The influence of subsidiary managers on multinational enterprise headquarters’ decisions regarding emerging market subsidiary corporate social responsibility programmes to create local social advantage

Abstract

The purpose of this research was to determine how subsidiary managers influence multinational enterprise headquarters’ decisions regarding emerging market subsidiaries’ corporate social responsibility programmes to create a local social advantage. For the purpose of this study, predominately South Africa-based multinationals with subsidiaries in various African countries were chosen to represent emerging markets. Design/methodology/approach The research was conducted using a qualitative research design and a phenomenological research strategy. Semi-structured interviews were conducted to determine how subsidiary managers could influence their multinational headquarters’ decisions regarding their CSR initiatives. The responses were thematically analysed to address the research questions and objectives. Findings The findings of this research indicate that it is crucial for subsidiary managers of multinational enterprises to play a proactive role in influencing their headquarters’ decisions regarding emerging market corporate social programmes, while they also have to navigate global and local contexts and challenges to create a local social advantage. It is imperative that subsidiary managers take cognisance of local context and social or community priorities, legal compliance, and cultural factors affecting CSR programmes in the host country. These have to be balanced against the MNE’s own CSR strategies. Research limitations/implications The research was conducted largely focusing on African countries as a representative emerging market sample. This limited its relevance to other markets. Originality/value The research is original in its context on how subsidiary managers influence multinational enterprise headquarters’ decisions regarding emerging market subsidiary corporate social responsibility programmes to create a local social advantage.