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The Trouble with Being Average

Sloan Management Review, Vol. 50, No. 3, pp. 79-80, 2009

Posted: 17 Sep 2010  

Cyril Bouquet

affiliation not provided to SSRN

Yuval Deutsch

York University - Schulich School of Business

Andrew Crane

University of Bath - School of Management

Date Written: 2009

Abstract

Many researchers and senior executives now agree that under the right conditions, corporate social responsibility initiatives can simultaneously create value for society while also producing valuable rewards for companies. But can multinational corporations capitalize on their corporate social responsibility investments when they expand overseas? Do multinationals profit in foreign markets by investing in corporate social responsibility? Or are social initiatives simply a costly distraction for companies seeking to generate returns from their international ventures?

On the one hand, investments in corporate social responsibility programs can enhance the legitimacy of a company operating outside of its domestic market by establishing a strong reputation for good citizenship. This reputation can smooth the path of international expansion and provide a solid foundation for international success. On the other hand, a commitment to corporate social responsibility can inhibit the ability of companies to reap cost advantages that may be available overseas.

Suggested Citation

Bouquet, Cyril and Deutsch, Yuval and Crane, Andrew, The Trouble with Being Average (2009). Sloan Management Review, Vol. 50, No. 3, pp. 79-80, 2009 . Available at SSRN: https://ssrn.com/abstract=1569631

Cyril Bouquet

affiliation not provided to SSRN

No Address Available

Yuval Deutsch

York University - Schulich School of Business ( email )

4700 Keele Street
Toronto, Ontario M3J 1P3
Canada

Andrew Crane (Contact Author)

University of Bath - School of Management ( email )

Claverton Down
Bath, BA2 7AY
United Kingdom

HOME PAGE: http://www.bath.ac.uk/management/faculty/andrew-crane.html

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