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HOW HOST AND HOME COUNTRY INSTITUTIONAL COMPLEXITIES INFLUENCES CSR ENGAGEMENT OF AN MNC: EVIDENCE FROM ESG DISCLOSURES OF A GERMAN MULTINATIONAL CHEMICAL COMPANY AND ITS INDIAN SUBSIDIARY
Authors: Prakash Vineeth
Year: 2024
Type of publication: ostatní - článek ve sborníku
Name of source: 11. mezinárodní chemicko-technologická konference : book of abstracts
Publisher name: AMCA, spol. s r.o.
Place: Praha
Page from-to: nestránkováno
Titles:
Language Name Abstract Keywords
eng HOW HOST AND HOME COUNTRY INSTITUTIONAL COMPLEXITIES INFLUENCES CSR ENGAGEMENT OF AN MNC: EVIDENCE FROM ESG DISCLOSURES OF A GERMAN MULTINATIONAL CHEMICAL COMPANY AND ITS INDIAN SUBSIDIARY In this globalized free trade era, cross-border CSR engagements of multinational corporations have an overarching impact on societies, while ensuring their much-needed legitimacy in host and home markets. In international business and business ethics streams, many studies dealt with MNCs' responsibility practicesand the challenges associated with the institutional duality they must address when operating in environmentally dispersed markets with the same set of parental business values. A micro level study that discusses a particular MNC's difference in CSR engagement within its home and host country is relatively scarce. This study is organized into two parts, the first critically examines the institutional complexities prevailing in Europe and the Indian business environment that shape specific CSR engagements and states a few propositions based on that. In the next part, we test the validity of those propositions by pitching them against real-life CSR business practice. We examine how institutional factors influence the CSR engagement of a chemical company from Germany that has a fully-owned subsidiary in India. Content analysis is employed on respective ESG reports released by the MNC on their global website and the subsidiary's Indian website. A visible pattern and prioritization in ESG disclosure were found in both reports, complementing the propositions. The German parent company prioritized climate control, employee rights and governance compared to its subsidiary in India, wherein the subsidiary gives more time, effort, and money to community development causes. This study provides practical CSR engagement insights for European chemical companies while operating in Indian markets. CSR; ESG; chemical companies; Indian markets; multinational corporations

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