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Institutions as Determinant Factors of Corporate Responsibility Strategies of Multinational Firms



This article examines whether the relative market value and corporate responsibility (CR) performance of multinational corporations (MNCs) that comply with rigorous international standards are explained by the degree of institutional development, the capitalist model of the country of origin, and the industrial sector in which the MNCs operate. Based on a sample of 336 MNCs from 24 countries included in the Dow Jones Sustainability Index and the FTSE4Good Index, we find that the corporate social responsibility (CSR) strategy among large MNCs is primarily determined by the capitalist (and institutional) model of their country of origin and the sector of activity in which such firms operate. Namely, more than four-fifths of the firms belong to globally integrated sectors. In general, MNCs perform a global (integrated) CR strategy. Copyright © 2012 John Wiley & Sons, Ltd and ERP Environment.