Seeking Moral Legitimacy through Corporate Social Responsibility: Evidence from Chinese Manufacturing Multinationals

Qiaowen Zhang and Annalien de Vries
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Qiaowen Zhang: Faculty of Economics and Management, Zhejiang Normal University, Jinhua 321004, China
Annalien de Vries: Department of Business Management, Stellenbosch University, Matieland 7602, South Africa

Sustainability, 2022, vol. 14, issue 9, 1-21

Abstract: Recently, concerns have been raised as to how Chinese multinational companies (MNCs) can achieve organizational legitimacy and sustainable development in host countries, especially given China’s weak institutional environment. One strategic approach to establish and maintain legitimacy is by promoting corporate social responsibility (CSR). This study examined the relationship between Chinese manufacturing MNCs’ engagement in terms of CSR and gaining moral legitimacy in host countries, and whether the institutional distance between countries is an important moderating factor in this relationship. Using a hierarchical regression analysis and a bootstrapping method on data obtained from 303 questionnaires completed by a sample of Chinese manufacturing MNCs, this paper finds that CSR engagement at both aggregate and disaggregate levels (specifically, customer- and community-related CSR engagement) is likely to be an effective strategy for Chinese manufacturing MNCs’ subsidiaries to gain moral legitimacy in host countries. Furthermore, Chinese MNCs’ subsidiaries are more likely to gain moral legitimacy by means of engagement in customer- and government-related CSR when the institutional distance from China is greater. Overall, this paper contributes to our understanding of the gaining of moral legitimacy by Chinese manufacturing MNCs in host countries. The findings can support Chinese manufacturing MNCs in shaping the CSR strategy of their international businesses.

Keywords: corporate social responsibility; institutional distance; institutional theory; moral legitimacy; multinational companies (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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