How and why do MNCs communicate their corporate social responsibility in developing countries? Evidence from Bangladesh

Abstract

A growing body of literature is devoted to understanding the drivers of companies’ corporate social responsibility strategies in developing countries. However, little is known about how institutions and stakeholders located at both international and local levels collectively shape the corporate social responsibility communication of MNC subsidiaries in their host countries. Drawing upon the framework proposed by Lee, this study addresses this gap in the context of Bangladesh. A series of semi-structured interviews as well as secondary data from annual reports and company websites are used to identify the roles that parent companies, international institutions and international stakeholders play in shaping local subsidiary corporate social responsibility communication. Contrary to the expectations derived from the literature, the findings show that despite the presence of institutional voids and limited pressure from local stakeholders, MNC subsidiaries engage in corporate social responsibility activities and employ corporate social responsibility communication, albeit instrumentally, in order to acquire business benefits.