A CSR framework due to multiculturalism: the Swiss Re case

Abstract

Purpose

Owing to the fact that the concept of “CSR orientation in different cultural settings” is still quite unexplored, both in CSR theory and in empirical research the paper aims to contribute to the question of how corporations can deal with different CSR orientations when they perform their activities in different cultural settings

Design/methodology/approach

Theoretically, the analysis is based on two well‐known corporate social responsibility (CSR) approaches: first, reference is made to Carroll who reflects the economic paradigm as the basic layer of a pyramid in all cultural settings as economic responsibility and, on the opposite side, to Kang and Wood who give priority to moral and social responsibilities aligned to the difference of cultural settings. Based on the comparison of these theories in addition to a qualitative case study in the reinsurance industry some practical insights will be provided into and managerial implications developed regarding how to respond to the challenges of corporate responsibility due to multiculturalism.

Findings

It is claimed that corporations which follow a CSR understanding corresponding to the pyramid of Kang and Wood are better prepared to deal with differences regarding CSR orientation in different cultures compared with corporations that are based on the thinking of Carroll's pyramid.

Originality/value

Changing societal concerns and different local expectations across various countries, in the context of instantaneous world‐wide communication, have strongly increased the exposure of corporations to external criticism and challenge. These effects are intensified for large multinational firms, where complex interactions among distant and diverse constituencies have become commonplace. Broad societal concerns challenge the core strategies of corporations and require strategic responses. But this important strategic challenge response process cannot be analyzed within the traditional views of the firm. Therefore, a paradigm shift is asked in corporate responsibility.

Citation

Sachs, S., Rühli, E. and Mittnacht, V. (2005), "A CSR framework due to multiculturalism: the Swiss Re case", Corporate Governance, Vol. 5 No. 3, pp. 52-60. https://doi.org/10.1108/14720700510604698