How Do Domestic Institutions Influence Corporate Social Responsibility (CSR)?: An Examination of Government Policies and Company Initiatives in Denmark and the UK
38 Pages Posted: 1 Sep 2012
Date Written: April 12, 2012
The literature explains the link between CSR and domestic institutions by highlighting how national institutional complementarities serves as a key determinant of a company’s CSR initiatives. One set of explanations sees CSR as fitting in with domestic institutional structures as either 'substituting' or 'mirroring' government policies. A second set of explanations views CSR as being driven by variations in competitive needs across countries, reflecting in particular the degree of international market exposure. Both sets of literature look at the level of CSR in companies from different countries. Focusing on the UK and Denmark we study the link between CSR and domestic institutions by examining the content of both government CSR policies and company CSR initiatives. We find that CSR can be a substitute for government regulation, but in contrast to existing literatures we show that this is more likely in the context of host countries rather than in home countries.
Keywords: Capitalism, Varieties of, Corporate Social Responsibility (CSR), Embeddedness, Institutions, Political Economy, Government Policy in Europe
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