Private governance as regulatory substitute or complement? A comparative institutional approach to CSR adoption by multinational corporations

Gregory Jackson, Nikolas Rathert

Research output: Chapter in Book/Report/Conference proceedingChapterScientificpeer-review

Abstract

Multinational corporations (MNCs) utilize corporate social responsibility (CSR) to govern their global economic activities. Yet CSR adoption is influenced by institutional diversity of both home and host countries. This article uses neoinstitutional and comparative capitalism theories to understand how CSR is shaped by different forms of stakeholder salience in diverse institutional contexts. Using data on labor rights CSR adoption by 629 European MNCs, our empirical results indicate that CSR complements institutionalized stakeholder power in home countries, but substitutes for its absence in host countries. Hence, CSR may paradoxically legitimate MNC behavior given both the presence and absence of stakeholder rights.
Original languageEnglish
Title of host publicationMultinational corporations and organization theory
Subtitle of host publicationPost millennium perspectives
EditorsC. DöRrenbächer, M. Geppert
PublisherEmerald Publishing
Pages445-478
Volume49
ISBN (Print)978-1-78635-386-3
DOIs
Publication statusPublished - 2017
Externally publishedYes

Publication series

NameResearch in the Sociology of Organizations

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Jackson, G., & Rathert, N. (2017). Private governance as regulatory substitute or complement? A comparative institutional approach to CSR adoption by multinational corporations. In C. DöRrenbächer, & M. Geppert (Eds.), Multinational corporations and organization theory: Post millennium perspectives (Vol. 49, pp. 445-478). (Research in the Sociology of Organizations). Emerald Publishing. https://doi.org/10.1108/S0733-558X20160000049015