Formal and Informal Corruption Environments and Multinational Enterprise Social Irresponsibility
Keywords
corporate social irresponsibilitycorruption
negative binomial regression
corporate social responsibility
institutional theory
Business Law, Public Responsibility, and Ethics
international
multinational enterprise
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Using an institutional theory framework we theorize, hypothesize, and empirically show that higher levels of formal and informal corruption environments found in a firm's operating portfolio are related to higher levels of corporate social irresponsibility ( CSiR). Failing to consider corruption's informal dimension leads to potentially false perceptions about a multinational enterprise's ( MNE) operating environment, particularly when the formal dimension is low but the informal corruption dimension is high, as is the case in about one third of our sample. Including the informal corruption environment component provides additional explanatory power over the formal corruption environment alone in predicting CSiR and yields a superior understanding of both the formal and informal dimensions of the corruption institutional environment's influence on corporate social irresponsibility levels of MNEs. Managerial implications and future research directions are discussed. [ABSTRACT FROM AUTHOR]Date
2014-10-22Type
textIdentifier
oai:digitalcommons.kennesaw.edu:facpubs-4300http://digitalcommons.kennesaw.edu/facpubs/3293
http://dx.doi.org/10.1111/joms.12102