Think global, act local: Corporate Social Responsibility Management in Multinational Companies

Abstract

This paper investigates corporate social responsibility (CSR) policy management in multinational companies (MNCs). The focus is on examining the relationship between subsidiaries and headquarters in the management of CSR, in terms of the commonplace notion of ‘think global, act local’. Primary and secondary data was collected in one MNC and a case study produced. The findings show that the initiative to launch a CSR policy is taken and enacted exclusively by the headquarters, mainly as an answer to the financial and legal pressure felt to accompany the present widespread interest in CSR. Findings are articulated around three major steps used to manage CSR initiatives: the determination of values, the integration of those values in action and the evaluation of the policy. Consistency of policy is driven from headquarters, through adoption of a corporate value framework, while the implementation is to some extent localised. Feedback from subsidiaries is collected and shared by the centre, which also seeks out synergies in pursuit of increased efficiency. Corporate structure is therefore linked to CSR management. Implementation is observed to comprise three parts: the headquarters seek to motivate local actions through reference to the company culture, through directive measures, and by pedagogic action. Pedagogy comes out as necessary in order for the CSR policy to permeate the entire organisation and initiate the right actions and reactions in the variety of situations encountered throughout the organisation. Constant scrutiny and evaluation are considered necessary in order to sustain the credibility of the policy in relation to external stakeholders.

Citation

Morand, M. and Rayman‐Bacchus, L. (2006), "Think global, act local: Corporate Social Responsibility Management in Multinational Companies", Social Responsibility Journal, Vol. 2 No. 3/4, pp. 261-272. https://doi.org/10.1108/17471117200600003