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and test the complex interactions involved in establishing, implementing, and
monitoring real-world CSR policies.
Multinationals can improve their CSR coordination, the authors found, by
overinvesting (relative to typical levels) in their social brand — which differs
from typical brand marketing in that it also reflects a firm’s commitment to social
and environmental issues. The idea is to make it more costly for subsidiary man-
agers not to comply.
As the authors note, CSR marketing is often viewed as a PR-related insur-
ance policy against lapses in managerial judgment. But the authors advise firms
to think of investment in the social brand as a way to “avoid, rather than cush-
ion,” the fallout from misbehaving or misguided managers.
However, this tack works only up to a manageable number of subsidiaries,
which differs from firm to firm. Once a multinational expands too broadly, the
resulting headaches in trying to coordinate a cohesive CSR policy cause firms to
lower their investment; as a result, subsidiaries may slack off.
One way the authors found to monitor subsidiary activities in a visible way
without increasing internal funding or staffing is to work with social activists and
nongovernmental organizations at the local level. Companies can also hire man-
agers who are motivated by sustainability.
“Our results show that CSR engagement coupled with a strong social brand
can be either a source of competitive advantage driving MNE [multinational
enterprise] growth, or a constraint for international expansion,” the authors write.
“The sever ity of CSR coordination challenges thus plays a crucial role in making
CSR investment a blessing or a curse in internationalizing firms.” +
Source: “Orchestrating Corporate Social Responsibility in the Multinational
Enterprise,” by Christian Geisler Asmussen and Andrea Fosfuri, Strategic Man-
agement Journal, June 2019, vol. 40, no. 6