THE IMPACT OF INTERNATIONAL CULTURAL DIVERSIFICATION ON MNE SUBSIDIARIES’ SOCIAL RESPONSIBILITY PERFORMANCE

• Main Authors: LIN, SHIUE-LIANG, 林學良
• Other Authors: SUN, MEI-JUI
• Format: Others
• Language: zh-TW
• Published: 2016
• Online Access: http://ndltd.ncl.edu.tw/handle/75423857548955337889

碩士 === 銘傳大學 === 國際企業學系碩士班 === 104 === With more and more unethical business events occurring all over the world in recent years, which lead academia, industry and government to pay highly attention to Corporate Social Responsibility (CSR). Multinational enterprises (MNEs) face numerous challenges due to the difficulties of operating in various markets and the usual cultural differences between the countries. Prior studies have found that foreign subsidiaries of multinational enterprises (MNEs) suffer from liability of foreignness (LOF). Foreign subsidiaries may be able to improve their social legitimacy and overcome LOF by demonstrating social commitment to host-country constituents through corporate social performance (CSP). Therefore, this study investigates whether the MNE home countries and China (host country) affect MNE foreign subsidiaries’ CSP in China. The aim of this study is to analyze the influence of international cultural diversification of a multinational enterprise on its corporate social performance and the influence of cultural distance of a multinational enterprise on its corporate social performance and to investigate the moderating effect of reputation of the parent company and slack financial resources on this relationship in China. Using Research Center for Corporate Social Responsibility Chinese Academy of Social Sciences (CASSCSR) which issued the blue book of corporate social performance.This study chooses the top 100 foreign-invested enterprises as our sample. The results show that international cultural diversification is positively correlated with the social performance of firms and cultural distance is negatively correlated with the social performance of firms. The higher level of slack financial resources leads multinational enterprises operating in markets with different cultural profiles to improve their corporate social performance and strengthens the negative impact of cultural distance between home country and China. On the other hand, the higher level of reputation of multinational enterprises will strengthen the positive impact from international cultural diversification on the subsidiaries’ corporate social performance in China. Finally, the implications for academia, industry and government are discussed.