Organizational Legitimacy, Corporate Social Responsibility, and Bottom of the Pyramid Consumers

ABSTRACT

In recent decades, multinational corporations (MNC) have increasingly penetrated bottom of the pyramid (BOP) markets due to globalization and market liberalization. To gain legitimacy within these markets, MNCs have employed corporate social responsibility (CSR) strategies. This paper focuses on how BOP consumers perceive the CSR strategies of advanced country MNCs (AMNCs). Specifically, this study examines how BOP consumers' admiration of economically developed countries (AEDC) influence CSR strategy success in BOP markets. In doing so, this paper contributes to the literature on BOP strategies and BOP consumer psychology. With a sample of consumers from Madagascar, the results provide evidence that AEDC is a relevant construct that firms from developed countries should consider when implementing consumer-oriented strategies in BOP markets.

KEYWORDS:

• Bottom of the Pyramid
• corporate social responsibility
• admiration of economically developed countries
• organizational legitimacy

Acknowledgments

The author would like to acknowledge the Missouri Botanical Garden's Madagascar staff for assistance in data collection. Also, the author would like to acknowledge Ms. Aimeé Randrianasolo from the Alliance Francaise in Toamasina for her assistance. Finally, the author extends gratitude to Dr. Armand Randrianasolo for his assistance and guidance in the methodological procedures.