An Analysis of Multinational Corporations' Corporate Social Responsibility Strategies in China from an Institutional, Stakeholder and Social Contract Perspective

Abstract

This paper combines institutional, stakeholder and social contract perspectives to develop a framework for analyzing the strategies of multinational corporations (MNCs) in developed countries in respect of their corporate social responsibility (CSR) practices in China. The paper first discusses the contention that due to institutional differences between China and developed countries, MNCs will have different CSR strategies in China than in their home countries. Then there is an analysis of the stakeholder perceptions to identify what are the main factors MNCs need to address in their CSR practices in China. Evidence suggests that Chinese stakeholders have different expectations for CSR practices in China due to institutional differences and social, cultural and economic development differences. This study offers new insights into the factors that lead to successful CSR practices in China, suggesting that adoption of a social contract perspective may allow MNCs to take a more proactive approach.