2018International Business JournalRequires access

An Empirical Study on the Characteristics of Korean Firms Conducting Local CSR in China

한양대학교 경영대학, C. Min Han, Xiaoyan Li, Hyoun Mi Ahn

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Abstract

This study examines the characteristics of Korean firms conducting CSR in China. Surveys were conducted with 153 firms doing local business in China. The study found that large firms were conducting greater CSR activities in China than small firms. Specifically, subsidiaries with large parent firms, a large number of local employees, large local sales, and strong brands were more likely to conduct CSR in China. These results indicate that CSR in China is mainly carried out by local subsidiaries of large firms. On the other hand, the ownership pattern, size of investment, and market performance did not show meaningful relationships with CSR. From a theoretical perspective, the findings imply that CSR theories suggesting defensive motives for foreign CSR are more relevant than those suggesting preemptive motives for CSR in explaining CSR activities by Korean firms in China.

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What this paper is about

This study examines the characteristics of Korean firms conducting CSR in China. Surveys were conducted with 153 firms doing local business in China. The study found that large firms were conducting greater CSR activities in China than small firms. Specifically, subsidiaries with large parent firms, a large number of local employees, large local sales, and strong brands were more likely to conduct CSR in China. These results indicate that CSR in China is mainly carried out by local subsidiaries of large firms. On the other hand, the ownership pattern, size of investment, and market performance did not show meaningful relationships with CSR. From a theoretical perspective, the findings imply that CSR theories suggesting defensive motives for foreign CSR are more relevant than those suggesting preemptive motives for CSR in explaining CSR activities by Korean firms in China.

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Available abstract

This study examines the characteristics of Korean firms conducting CSR in China. Surveys were conducted with 153 firms doing local business in China. The study found that large firms were conducting greater CSR activities in China than small firms. Specifically, subsidiaries with large parent firms, a large number of local employees, large local sales, and strong brands were more likely to conduct CSR in China. These results indicate that CSR in China is mainly carried out by local subsidiaries of large firms. On the other hand, the ownership pattern, size of investment, and market performance did not show meaningful relationships with CSR. From a theoretical perspective, the findings imply that CSR theories suggesting defensive motives for foreign CSR are more relevant than those suggesting preemptive motives for CSR in explaining CSR activities by Korean firms in China.

Key concepts: Corporate social responsibility, China, Business, Subsidiary, Perspective (graphical), Foreign direct investment, Empirical research, Investment (military)

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