Abstract
Corporate social irresponsibility (CSI) can occur in the multinational enterprise's (MNE) domestic and international markets, thereby risking corporate reputation. However, are corporate reputations differentially influenced by the location of CSI events? Drawing on the ethnocentric bias perspective, we examine how CSI affects corporate reputations according to whether CSI emerges in the MNE's home or international markets. We theorize that, when CSI occurs in an international host market, the negative relationship between CSI and corporate reputation is generally weaker. Conversely, when CSI arises within the home location, home country-located CSI has the strongest negative relationship to corporate reputation. Our findings generally reflect the core argument of the paper: home-country based CSI incidents may be more consequential to an MNE's corporate reputation compared to those CSI incidents which unfold in certain host countries. Our longitudinal analysis, comprising of 2,401 CSI events, involving 465 MNEs, confirms our theorizing. Among our principal contributions, this study adds to the growing and important literature on the dark side of international business (IB).
Original language | English |
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Article number | 101420 |
Journal | Journal of World Business |
Volume | 58 |
Issue number | 4 |
Early online date | 20 Dec 2022 |
DOIs | |
Publication status | Published - 30 Jun 2023 |
Bibliographical note
Funding Information:We would like to acknowledge with gratitude the support of the International Management Division of the Academy of Management for their constructive comments on earlier versions of this manuscript, as well as for awarding this research the 'Best Paper Award in Corporate Social Responsibility and Sustainability' at the Academy of Management Annual Conference, 2020. We are also grateful for the support of the International Business and Management Division of the British Academy of Management for their insightful comments on an earlier version of our paper and for awarding this research the 'Best Full Paper Award' at the British Academy of Management Conference, 2020.
Funding
We would like to acknowledge with gratitude the support of the International Management Division of the Academy of Management for their constructive comments on earlier versions of this manuscript, as well as for awarding this research the 'Best Paper Award in Corporate Social Responsibility and Sustainability' at the Academy of Management Annual Conference, 2020. We are also grateful for the support of the International Business and Management Division of the British Academy of Management for their insightful comments on an earlier version of our paper and for awarding this research the 'Best Full Paper Award' at the British Academy of Management Conference, 2020.
Keywords
- Behavioral theory
- Corporate reputation
- Corporate social irresponsibility (CSI)
- Dark side
- ESG
- Ethnocentric bias
- Institutions
- International business
- International CSI corporate social irresponsibility (CSI)
- Legitimacy
- Location
- Social regulation
ASJC Scopus subject areas
- Business and International Management
- Finance
- Marketing