Author: Sujung Kim
, Changsu Kim
, Jong-Hun Park
, Jangsoon Kim
& Hajir Afzali
Summary:
This study uses the institutional duality perspective to conceptualize and divide the local CSR activities of foreign subsidiaries into policies and practices. For an empirical analysis, the study uses survey data collected from 147 Korean foreign subsidiaries in emerging economies, mostly in China and Vietnam. The results indicate the positive effect of the subsidiaries’s CSR policies and practices on their social impact in the host country. Intriguingly, social impact fully mediates the relationship between CSR practices and the strategic performance of the subsidiaries. This finding sheds light on the long-term performance effect of CSR practices in the host country.
