CSR policies and practices of Korean foreign subsidiaries: institutional duality in emerging economies

ABSTRACT

This study uses the institutional duality perspective to conceptualize and divide the local CSR activities of foreign subsidiaries into policies and practices. For an empirical analysis, the study uses survey data collected from 147 Korean foreign subsidiaries in emerging economies, mostly in China and Vietnam. The results indicate the positive effect of the subsidiaries’ CSR policies and practices on their social impact in the host country. Intriguingly, social impact fully mediates the relationship between CSR practices and the strategic performance of the subsidiaries. This finding sheds light on the long-term performance effect of CSR practices in the host country.

KEYWORDS:

• Korean foreign subsidiaries
• CSR policies and practices
• social impact
• strategic performance
• emerging economies

Disclosure statement

No potential conflict of interest was reported by the author(s).

Additional information

Notes on contributors

Sujung Kim

Sujung Kim is a Deputy Director, Office for Government Policy Coordination at Sejong, Korea. She earned her PhD at Sogang University, Korea. Her research interest includes CEO succession in business groups and strategic corporate social responsibility.

Changsu Kim

Changsu Kim is Professor of International Business at Sogang University, Korea. He earned his PhD at Rutgers University, Newark. His research has been published in Journal of International Marketing, Journal of Business Ethics, and Journal of Business Research.

Jong-Hun Park

Jong-Hun Park is Professor of strategic management at Sogang University, Korea. He obtained his PhD from the Sauder School of Business at the University of British Columbia. His research has been published in Academy of Management Journal, Journal of International Business Studies, and Journal of Management Studies.

Jangsoon Kim

Jangsoon Kim is a Ph.D. Candidate in International Management at Business Department of Sogang University, Korea. His doctoral dissertation is on leader succession in professional sports business.

Hajir Afzali

Hajir Afzali is an Assistant Professor of Yongin University, Korea. He earned his PhD at Sogang University, Korea. His doctoral dissertation was on corporate social responsibility of Korean foreign subsidiaries.