Corporate Social Responsibility in International Channels of Distribution: Evidence from Korean Multinational Corporations’ Relationships with Foreign Partners

This study attempts to provide an understanding of the effects of corporate social responsibility (CSR) engagement on outcomes in international channels of distribution. Despite the importance of CSR in international business model and strategy, few studies have addressed the effects of CSR activities on the outcome in these channels. Building on the stakeholder theory and relationship marketing theory, the authors develop an empirically testable model that explains the effectiveness of firms’ CSR engagement in their international channels of distribution. Using dyadic data collected from two surveys, the authors empirically test the model. Findings from an examination of 126 Korean multinational corporation-foreign distributor relationships reveal the positive effects of firms’ CSR efforts on the international channel outcome through distinct mechanisms where ethical CSR improves channel partners’ trust whereas philanthropic CSR enhances relationship commitment. In addition, the authors find that foreign partners’ CSR orientation positively moderates the relationship between each CSR perception and each of relational mediators. This paper offers important implications for theory and practice and concludes with the limitations of the current study and the directions for future research.