Incorporating stakeholder approach in corporate social responsibility (CSR): a case study at multinational corporations (MNCs) in Penang
Purpose - The purpose of this research is to gain deeper understanding on how the stakeholders' relationship is incorporated in multinational corporations' (MNCs') corporate social responsibility (CSR) approach. Design/methodology/approach - Stakeholder theory by Freeman was used as the theoretical framework of this research. A case study of two established MNCs in Penang, Malaysia, were conducted and analysed through within-case and cross-case analysis. Three research questions focusing on aspects of CSR (internal and external), concerns of primary and secondary stakeholders based on Carroll's three-domain approach and factors that influence CSR practices within each stakeholder group were developed. Findings - A main theoretical contribution of the study found that MNCs in developing countries are increasingly addressing new ways to incorporate CSR internal and external aspects in their operations which will eventually alter the fundamental process of evaluation among their stakeholders. Given the tendency among developing countries to regard all forms of CSR concerns, economic, ethical and legal concerns are equally important. Another main theoretical contribution of this study highlighted that different locality between home country and foreign country operation does affect the CSR work. Findings of this study show that the view of increasing investor clout on CSR in the country where they do business does not affect the MNCs and the influence of CSR activist as top CSR issues does not directly influence MNCs' actual CSR work. Research limitations/implications - The study has clearly projected the use of stakeholder theory by Freeman. Internal and external aspects of CSR were supported by these organisations as their standard practices. MNCs need to assume these concerns (economic, ethical and legal) for meeting the obligations towards their stakeholders. Stakeholders are significant drivers of CSR which can affect, or is affected by, the achievement of the organisations' objectives. Practical implications - The study presents practical implications for policy makers and MNCs in developing countries on new ways of incorporating CSR internal and external aspects in their operations and various concerns (economic, ethical, legal) of stakeholders that have been accepted as necessary for the proper functioning of business. Originality/value - This research paper provides a strong base for MNCs and academicians to understand the various aspects, concerns and factors that influence CSR practices within each stakeholder group.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 6 (2010)
Issue (Month): 4 (October)
|Contact details of provider:|| Web page: http://www.emeraldinsight.com|
|Order Information:|| Postal: Emerald Group Publishing, Howard House, Wagon Lane, Bingley, BD16 1WA, UK|
Web: http://www.emeraldinsight.com/srj.htm Email:
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Schwartz, Mark S. & Carroll, Archie B., 2003. "Corporate Social Responsibility: A Three-Domain Approach," Business Ethics Quarterly, Cambridge University Press, vol. 13(04), pages 503-530, October.
- Freeman, R. Edward & Liedtka, Jeanne, 1991. "Corporate social responsibility: A critical approach," Business Horizons, Elsevier, vol. 34(4), pages 92-98.
- Knox, Simon & Maklan, Stan, 2004. "Corporate Social Responsibility:: Moving Beyond Investment Towards Measuring Outcomes," European Management Journal, Elsevier, vol. 22(5), pages 508-516, October.
- Arthaud-Day, Marne L., 2005. "Transnational Corporate Social Responsibility: A Tri-Dimensional Approach to International CSR Research," Business Ethics Quarterly, Cambridge University Press, vol. 15(01), pages 1-22, January.
When requesting a correction, please mention this item's handle: RePEc:eme:srjpps:v:6:y:2010:i:4:p:593-610. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Louise Lister)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.