Corporate social responsibility in multinational corporations : the realities of emerging markets

M.Com. (Business Management)The financial downturn in developed economies has led to South Africa and the rest of Africa’s economies to become increasingly attractive to foreign investors. The establishment of operations in an emerging market poses various challenges for multinationals, one of which is implementing Corporate Social Responsibility (CSR) effectively across all its subsidiaries. The objective of this study is to determine whether there are differences in expectations of CSR in a multinational organisation and CSR in its subsidiaries which operate in emerging markets. This will allow the multinational to assess whether its CSR strategy meets the expectations of all stakeholders. The study is focused on the financial services sector, specifically the banking industry. Through qualitative research methods, a case study research design approach was utilised to study CSR activities in a global bank and CSR experiences in its African subsidiaries. Data collected from research subjects through interviews was analysed using open, axial and selective coding procedures. The study concludes that there are definite gaps in CSR expectation between a multinational and its subsidiaries based in African emerging markets. Global CSR strategies may be applied consistently across a multinational’s subsidiaries, but failure to address core issues faced in an emerging market economy renders such strategies impractical