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Determinants of the Multinationals' Social Response. Empirical Application to International Companies Operating in Spain

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Abstract

To survive and be successful in today's setting of globalisation and complexity, companies are obliged to think in wider strategic terms, developing active and enterprising strategies that include social, political and ecological elements, besides the economic ones. The analysis of the relationship between companies and society is especially interesting when these companies operate in international markets. Countries demand that large corporations contribute to local, regional and national development in such a way that their resources are exchanged for a significant increase in their citizens' quality of life. Faced with that fact, the aim of this work is to establish what actions the subsidiaries will take in order to offer a response to the needs of their stakeholders in the host countries. Secondly, we attempt to identify the factors explaining the different levels of social response of the subsidiaries established in a particular country by different parent companies. The empirical study was carried out on a sample of Spanish subsidiaries in the two manufacturing industries with most foreign investment (the chemical and automobile industries) and the results obtained both confirmed the validity of the tool used to measure social response and permitted us to determine which factors influence the institutionalisation of social responsiveness.

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  1. Facultad de CC. EE. Empresariales y Turismo, Departamento de Economía y Dirección de Empresas, Edif. Departamental de la Facultad de CC. EE. y Empresariales. Módulo C, n, Campus Universitario de Tafira, 35017, Las Palmas de Gran Canaria, España

    María de la Cruz Déniz-Déniz & Juan Manuel García-Falcón

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  1. María de la Cruz Déniz-Déniz
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  2. Juan Manuel García-Falcón
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Déniz-Déniz, M.d.l.C., García-Falcón, J.M. Determinants of the Multinationals' Social Response. Empirical Application to International Companies Operating in Spain. Journal of Business Ethics 38, 339–370 (2002). https://doi.org/10.1023/A:1016061629745

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