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Corporate Social Responsibility of Foreign Multinationals in a Developing Country Context: Insights from Pakistan

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  • Mohammad Sohail Yunis

    (Institute of Management Sciences (IMSciences), 1-A, E-5, Phase VII, Hayatabad 25000, Pakistan)

  • Dima Jamali

    (Olayan School of Business, American University of Beirut, Beirut 11-0236, Lebanon)

  • Hina Hashim

    (Institute of Management Sciences (IMSciences), 1-A, E-5, Phase VII, Hayatabad 25000, Pakistan)

Abstract

This paper aims to explore the dynamics of corporate social responsibility (CSR) of multinational companies (MNCs) subsidiaries operating in Pakistan. To do this, the corporate social performance (CSP) model, has been modified and integrated with the relevant models of CSR for multinational companies (MNCs). Empirical evidence from MNCs operating in the developing country context was collected and analyzed from MNCs operating in Pakistan. Findings from semi-structured interviews uncover that CSR is yet to institutionalize and most MNC executives understand CSR in narrow philanthropic and ethical terms and ignore the legal and economic aspects. Interestingly, there is evidence that MNCs are able to modify global CSR strategies to respond to local contexts and issues. In addition, the sample MNCs lack systematic environmental scanning, stakeholder management and demonstrate a short-term reactive approach to CSR. We believe that the proposed theoretical framework of the study can be utilized to understand MNCs CSR practices in both developed and developing countries. However, these empirical findings are context bound and cannot be generalized.

Suggested Citation

  • Mohammad Sohail Yunis & Dima Jamali & Hina Hashim, 2018. "Corporate Social Responsibility of Foreign Multinationals in a Developing Country Context: Insights from Pakistan," Sustainability, MDPI, vol. 10(10), pages 1-20, September.
    • Handle: RePEc:gam:jsusta:v:10:y:2018:i:10:p:3511-:d:172955
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    References listed on IDEAS

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    1. Zeeshan Mahmood & Rehana Kouser & Md. Abdul Kaium Masud, 2019. "An emerging economy perspective on corporate sustainability reporting – main actors’ views on the current state of affairs in Pakistan," Asian Journal of Sustainability and Social Responsibility, Springer, vol. 4(1), pages 1-31, December.
    2. Khan, Majid & Lockhart, James & Bathurst, Ralph, 2021. "The institutional analysis of CSR: Learnings from an emerging country," Emerging Markets Review, Elsevier, vol. 46(C).
    3. Enrico Fontana & Muhammad Atif & Ammar Ali Gull, 2021. "Corporate social responsibility decisions in apparel supply chains: The role of negative emotions in Bangladesh and Pakistan," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(6), pages 1700-1714, November.

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