Corporate Social Responsibility in International Business: Illustrations from Korean and Japanese Electronics MNEs in Indonesia

Young Ryeol Park, Sangcheol Song, Soonkyoo Choe, Youjin Baik

Research output: Contribution to journalArticle

13 Citations (Scopus)

Abstract

Employing Porter and Kramer’s corporate social responsibility (CSR) framework (Harv Bus Rev 84:78–92, 2006), we explored the strategic CSR programs of two Korean and two Japanese electronics multinational enterprises (MNEs) in Indonesia. We observed that the sample MNEs engage in strategic CSR either through investment in competitive context or the transformation of value chain activities. In addition, these firms strongly favor strategic CSR over responsive CSR, not just because of the economic benefits offered by the former, but also its advantages in managing the programs and communicating with stakeholders. Furthermore, they have developed varied organizational methods and tend to manage their key CSR programs centrally to effectively link them to the competitive strategy. Lastly, the results of our analysis suggest that Korean MNEs have customized their strategic CSR programs for emerging countries more actively than Japanese MNEs. In sum, our analysis elucidates several important features of strategic CSR employed by the MNEs in emerging countries.

Original languageEnglish
Pages (from-to)747-761
Number of pages15
JournalJournal of Business Ethics
Volume129
Issue number3
DOIs
Publication statusPublished - 2015 Jul 19

All Science Journal Classification (ASJC) codes

  • Business and International Management
  • Business, Management and Accounting(all)
  • Arts and Humanities (miscellaneous)
  • Economics and Econometrics
  • Law

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