In the post COVID-19 world, managing a corporate social responsibility (CSR) programme that makes a meaningful difference, balances the views and concerns of diverse stakeholders, and is cost effective can be a difficult tightrope to walk even for companies looking at their home market.
This task likely becomes even more complicated for multinational organisations operating in far flung locales and across diverse cultures, and as companies are increasingly being assessed on their willingness to demonstrate a commitment to helping fight the pandemic and to provide relief to affected stakeholders.
In light of this, new research conducted by a team, including at The Chinese University of Hong Kong (CUHK) Business School, found that CSR activities conducted by the parent organisation of a multinational company can positively influence the ability of overseas subsidiaries to operate in their respective markets.
“Senior corporate executives should seek to fine tune the amount, quality and ways group-wide CSR information could be accessed.” – Prof. Shige Makino
While prior research tended to focus on the effect of CSR at the corporate group level, the new study; conducted by Shige Makino, Professor of Management at CUHK Business School, in collaboration with Prof. Frank Jiang Guoliang at Carleton University and Prof. Jae Jung at the University of Missouri – Kansas City; dives down to how it affects subsidiaries across different countries.
Titled Parent Firm Corporate Social Responsibility and Overseas Subsidiary Performance: A Signaling Perspective, the study cross-referenced and analysed the financial information, foreign domestic investment and CSR activities of 196 Japanese firms between 2002 and 2014 across three databases.
Read More at https://cbk.bschool.cuhk.edu.hk/managing-csr-in-the-global-context/