The challenges of addressing stakeholders’ expectations through corporate non-market strategies in emergent countries

Abstract

Purpose This paper aims to examine the tensions between global and local corporate social responsibility (CSR) initiatives developed by multinationals managing subsidiaries in different emergent countries. Multinationals carry out a wide array of political activities (Boddewyn and Brewer, 1994; Hillman and Hitt, 1999; Rehbein and Schuler, 1995) supporting their economic objectives, even though the political landscape and the institutional environment may vary significantly in the different countries in which they are located (Luo, 2006). This can raise issues related to the management of cross-border political imperatives as well as the coordination of political activities among multinational companies and their subsidiaries. Design/methodology/approach Based on a documentary research, this paper analyses the key challenges facing the non-market and CSR strategies of GlaxoSmithKline (GSK) a world leading, research-based pharmaceutical and health-care company. Findings The paper further looks at the way in which GSK deploys its global non-market strategies and manages their alignment with local CSR initiatives in emerging markets, particularly in China. Research limitations/implications Further research is required to address the question of international CSR mediation and moderation of this imbalance between pressures for global consistency and local responsiveness. More specifically, in-depth case studies designed to target local managers, as well as their counterparts from the MNE headquarters, should allow us to more effectively analyse and capture the perceived biases with regard to the way the CSR agenda is set at the central level, in light of its global strategy and to the needs and demands of their local host countries’ stakeholders. Originality/value This exploratory research based on secondary data allows an interesting base for analysis of the synergies between CSR, non-market strategies and international strategic management which provide a promising base for continuing research.

Overseas compliance risk prevention for multinational corporations in a law and economics perspective: empirical evidence from Chinese MNCs

“…MNC legitimacy acquisition means that MNCs’ overseas business activities conform to the social and moral expectations of the host country, which helps to improve the host country's public attitude toward MNCs (Kaya and Walker, 2012) and maintain a good reputation in the local industry (Fombrun et al , 2000). Improving legitimacy through non-market strategies contributes to mediating tensions between MNCs and host countries, avoiding conflicts (Saïd et al , 2019), and thus preventing overseas compliance risks.…”

Nonmarket Strategy: Paths and Prisms

“…Stakeholder theory was found in isolation in 6 studies and we identified combinations with RDT. This theoretical perspective places the firm at the center of a network of relationships with stakeholders, demonstrating that they need to respond to their claims and that performance can be improved through the management of favorable relationships (He, Tian, & Chen, 2007;Parnell, 2015;Saïd, Sevic, & Phillips, 2019). Firms weigh the power and interest that stakeholders exercise, prioritizing claims according to different relationships and their complexities, and more efficiently allocating firm resources to this end (Lucea & Doh, 2012;Mbalyohere & Lawton, 2018).…”

Corporate social responsibility projects: critical success factors for better performance of Brazilian companies and guidelines to qualify professionals and entrepreneurs

“…This does not meet local needs in a collaborative and transparent manner, as advocated by Tang-Lee (2016). Saïd et al (2018) also noted that a better dialogue with external stakeholders minimizes the risks to projects.…”