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- W1951344888 abstract "Although multinational corporations (MNCs) are central actors in the governance of the global economy, our knowledge of the institutional conditions under which private governance emerges is limited. Given their global nature spanning different countries, MNCs are often associated with high adoption of private modes of governance falling under the rubric of corporate social responsibility (CSR), whereby firms engage with multiple and diverse expectations of salient stakeholders regarding social standards. In this paper, we develop a comparative institutional theory of CSR adoption to provide a more nuanced and comprehensive understanding why private governance emerges. Drawing on the concept of stakeholder salience, this paper develops propositions how salience emerges in different institutional contexts and affects the CSR adoption by MNCs. Using data on labor rights CSR adoption by 629 European MNCs, we find that CSR complements home country institutions that grant formal stakeholder rights. At the same time, results show that CSR substitutes for the absence of such institutions in host countries. Hence, our findings point to a potential paradox whereby CSR legitimates MNC behavior in both the presence and absence of institutionalized stakeholder rights." @default.
- W1951344888 created "2016-06-24" @default.
- W1951344888 creator A5005403933 @default.
- W1951344888 date "2015-01-01" @default.
- W1951344888 modified "2023-09-26" @default.
- W1951344888 title "Why and how firms address stakeholder issues: Institutional and Organizational Determinants of Corporate Social Responsibility Adoption" @default.
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