The effects of host and home country economies on MNEs’ overseas CSR investment

Yuanyuan Zhou, Peng Liu and Min Teng

Journal of International Management, 2024, vol. 30, issue 6

Abstract: We employ a supply and demand framework to integrate mainstream theoretical lenses and assess the heterogeneous roles of host and home country economies on MNEs' overseas CSR investment. Using a sample of the world's 100 largest non-financial MNEs from 2015 to 2018, as published by UNCTAD, we find that host country economic performance is positively associated with MNEs' CSR investment in host countries, and home country economic performance exhibits a U-shaped relationship with MNEs' CSR investment in host countries. By distinguishing CSR into do-good and do-no-harm CSR, we further find that host country economic performance positively affects both types of CSR investment. Home country economic performance has a U-shaped effect on do-good CSR investment, but it is negatively related to do-no-harm CSR investment. Our study provides a more generalized insight into the impact of host and home economies on MNEs' overseas operations, thereby enriching our understanding of CSR management by MNEs.

Keywords: Multinational enterprise; Corporate social responsibility; Economic performance; Do-good CSR; Do-no-harm CSR (search for similar items in EconPapers)
Date: 2024
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DOI: 10.1016/j.intman.2024.101191

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