Contending Logics and CSR Practices in Mnes in Emerging Economies: Evidence from Indonesia

Abstract

This paper examines the drivers of CSR practices in MNE subsidiaries in emerging economies, focusing on the contrasting institutional expectations of home and host countries. Through interviews with CSR managers and analysis of six MNE subsidiaries in Indonesia, we found that internal pressures within MNEs were the main driver of CSR practices. While legal regulations in the host country were key to compliance, normative and cognitive pressures shaped the specific CSR practices. Additionally, CSR engagement was influenced by the subsidiary's size and tenure in Indonesia, with informal mechanisms and autonomy playing a large role in CSR decision-making and employee involvement. There is also a great deal of diversity with respect to how a subsidiary manages their employee involvement in their CSR policies.

Keywords: corporate social responsibility, Multinational Enterprises, Institutional Theory, emerging economies, Indonesia