The Effect of Local Stakeholder Pressures on Responsive and Strategic CSR Activities

This study identifies the relationship between local stakeholder pressures and Korean foreign subsidiaries’ corporate social responsibility (CSR). Analyzing the survey data of 177 Korean foreign subsidiaries yielded two important findings. First, local primary stakeholders have a positive impact on responsive CSR activities, but have no influence on strategic CSR activities. Second, local secondary stakeholders in host countries have a strong influence on both responsive and strategic CSR activities. Secondary stakeholders have more influence on strategic than on responsive CSR activities. This article suggests a change in managerial philosophy toward primary and secondary stakeholders, which may have important implications for multinational enterprises (MNEs) in achieving greater success with the design of their CSR activities.