Are corporate social responsibility programs valuable to firms when they undertake foreign expansion? In particular, the researchers set out to examine the association between lucrative international sales and corporate social responsibility. The researchers established that those companies that had low or high amounts of corporate social responsibility had considerably greater success internationally than those with average amounts of corporate social responsibility.
The writers suggest that businesses with high degrees of societal operation may gain globally from their good standing for corporate social responsibility, and cost edges may be attained by businesses with low levels from foreign growth. Nevertheless, businesses in between may be “stuck in the middle”–and unable to get a competitive advantage internationally from their corporate social responsibility programs. Since retrenching from existing corporate social responsibility efforts can be viewed negatively by existing stakeholders, the authors recommend that businesses that are “stuck in the middle” reconsider their foreign corporate social responsibility programs – either to de-emphasize competitive advantage or to increase the programs’ impact.
The Trouble with Being Average Case Study SolutionPUBLICATION DATE: April 01, 2009 PRODUCT #: SMR316-HCB-ENG
This is just an excerpt. This case is about STRATEGY & EXECUTION
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