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THE INTERPLAY OF SENIOR LEADERSHIP AND SOCIETAL ORIENTATIONS ON CORPORATE SOCIAL RESPONSIBILITY IMPLEMENTATION WITHIN MULTINATIONAL CORPORATIONS: A COMPREHENSIVE CASE STUDY

Authors

  • Dr. Amelia R. Houghton Professor of Global Management and Ethics, Department of Business and Society, University of Westbridge, United Kingdom Author
  • Prof. Kaiwen Zhang Chair of International Business Strategy, School of Business, Tsinghua Global Studies Institute, Beijing, China Author

Keywords:

Corporate Social Responsibility, CSR Implementation, Multinational Corporations, Senior Leadership

Abstract

This comprehensive case study delves into the intricate relationship between the orientations of senior leadership teams, the multifaceted expectations of diverse societies, and their collective impact on the implementation of Corporate Social Responsibility (CSR) within multinational corporations (MNCs). Employing a mixed-methods qualitative and quantitative case study approach, this research meticulously examines "GlobalTech Solutions," an MNC with a substantial global footprint and a history of both lauded CSR initiatives and significant controversies. Data was rigorously collected through extensive semi-structured interviews with a broad spectrum of internal stakeholders (senior leadership, managers, employees) and external stakeholders (NGO representatives, community leaders, government officials), complemented by a thorough analysis of corporate reports, financial statements, and public documents. Quantitative data, gathered via surveys, was analyzed using statistical methods such as the Mann-Whitney U test to ascertain the philosophical alignment of different stakeholder groups.

Findings reveal a pronounced divergence in leadership orientations, categorized broadly into economic/compliance-driven versus values-based/integrative perspectives, mirroring different priorities and drivers for CSR engagement. Concurrently, societal expectations exhibited considerable variation across geographical operating regions, ranging from demanding comprehensive ESG performance in developed markets to prioritizing fundamental social and economic development needs in emerging economies. This pervasive misalignment between internal leadership priorities and external societal demands often culminates in a phenomenon known as "decoupling," where formal CSR policies are ceremonially adopted to project legitimacy, but actual, impactful practices on the ground remain inconsistent or underdeveloped, thereby eroding stakeholder trust and diminishing the tangible benefits of CSR. Conversely, contexts characterized by a strong alignment between leadership's authentic commitment and responsive societal demands foster more deeply embedded, proactive, and impactful CSR initiatives. The study empirically substantiates that effective CSR implementation in MNCs necessitates not only robust leadership commitment but also a profound adaptability to diverse institutional contexts, coupled with genuine, two-way stakeholder engagement. It emphatically highlights the imperative for MNCs to cultivate a nuanced, context-sensitive approach that judiciously balances global strategic consistency with localized operational responsiveness, moving beyond mere symbolic gestures to achieve authentic and sustainable corporate citizenship.

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Published

2024-12-10