Corporations' Internationalization and the Adoption of CSR Practices

Abstract

Purpose- To discuss how corporations’ global expansion might affect their decision to adopt Corporate Social Responsibility (CSR) practices.

Design/Methodology- Using peer-reviewed scholarly journals the paper reviews existing literature on the relationship between firm’s internationalization and adoption of CSR
practices.

Findings- CSR practice adoption varies greatly depending on the sampled industry sector. The home base country of the MNC, the way the firm expands into a new market, and the
type of stakeholders influencing the firm’s decisions all influence the level of CSR practice implementation.

Research Implications/Limitations- The results of this work contribute to systematizing existing understandings of the relationship between firm’s internationalization and
adoption of CSR practices. This work discusses the implications for shareholders and policy makers. Future analysis should use primary sources from individual corporations to
evaluate the comprehensive conclusions presented and tailor the conclusions to specific industries or global contexts.

Originality/value of chapter- This essay reviews the literature on the relationship between firm’s internationalization and adoption of CSR practices. In doing so, it explores
how different works rely on different assumption to investigate this topic. In addition, it provides definition and historical background for the constructs of
internationalization and CSR. It also presents an in-depth review of the factors that are more likely to contribute to the heterogeneous degree of CSR adoption among
internationalizing firms. Finally, it pays special attention to the role of different internationalization paths and industry sector relative to the firm’s decision to adopt
CSR practices.