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Multinational corporations and host country institutions: A case study of CSR activities in Angola

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  • Wiig, Arne
  • Kolstad, Ivar

Abstract

While institutions are important for economic development, particularly in resource rich countries, the interaction between multinational corporations and host country institutions is not well understood. This article presents an in-depth case study of multinational oil companies' CSR activities in Angola. The results show that CSR is on the whole relatively unimportant for getting licenses and contracts in Angola. To the extent that CSR matters, it appears to be used strategically by corporations to increase their chances of winning licenses and contracts. Moreover, oil companies do not address governance problems in Angola. These results have implications for theories of the resource curse and of strategic CSR. By using CSR strategically, there is a risk that multinational corporations facilitate patronage problems in resource rich countries, exacerbating the resource curse. Furthermore, the standard assumption that 'good' institutions are in the interest of corporations ignores the distributive consequences of institutional reform. The failure to address governance problems may thus reflect collective complacency of corporations rather than collective actions problems.

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Bibliographic Info

Article provided by Elsevier in its journal International Business Review.

Volume (Year): 19 (2010)
Issue (Month): 2 (April)
Pages: 178-190

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Handle: RePEc:eee:iburev:v:19:y:2010:i:2:p:178-190

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Keywords: Angola Corporate social responsibility Ethics Governance Institutions Oil companies Resource curse Strategic CSR;

References

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Citations

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Cited by:
  1. Moore, Fiona, 2012. "Identity, knowledge and strategy in the UK subsidiary of an Anglo-German automobile manufacturer," International Business Review, Elsevier, vol. 21(2), pages 281-292.
  2. Tsani, Stella, 2013. "Natural resources, governance and institutional quality: The role of resource funds," Resources Policy, Elsevier, Elsevier, vol. 38(2), pages 181-195.
  3. Ackah-Baidoo, Abigail, 2012. "Enclave development and ‘offshore corporate social responsibility’: Implications for oil-rich sub-Saharan Africa," Resources Policy, Elsevier, Elsevier, vol. 37(2), pages 152-159.
  4. Ivar Kolstad & Arne Wiig, 2013. "Digging in the dirt? Extractive industry FDI and corruption," Economics of Governance, Springer, vol. 14(4), pages 369-383, November.
  5. de Jong, Gjalt & Phan, T. Binh & van Ees, Hans, 2011. "Does the meta-environment determine firm performance? Theory and evidence from European multinational enterprises," International Business Review, Elsevier, vol. 20(4), pages 454-465, August.
  6. Kolk, Ans & van Tulder, Rob, 2010. "International business, corporate social responsibility and sustainable development," International Business Review, Elsevier, vol. 19(2), pages 119-125, April.

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