Corporate social responsibility and green management: Relation between headquarters and subsidiary in multinational corporations

Abstract

Purpose

The purpose of this paper is to propose potential challenges faced by multinational companies (MNCs) managing corporate social responsibility (CSR) strategies.

Design/methodology/approach

The paper is based on two inductive case studies of French MNCs in the retail sector. Data from interviews and documents were collected and analysed at the headquarters in France and the Brazilian subsidiary.

Findings

The paper contributes in the following ways: five challenges are proposed that must be faced by MNCs in managing their CSR strategy. The challenges are related to the link between literature and three dimensions and five sub‐dimensions that emerged from the two cases studied: the governance structure (the structure of the CSR department and dialogue with stakeholders); corporate ethics (the definition of objectives and corporate posture); and organizational learning (awareness and information exchanged about CSR).

Research limitations/implications

As this is a topic that is little addressed by the CSR's literature, a future research agenda for the relation between the headquarters and the subsidiary in considering CSR strategies can be established. It is suggested that the five challenges presented here should be deeply explored and potential solutions for each one can be investigated in depth.

Practical implications

The proposed challenges can yield some implications for managers of MNCs who are intending to manage the headquarters/subsidiary relationship considering the MNCs' CSR strategies. They should identify adapted ways to introduce actions related to the three dimensions and five sub‐dimensions presented here.

Originality/value

Little attention has been paid to this specific link between CSR and MNC literature: the relation between the headquarters and the subsidiary considering CSR strategies. This paper proposes some challenges that can help researchers investigate potential solutions and managers to have an agenda to be addressed.

Citation

Barin Cruz, L. and Avila Pedrozo, E. (2009), "Corporate social responsibility and green management: Relation between headquarters and subsidiary in multinational corporations", Management Decision, Vol. 47 No. 7, pp. 1174-1199. https://doi.org/10.1108/00251740910978368