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How can leaders of multinational organizations be ethical by contributing to corporate social responsibility initiatives? Guidelines and pitfalls for leaders trying to do good |
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| Institution: | 1. Royal Roads University, Victoria, Canada;2. Tecnologico de Monterrey, Mexico City, Mexico;1. Kelley School of Business, Indiana University, 1309 E. Tenth Street, Bloomington, IN 47405-1701, U.S.A.;2. School of Global and International Studies, Indiana University, 355 N. Jordan Avenue, Bloomington, IN 47405, U.S.A.;1. International Centre for the Development of Entrepreneurial Communities, 371 Portglen Road, Borrowdale, Harare, Zimbabwe;2. University of Huelva, Plaza de la Merced, 11, 21002 Huelva, Spain;1. University of Akron School of Law, 150 University Avenue, Akron, OH 44325-2901, U.S.A.;2. Walsh University, 2020 E. Maple Street, North Canton, OH 44720, U.S.A. |
| Abstract: | Corporate social responsibility (CSR) is a laudable goal for multinational enterprises (MNEs) because of the significant positive impact they can bring to the society and environment around the world. However, there are significant challenges to the practice of CSR in MNEs. This article discusses two major barriers to CSR that are especially significant for MNEs: leaders’ attitudes and cultural variance. We then apply insights from Rest’s ethical decision-making and cross-cultural research to offer guidance to leaders of MNEs to implement CSR in their organizations. We present a multistep process by which leaders first reflect on and clarify what goals they want to accomplish in the realm of CSR and then how to build consensus for those goals and modify them to incorporate the values and beliefs of local constituents. |
| Keywords: | Corporate social responsibility Multinational enterprises Greenwashing Transformational leadership Participative leadership |
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