Institutional complexity of host country and corporate social responsibility: developing vs developed countries

Abstract

Purpose

Corporate social responsibility (CSR) is a new trend that has swept the world of business by storm. With globalization proceeding unabated and CSR acquiring global interest and resonance, examining how companies can make adaptations to their CSR in an international context becomes a timely and important issue.

Design/methodology/approach

Drawing on institutional theory, this study aims to identify three types of host country institutional complexity that accompany the internationalization process, namely, cultural, regulatory and economic, hence necessitating nuanced CSR adaptations in context and as illustrated in this paper requiring different tailoring and adaptation of CSR programs and interventions between developed and developing countries.

Findings

The authors propose a series of research propositions for exploration toward broadening and deepening the understanding of the above institutional complexities and the necessity of CSR tailoring and adaptation to accompany the internationalization process.

Originality/value

The paper is one of the first to highlight the necessity of CSR tailoring in the context of the internationalization process while considering host country institutional complexity highlighting nuanced differences between developed and developing country landscapes and implications for how multinational corporations should approach CSR in these differentiated environments.