CSR strategy in multinational firms: focus on human resources, suppliers and community

According to recent developments in the literature, the spread of corporate social responsibility (CSR) principles would inevitably have a significant impact on foreign activities of multinational corporations (MNCs). Two forces seem to have influenced multinational firms’ behavior: social maturity from international society and cultural evolution of political thought in several developed countries (DCs). The literature has already pointed out the importance of the multinational firm’s function as a moral agent, identifying different components of respect for a sustainability management system. Based on these assumptions, the purpose of this paper is to frame MNCs’ behavior within CSR, stressing the importance of a different approach to the management of local resources and stakeholders. The paper will argue for a shift of perspective concerning workers, suppliers and community, from resources to be exploited to partners and co-creators of MNC values. In the research design, the authors use the case method, choosing a multiple case studies research composed of five firms, with three criteria: international firms with an international supply chain, firms with a formalized CSR management and organization process and the accessibility of firm data. In this paper, CSR emerges as the comparative advantage concept that forms the basis of the international distribution of multinational activities, calling for a new theoretical viewpoint that necessitates a rethinking of MNCs’ strategies. MNCs are opening toward responsible and sustainable business strategies. Workers, suppliers and communities represent the true challenge ahead, and the management of relationships with these actors is the starting point for an internationalization in a more integrated ethical and economic view.