Standardization or localization? Executing corporate philanthropy in international firms

Authors

  • Michael A. Merz,

    1. College of Business, San José State University, USA
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    • Assistant Professor of Marketing.

  • John Peloza,

    Corresponding author
    1. School of Business Administration, Simon Fraser University, Canada
    • School of Business Administration, Simon Fraser University, 8888 University Drive, Burnaby, British Columbia V5A 1S6, Canada.
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    • Assistant Professor.

  • Qimei Chen

    1. Shidler College of Business, University of Hawai'i at Manoa, USA
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    • Shidler Distinguished Professor, Associate Professor of Marketing.


Abstract

  • Corporate social responsibility (CSR) has become a key component of a firm's reputation. The reputational vulnerabilities and pressure for CSR are perhaps greatest among international firms with business activities across many countries and cultures. Although the strategies of firms entering new markets have been well researched, the CSR component of the market entry decision has been largely ignored, despite its significant relationship with the financial performance of the firm. Further, previous research has largely considered CSR from an environmental performance point of view, and thus has focused on a minimum level of investment in CSR as opposed to the optimal form of the investment. Our paper seeks to address this gap by examining market entry decisions as they relate to corporate philanthropy.

Copyright © 2009 John Wiley & Sons, Ltd.

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