivers of both dimensions.
Drawing on institutional theory and legitimacy considerations (DiMaggio & Powell, 1983;
Kostova & Zaheer, 1999; Tan & Wang, 2011; Tost, 2011), we identify a number of antecedents
that we expect to affect the levels of global CSR integration and local CSR responsiveness of
Chinese MNEs. We test our hypotheses based on a sample of 29 of China’s globally most
influential MNEs, using fuzzy-set qualitative comparative analysis (fsQCA). Our findings
suggest a synergetic perspective, with evidence supporting the impact of both isomorphic patterns
of adaptation and the distinct characteristics of the Chinese institutional context. Our study thus
expands our theoretical understanding of the drivers of MNEs’ CSR strategies and the
contingencies governing them.
Research on Chinese MNEs
Fast economic growth and more liberal market policies in China have facilitated the
internationalization of Chinese companies (Deng, 2009; Luo & Tung, 2007; Rui & Yip, 2008;
Wei, Clegg, & Ma, 2014). In particular, international expansion was sparked by China’s “go
global” initiative aiming to create 30 to 50 globally competitive champions (Gugler & Shi, 2009;
Luo, Xue, & Han, 2010). This development has received considerable attention in the
international business literature, with focus on the antecedents, processes, and outcomes of their
internationalization (Deng, 2012). In particular, research on the topic has tended to investigate the
determinants of Chinese MNEs’ outward direct investment (e.g., Buckley et al., 2007), location
choices (e.g., Duanmu, 2012) and the impact of internationalization on value creation (e.g., Yang,
6
Yang, & Doyle, 2013), as well as Chinese MNEs’ internationalization performance in developed
economies (e.g., Zhong, Peng, & Liu, 2013).
In contrast, research on CSR in China has been relatively limited (Kolk, Hong, Dolen,
2010), and work on Chinese MNEs’ CSR strategies and practices even more so. Extant work
tends to focus on activities of both Chinese and foreign MNEs within China (e.g., Tang & Li,
2009), Chinese MNEs’ CSR strategies abroad (e.g., Tan-Mullins & Mohan, 2013), and the more
general research in the field of CSR in China (e.g., Moon & Shen, 2010). In this regard,
differences between indigenous Chinese CSR and Western approaches are often highlighted (e.g.,
Xu & Yang, 2010). Gugler and Shi (2009) remark that in contrast to Western CSR engagement,
CSR development in China has yet to yield a systematic approach.
The integration-responsiveness framework in the context of CSR
As Chinese MNEs expand globally, they face increased pressures to balance globally
integrated with locally responsive CSR, which requires them to build and leverage ambidexterity
(Luo & Rui, 2009) in this regard. This challenge is consistent with the strategic logic of the
integration-responsiveness framework (Bartlett & Ghoshal, 1989; Prahalad & Doz, 1987), which
is increasingly applied within the sphere of CSR in various international business and
management contexts as a tool to study how companies and their managers respond to the
opposing pressures of global integration and local responsiveness with regard to stakeholder
expectations. Alongside the two opposing dimensions of global CSR integration and local CSR
responsiveness, this framework illustrates the dilemma MNEs face: divergent home- and host-
country as well as international pressures that affect how CSR is enacted (Muller, 2006). Thus,
the integration-responsiveness framework in the context of CSR assumes that MNEs need to deal
7
with the often-contradictory demands of globally integrating and locally adapting their CSR
activities.
The dimension of global CSR integration relates to the extent to which MNEs consistently
respond to CSR-related demands across all countries in which they operate. It manifests
transcultural or universal standards (Frederick, 1991) and presumes certain universal principles or
hypernorms (Donaldson & Dunfee, 1999). MNEs that globally integrate their CSR activities and
manage to transfer these practices effectively across their subsidiaries potentially achieve
“upward harmonization” of their international CSR standards (Muller, 2006). However, they may
risk not responding to CSR issues that are relevant to local communities (Reed, 2002).
In contrast, the dimension of local CSR responsiveness refers to the extent to which MNEs
deal with their CSR-related obligations according to the standards of local communities (Husted
& Allen, 2006). It implies lower universal consistency of CSR activities and greater flexibility in
response to the various stakeholders and communities in countries where MNEs operate
(Filatotchev & Stahl, 2015). While locally adapting CSR activities can help MNEs gain
legitimacy from local stakeholders (Yang & Rivers, 2009), it also implies increased complexities
and attendant risks including strategic fragmentation, tensions within the organization, and
minimum fulfillment of host-country standards (Christmann, 2004; Muller, 2006). Furthermore, a
high degree of local CSR responsiveness may reduce the ability of MNEs to create or enact
universally accepted CSR standards (Filatotchev & Stahl, 2015).
MNEs may in principle choose to emphasize either global CSR integration or local CSR
responsiveness. However, political pressures or economic considerations may force them to
answer both demands (Miska, Stahl, & Mendenhall, 2013), which implies a need for multifaceted
CSR responses (Husted & Allen, 2006; Logsdon & Wood, 2005). The two dimensions are thus
not mutually exclusive (Arthaud-Day, 2005). Instead, companies can create globally standardized
8
guidelines that they enact according to local circumstances, following a transnational hybrid
approach (Filatotchev & Stahl, 2015; Stahl et al., 2013). Donaldson and Dunfee (1999: 50)
describe such a transnational approach as acknowledgement of “both universal moral limits and
the ability of communities to set moral standards of their own”.
Institutional theory
The concern of CSR with legitimacy questions suggests that institutional theory may
provide useful insights into firms’ choices of different CSR approaches. Institutional theory
assumes that firms need to achieve and maintain legitimacy, defined as “a generalized perception
or assumption that the actions of an entity are desirable, proper, or appropriate within some
socially constructed system of norms, values, beliefs and definitions” (Suchman, 1995: 574). It
suggests that an isolated cultural system can be theorized as an institutional field in which
isomorphic pressures prescribe appropriate beliefs and practices for organizations to obtain
legitimacy (Tan & Wang, 2011). In the MNE context, institutional isomorphism explains that the
isomorphic pressures in host-country societies encourage firms to morph their strategies with the
society’s values and belief systems to gain and maintain legitimacy (DiMaggio & Powell, 1983;
Kostova & Zaheer, 1999; Tan & Wang, 2011). According to Tost (2011), legitimacy supports
organizations in their survival and preserves their influence, which makes it important for MNEs
as they operate across countries and societies.
In the context of CSR, some work (e.g., Matten & Moon, 2008) suggests that legitimacy-
seeking and the homogenization of institutional environments across national boundaries lead to
rationalized, predictable CSR strategies. In contrast, other authors (e.g., Crilly, 2011; Jamali,
2010; Westney & Zaheer, 2001) remark that the application of institutional theory may not
conform to straightforward patterns of isomorphic pressures. These views can be explained by
9
the issue-specific nature of institutional theory, and, as Kostova, Roth, and Dacin (2008: 997)
note, the fact that MNEs “have a very different institutional story that better fits the conditions of
equivocality, ambiguity, and complexity”. Thus, as institutions “consist of cognitive, normative,
and regulative structures and activities that provide stability and meaning to social behavior”
(Scott, 1995: 33), the isomorphic pressures MNEs face to engage in CSR activities are likely to
vary according to the specific institutional context in which they are embedded. Consistent with
this logic, Aguilera, Rupp, Williams, and Ganapathi (2007) propose a model that identifies a
multitude of actors across multiple levels of analysis pressuring organizations to engage in CSR
initiatives, motivated by instrumental, relational or moral reasons. Similarly, Tan and Wang
(2011) draw on the institutional logics approach to explain the complex mechanisms through
which MNEs deal with divergent legitimacy pressures in their home- and host-country societies.
Their exploration is driven by the observation that MNEs frequently have home-grown CSR
standards and practices that directly contradict their practices in host-country societies, where
they face distinct ethical pressures.
The above considerations are arguably even more important for EMNEs. On the one hand,
these companies are often seen as agents of global isomorphism (Liou et al., 2012) that seek to
gain legitimacy in advanced economies through adaptation to desired and established practices.
On the other hand, the distinctive home institutional conditions of EMNEs, such as different
ownership advantages compared to MNEs from developed economies (Ramamurti, 2012), the
critical role home governments play in fostering or hindering their growth (Salehizadeh, 2007), or
their unique motivations to internationalize (Luo & Tung, 2007), suggest that more holistic and
institutionally embedded perspectives may be necessary to fully understand their CSR
approaches.
10
Antecedents of Chinese MNEs’ global CSR integration and local CSR responsiveness
Based on this discussion, we identify the antecedents of Chinese MNEs’ global CSR
integration and local CSR responsiveness, considering both the development of CSR within
China and attendant legitimacy pressures for Chinese MNEs, as well as legitimacy forces
originating from the internationalization of these companies. Specifically, we discuss the
influence of the Chinese state, global CSR associations and initiatives like the UN Global
Compact, Chinese MNEs’ presence and experience in the West, their internationalization through
mergers and acquisitions (M&As), and multicultural experience in Chinese MNEs’ top
management teams. For these antecedents, we hypothesize effects on either global CSR
integration or local CSR responsiveness, except for multicultural experience in top management
teams, where we expect an impact on both dimensions. This approach aligns with past research
(e.g., Fan, Nyland, & Zhu, 2008) in the context of Chinese MNEs and the integration-
responsiveness framework, suggesting antecedents that affect either global integration or local
responsiveness or both.
State influence. While in the early 2000s the Chinese government adopted a “wait-and-
see” approach to evaluate whether foreign supplier codes and the auditing of Chinese factories
imposed by international organizations and foreign MNEs implied trade barriers, it became more
active after 2004 and started creating home-grown CSR standards to maintain Chinese corporate
competitiveness (Gugler & Shi, 2009). Moon and Shen (2010) note a conjunction of “external”
and “internal” drivers of CSR in China, with the latter in the form of laws, regulations, and
institutional expectations and CSR being considerably endorsed and encouraged by the Chinese
government. Therefore, considering the role of government in the enactment and development of
CSR is essential, despite and also because of greater market liberalization and market opening
(Wang, Guthrie, & Xiao, 2012; Wong, 2009).
11
Policies issued by the Chinese government and respective institutional support, such as
streamlined administrative procedures and easing of capital controls, have played a key role
during the “go global” initiative (Luo et al., 2010). Correspondingly, Wong (2009) remarks that
the new state rubric of “harmonious society” represents a different approach that may affect the
evolution of global CSR practices. Notable in this regard is the criticism of Chinese SOEs
operating overseas for their lack of collaborative business models and sustainable business
practices (Alden & Davies, 2006). In order to improve the reputation of Chinese companies
overseas, over the last few years the Chinese government has increased its efforts to oversee
these companies (Maurin & Yeophantong, 2013). Thus, by enacting home-grown CSR standards,
the government seeks to respond to such criticism and help safeguard national competitiveness
globally (Gugler & Shi, 2009).
For Chinese MNEs, this implies amplified institutional pressure to conform to home-grown
CSR standards to maintain legitimacy within China and help achieve national goals tied to the
development of CSR. We therefore hypothesize that the influence of the state on Chinese MNEs
is positively associated with the enactment of universal CSR standards. Due to the attendant
“state agent roles” (Cooke, 2014) that such companies assume, they tend to follow the prescribed
CSR standards globally. We therefore hypothesize:
H1: The greater the influence of the Chinese state on Chinese MNEs, the higher their global
CSR integration will be.
Global CSR associations. While Chinese companies understand the importance of CSR
communication both internally and externally, they have tended to lack comprehensive and
coherent CSR strategies (Wang & Chaudhri, 2009). Therefore, global CSR and business
associations like the UN Global Compact or World Business Council for Sustainable
Development (WBCSD) have become important mechanisms for promoting CSR by Chinese
12
MNEs (See, 2009). Business associations determine guidelines for social and environmental CSR
practices and can help improve CSR standards by promoting mimetic isomorphism (See, 2009).
In China, the increasing importance of such associations is evident, for example, in the close to
300 SOEs and private companies that have joined the UN Global Compact (UN Global Compact,
2014a), which aims to align businesses’ strategies and operations according to ten universally
accepted principles relating to the environment, human rights, and anti-corruption. In addition,
common CSR reporting standards as promoted by the Global Reporting Initiative (GRI) allow for
comparisons of extra-economic performance within an industry, thus creating competitive
pressure while at the same time providing exposure to international best practices (See, 2009).
The growing importance of these global CSR associations and reporting standards reflects
the relatively speedy shift in China (Moon & Shen, 2010) from “implicit” toward more “explicit”
CSR (Matten & Moon, 2008). This tendency is a function of new institutional isomorphism
(DiMaggio & Powell, 1983; Matten & Moon, 2008) and results in companies’ adaptation to
established standards and practices. For Chinese MNEs, global CSR associations and reporting
standards represent ways of gaining global legitimacy, allowing them to possibly mitigate their
liability of foreignness (Devinney, 2011; Oliver, 1991) in host countries. Gaining and preserving
global legitimacy is crucial for Chinese MNEs in view of the general vulnerability of
multinationals in non-market activities (Kostova & Zaheer, 1999). However, as Palazzo and
Scherer (2006) suggest, the legitimacy-ascribing environment on the global level is not
homogenous but consists of a multitude of contradictory legal and moral requirements, resulting
in high levels of complexity. Global CSR associations and their universal appeal are therefore
likely to help Chinese MNEs gain legitimacy on a global scale regardless of the countries in
which they operate. By adopting such standards, we hypothesize, the global integration of
Chinese MNEs’ CSR is reinforced, as these guidelines help respond universally to the
13
heterogeneity of the various legitimacy-ascribing environments in which Chinese MNEs operate.
Hence, we suggest that global CSR associations and reporting standards affect Chinese MNEs’
global CSR integration:
H2: The greater the activity of Chinese MNEs in view of global CSR associations, the
higher their global CSR integration will be.
Presence in the West. CSR in China tends to differ from that in Western countries (Xu &
Yang, 2010). While initially Chinese companies were pressured by foreign CSR requirements
brought into China by Western MNEs (Gugler & Shi, 2009), they are now prompted by their own
government to contribute to a “harmonious society” according to the Chinese understanding of
CSR. The core principles of CSR in China are not new and can be interpreted in terms of
traditional Chinese culture (Wang & Juslin, 2009). According to Xu and Yang (2010), these
principles include requirements for corporations to operate in good faith, to provide job
opportunities to ease China’s employment pressure, and to contribute to social stability and
progress; this is in contrast to typically Western motives for engaging in CSR, such as the
creation of shareholder value and the safeguarding of equality among races, genders, and
underprivileged groups.
At the same time, Chinese MNEs active abroad need to respond to local stakeholders’ CSR
expectations to gain legitimacy, like MNEs in general need to adapt to local CSR practices to
legitimize themselves if they operate in host countries with diverse institutional environments and
demanding stakeholders (Yang & Rivers, 2009). This requirement has become particularly
intense in Western countries as a result of heightened awareness and local stakeholder
expectations, to which Western firms have responded by developing proactive CSR approaches
(Gugler & Shi, 2009). Adapting to local CSR practices in Western host countries is thus a likely
14
prerequisite for Chinese MNEs to meet local CSR expectations and to gain legitimacy (Yin &
Zhang, 2012).
However, Western CSR is not a homogenous concept, and variations in the institutional
embeddedness of CSR across developed economies require additional adaptation to local needs
and contexts. For example, Matten and Moon (2008) conceptualize the differences in CSR
between the United States and Europe. Similarly, Sotorrío and Sánchez (2008) point out
differences in levels, components, and motivations in the CSR behavior of companies from North
America and Europe. Consequently, if Chinese MNEs operating across a range of Western
countries aim to gain legitimacy, they need to adapt to these variations rather than follow
universal CSR standards.
The resultant diversity in experience provides Chinese MNEs with greater flexibility in
terms of dealing with various local legitimacy pressures, also in non-Western countries. For
instance, evidence form in-depth case studies of MNE subsidiaries located in Central and Eastern
Europe (Filatotchev & Stahl, 2015) suggests that companies that have succeeded in adapting to
local stakeholders’ CSR expectations and needs in these countries use templates for coordinating
their MNEs’ CSR activities to ensure consistency across the organization while allowing local
subsidiaries to adapt these templates according to their needs and circumstances. The resultant
flexibility ensures responsiveness to local conditions and leads to higher local CSR
responsiveness also in countries outside the Central and Eastern European region.
In the case of Chinese MNEs, these findings suggest that the greater local CSR
responsiveness developed in Western countries in response to heightened CSR expectations
will generalize to non-Western contexts and enable Chinese MNEs to adapt their CSR practices
according to local stakeholders’ expectations. We therefore hypothesize that the greater
flexibility required in Western countries, which tend to have heightened CSR expectations as
15
discussed earlier, will enable firms to respond with greater local CSR responsiveness in general,
not only in Western countries.
H3: The more present Chinese MNEs are in the West, the higher their local CSR
responsiveness will be.
Internationalization through M&As. As new players on the global market, Chinese
companies tend to engage in cross-border M&As to seek strategic resources and capabilities
(Deng, 2007), which makes this mode of internationalization important for Chinese MNEs. In
addition to sourcing strategic assets and knowledge-enhancing competitive advantages, cross-
border M&As can serve as vehicles to engage in “institutional arbitrage”, which refers to the
exploitation of differences across various institutional environments and jurisdictions (Boisot &
Meyer, 2008). Rui and Yip (2008) suggest that Chinese firms use cross-border M&As to acquire
strategic capabilities offsetting their competitive disadvantages, while leveraging their distinct
ownership advantages.
However, the internationalization of Chinese firms reflects particular features that include
latecomer perspectives, the need for catch-up strategies, and liability of foreignness (Child &
Rodrigues, 2005). Williamson and Raman (2011) describe the development of Chinese M&As.
During a first wave of cross-border takeovers, Chinese companies made grave mistakes,
including a lack of attention to managing intangibles like systems, people, and processes, and the
attendant issues of a need to sell off investments, back-scaling, or even bankruptcy. However, a
new approach aimed to strengthen the domestic market positions of Chinese companies. In doing
so, they followed a partnering-like approach, leaving operational autonomy to the foreign
companies they took over – an approach which not only Chinese but also EMNEs from other
countries tend to follow (Kale, Singh, & Raman, 2009).
16
From an institutional theory perspective, Deng (2009) suggests that the acquisition of
strategic assets through M&As may be advantageous for Chinese companies, as they can achieve
legitimacy, social support, and prestige through the acquisition of local companies. Thus, in
addition to gaining access to strategic assets, M&As, if properly executed, can generate
legitimacy from the external environment and social acceptance. The managerial and operational
autonomy of acquired companies, though, is an important legitimacy mechanism of M&As
through Chinese MNEs. This underlines the importance of local responsiveness. In the same way,
adhering to local CSR practice can safeguard external legitimacy in host countries. We therefore
argue that the managerial and operational autonomy that Chinese MNEs tend to grant to the
companies they acquire makes these MNEs more likely to allow for similar autonomy in terms of
local CSR enactment elsewhere. Thus, we hypothesize:
H4: The greater the number of cross-border M&As as a mode of internationalization of
Chinese MNEs, the higher their local CSR responsiveness will be.
Multicultural experience in top management teams. Top managers of Chinese MNEs
face opposing institutional pressures of global CSR integration and local CSR responsiveness
through the strategic CSR orientations of their MNEs’ subsidiaries. They are thus on the horns of
a dilemma – whether to pursue global CSR standardization to build internal legitimacy consistent
with their parent companies’ domestic CSR requirements as well as with the Chinese
government’s expectations in view of national CSR goals, or to prioritize local CSR
responsiveness to build external legitimacy to suit expectations abroad (Hah & Freeman, 2014;
Yang & Rivers, 2009). Thus, Chinese top managers play an important role in navigating and
balancing these opposing forces.
Stahl, Pless, and Maak (2013) argue that in responding to these pressures and due to the
implicit need for a variety of perspectives, values, and expectations, the inclusion of different
17
voices into the corporate dialogue and decision-making process on the part of global managers is
required. Multicultural experience gained through overseas education, international assignments
or work in foreign countries can be an important means for top management teams to gain
capabilities that help them respond to the opposing pressures of global CSR integration and local
CSR responsiveness. Lu, Liu, Filatotchev, and Wright (2014) suggest that such experience can
support managers in being more open toward foreign contexts and adapting to them, due to the
external orientation in managerial mindsets it tends to provide. In the context of emerging
markets, multicultural experience in top management teams is particularly important, as it helps
augment expertise specific to emerging markets with more international expertise (cf., Meyer,
Wright, & Pruthi, 2009).
In the case of China, “returnees” – i.e., managers who have studied or worked abroad and
returned to China – are often described as important contributors to China’s economic growth
(Tung, 2007). The expertise that they and managers with extensive foreign experience possess
can enable top management teams of Chinese MNEs to better understand the various CSR
realities that their MNEs’ subsidiaries face abroad. Executives with such experience are less
likely to exclusively draw from their domestic mindsets (Nadkarni, Herrmann, & Perez, 2011),
which can serve as reference points (Jeannet, 2000) and cognitive filters (Gupta & Govindarajan,
2002). Consequently, given the need to enact CSR-related state policies and navigate the “state
agent” roles their companies are supposed to assume, while simultaneously responding to their
subsidiaries’ local CSR requirements, top management teams with considerable multicultural
experience are more likely than entirely Chinese teams to incorporate both global integration and
local responsiveness into their MNEs’ CSR strategies. Thus, we hypothesize:
18
H5: The greater multicultural experience in the top management teams of Chinese MNEs,
(a) the higher their global CSR integration, and (b) the higher their local CSR responsiveness,
will be.
Data and Methods
To test these hypotheses, we investigated some of China’s largest and globally most
influential MNEs.
Sample selection. Our definition of Chinese MNEs aligns with Luo and Tung's (2007)
approach in that we focused on companies that originate from China and exercise effective
control abroad, undertaking value-adding activities internationally. In selecting the sample, we
followed a comparable procedure to past research (e.g., Barthelemy & Apoteker, 2012). We
focused on companies with a large global footprint and feature among the leaders in their global
industries. Our rationale for doing so was that their size and prominence make global industry
leaders more likely to engage in CSR and provide sufficient information on their activities
(Torres-Baumgarten & Yucetepe, 2009).
In selecting specific Chinese MNEs, we followed precedent approaches (e.g., Lee, Kim,
Park, & Sanidas, 2013) by using the 2012 Fortune Global 500 ranking and the 2012 Forbes
Global 2000 ranking. These rankings list the world’s largest and most influential companies,
based on criteria like sales, profits, market value, assets, and number of employees. We verified
the information in these rankings through other databases provided by Orbis, Thomson Reuters,
Marketline Advantage, and Bloomberg. In addition, and to avoid sampling and selection biases,
we reviewed the literature on Chinese MNEs (e.g., Barthelemy & Apoteker, 2012; Deng, 2009;
Goldstein, 2009) to identify significant Chinese MNEs not included in the Fortune Global 500
19
and the Forbes Global 2000 rankings. This procedure resulted in an initial list of more than 200
companies.
Further refining the sample, we first focused on companies listed in both the Fortune
Global 500 ranking and the Forbes Global 2000 ranking, as this was an indicator that these
companies met our sampling criteria of global footprint and industry leadership. This yielded 31
Chinese MNEs. We further examined the stages of their internationalization in terms of countries
in which they were active, beyond pure export activities and with visible market presence.
Altogether, 18 of the 31 companies clearly met these criteria. In a second step, we analyzed all
remaining Chinese companies from our initial list, applying the same criteria. Overall, this led to
the additional inclusion of 12 companies. In a final step, we inspected the interconnectedness of
the selected companies in terms of equity and ownership structures to avoid double-counting. We
identified one company as the majority owner of another company and excluded the subsidiary
firm. The final sample thus included 29 Chinese MNEs.
Sample characteristics. The selected sample (see Table 1) represents Chinese companies
that have a large international footprint and are among the world’s leading firms in their
industries. In terms of headquarters, 69% are based in Beijing, 10% in Shanghai, 7% in Shenzen,
and 3% each in Hong Kong, Shijiazhuang, Huizhou, and Wuhan. As for industries, 41% of the
MNEs in our sample are predominantly in manufacturing, 21% in mining and quarrying, 17% in
financial and insurance activities, 10% in construction, 7% in information and communication,
and 3% in transportation and storage. About half of the sample companies are controlled by the
State-owned Assets Supervision and Administration Commission (SASAC), and on average 71%
of the stock is directly or indirectly owned by the state. About half of the companies in our
sample are listed on Chinese stock exchanges and 14% are additionally listed abroad. As for
market presence, 83% of the MNEs in our sample are present in North America, 72% in the
20
Middle East, 72% in Oceania and Australia, 66% in Europe, and 62% in Africa and South
America respectively.
*** INSERT TABLE 1 ABOUT HERE ***
Data collection. To avoid common method bias (Podsakoff, MacKenzie, & Podsakoff,
2012), we collected the data for our CSR-related dependent variables and the data for our
independent variable measures from separate sources. The first were obtained from the sample
companies’ CSR reports and corporate websites specifically dedicated to CSR, as well as from
CSR sections in the companies’ annual reports. The latter were obtained from databases and other
sources, including the Orbis company database, Thomson Reuters, Marketline Advantage, and
Bloomberg. We contrasted the data from these databases and, in cases of discrepancies, examined
the information in more detail until we identified consistent data. This procedure helped to
safeguard the reliability of our data. For data not available or not sufficiently consistently
obtainable from these sources, we consulted specific sources such as the UN Global Compact
website (UN Global Compact, 2014b).
As for the CSR-related data, CSR reports were available for 72% of the companies in our
sample, with the earliest reports accessible from 2006 onwards. Of these, 86% incorporated the
GRI standards. For 79% of our sample, specific CSR websites with information about the
companies’ definitions and understanding of the concept of CSR and respective descriptions of
related activities were available. In addition, we collected CSR-related information from sections
in annual reports for 38% of the companies in our sample. All data were from 2012 and in
English. To safeguard reliability, we contrasted the obtained CSR information with the Thomson
21
Reuters ASSET4 database, which systematically provides environmental, social, and governance
data and covered 66% of the companies in our sample.
Measures and properties. The two dependent variables were global CSR integration and
local CSR responsiveness. These were obtained through content analysis of the CSR-related
materials of each sample company and following the methodological guidelines provided by
Krippendorff (2012), Neuendorf (2002), and Weber (1990). Content analysis may be realized
using a priori coding or emergent coding. While the first requires establishing coding categories
based on theory and prior to analyzing the data, the latter involves establishing coding categories
following preliminary examination of the data (Weber, 1990). Our approach was predominantly
based on a priori coding. However, since CSR activities can be context-dependent and tend to
vary according to specific company contexts, industry, and competitive situation, the content-
analytical procedure also included elements of emergent coding. Specifically, two coders were
familiarized with the logic of the integration-responsiveness framework and received definitions
of global CSR integration and local CSR responsiveness in line with extant research (e.g.,
Arthaud-Day, 2005; Filatotchev & Stahl, 2015; Husted & Allen, 2006; Miska et al., 2013;
Muller, 2006; Stahl et al., 2013). This reflects the a priori nature of the coding process. In order
for the coders to accurately grasp potential context-dependent aspects and particularities, they
were given examples of globally integrated and locally adapted CSR activities to demonstrate the
potential variety in how global CSR integration and local CSR responsiveness may display. This
reflects the emergent element of the content-analytical procedure. In addition, the coders were
instructed to focus on the extent of global integration and local responsiveness in the sample
companies’ CSR activities rather than evaluating the kind of CSR activities in which the sample
companies engaged. This was important to safeguard against biased, subjective evaluations and
22
also to circumvent any associations with particular attributes according to the Western or Chinese
understandings of CSR. Appendix A summarizes the coding instructions.
Both coders independently read the CSR-related materials of all companies and provided
their codings. Coder agreement according to the intraclass correlation coefficient (ICC; Shrout
and Fleiss, 1979) was calculated based on the entire sample. The ICC value for global CSR
integration was 0.75, and for local CSR responsiveness, 0.84. Since ICC values above 0.70 can
be considered acceptable (Neuendorf, 2002), these values suggest sufficient coding reliability.
Disagreements were analyzed and discussed in detail. For this purpose, the coders compared and
contrasted their codings and excerpts supporting their evaluations from the CSR-related materials
in order to reevaluate their codings. This process was repeated until all discrepancies were
resolved. In addition, an independent coder replicated the coding process based on a randomly
selected sub-sample of 35% of the entire sample. The ICC value for global CSR integration was
0.83, and for local CSR responsiveness it was 0.86. suggesting sufficient coder reliability
(Neuendorf, 2002).
As for the independent variables, two independent coders analyzed and rated relevant
materials and information. We operationalized state influence by using a dichotomous scale,
coding companies noticeably influenced by SASAC (SASAC, 2014) as 1 and companies not
under SASAC impact as 0. Since SASAC can directly influence the companies it oversees and
can thus push state-driven restructuring and reforms, we consider this measure to have better
construct validity than percentages of company stocks owned directly or indirectly by the
government, which may or may not align with state influence. For global CSR associations, we
recorded whether our sample companies were listed in the UN Global Compact participant
directory (UN Global Compact, 2014b), and observed related activities as reported there.
Companies considerably active in view of the UN Global Compact were coded 1, others, coded
23
0. Because of its supranational character and the increasing adoption of the UN Global Compact
principles worldwide, we found this global CSR initiative to have construct validity. We
operationalized presence in the West by recording whether the sample companies were
established in North America and Europe. Companies established in both regions were coded 2;
if established in either one, they were coded 1; and otherwise 0. For internationalization through
M&As, we obtained the number of majority cross-border acquisitions (more than 50% ownership
stake) by our sample firms from the Orbis company database. Finally, for multicultural
experience in top management teams, we coded as 0 those top management teams that were
composed entirely of Chinese managers without substantial international experience. We coded
teams with managers with extensive international experience according to the number of such
individuals. Rather than relying on nationality as a proxy for multicultural experience, we
carefully analyzed the biographies of the top managers, taking into consideration aspects such as
overseas university education and completed international assignments. This procedure allowed
for more fine-grained analyses and helped identify factors affecting the overall multicultural
experience within the top management teams. For the independent variables coder-agreement
values ranged between 0.75 and 0.97, which suggests sufficient reliability (Neuendorf, 2002).
To obtain a more nuanced picture, we included two other factors that could potentially
affect the CSR-related dependent variables, but for which theory and prior work do not support
the formulation of clear hypotheses. Extant research suggests that financial performance can
influence CSR orientation and practices, though the relationship tends to be complex and its
direction unclear (e.g., Chen & Wang, 2011; Husted & De Jesus Salazar, 2006; Pava & Krausz,
1996). We thus included in our analyses the average profits of the two years preceding our
sampling year (2012). Since this variable displayed high positive skew, we followed standard
practice and ln-transformed the variable as follows: lnprofits = ln(profits + min(profits) + 1). We
24
further explored the impact of industry, as different industries may have evolved varying CSR
approaches. Given methodological limitations in the maximum number of variables we could
accommodate (see below), we operationalized this as a binary variable coded 1 for resource-
related industries and 0 otherwise.
Summary statistics and correlations for all study variables are listed in Table 2.
*** INSERT TABLE 2 ABOUT HERE ***
Data analysis. We used fuzzy-set qualitative comparative analysis (fsQCA) as
implemented in the eponymous software (Ragin, Drass, & Davey, 2009) to test our hypotheses.
This method uses Boolean algebra to establish which configurations of causal conditions
(independent variables) are related to an observed outcome (Ragin, 2000). It has found growing
use in the business and management literature (e.g., Bell, Filatotchev, & Aguilera, 2013; Crilly,
2011; Fiss, 2007; Judge et al., 2015; Schneider, Schulze-Bentrop, & Paunescu, 2010). Several
characteristics make fsQCA suitable for our research. First, it is explicitly designed for medium-
sized samples such as ours, which are generally viewed as too small for standard regression
analysis, but too large for deep qualitative analysis (Ragin, 2000). For a sample of 29 such as
ours, up to six explanatory variables may be specified (Marx, 2006). Second, fsQCA helps
determine the precise configurations – that is, combinations – of causal conditions associated
with the outcome. Third, the method permits a more fine-grained understanding of causal
relationships by allowing for equifinality, that is, the possibility that a number of different
configurations of causal conditions may lead to the same outcome (Fiss, 2007). And fourth, since
no underlying probability distributions are assumed, fsQCA is robust against outliers (Fiss, 2011;
Vis, 2012).
25
Analysis using fsQCA requires the values of all variables to fall within the range of 0 to 1,
where 0 denotes full absence of a given characteristic, 1 full presence, and intermediary values
gradations in between. All variables other than binary (dummy) variables thus need to undergo a
transformation known as “calibration” (Ragin, 2008). Since there are no strong theoretical
reasons for assigning calibration scores manually to our variables, we rank-ordered and then
standardized them to range from 0 to 1 (Longest & Vaisey, 2008). Table 3 displays the
calibration table for each firm and condition.
*** INSERT TABLE 3 ABOUT HERE ***
Based on these inputs, fsQCA calculates a truth table with 2k rows, where k is the number
of causal conditions. This matrix denotes the entire range of possible combinations of causal
conditions. In practice, only some of these are actually observed, and for sample sizes such as
ours, only rows with at least 1 or 2 observations would usually enter the final analysis (Ragin,
2008). We chose the more stringent minimum threshold of 2 so as to improve the generalizability
and robustness of our results. In addition, the analysis requires specifying a minimum value for
consistency, which is a measure indicating the extent to which combinations of causal conditions
are reliably associated with the given outcome (higher values being better). In line with precedent
studies (e.g., Fiss, 2011; Judge et al., 2015; Ragin, 2008), we set this threshold to 0.80.
Results
Table 4 shows the results of our analyses for global CSR integration, and Table 5 for local
CSR responsiveness. Since fsQCA does not necessarily produce symmetrical outcomes – the
configurations of causal conditions for the presence and absence of a given outcome can differ
26
(Crilly, 2011; Fiss, 2011) – we performed separate analyses for higher and lower levels of our
dependent variables. In line with precedent work (Bell et al., 2013; Crilly, 2011; Fiss, 2011), we
denote the presence of a causal condition in a given solution by a filled black circle (●) and the
absence of a condition by a circle with an X (U). Blank cells indicate that it does not matter
whether the given causal condition is present or absent. Large symbols denote so-called “core
conditions,” which are more strongly related to the outcome (cf. Fiss, 2011; Ragin, 2008). Small
symbols denote “peripheral conditions,” which are more loosely related to the dependent
variable.1
*** INSERT TABLES 4 AND 5 ABOUT HERE ***
Table 4 shows that there are two sufficient solutions for attaining high global CSR
integration: Being in a resource industry paired with state influence (H1) and higher profits (1);
or being active in view of global CSR associations (H2) and having higher multicultural
experience in top management teams (H5a) while having lower profits and not being in a
resource industry (2a and 2b). For result 1, resource industry emerged as a core condition. For
results 2a and 2b, lower profits are a core condition, paired either with global CSR associations or
higher multicultural experience in top management teams as a second core condition. Both
solutions exhibit good explanatory power and stability: Coverage, which is roughly equivalent to
R2 in a regression, is 0.23 for result 1 and 0.17 for result 2, with a total coverage of both solutions
of 0.40. Consistency is 0.89 for solution 1 and 0.97 for solution 2, with a total solution
consistency of 0.92. This is well above the threshold of 0.75 suggested by Ragin (2008).
1 fsQCA calculates two different solution sets, the “parsimonious solution” and the “intermediary solution”. Core conditions are those that appear in both solutions. For further discussion of this, see Ragin (2008) or Fiss (2011).
27
Turning to solutions producing low global CSR integration, we find one solution (3)
requiring non-activity in view of global CSR associations, low multicultural experience in top
management teams, and not being in a resource industry. All three conditions are core conditions.
Coverage is high at 0.52, and consistency is acceptable at 0.78.
Overall, these results suggest support for hypotheses 1, 2, and 5a, in that state involvement,
global CSR associations, and multicultural experience in top management teams are associated
with high global CSR integration. The influence of profits and resource industry emerged as
salient.
Table 5 shows the two possible pathways to high local CSR responsiveness; no solution
leading to low local CSR responsiveness was identified. Specifically, local CSR responsiveness
can be attained through internationalization through M&As (H4) paired with higher profits (core)
in a resource industry (peripheral) (solution 4); or in non-resource industries (peripheral), through
presence in the West (H3), multicultural experience in top management teams (H5b), and higher
profits (solution 5). For solution 5, the analysis suggests two different combinations of core
conditions: Multicultural experience in top management teams paired with higher profits, or
presence in the West (H3) paired with higher profits. Solution coverages are 0.16 and 0.22 for
solutions 4 and 5, respectively. Total coverage stands at 0.40. Solution consistencies are all above
the threshold of 0.75, at 0.85 and 0.81, respectively. Overall solution consistency is 0.83.
These results are consistent with hypotheses 3, 4 and 5b, in that high local CSR
responsiveness should be associated with presence in the West, internationalization through
M&As, and multicultural experience in top management teams. Profits and membership in a
resource industry again emerged as important factors. Industry type seems to mediate what
pathway to high local CSR responsiveness is taken. The presence of profits as a core condition in
28
all solutions further suggests that in the context of the pathways identified in this paper, it
represents a necessary condition for high local CSR responsiveness.
We conducted robustness tests using two different configurations. In one case, we omitted
from the sample Chinese MNEs that are state-controlled but listed on the Hong Kong stock
exchange. These companies’ behavior may be subject to different institutional logics and
pressures, with prior research indicating low levels of CSR consciousness in Hong Kong (Witt &
Redding, 2012). Results were identical for local CSR responsiveness and showed minor shifts in
the global CSR integration solutions, with solution 2 disappearing and an additional solution for
low global CSR integration emerging. In the second case, we included dummy variables for
manufacturing and services, a model that we did not adopt as our main specification because the
number of variables exceeds the limits recommended for our sample size (Marx, 2006). As one
would expect, adding variables enables finer differentiation and thus additional solutions.
Overall, however, these remain consistent with our main models.
Discussion and implications
Since most CSR-related research still focuses on developed economies (e.g., Dobers &
Halme, 2009; Muller & Kolk, 2009), there is a lack of theoretical understanding about how
EMNEs address the tensions of global CSR integration and local CSR responsiveness (Hah &
Freeman, 2014). While some authors (e.g., Matten & Moon, 2008) suggest that legitimacy-
seeking and the homogenization of institutional environments across national boundaries lead to
rationalized, predictable CSR strategies, others (e.g., Crilly, 2011; Jamali, 2010; Westney &
Zaheer, 2001) propose that applying institutional theory may not delineate straightforward
patterns of isomorphic pressures, requiring more institutionally embedded perspectives.
29
We aim to contribute to this debate as the antecedents we tested in this study in the
emerging-country context of China suggest a synergetic perspective. We find support for both
antecedents that reflect isomorphic patterns of adaptation across and within institutional settings,
such as global CSR associations, presence in the West, and internationalization through M&As;
and also antecedents which mirror the idiosyncratic characteristics of the Chinese institutional
context, such as state influence. Overall, these observations are in line with Cuervo-Cazurra's
(2012) analysis that investigating EMNEs creates a laboratory for extending existing theories.
This suggests that the study of EMNEs has the potential to uncover antecedent factors of global
CSR integration and local CSR responsiveness that may not yet have been fully considered.
In view of our findings, state influence, motivated by the Chinese government’s interest in
establishing CSR standards (Gugler & Shi, 2009) and accompanied by respective CSR policies
and guidelines for companies, emerged as an antecedent of Chinese MNEs’ global CSR
integration. This finding reflects a key peculiarity of China’s institutional context. At the same
time, activity in view of the UN Global Compact was another important antecedent, underlining
the significance of impact from universal plea on Chinese MNEs’ CSR strategies. While extant
international business research tends to discuss home- and host-country influences on MNEs’
CSR approaches (e.g., Crilly, 2011; Hah & Freeman, 2014), an enlarged focus considering such
supranational and other factors beyond the headquarters-subsidiary dyad, such as industry
membership, may enrich future research. This would be consistent with CSR research suggesting
multiple-level influences on business organizations’ CSR (e.g., Aguilera et al., 2007). For
example, in the case of resource-intense MNEs, established global industry standards seeking to
offset the environmental and social footprint might be of particular relevance in view of global
CSR integration. Such perspectives could thus identify and test a broader range of antecedents,
and they are important for two reasons. First, examining the interplay of various drivers of global
30
CSR integration can enrich the understanding of how MNEs globally integrate their CSR
strategies. Second, the consideration of various antecedent factors of global CSR integration is
potentially promising, as it requires both insights from the international business and the CSR and
ethics literatures. Therefore, such research could contribute to a closer integration and
assimilation of these areas (cf., Doh et al., 2010).
As for local CSR responsiveness, presence in the West and internationalization through
M&As emerged as antecedents. In accordance with institutional theory, both support the logic
that Chinese MNEs tend to be responsive to local CSR requirements for reasons of legitimacy.
Future studies could examine the CSR-related learning opportunities for Chinese MNEs that may
result from local adaptations because of these two drivers. Our findings also showed that profits
were a core condition for high local CSR responsiveness in all configurations. While there is a
lack of theory and prior work supporting the clear formulation of hypotheses relating profits and
local CSR responsiveness, this finding poses the question whether Chinese MNEs consider
profitable business a necessary prerequisite for engaging in local CSR. Future research may
benefit from investigating this relationship and thus help advance the understanding of local CSR
responsiveness. Our main analyses did not reveal configurations of low CSR responsiveness,
suggesting that this dimension may be rather complex and multifaceted, most likely due to the
large number of diverse local CSR contexts in which Chinese MNEs are present.
Our results further indicated that multicultural experience in top management teams is
associated with both global CSR integration and local CSR responsiveness. This suggests that we
may see more approaches toward transnational CSR as Chinese top management teams become
more multiculturally experienced. Future studies might focus on these dynamics and possible
developments over time. In accordance with preceding work (e.g., Fan et al., 2008), it
demonstrates that certain antecedents to MNEs’ CSR strategies may influence both dimensions of
31
the integration-responsiveness framework in the context of CSR. Studies that aim to identify
these factors are likely to be insightful, as they may help examine the mechanisms that enable
MNEs to create multifaceted CSR reactions (Husted & Allen, 2006; Logsdon & Wood, 2005) in
response to political and economic pressures from global and local stakeholders. Specifically in
the context of emerging economies, research that aims to identify and test such antecedents could
contrast MNEs from various emerging countries with MNEs from advanced economies, which
would allow for identifying antecedents that are distinct for individual emerging economies or
present in emerging markets in general.
Limitations
A key limitation of our study is that for reasons of data availability, our perspective on CSR
emphasized the group and aggregate levels of the MNEs we analyzed. Thus, we were unable to
distinguish clearly between headquarters and subsidiary perspectives, which for our analyses may
have added substantial value. In particular, subsidiary perspectives could have provided more in-
depth explanations about why companies adapt their CSR approaches locally. Due to the large
number of subsidiaries of our sample companies, the complex group structures they exhibit, and a
lack of published data, we were unable to incorporate these perspectives. Furthermore, although
all possible precautions were taken to ensure the reliability of the data, our analyses rely on
secondary sources such as company websites and databases.
As a consequence of the focus of this study on the emerging-market context of China and
the institutionally embedded perspective we assumed, as well as the idiosyncratic characteristics
of emerging countries more broadly, our findings may not be fully generalizable across
institutional contexts. Witt and Redding's (2012) work, for example, suggests that CSR
orientations can differ across institutional settings. Therefore, as indicated previously, future
32
studies may find promising opportunities to investigate whether the synergetic perspective
identified in this study equally applies to other emerging economies.
Conclusion
This study can help advance our understanding of how Chinese MNEs address the tensions
of global CSR integration and local CSR responsiveness. Drawing on institutional theory and
considerations of legitimacy as well as the integration-responsiveness framework in the context
of CSR, we find relevant both those antecedents reflecting isomorphic patterns of adaptation
across and within institutional settings and those mirroring idiosyncratic characteristics of the
Chinese institutional context. These findings support Cuervo-Cazurra's (2012) analysis that
investigating EMNEs creates a laboratory for extending existing theories. Our study therefore
helps inform work at the intersection of international business and CSR, as it stimulates future
research into the antecedents of global CSR integration and local CSR responsiveness of EMNEs.
Acknowledgements
We would like to thank the special issue editors and the anonymous reviewers for their
guidance and valuable input. Thanks are further due to Monika Mikulová who with her
contributions laid invaluable foundations for this study, and to the coders involved in the content
analyses.
33
References
Aguilera, R. V., Rupp, D. E., Williams, C. A., & Ganapathi, J. 2007. Putting the S back in corporate social
responsibility: A multilevel theory of social change in organizations. The Academy of Management
Review, 32(3): 836–863.
Alden, C., & Davies, M. 2006. A profile of the operations of Chinese multinationals in Africa. South
African Journal of International Affairs, 13(1): 83–96.
Arthaud-Day, M. L. 2005. Transnational corporate social responsibility: A tri-dimensional approach to
international CSR research. Business Ethics Quarterly, 15(1): 1–22.
Barthelemy, S., & Apoteker, T. 2012. The emergence of Chinese multinational companies (CMCs):
Reality, issues and challenges. SSRN Working Paper. http://papers.ssrn.com/abstract=2169224,
January 13, 2013.
Bartlett, C. A., & Ghoshal, S. 1989. Managing across borders–the transnational solution. Cambridge,
MA: Harvard Business School Press.
Bell, G., Filatotchev, I., & Aguilera, R. 2013. Corporate governance and investors’ perceptions of foreign
IPO value: An institutional perspective. Academy of Management Journal, 28(3): 289–306.
Boisot, M., & Meyer, M. W. 2008. Which way through the open door? Reflections on the
internationalization of Chinese firms. Management and Organization Review, 4(3): 349–365.
Buckley, P. J., Clegg, L. J., Cross, A. R., Liu, X., Voss, H., & Zheng, P. 2007. The determinants of
Chinese outward foreign direct investment. Journal of International Business Studies, 38(4): 499–
518.
Chen, H., & Wang, X. 2011. Corporate social responsibility and corporate financial performance in China:
An empirical research from Chinese firms. Corporate Governance, 11(4): 361–370.
34
Child, J., & Rodrigues, S. B. 2005. The Internationalization of Chinese firms: A case for theoretical
extension? Management and Organization Review, 1(3): 381–410.
Christmann, P. 2004. Multinational companies and the natural environment: Determinants of global
environmental policy standardization. The Academy of Management Journal, 47(5): 747–760.
Cooke, F. L. 2014. Chinese multinational firms in Asia and Africa: Relationships with institutional actors
and patterns of HRM practices. Human Resource Management, 53(6): 877–896.
Crilly, D. 2011. Predicting stakeholder orientation in the multinational enterprise: A mid-range theory.
Journal of International Business Studies, 42(5): 694–717.
Cruz, L. B., & Boehe, D. M. 2010. How do leading retail MNCs leverage CSR globally? Insights from
Brazil. Journal of Business Ethics, 91(2): 243–263.
Cuervo-Cazurra, A. 2012. Extending theory by analyzing developing country multinational companies:
Solving the Goldilocks debate. Global Strategy Journal, 2(3): 153–167.
Deng, P. 2007. Investing for strategic resources and its rationale: The case of outward FDI from Chinese
companies. Business Horizons, 50(1): 71–81.
Deng, P. 2009. Why do Chinese firms tend to acquire strategic assets in international expansion? Journal
of World Business, 44(1): 74–84.
Deng, P. 2012. The internationalization of Chinese firms: A critical review and future research.
International Journal of Management Reviews, 14(4): 408–427.
Devinney, T. M. 2011. Social responsibility, global strategy, and the multinational enterprise: Global
monitory democracy and the meaning of place and space. Global Strategy Journal, 1(3-4): 329–
344.
35
DiMaggio, P. J., & Powell, W. 1983. The iron cage revisited: Institutional isomorphism and collective
rationality in organizational fields. American Sociological Review, 48(2): 147–160.
Dobers, P., & Halme, M. 2009. Corporate social responsibility and developing countries. Corporate
Social Responsibility and Environmental Management, 16(5): 237–249.
Doh, J., Husted, B. W., Matten, D., & Santoro, M. 2010. Ahoy there! Toward greater congruence and
synergy between international business and business ethics theory and research. Business Ethics
Quarterly, 20(3): 481–502.
Donaldson, T., & Dunfee, T. W. 1999. When ethics travel. California Management Review, 41(4): 45–
63.
Duanmu, J.-L. 2012. Firm heterogeneity and location choice of Chinese multinational enterprises (MNEs).
Journal of World Business, 47(1): 64–72.
Fan, D., Nyland, C., & Zhu, C. J. 2008. Strategic implications of global integration and local
responsiveness for Chinese multinationals: An area for future study. Management Research News,
31(12): 922–940.
Filatotchev, I., & Nakajima, C. 2014. Corporate governance, responsible managerial behavior, and
corporate social responsibility: Organizational efficiency versus organizational legitimacy?
Academy of Management Perspectives, 28(3): 289–306.
Filatotchev, I., & Stahl, G. K. 2015. Towards transnational CSR: Corporate social responsibility
approaches and governance solutions for multinational corporations. Organizational Dynamics,
44(2): 121–129.
Fiss, P. C. 2007. A set-theoretic approach to organizational configurations. Academy of Management
Review, 32(4): 1180–1198.
36
Fiss, P. C. 2011. Building better causal theories: A fuzzy set approach to typologies in organization
research. Academy of Management Journal, 54(2): 393–420.
Fombrun, C. J., & Pan, M. 2006. Corporate reputations in China: How do consumers feel about
companies? Corporate Reputation Review, 9(3): 165–170.
Frederick, W. C. 1991. The moral authority of transnational corporate codes. Journal of Business Ethics,
10(3): 165–177.
Gammeltoft, P., Pradhan, J. P., & Goldstein, A. 2010. Emerging multinationals: home and host country
determinants and outcomes. International Journal of Emerging Markets, 5(3/4): 254–265.
Goldstein, A. 2009. Multinational companies from emerging economies composition, conceptualization &
direction in the global economy. Indian Journal of Industrial Relations, 45(1): 137-147.
Gugler, P., & Shi, J. Y. 2009. Corporate social responsibility for developing country multinational
corporations: Lost war in pertaining global competitiveness? Journal of Business Ethics, 87(1): 3–
24.
Gupta, A. K., & Govindarajan, V. 2002. Cultivating a global mindset. The Academy of Management
Executive, 16(1): 116–126.
Hah, K., & Freeman, S. 2014. Multinational enterprise subsidiaries and their CSR: A conceptual
framework of the management of CSR in smaller emerging economies. Journal of Business
Ethics, 122(1): 125–136.
Husted, B. W., & Allen, D. B. 2006. Corporate social responsibility in the multinational enterprise:
Strategic and institutional approaches. Journal of International Business Studies, 37(6): 838–849.
Husted, B. W., & De Jesus Salazar, J. 2006. Taking Friedman seriously: Maximizing profits and social
performance. Journal of Management Studies, 43(1): 75–91.
37
Jamali, D. 2010. The CSR of MNC subsidiaries in developing countries: Global, local, substantive or
diluted? Journal of Business Ethics, 93(2): 181–200.
Jeannet, J.-P. 2000. Managing with a global mindset. Financial Times/Prentice Hall.
Judge, W. Q., Hu, H. W., Gabrielson, J., Talaulicar, T., Witt, M. A., Zattoni, A., Lopez, F., Chen, J.,
Shukla, D., Quttainah, M., Adegbite, E., Rivas, J. L., & Kibler, B. 2015. Configurations of capacity
for change in entrepreneurial threshold firms: Imprinting and strategic choice perspectives. Journal
of Management Studies, 52(4): 506-530.
Kale, P., Singh, H., & Raman, A. 2009. Don’t integrate your acquisitions, partner with them. Harvard
Business Review, 87(12): 109–115.
Kolk, A., Hong, P., & van Dolen, W. 2010. Corporate social responsibility in China: An analysis of
domestic and foreign retailers’ sustainability dimensions. Business Strategy and the Environment,
19(5): 289–303.
Kostova, T., Roth, K., & Dacin, M. T. 2008. Institutional theory in the study of multinational
corporations: A critique and new directions. Academy of Management Review, 33(4): 994–1006.
Kostova, T., & Zaheer, S. 1999. Organizational legitimacy under conditions of complexity: The case of
the multinational enterprise. Academy of Management Review, 24(1): 64–81.
Krippendorff, K. (2012). Content analysis: An introduction to its methodology. SAGE Publications.
Lee, K., Kim, B.-Y., Park, Y.-Y., & Sanidas, E. 2013. Big businesses and economic growth: Identifying a
binding constraint for growth with country panel analysis. Journal of Comparative Economics,
41(2): 561–582.
Liou, R.-S., Rose, A. S., & Ellstrand, A. E. 2012. Emerging-market multinational corporations as agents
of globalization: Conflicting institutional demands and the isomorphism of global markets. In L.
38
Tihanyi, T. M. Devinney, & T. Pedersen (Eds.), Institutional theory in international business and
management: 179-206. Emerald Group Publishing Limited.
Logsdon, J. M., & Wood, D. J. 2005. Global business citizenship and voluntary codes of ethical conduct.
Journal of Business Ethics, 59(1): 55–67.
Longest, K. C., & Vaisey, S. 2008. fuzzy: A program for performing qualitative comparative analyses
(QCA) in Stata. The Stata Journal, 8(1): 79-104.
Lu, J., Liu, X., Filatotchev, I., & Wright, M. 2014. The impact of domestic diversification and top
management teams on the international diversification of Chinese firms. International Business
Review, 23(2): 455–467.
Luo, Y., & Rui, H. 2009. An ambidexterity perspective toward multinational enterprises from emerging
economies. The Academy of Management Perspectives, 23(4): 49–70.
Luo, Y., & Tung, R. L. 2007. International expansion of emerging market enterprises: A springboard
perspective. Journal of International Business Studies, 38(4): 481–498.
Luo, Y., Xue, Q., & Han, B. (2010). How emerging market governments promote outward FDI:
Experience from China. Journal of World Business, 45(1), 68-79.
Marx, A. 2006. Towards more robust model specification in QCA: Results from a methodological
experiment. American Sociological Association, Philadelphia, PA.
Matten, D., & Moon, J. 2008. “Implicit” and “explicit” CSR: A conceptual framework for a comparative
understanding of corporate social responsibility. The Academy of Management Review, 33(2):
404–424.
Maurin, C., & Yeophantong, P. 2013. Going global responsibly? China’s strategies towards “sustainable”
overseas investments. Pacific Affairs, 86(2), 281–303.
39
Meyer, K. E., Wright, M., & Pruthi, S. 2009. Managing knowledge in foreign entry strategies: A resource-
based analysis. Strategic Management Journal, 30(5): 557–574.
Miska, C., Stahl, G. K., & Mendenhall, M. E. 2013. Intercultural competencies as antecedents of
responsible global leadership. European Journal of International Management, 7(5): 550–569.
Moon, J., & Shen, X. 2010. CSR in China research: Salience, focus and nature. Journal of Business
Ethics, 94(4): 613–629.
Muller, A. 2006. Global versus local CSR strategies. European Management Journal, 24(2): 189–198.
Muller, A., & Kolk, A. 2009. CSR performance in emerging markets. Evidence from Mexico. Journal of
Business Ethics, 85(2): 325–337.
Nadkarni, S., Herrmann, P., & Perez, P. D. 2011. Domestic mindsets and early international performance:
The moderating effect of global industry conditions. Strategic Management Journal, 32(5): 510–
531.
Neuendorf, K. A. 2002. The content analysis guidebook. Sage Publications.
Oliver, C. 1991. Strategic responses to institutional processes. Academy of Management Review, 16(1):
145–179.
Palazzo, G., & Scherer, A. G. 2006. Corporate legitimacy as deliberation: A communicative framework.
Journal of Business Ethics, 66(1): 71–88.
Park, S. H., Li, S., & David, K. T. 2006. Market liberalization and firm performance during China’s
economic transition. Journal of International Business Studies, 37(1): 127–147.
Pava, M. L., & Krausz, J. 1996. The association between corporate social-responsibility and financial
performance: The paradox of social cost. Journal of Business Ethics, 15(3): 321–357.
40
Podsakoff, P. M., MacKenzie, S. B., & Podsakoff, N. P. 2012. Sources of method bias in social science
research and recommendations on how to control it. Annual Review of Psychology, 63: 539–569.
Prahalad, C. K., & Doz, Y. 1987. The multinational mission. New York: The Free press; London:
Collier-Macmillan.
Ragin, C. C. 2000. Fuzzy-set social science. University of Chicago Press.
Ragin, C. C. 2008. Redesigning social inquiry: Fuzzy sets and beyond. Wiley Online Library.
Ragin, C. C., Drass, K. A., & Davey, S. 2009. Fuzzy-set/qualitative comparative analysis 2.5. Irvine, CA:
Department of Sociology, University of California.
Ramamurti, R. 2009. Why study emerging-market multinationals? In R. Ramamurti & J. V. Singh (Eds.),
Emerging multinationals in emerging markets: 3-22. Cambridge University Press.
Ramamurti, R. 2012. What is really different about emerging market multinationals? Global Strategy
Journal, 2(1): 41–47.
Reed, D. 2002. Employing normative stakeholder theory in developing countries. A critical theory
perspective. Business & Society, 41(2): 166–207.
Rui, H., & Yip, G. S. 2008. Foreign acquisitions by Chinese firms: A strategic intent perspective. Journal
of World Business, 43(2): 213–226.
Salehizadeh, M. 2007. Emerging economies’ multinationals: Current status and future prospects. Third
World Quarterly, 28(6): 1151–1166.
SASAC. 2014. State-owned Assets Supervision and Administration Commission of the State Council
(SASAC), the People’s Republic of China.
http://www.sasac.gov.cn/n2963340/n2971121/n4956567/4956583.html, June 5, 2014.
41
Schneider, M. R., Schulze-Bentrop, C., & Paunescu, M. 2010. Mapping the institutional capital of high-
tech firms: A fuzzy-set analysis of capitalist variety and export performance. Journal of
International Business Studies, 41(2): 246–266.
Scott, W. R. 1995. Institutions and organizations. Sage.
See, G. 2009. Harmonious society and Chinese CSR: Is there really a link? Journal of Business Ethics,
89(1): 1–22.
Shrout, P. E., & Fleiss, J. L. 1979. Intraclass correlations: Uses in assessing rater reliability. Psychological
Bulletin, 86(2): 420–428.
Sotorrío, L. L., & Sánchez, J. L. F. (2008). Corporate social responsibility of the most highly reputed
European and North American firms. Journal of Business Ethics, 82(2): 379–390.
Stahl, G. K., Pless, N. M., & Maak, T. 2013. Responsible global leadership. In M. E. Mendenhall, J. S.
Osland, A. Bird, G. R. Oddou, M. L. Maznevski, M. J. Stevens, & G. K. Stahl (Eds.), Global
leadership: Research, practice, and development, 2nd ed.: 240–259. Routledge.
Suchman, M. C. 1995. Managing legitimacy: Strategic and institutional approaches. Academy of
Management Review, 20(3): 571–610.
Tan, J., & Wang, L. 2011. MNC strategic responses to ethical pressure: An institutional logic perspective.
Journal of Business Ethics, 98(3): 373–390.
Tang, L., & Li, H. 2009. Corporate social responsibility communication of Chinese and global
corporations in China. Public Relations Review, 35(3): 199–212.
Tan-Mullins, M., & Mohan, G. 2013. The potential of corporate environmental responsibility of Chinese
state-owned enterprises in Africa. Environment, Development and Sustainability, 15(2): 265–284.
42
Torres-Baumgarten, G., & Yucetepe, V. 2009. Multinational firms’ leadership role in corporate social
responsibility in Latin America. Journal of Business Ethics, 85(1): 217–224.
Tost, L. P. 2011. An integrative model of legitimacy judgments. Academy of Management Review, 36(4):
686–710.
Tung, R. L. 2007. The human resource challenge to outward foreign direct investment aspirations from
emerging economies: The case of China. The International Journal of Human Resource
Management, 18(5): 868–889.
UN Global Compact. 2014a. UN Global Compact - Local Networks, China.
http://www.unglobalcompact.org/NetworksAroundTheWorld/local_network_sheet/CN.html, May
2, 2014.
UN Global Compact. 2014b. UN Global Compact - Participants & Stakeholders.
http://www.unglobalcompact.org/participants/search, June 5, 2014.
Vis, B. 2012. The comparative advantages of fsQCA and regression analysis for moderately large-N
analyses. Sociological Methods & Research, 41(1): 168–198.
Wang, J., & Chaudhri, V. 2009. Corporate social responsibility engagement and communication by
Chinese companies. Public Relations Review, 35(3): 247–250.
Wang, J., Guthrie, D., & Xiao, Z. 2012. The rise of SASAC: Asset management, ownership concentration,
and firm performance in China’s capital markets. Management and Organization Review, 8(2):
253–281.
Wang, L., & Juslin, H. 2009. The impact of Chinese culture on corporate social responsibility: The
harmony approach. Journal of Business Ethics, 88(3): 433–451.
Weber, R. P. 1990. Basic content analysis. Sage Publications.
43
Wei, T., Clegg, J., & Ma, L. 2014. The conscious and unconscious facilitating role of the Chinese
government in shaping the internationalization of Chinese MNCs. International Business Review,
24(2): 331-343.
Westney, D. E., & Zaheer, S. 2001. The multinational enterprise as an organization. In A. M. Rugman
(Ed.), The Oxford Handbook of International Business: 349-379. Oxford University Press.
Williamson, P. J., & Raman, A. P. 2011. How China reset its global acquisition agenda. Harvard
Business Review, 89(4): 109–114.
Witt, M. A., & Redding, G. 2012. The spirits of corporate social responsibility: Senior executive
perceptions of the role of the firm in society in Germany, Hong Kong, Japan, South Korea and the
USA. Socio-Economic Review, 10(1): 109–134.
Witt, M. A., & Redding, G. 2014. The Oxford handbook of Asian business systems. Oxford University
Press.
Wong, L. 2009. Corporate social responsibility in China: Between the market and the search for a
sustainable growth development. Asian Business & Management, 8(2): 129–148.
Xu, S., & Yang, R. 2010. Indigenous characteristics of Chinese corporate social responsibility conceptual
paradigm. Journal of Business Ethics, 93(2): 321–333.
Yang, X., & Rivers, C. 2009. Antecedents of CSR practices in MNCs’ subsidiaries: A stakeholder and
institutional perspective. Journal of Business Ethics, 86(2): 155–169.
Yang, Y., Yang, X., & Doyle, B. W. 2013. The location strategy and firm value creation of Chinese
multinationals. Multinational Business Review, 21(3): 232–256.
Yin, J., & Zhang, Y. 2012. Institutional dynamics and corporate social responsibility (CSR) in an
emerging country context: Evidence from China. Journal of Business Ethics, 111(2): 301–316.
44
Zhong, W., Peng, J., & Liu, C. 2013. Internationalization performance of Chinese multinational
companies in the developed markets. Journal of Business Research, 66(12): 2479–2484.
45
Table 1: Selected sample companies
China Petroleum & Chemical Corporation (Sinopec)
Industrial & Commercial Bank of China (The) - ICBC
Bank of China
China Construction Bank Corporation
Bank of Communications Co. Ltd
Citic Group
Shenhua Group Corporation Ltd.
Aluminum Corporation of China
Baosteel Group Corporation
China Minmetals Corporation
Hebei Iron & Steel Group Co., Ltd.
Wuhan Iron and Steel (Group) Corp.
China Telecom Corporation Limited
China Ocean Shipping (Group) Company (COSCO)
Lenovo Group Limited
China State Construction Engineering Corporation
China Railway Group Ltd.
China Railway Construction Corporation
Huawei Investment & Holding Co., Ltd.
China National Petroleum Corporation
China National Offshore Oil Corp.
China Mobile Limited
Haier Group Corporation
China International Marine Containers (Group) Co., Ltd.
TCL
ZTE Corp.
Sinochem Group
China National Cereals, Oils & Foodstuffs Corporation (COFCO)
China National Machinery Industry Corporation (Sinomach)
46
Table 2: Summary statistics and correlations for all study variables
Mean SD Min Max 1 2 3 4 5 6 7 8
1. Global CSR integration 0.39 0.29 0 1 -
2. Local CSR responsiveness 0.79 0.22 0 1 0.07 -
3. State influence 0.50 0.51 0 1 0.15 0.12 -
4. Global CSR associations 0.47 0.51 0 1 0.47** -0.10 -0.00 -
5. Presence in the West 1.50 0.78 0 2 0.13 0.13 -0.48** 0.09 -
6. Internationalization through
M&As 1.07 1.68 0 7 0.21 0.23 -0.16 0.12 0.08 -
7. Multicultural experience in
top management teams 0.60 1.22 0 6 0.34† 0.23 -0.44* 0.15 0.33† 0.18 -
8. Profits 7.08 1.90 0 9,996 0.06 0.11 -0.20 0.04 0.16 0.32† 0.07 -
9. Resource industry 0.23 0.43 0 1 0.28 0.17 0.24 0.27 -0.16 0.36† -0.21 0.22
† p < 0.1, * p < 0.05, ** p < 0.01; N=29
47
Table 3: Calibration table
Company Name
Glo
bal C
SR in
tegr
atio
n
Loca
l CSR
resp
onsi
vene
ss
Stat
e in
fluen
ce
Glo
bal C
SR a
ssoc
iatio
ns
Pres
ence
in th
e W
est
Inte
rnat
iona
lizat
ion
thro
ugh
M&
As
Mul
ticul
tura
l exp
erie
nce
in to
p m
anag
emen
t tea
ms
Prof
its
Res
ourc
e in
dust
ry
China Petroleum & Chemical Corporation 0.302 0.458 0 1 0.286 0.860 0.000 0.862 1 Industrial & Commercial Bank of China 0.302 0.458 0 1 1.000 0.953 0.667 1.000 0 Bank of China 0.604 0.458 0 0 1.000 0.535 0.897 0.931 0 China Construction Bank Corporation 0.302 1.000 0 0 1.000 0.000 0.897 0.966 0 Bank of Communications Co. Ltd 0.000 1.000 0 0 1.000 0.000 0.667 0.793 0 Citic Group 0.000 0.458 0 0 0.286 0.535 0.000 0.759 0 Shenhua Group Corporation Ltd. 0.604 0.458 1 0 0.000 0.535 0.000 0.724 1 Aluminum Corporation of China 0.302 0.458 1 0 0.000 0.000 0.000 0.000 0 Baosteel Group Corporation 0.849 0.083 1 1 1.000 0.000 0.000 0.655 0 China Minmetals Corporation 0.849 0.458 1 1 1.000 0.535 0.000 0.379 1 Hebei Iron & Steel Group Co., Ltd. 0.000 0.000 0 0 1.000 0.000 0.000 0.310 0 Wuhan Iron And Steel (Group) Corp. 0.302 1.000 1 0 1.000 0.000 0.000 0.345 0 China Telecom Corporation Limited 0.000 1.000 1 0 1.000 0.000 0.000 0.155 0 China Ocean Shipping (Group) Company 0.604 1.000 1 1 1.000 0.744 0.667 0.448 0 Lenovo Group Limited 1.000 1.000 0 1 1.000 0.860 1.000 0.276 0 China State Construction Engineering Corp. 0.302 1.000 1 0 0.286 0.000 0.000 0.621 0 China Railway Group Ltd. 0.302 0.458 1 0 0.000 0.000 0.000 0.586 0 China Railway Construction Corporation 0.000 0.083 1 1 0.000 0.000 0.000 0.552 0 Huawei Investment & Holding Co., Ltd. 0.849 0.458 0 1 1.000 0.000 0.667 0.690 0 China National Petroleum Corporation 0.849 1.000 1 0 0.286 1.000 0.000 0.897 1 China National Offshore Oil Corp. 0.849 0.458 1 1 0.286 0.000 0.000 0.828 1 China Mobile Limited 0.604 0.458 1 1 0.000 0.000 0.000 0.207 0 Haier Group Corporation 0.302 0.458 0 0 1.000 0.860 0.000 0.155 0 China Int’l Marine Containers (Group) Co., Ltd. 0.849 0.458 0 1 1.000 0.000 0.000 0.069 0 TCL 0.302 0.458 0 0 1.000 0.000 0.897 0.034 0 ZTE Corp. 0.604 0.083 0 1 1.000 0.535 0.667 0.103 0 Sinochem Group 0.302 1.000 1 1 1.000 0.535 0.000 0.517 1 China National Cereals, Oils & Foodstuffs Corp. 0.000 1.000 0 0 1.000 0.535 0.000 0.483 0 China Nat’l Machinery Industry Corp. 0.849 0.458 1 0 1.000 0.000 0.000 0.414 0
48
Table 4: Solutions for global CSR integration
High Global CSR Integration Low Global
CSR Integration
1 2a 2b 3
State influence ●
Global CSR associations ● ● ⨂
Multicultural experience in top management teams ● ● ⨂
Profits ● ⨂ ⨂
Resource industry ● ⨂ ⨂ ⨂ Coverage 0.23 0.17 0.52 Consistency 0.89 0.97 0.78 Solution coverage 0.40 0.52 Solution consistency 0.92 0.78
Key:
● core causal condition (present); ● peripheral causal condition (present);
⨂ core causal condition (absent); ⨂ peripheral causal condition (absent)
49
Table 5: Solutions for local CSR responsiveness
High Local CSR Responsiveness
4 5a 5b
Presence in the West ● ● Internationalization through M&As ● Multicultural experience in top management teams ● ●
Profits ● ● ● Resource industry ● ⨂ ⨂
Coverage 0.16 0.22 Consistency 0.85 0.81 Solution coverage 0.40 Solution consistency 0.83
Key:
● core causal condition (present); ● peripheral causal condition (present);
⨂ core causal condition (absent); ⨂ peripheral causal condition (absent)
50
Appendix A: Summary of coding instructions
Global CSR Integration
The company’s CSR strategy and activities tend to highlight universal principles around clearly defined core themes applicable to all countries of operation. These strategies might feature widespread consensus on the relevance of their CSR activities. Overall, such approaches may appear to be of proactive nature and could emphasize efficiency, expressed through the setting of standards, guidelines, and norms. Examples of globally integrated CSR activities may relate, but are not limited to:
• the establishment of uniform, company-wide employee safety standards • a global warming and climate change initiative enacted in all countries of operations • a company-wide charity program which unanimously endorses the same emphases
Depending on the company’s objectives, industry, and targets, the actual CSR themes and foci may differ considerably. Yet the extent to which the various company-specific CSR activities are globally cohesive, could be high or low. Please evaluate to which degree the company’s CSR strategy is globally integrated.
Local CSR Responsiveness
The company’s CSR strategy and activities tend to be responsive to local communities in countries of operations and may focus on particular needs and circumstances which are of importance in specific countries and regions. These strategies might feature select native issues to support the relevance of their CSR strategies. Overall, such strategies may appear to be fragmented and ad hoc. Examples of locally responsive CSR activities may relate, but are not limited to:
• employee training and development in a country with low literacy rates adapted to the particular needs of the employees in this country
• HIV/AIDS programs in select regions of Africa • a number of diverse charity activities across countries of operations with various
emphases depending on local communities’ needs
Depending on the company’s objectives, industry, and targets, the actual CSR themes and foci may differ considerably. Yet the extent to which the various company-specific CSR activities are locally receptive could be high or low. Please evaluate to which degree the company’s CSR strategy is locally responsive.
51
Authors’ biographical statements
Christof Miska is an Assistant Professor at the Institute for International Business at WU
Vienna, where he obtained his doctoral degree. He is an alumnus of the Nordic Research School
of International Business and of CEMS, the Global Alliance in Management Education. His
research focuses on responsible leadership and corporate responsibility in the multinational
context. Related work in these areas was published in Journal of Business Ethics, Organizational
Dynamics, and European Journal of International Management.
Michael A. Witt is a professor of Strategy and International Business at INSEAD. His work
explores the shape of national institutions (“business systems”) and their impact on managerial
and organizational outcomes. His papers have appeared in journals such as JBE, JIBS, JMS,
MOR, SER, and SMJ. He has also published four scholarly books, including The Future of
Chinese Capitalism and, as lead editor, the Oxford Handbook of Asian Business Systems (both
with Gordon Redding, Oxford University Press). He holds an AB from Stanford University and a
PhD from Harvard University.
Günter K. Stahl is a Professor of International Management at WU Vienna. He served on the
faculty of INSEAD from 2001-2009 and has held visiting positions at Duke University’s Fuqua
School of Business, the D'Amore-McKim School of Business at Northeastern University, the
Wharton School of the University of Pennsylvania, and Hitotsubashi University, among others.
His areas of interest include leadership, corporate social responsibility, and the sociocultural
processes in international teams, alliances, mergers and acquisitions. His research has been
52
recognized by numerous awards and published in leading academic journals, such as
Organization Science, Journal of Management Studies, Journal of Applied Psychology, and
Journal of International Business Studies, and has been profiled in a wide range of media
including the Wall Street Journal and Financial Times.