Unpacking Transnational Corporate Responsibility: Coordination Mechanisms and Orientations

Abstract

This article aims to advance the discussion of how multinational companies manage the tension between global integration and local responsiveness in their corporate social responsibility (CSR). In particular, it studies the relationships between headquarters and subsidiaries in a transnational CSR strategy and the types of coordination mechanisms used. Building on a qualitative study of a multinational bank, we find that in addition to formal and informal coordination mechanisms, a transnational CSR strategy cannot be fully understood without considering lateral learning and participatory decision making. Further, we suggest that discussions about the transnational approach to CSR should not be disentangled from the question about a company's CSR orientation. Finally, we propose some characteristics of transnational CSR and discuss its theoretical and practical implications.