The influence of transverse CSR structure on headquarters/subsidiary integration

Abstract

Some studies have already highlighted the effects of the introduction of Corporate Social Responsibility [CSR] projects into Multinational Corporations' [MNC] strategies. However, little attention has been paid to the influence of transverse CSR structure on headquarters/subsidiary integration. In this article, we begin with the following question: What is the influence of the introduction of a centralized/decentralized structure on conducting a CSR strategy in a MNC? Our main objective is to identify conditions through which the structure of the CSR department influences the CSR strategy of the MNC. We define transverse CSR structure as: (1) the existence of a CSR directory at the headquarters level and a CSR representative at the subsidiary level, and (2) the existence of representatives from different areas who participate in meetings or committees to make decisions about CSR strategy. We argue that a transverse CSR structure favors consideration of global and local CSR demands by headquarters and subsidiaries. This process takes place through the mediation of three main elements: information exchange, awareness activities and definition of objectives.

Reverse transfer of corporate social responsibility practices from brazilian subsidiaries of multinationals

“…Although some articles have studied the CSR practices of subsidiaries of multinationals, the transfer of these practices has not been the main focus of these investigations, although in some cases the possibility of global alignment of practices has been mentioned ( Barin-Cruz et al, 2010). Therefore, this article contributes by specifically addressing the transfer of CSR practices and the association of the transfer process with the management aspects of the subsidiary (nonlocation-bound capabilities) and the relationship between the parent and subsidiary (integration).…”

“…The theme of the most effective corporate social responsibility practices is the target of intense debate among academics, both abroad (Maon, Lindgreen & Swaen, 2010;Carroll & Shabana, 2010) and in Brazil (Moretti & Campagnário, 2009). Nevertheless, few studies have focused on the specific subject of CSR in international business (Kolk & Tulder, 2010), especially in multinationals (Levis, 2006;Godiwalla et al, 2006;Barin-Cruz, Pedrozo & Martinet, 2007a;Barin-Cruz & Pedrozo, 2009;Husted & Allen, 2009;Barin-Cruz et al, 2010 Most investigations have tried to assess the factors influencing CSR in subsidiaries located in foreign countries (Barin-Cruz & Pedrozo, 2009;Husted & Allen, 2009;Barin-Cruz et al, 2010). Others have examined the value of CSR practices in the process of product/service differentiation (Boehe & Barin-Cruz, 2009), the reduction of risks by means of more efficient operations (Pedersen & Neergaard, 2009) and the strategic alignment of CSR actions with the organizational mission, objectives and strategies (Porter & Kramer, 2006).…”

“…Strategic alignment, visibility of the CSR strategy (Husted & Allen, 2009) and mutual collaboration between the parent company and its subsidiaries (Barin-Cruz et al, 2010) are thus argued to be essential conditions for transfer of CSR practices. Besides this, comparative studies of subsidiaries belonging to the same multinational group generally focus on the homogeneity of the group's global practices (Van Tulder & Kolk, 2001;Sobczak & Martins, 2010).…”

“…But there should be a lower limit on the alignment of CSR practices, determining to what extent they should be carried out by all foreign branches regardless of the local pressures to adopt them (Peng & Pleggenkuhle-Miles, 2009). In other words, the integration of CSR practices is necessary to meet a minimum standard of global CSR practices (Christmann, 2004;Muller, 2006 In this way, the existence of a constant exchange of information, an integrated structure and the possibility of strategic alignment between subsidiaries and parent (Husted & Allen, 2009;Barin-Cruz et al, 2010) makes the idea plausible that successful CSR practices in a subsidiary can be transferred to other branches or to the parent company itself. Integration between parent and subsidiaries is an essential condition for the formation of CSR practices with global scope.…”

“…Despite the proliferation of such studies in Brazil and the world, there is still a shortage of research on the development of corporate social responsibility (CSR) practices among the subsidiaries of multinational groups (Levis, 2006;Barin-Cruz et al, 2007a;Barin-Cruz et al, 2007b;Barin-Cruz & Pedrozo, 2009;Husted & Allen, 2009;Barin-Cruz et al, 2010). There is also a dearth of studies on the factors that condition the CSR practices of foreign subsidiaries (Barin-Cruz & Pedrozo, 2009;Husted & Allen, 2009;Barin-Cruz et al, 2010). In general, the studies that have been published do not examine possible cases where a subsidiary develops CSR practices with global scope, i.e., CSR practices that are developed in a subsidiary and transferred to the parent or other members of the group.…”