Multinationals in Emerging Economies

 

 

Read the following case of CSR decoupling and provide an essay by answering one question of the below assessment questions.

Case
Emerging-economy multinational enterprises (EMNEs) often experience the liability of origin in international business. To overcome such disadvantages, many EMNEs use corporate social responsibility (CSR) as a legitimacy-enhancing strategy. However, because CSR requires firm resources and social commitments, some EMNEs engage in symbolic CSR actions rather than substantive ones, leading to a phenomenon of CSR decoupling. CSR decoupling can be defined as the gap between the firms’ avowed adoption of CSR policies and their actual implementation (Roulet & Touboul, 2015) or the inconsistency between firms’ CSR reporting and performance (Tashman, Marano, & Kostova, 2019). Some firms use CSR decoupling as “a symbolic strategy whereby firms overstate their CSR performance in their disclosures to strengthen their legitimacy” (Tashman et al., 2019: 154). As an example, Tashman et al. (2019: 156) state:
[I]n 2014, South Korean multinationals Kia and Hyundai were fined $300 million by
the US Justice Department and Environmental Protection Agency for ‘‘overstating the
gas mileage for 1.2 million vehicles’’ (Gelles, 2015).
Although developed country multinationals (DMNEs) also involve in CSR decoupling (for Volkswagen Diesel Scandal, see Clemente & Gabbioneta, 2017), EMNEs are more susceptible to the efficiency-legitimacy tension than DMNEs because their strategies are generally cost sensitive in the overseas market competition. However, EMNEs can improve legitimacy by not engaging in CSR decoupling?

Assessment questions
1. How do national-level institutions affect CSR decoupling of EMNEs?
2. How does internationalization affect CSR decoupling of EMNEs?
Assessment criteria
– The extent to which academic concepts and theories have been incorporated (20%)
– Depth of literature review (reading relevant research) (40%)
– Clarification of argument, clarity of writing, correct adherence of the submission guidelines below (40%)

Submission guidelines
– body can include charts, graphs, diagrams, etc. and up to 2 pages of references.
– The title should not exceed 15 words and must be followed by a 250-word abstract.
– References are required and must be included in the submission file.
Essay should consist of a title, abstract, introduction, main text, discussion, and reference list.

 

References
Clemente, M., & Gabbioneta, C. 2017. How does the media frame corporate scandals? The case of German newspapers and the Volkswagen diesel scandal. Journal of Management Inquiry, 26(3): 287–302.
Gelles, D. 2015. Social responsibility that rubs right off. New York: The New York Times.
Roulet, T. J., & Touboul, S. 2015. The intentions with which the road is paved: Attitudes to liberalism as determinants of greenwashing. Journal of Business Ethics, 128(2): 305–320.
Tashman, P., Marano, V., & Kostova, T. 2019. Walking the walk or talking the talk? Corporate social responsibility decoupling in emerging market multinationals. Journal of International Business Studies, 50(2): 153–171.

 

 

 

 

 

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