MNCs and poverty alleviation: Approaches and challenges in Lao PDR and Thailand

Informal institutions play various roles in supporting and promoting the contributions of multinational corporations (MNCs) to the host countries. This paper explores the contribution in poverty alleviation from MNCs in two South East Asian countries, Lao PDR and Thailand, in the form of corporate social responsibility (CSR). The key focus is given to the nature and types of CSR activities from MNCs in an effort to fight poverty in both locations. The researchers collected data from 3 MNCs in Laos and Thailand. The results identify three key themes: (1) economic contribution and poverty alleviation, (2) social development and poverty alleviation, and (3) human rights and poverty alleviation. Data also supports that there are both similarities and differences in approaches by MNCs, roles they play in the host countries, patterns of CSR strategies and challenges from the host countries in conducting poverty alleviation activities. This study proposes a theoretical framework within which MNCs can engage with various formal and informal social institutions broadly but with specific reference to Laos and Thailand in order to achieve sustainable poverty alleviation