Corporate social responsibility diffusion by multinational subsidiaries in Indonesia: organisational dynamic and institutional effect

Melia Famiola and Siti Adiprigandari Adiwoso

Social Responsibility Journal, 2016, vol. 12, issue 1, 117-129

Abstract: Purpose - – The purpose of this study is to explore the extent of relational and institutional pressures’ influence on both the motivation for and diffusion of corporate social responsibility (CSR) practices of multinational corporation (MNC) subsidiaries in the food industries in Indonesia. Design/methodology/approach - – This study uses qualitative approach, and the data were collected by interviewing CSR managers and investigating the CSR practices and the annual reports of six subsidiaries of food-manufacturing MNCs in Indonesia. Findings - – This study found that internal pressures within MNC organisations are the main drivers of their CSR practices. These finding were, then, refined to account for local cognitive and normative institutional pressures. It was also found that while regulation in a host country was critical to its subsidiary compliance, it did not contribute appreciably to the precise types of CSR practices. The (isomorphic) similarity of CSR patterns had less to do with the institutional pressures but more with sector- or field-level pressures in food manufacturing. Most MNC subsidiaries focused on issues such as agricultural or rural development (related to their supply chain) or health and nutrition (related to their core business). Research limitations/implications - – This study focuses on a specific industrial sector (food and beverage manufacture); therefore, the isomorphic patterns could not be concluded as an influential effect of the institutional context of Indonesia; rather, they are due to sectoral- or field-level pressure in food and beverage manufacturing. To confirm this study results, a multi-sectoral involvement in future studies is suggested. Originality/value - – This study uses organisational dynamics and institutional theory to explore CSR adoption in multinational subsidiaries in Indonesia.

Keywords: Indonesia; Institutional theory; Corporate social responsibility; Multinational corporations; Organisational dynamic (search for similar items in EconPapers)
Date: 2016
References: Add references at CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (text/html)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (application/pdf)
Access to full text is restricted to subscribers

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eme:srjpps:v:12:y:2016:i:1:p:117-129

DOI: 10.1108/SRJ-10-2013-0128

Access Statistics for this article

Social Responsibility Journal is currently edited by Prof David Crowther

More articles in Social Responsibility Journal from Emerald Group Publishing Limited
Bibliographic data for series maintained by Emerald Support ().