Corporate Social Responsibility in International Marketing Channels: A Focus on Korean Multinational Enterprise-Overseas Distributor Relationships

The objective of this paper is to understand the effects of multinational enterprises’ corporate social responsibility engagement on channel performance in foreign markets. Research addressing CSR activities of an MNE in international marketing channels is scarce. Specifically, researchers have neglected to study the effects of Korean MNE’s CSR efforts on the outcomes of their foreign partners. Therefore, it is necessary to study on international marketing need to focus on how an MNE’s CSR activities influence channel relationships’ outcomes. The present study provides guidance as to the effectiveness of MNEs’ CSR activities in international marketing channels. Drawing on the stakeholder theory and relationship marketing theory, the current study develops and empirically tests a framework of the influence of an MNE’s CSR engagement on channel relationship. Findings from an examination of 116 MNE subsidiary-channel partner dyads reveal positive effects of two facets of an MNE’s CSR efforts on channel performance through distinct mechanisms. Ethical CSR enhances channel partners’ trust, whereas philanthropic CSR increases relationship commitment. This study distinguishes an MNE’s actual CSR engagement and channel partners’ perception of these CSR activities.