Chapter 11

Successful MNC CSR Activities

in Asia: A Case Study of Samsung
Electro-­Mechanics, Thailand Co., LTD.

Na Na Jeon and Sang Hoon Nam

11.1 Introduction

As the world of business has become increasingly borderless, multinational corpo-

rations (MNCs) are pressured to break out of their comfort zones to compete for
new and emerging business opportunities elsewhere. Despite being armed with
superior brand power, technology, and management skills, not all MNCs success-
fully establish themselves in their new markets. Making economic contributions to
the host country, while a necessary condition, is nevertheless often insufficient in
sustaining the survival and success of the MNC. The MNC has an increased chance
for survival and success if it is perceived as a responsible corporate citizen who will
not exploit the host country.
Achieving a favorable reputation is a daunting, if not impossible, challenge for a
foreign company that often face skepticism from the local stakeholders. As Godfrey,
Hatch, and Hansen suggest, and our case study supports, there is a clear correlation
between “doing good” and “doing well” (2010: 320). Or more precisely in the case
of Samsung Electro-Mechanics, Thailand Co., LTD (SEMTHAI), doing well seems
to be a function of doing good. Corporate social responsibility (CSR) activities that
are authentic and adapted to the local stakeholders’ interests and societal needs will
assist in refuting the skepticism and suspicion of the MNCs in the host country. As
we examine this hypothesis, we employ McWilliams and Siegel’s definition of CSR
activities: “actions that appear to further some social good, beyond the interests of
the firm and that which is required by the law” (2001: 117).

N. N. Jeon
Wesley Theological Seminary, Washington, DC, USA
e-mail: njeon7608@students.wesleyseminary.edu
S. H. Nam (*)
University of Victoria, Victoria, BC, Canada
e-mail: snam@uvic.ca

© Springer Nature Switzerland AG 2022 275

T. Wu, N. Bu (eds.), International Business in the New Asia-Pacific,
Advances in Theory and Practice of Emerging Markets,
https://doi.org/10.1007/978-3-030-87621-0_11
276 N. N. Jeon and S. H. Nam

Although CSR has been studied extensively in management literature, most of

the research has focused on CSR in a corporation’s domestic market. Little is known
about CSR of MNCs taking place in different cultures, let alone in Asia (Rodrigues
& Child, 2003). The debate over the strategic choice for MNCs between CSR cen-
tralization and localization in the new market remains inconclusive (Muller, 2006;
Yang & Rivers, 2009). Despite the growing recognition that CSR orientation and
management should be adapted to cultural differences (Yang & Rivers, 2009), there
is a paucity of empirical research on CSR localization. This chapter, therefore, aims
to contribute to the growing research by presenting a case study of SEMTHAI with
a focus on its authentic and successfully localized CSR activities.
Given the increasing numbers of MNCs investing in the emerging markets in
Asia, the successful establishment and operation of SEMTHAI deserves close atten-
tion. This MNC in Thailand has earned a great deal of recognition and numerous
awards from the Thai government and society, despite being a business-to-business
(B2B) entity. SEMTHAI first differentiated itself from other MNCs by regularly
conducting CSR activities that involved local and expatriate employees’ participa-
tion. SEMTHAI also truly localized its CSR activities by not only specifically
addressing the immediate needs and values of Thai society, but also further utilizing
their local employees as the main driving force behind their CSR localization.
SEMTHAI quickly earned its recognition and became the first foreign company to
receive “The Prime Minister Industry Award” from the Thai government in 2009.1
Since then, SEMTHAI has been benchmarked by many companies in Thailand,
both foreign and domestic.
SEMTHAI’s outstanding achievements, beyond its operations, can certainly be
contributed to its unique and impactful CSR activities. Taking SEMTHAI as a
model, we argue that Asian MNCs seeking to successfully establish their reputa-
tions (and hence performance) in emerging Asian markets should focus on the
power of moral capital, among other things. Moral capital, according to Godfrey, is
“the outcome of the process of assessment, evaluation, and imputation by stake-
holders and communities of a firm’s philanthropic activities” and therefore has the
potential to influence the actions of the stakeholders (2005: 783). Moral capital
earned by the MNCs’ authentic CSR practices, specifically aligned with local val-
ues and expectations, could provide effective strategic leverage that would distin-
guish them from their competitors.
In this chapter, we will first explain why we chose SEMTHAI as the subject of
our case study, followed by a section on methodology. We will then analyze the case
to identify and examine the potential determinants of SEMTHAI’s success. We will
conclude our chapter with implications for both researchers and practitioners.

1
“The Prime Minister Industry Award,” established in 2003, is presented every year to one enter-
prise that has previously received at least three Prime Minister Awards. The government evaluates
eligible enterprises in six criteria (i.e., the corporation’s sales, quality, environment, safety, produc-
tivity, and contribution to Thailand) and picks the very best enterprise. This award is thus consid-
ered the most honorable award an enterprise can receive in Thailand.
11 Successful MNC CSR Activities in Asia… 277

11.2 Why SEMTHAI?

SEMTHAI, a subsidiary of South Korea-based Samsung Electro-Mechanics (SEM),

is a manufacturer of electronic components used in computers, cell phones, and
LCD TVs (Lee, 2009b). SEM, one of the 16 publicly traded companies belonging
to the Samsung Group, was established in 1973 (Naver Encyclopedia, 2019; Naver
Encyclopedia, 2020). SEM remains closely related to Samsung Electronics, the
flagship company of the Samsung Group. Samsung Electronics is not only one of
the largest buyers for SEM, but also the largest shareholder of SEM (K-Biz News,
2019; Naver Encyclopedia, 2019).
SEMTHAI was the very first foreign subsidiary of SEM that was established in
1990 and production began in 1993 with the completion of its first manufacturing
plant located within a 50 km radius of Thailand’s capital, Bangkok (Naver
Encyclopedia, 2019). Since then, SEMTHAI’s annual sales increased from less than
US $100 million in 1995 to almost US $400 million in 2010. SEMTHAI, as a B2B
company, did not directly engage with Thai consumers nor did it advertise in
Thailand (Lee, 2009b).
SEMTHAI, nevertheless, has established an excellent and respectable reputation
in Thailand, winning praise from both the government and the public. When
SEMTHAI received the “Prime Minister Award”2 for the fifth time in 2009, along-
side “The Prime Minster of Industry Award,” the Prime Minister at the time, Abhisit
Vejjajiva, complimented, “I hope more Korean companies would invest in Thailand.
I would always welcome Korean companies like SEMTHAI” (Lee, 2009b). This
was one of many compliments the Thai public had showered SEMTHAI with
(Hyun, 1998; Kang, 2003; Lee, 2009a, 2009b; Sung, 2003). Apart from winning
numerous prestigious awards as a business enterprise in Thailand, SEMTHAI was
commended by the Prime Minister as a “good” company that is “helpful to” Thailand
(Lee, 2009b). Many local and international companies visited SEMTHAI to bench-
mark its remarkable success.
SEMTHAI’s unprecedented success triggered our curiosity. What made this
mid-sized B2B MNC from Korea stand out among the more well-known and estab-
lished names of American and European MNCs in Thailand? A close examination
of SEMTHAI’s various activities made it apparent that its unique CSR activities
clearly and significantly contributed to SEMTHAI’s noteworthy achievements. A
former head of SEMTHAI explained its success as follows:
“Thai society’s appreciation and recognition of SEMTHAI’s good corporate citizenship
first led its employees to gain pride in being an employee of SEMTHAI. The pride led the

2
The Prime Minister Award is an annual award presented to four different enterprises operating in
Thailand, with respect to their excellence in one of the four categories: sales, productivity, quality,
and safety and environment. The Thai government evaluates all the local and foreign enterprises in
the four categories and picks the best firm in each category to present the annual award to. The
Prime Minister Award therefore is recognized as one of the most prestigious awards an enterprise
may receive in Thailand and the award-winning enterprises get to represent Thailand by publicly
displaying the award logo on its products for the proceeding year.
278 N. N. Jeon and S. H. Nam

employees to respect the company and eventually build up loyalty to SEMTHAI. It moti-
vated the employees to work hard for the company, which accordingly improved the com-
pany performance. Furthermore, a continued exposure of its good corporate citizenship not
only attracted SEMTHAI’s current and potential employees by being portrayed as an admi-
rable working environment, but also had led the government officials to notice its contribu-
tions” (Roh, 2010).

As SEMTHAI became an excellent example for CSR activities of an East Asian

MNC in Southeast Asian markets, SEMTHAI made further efforts to improve its
operational performance. SEMTHAI took the initiative to create harmonious
employment relations and establish a respectable corporate reputation through prac-
ticing CSR at various levels and on various occasions. The loyalty created within
SEMTHAI’s employees, coupled with the harmonious work environment, assisted
SEMTHAI in its efforts to manufacture new products ahead of other companies,
improve product quality, and increase productivity—all of which have been recog-
nized by the Thai government with five Prime Minister Awards in productivity,
quality, and safety and environment (Roh, 2010).

11.3 Methodology

In the world of international business, unprecedented and unique real-life opportu-

nities and problems often arise, driven by the complexity of its multicultural envi-
ronment. Existing theories and concepts may not be sufficient enough to explain the
new organizational phenomena that MNCs experience. When such is the case, a
non-traditional research methodology that can bring a variety of theoretical lenses
to build, test, and illustrate a theory is one plausible way of approaching “the black
box” (Doz, 2011; Van de Ven, 2007). Because the question of how CSR would
affect the survival and performance of an East Asian MNC entering a Southeast
Asian country is still insufficiently understood, a qualitative case study seemed to
be the most practical and promising method for obtaining a concrete, contextual,
and in-depth understanding of the phenomena.
To find the best subject for this case study, we first began our research by collect-
ing general archival data from the literature and the media to identify key issues for
CSR of MNCs in Asia. SEMTHAI, with its extraordinary success stories introduced
over the years in various media outlets, consequently caught our attention. After
designating SEMTHAI as a potential topic of study, a second round of archival data
collection took place by contacting SEMTHAI’s headquarters, SEM, in Suwon,
Korea. We focused our second round of archival research on obtaining information
specific to SEMTHAI’s history, background, achievements, sales ratio, employee
statistics, CSR activities, and performance.3

3
These data provided by Samsung Electro-Mechanics (SEM) and SEMTHAI include a public rela-
tions DVD produced in Korean and a PowerPoint presentation file including SEMTHAI’s general
11 Successful MNC CSR Activities in Asia… 279

After we identified specific CSR factors of interest (e.g., duration, frequency, ori-
entation, nature, and effects), we developed a list of potential interviewees, limiting
the spectrum to those who were affiliated with or had worked in relation to
SEMTHAI. Among the candidates contacted for comments and interviews, those
who contributed their insights to this study include a former head of SEMTHAI and
four managerial-level male employees of SEM (all of whom were either affiliated
with SEMTHAI through their current or former managerial-level experience at
SEMTHAI or had experience with SEMTHAI through their work at SEM’s Human
Resource Center in Korea), as well as a couple of journalists who had published
articles on SEMTHAI’s achievements. An in-person interview was conducted with
the former head of SEMTHAI, focusing on the influence of SEMTHAI’s unique CSR
activities on its success in Thailand. SEMTHAI’s data and individual comments from
managers and journalists were collected using email correspondence or phone inter-
views, primarily with a standardized set of four questions addressing SEMTHAI’s
CSR activities in relation to its headquarters, SEM, and SEM’s other subsidiaries.
It is also important to note that our case analysis primarily centers on our in-­depth
interview with Seung Hwan Roh, who served as the head of SEMTHAI between
2005 and 2010. Roh proved to be an authoritative primary source and the best can-
didate for the study because he had not only been with SEMTHAI since its first
operation, but he was also the driving force behind the design and implementation of
SEMTHAI’s CSR. Having spent nearly 20 years with SEMTHAI, Roh earned
praise-worthy status as a renowned businessman in Thailand. Through his service
and contributions to SEMTHAI and his unique sense of localization for both the
company and himself, Roh was widely acknowledged in Thailand as a “Thai-local.”
In 2008, Roh became the first Korean entrepreneur ever to receive an honorary
doctorate degree in business administration from Thailand’s Ramkamhaeng
National University. Roh had been repeatedly complimented by the former Prime
Minister, Abhisit Vejjajiva, for his successful management of SEMTHAI (Lee,
2009b; Choi, 2009). His outstanding achievements in the Thai subsidiary also
earned him a promotion to an executive position in the company’s headquarters
in Korea.

11.4 Case Analysis

11.4.1 The Recognition of SEMTHAI

Thailand’s recognition of SEMTHAI began in 1994 when the Ministry of Industry

awarded SEMTHAI the “Best Factory Award’ for the first time. Since then,
SEMTHAI has received numerous other awards from the Thai government,

information: history, sales ratio, annual number of employees, operating and non-operating activi-
ties (i.e., training and CSR), and more.
280 N. N. Jeon and S. H. Nam

including “The Prime Minister Industry Award.” SEMTHAI also received the
“Prime Minister Award” five times for its excellence in productivity (1995 & 2000),
quality (1998 & 2009), and safety and environment (2003).
Notably, SEMTHAI was the very first foreign company to win “The Prime
Minister Industry Award” in 2009, the most prestigious award an enterprise could
receive from the Thai government. This award recognized SEMTHAI’s outstanding
performance, which surpassed all of its competing enterprises. SEMTHAI received
the award in recognition of its contributions to Thai society, along with its ongoing
efforts to improve productivity, quality, and working environment. The Thai govern-
ment also officially recognized SEMTHAI’s with numerous other awards, including
the “Best Company of Social Contribution Award” in 1998. SEMTHAI was the very
first foreign company ever to receive the Social Contribution Award (Hyun, 1998).
Between 2001 and 2003, SEMTHAI received the “Company of Social Contribution
Award” 3 years in a row, along with the “Exemplary Company of Social Purification
Award” in 2003 (Kang, 2003).
SEMTHAI remained persistent with its efforts to return to Thai society what
SEMTHAI that which the corporation had earned from. SEMTHAI even managed
to improve the public’s general impression of Korean companies in Thailand
through its numerous awards, along with the media exposure that followed.
Moreover, SEMTHAI earned an unexpected reputational advantage over other
competing nominees for the Prime Minister Awards through its unique CSR activi-
ties. Most of SEMTHAI’s awards were granted because its rigorous and persistent
CSR activities differentiated it from other corporations. This gave SEMTHAI an
added advantage beyond establishing its respectable status in the Thai community
(Roh, 2010).

11.4.2 The Original Purpose of CSR Activities

Although SEMTHAI had little experience in CSR, SEMTHAI boldly utilized its
inexperience as an opportunity to take a distinctive yet authentic approach. For
instance, SEMTHAI initially geared its CSR activities toward a unique motive to
create a sense of cohesiveness among its local employees. This was especially
important for SEMTHAI because the majority of its local employees consisted of
individuals who had left their homes to work at SEMTHAI. Most of SEMTHAI’s
employees were from rural areas and were living alone near the plant. Consequently,
many of SEMTHAI’s local employees spent most of their time alone. They often
did not interact with the local community or one another, let alone enjoy an active
social life. Naturally, the employees felt lonely, having little connection with fellow
workers and the company. There was also a lack of connection to the Korean expa-
triates. SEMTHAI therefore decided to employ CSR activities as team building
opportunities to create a sense of belonging, concord, and cohesiveness among the
local employees and with the company (i.e., create a harmonious organizational
climate).
11 Successful MNC CSR Activities in Asia… 281

SEMTHAI’s CSR practices therefore became significantly unique: local

employee-centered and action-oriented CSR activities that served the marginalized
local communities in need on a regular basis. SEMTHAI’s consistent engagement
in CSR activities began with volunteering at a nursing home for the severely dis-
abled and teaching at the Watapanki primary school located in one of the poorest
rural towns in Thailand. SEMTHAI’s attempts to regularly engage its employees
first-hand and provide help to those who were ignored and abandoned, even by their
own family members, eventually caught the attention of Thai society.

11.4.3 The Persistence of CSR Activities

SEMTHAI’s unique philanthropic engagement was further recognized as excep-

tional because Thailand’s cultural expectations of social responsibility or contribu-
tion barely existed at the time. The generally recognized form of social responsibility
practiced in Thailand in the early 1990s was the royal family’s contributions to Thai
society. Therefore, SEMTHAI’s unique and persistent contributions, despite it
being a foreign company, escalated Thai society’s appreciation for SEMTHAI and
its employees, who consistently carried out the altruistic CSR activities. Naturally,
SEMTHAI’s CSR activities significantly improved SEMTHAI’s reputation among
Thai citizens, which in turn increased employee pride in the company.
Over the span of nearly two decades (i.e., early 1990s to 2010), “persistent efforts
to contribute back to Thai society” became one of SEMTHAI’s signature character-
istics. SEMTHAI’s altruism became imprinted into its unique policy about social
services. SEMTHAI’s CSR activities were regularly practiced, local employee-­
centered (from planning to execution and evaluation), and aligned with the local
community’s needs and values. SEMTHAI localized its CSR practices so that the
ethical values underlying the activities matched the ethical values of the focal com-
munity. This match effectively increased SEMTHAI’s moral capital.

11.4.4 The Moral Capital and Localization of CSR Activities

SEMTHAI is living proof that demonstrates how CSR, if managed well, can benefit
both communities and the corporations. The core idea of CSR is that business and
society be bound by a reciprocal social contract (Amba-Rao, 1993). There have
been increasing expectations from society for corporations to return some of their
profits back to the communities from which they originated (Bartlett et al., 2006).
Nevertheless, MNCs’ philanthropic activities are able to create positive moral capi-
tal only to the degree of consistency between the “ethical values underlying the
activity” and the “ethical values of the focal community” (Godfrey, 2005: 793).
Consequently, MNCs in foreign markets encounter a barrier with their CSR activi-
ties, despite their good intentions, because local communities, especially those in
282 N. N. Jeon and S. H. Nam

developing countries, are “either unwilling or unable to represent [their] interest to

the MNCs unlike the powerful communities in the developed nations” (Amba-Rao,
1993: 563).
SEMTHAI’s CSR activities were clearly localized: centered around local
employees to directly address the local communities’ needs and values, to meet the
interests of the local community, and to match the local community’s values. The
resulting positive moral capital was a significant bonus that enabled SEMTHAI to
earn recognition not only from its employees, but also from the broader community.
The two most significant CSR activities that enabled SEMTHAI to accrue moral
capital were monthly visits to the nursing home for the disabled and the less-­
privileged primary schools, which began in 1995 (Kim, 2007; Lee, 2009b; Sung,
2003). During these visits, SEMTHAI’s employees spent time caring for the home’s
residents and teaching and playing with the children. SEMTHAI’s employees were
given the chance to share their time, money, and skills with the less-privileged indi-
viduals of Thai society while developing personal relationships among employees
and with the Korean expatriates during these monthly CSR activities.
SEMTHAI also actively engaged in efforts to stop the spread of AIDS and drug
misuse in the community through various campaigns. As part of these campaigns,
SEMTHAI provided educational programs to raise children’s awareness against
drugs and AIDS and also added a “Drug and AIDS” category under the company’s
physical examination for current and future employees. These campaigns further
enabled SEMTHAI to present a positive message to its potential employees and
increase its attractiveness beyond its already positive reputation that had been estab-
lished through its various CSR activities.
SEMTHAI’s monthly community service opportunities further enabled its
employees to practice its corporate philosophy of returning valuable contributions
to society. Beyond establishing a highly regarded reputation in Thailand,
SEMTHAI’s corporate philosophy of giving back also improved the attitudes of its
local employees toward the corporation. Another former head of SEMTHAI said,
“SEMTHAI’s social service activities help out in increasing local employees’ pride
in the company and assists in harmonizing the relationship between the labor and
the management” (Sung, 2003). SEMTHAI was further recognized as the most
admired workplace for Thai employees in 2003. SEMTHAI’s altruism clearly
achieved an added economic value of having a positive influence on its employees,
which led to improved productivity and reinforced retention.
In addition to the regularly conducted CSR activities, SEMTHAI also created
special occasions to solidify its altruistic image. For example, SEMTHAI held the
“Year of Celebration for Volunteer Work” campaign in 2003. The campaign included
15 different social service programs every month along with the “Samsung Marathon
for the People in Need,” a town library construction, providing medical services in
underprivileged regions, and providing scholarships to local schools (i.e., Watapanki
primary school and Burpa College) (Kang, 2003; Sung, 2003). Considering the
variety and extent of SEMTHAI’s CSR activities, which focused on being a good
Samaritan for the local communities in need, it is no surprise that SEMTHAI’s
altruistic deeds were publicly recognized twice in 2003 for their social contributions
(Kang, 2003).
11 Successful MNC CSR Activities in Asia… 283

During the 2005 South Asian tsunami disaster that impacted southern Thailand,
SEMTHAI sought and received additional assistance from Korea. Samsung Medical
Center in Korea, an affiliate of Samsung Group, dispatched an emergency medical
team at the request of SEMTHAI. Along with the Korean medical team, SEMTHAI
also sent a group of approximately 200 executives and employees on a 20-hour long
journey to help restore the tsunami-impacted sites for 3 days. This level of commit-
ment clearly differentiated SEMTHAI from most of the other companies that pri-
marily assisted Thailand by simply providing relief supplies and financial donations.

11.4.5 The Effects of CSR Activities on Employees

The literature on CSR’s impact on HR and performance also accounts for

SEMTHAI’s classification as a business phenomenon. Social identity theory states
that the organization for which an individual works forms the basis of social cate-
gory classification of the self; and such categorical social membership further influ-
ences an individual’s self-concept (Turban & Greening, 1997). Consequently, CSR
activities that represent a company’s behavior to the public become, at least par-
tially, responsible for the employees’ perception of self-identity. Thus, the antici-
pated economic benefits of CSR activities include CSR’s positive impact on the
corporation’s employees, which in turn improves employee productivity and rein-
forces employee retention based on appreciation for and affiliation with the posi-
tively behaving company (Lev et al., 2010).
Moreover, continued exposure to positive organizational climates and interac-
tions with fellow internal stakeholders assists employees in identifying with the
corporation and promotes a sense of communion with other internal stakeholders
(i.e., coworkers, managers, and expatriates) (Cruz & Pedrozo, 2009). This relational
identification further enables employees to obtain satisfaction from the specific
affiliation, which becomes only stronger when the organization continuously pres-
ents a positive image within the local community to which the employees belong
(Judge et al., 2001; Walsh et al., 2003).
The high level of organizational citizenship behavior and productivity displayed
by SEMTHAI’s employees may be explained by Leung: “behaviors carried out by
individuals at work that are discretionary in nature and are not formally rewarded or
sanctioned by the organization” promote organizational efficiency, innovativeness,
and competitive advantage (2008: 43). This is likely because employees’ behavior
within an entity is influenced by the “gratification or prosperity that the employees
get from their job,” such as contentment or a sense of meaning from the job they do
with and within the company (Eskildsen & Nussler, 200: 582). Employee satisfac-
tion thus produces employee loyalty, which invites positive behavior and contrib-
utes to improved performance (Duboff & Heaton, 1999; Eskildsen & Nussler,
2000). Additionally, employees endorsing high levels of ethical climate have the
potential to exhibit greater levels of citizenship behavior (Leung, 2008).
284 N. N. Jeon and S. H. Nam

SEMTHAI’s strong commitment to altruism further inspired managers and

employees at other affiliates of Samsung Business Group. They made voluntary
financial donations, which became the seed money for the establishment of the
“Samsung Community Center of Hope, Thailand” in one of the regions struck by
the tsunami, Phan-Na. It was designed to function as a center for education, infor-
mation sharing, and socializing—including serving as a nursing home for elders
(Kim, 2007; Roh, 2010). SEMTHAI’s voluntary CSR activities reinforced its posi-
tive, caring, and altruistic reputation, which, over time, was shared and supported by
all of its internal stakeholders.

11.4.6 Summary

SEMTHAI’s persistent efforts to actively contribute to Thailand’s social services

had paid SEMTHAI back handsomely. SEMTHAI’s CSR not only increased local
employees’ loyalty to and pride in the company, but it further helped the company
earn recognition for being the most successful MNC in Thailand (Roh, 2010). More
importantly, SEMTHAI’s positive reputation also improved the general impression
of Korea in Thailand, which enabled SEMTHAI to achieve “reverse-localization”
among its employees. In 2008 alone, SEMTHAI educated about 170 managerial
level Thai employees in both the Korean language and culture, so that they could
better understand and participate in Korean corporate culture (Lee, 2009b).
SEMTHAI also sponsored its outstanding local employees to travel to Korea and be
trained as the “Experts of Korea” after completing courses in Korean language and
culture at Kyung Hee University’s School of International Studies (Song, 2005).
These Thai employees returned back to Thailand at the end of the 9-month long
training period to assist in more effectively transferring SEM’s corporate culture to
its local employees (Song, 2005).
In sum, SEMTHAI’s unique CSR approach has brought numerous positive
effects for the company, both internally and externally. Within the company, there
were improvements in job satisfaction and company loyalty among the employees.
The relationship between the Thai employees and their Korean managers became
more harmonious. Externally, SEMTHAI enjoyed numerous awards of recognition
from the Thai government, as well as incredibly positive publicity in the media.
SEMTHAI became a company with an outstanding corporate reputation.

11.5 Discussion

11.5.1 The Power of Moral Capital

SEMTHAI was hailed as “a good company benefiting Thailand” by the Prime

Minister himself, who also went on to say that he would welcome more Korean
companies like SEMTHAI to invest in Thailand. To a certain extent, SEMTHAI
11 Successful MNC CSR Activities in Asia… 285

worked like a civilian diplomat, contributing to improving the relationship between

the two countries. The Prime Minister’s praise was an extraordinary recognition for
a foreign company to receive. It was especially noteworthy because MNCs were
often perceived, especially in developing countries, as being fundamentally selfish,
opportunistic, and possibly exploitative with no genuine interest in the welfare of
the host country (Tavis, 1988; Paz-Vega, 2010).
What was so special about SEMTHAI’s CSR? Has SEMTHAI indeed proven the
correlation between “doing good” and “doing well” (Godfrey et al., 2010: 320)? We
believe so. As we examined the case in depth, we found a few surprising factors
about SEMTHAI’s unique and authentic CSR, as described above. The biggest sur-
prise, however, was not the idiosyncratic aspects of SEMTHAI’s CSR activities, but
how powerful an MNC’s CSR could be in a developing country in Asia. We expected
some positive effects of CSR on SEMTHAI’s performance, as suggested in the lit-
erature, but the power of SEMTHAI’s CSR surpassed our expectations. It was sub-
tle at times and obvious at other times, but overall, the power exercised by the
authentic and localized CSR activities was deep, strong, and extensive. SEMTHAI’s
CSR changed almost everything it came in contact with, from internal and external
stakeholders to complete strangers in Thailand’s rural areas who may have other-
wise never heard of SEMTHAI or Samsung.
Inside the company, the local employees were motivated and empowered as, over
time, they became increasingly proud to be affiliated with SEMTHAI. Their moti-
vation, commitment, and loyalty to the company increased. Working together on
various CSR projects improved the relationships between the local employees and
the Korean expatriate managers, promoting a mutual understanding, interpersonal
bonding, and cooperation. The harmonious work environment occupied by moti-
vated employees naturally improved the company’s performance. SEMTHAI’s
annual sales quadrupled in a mere 15 years within their first two decades of opera-
tion. This shows that CSR can improve an entity’s financial returns, whether it be by
creating a bond between the MNC and its stakeholders or by improving the firm’s
reputation, brand equity, employee relations, and quality of management
(Bustamante, 2011; Godfrey et al., 2010; Turban & Greening, 1997; Waddock &
Graves, 1997).
Outside the company, the Thai government—likely the most influential external
stakeholder for SEMTHAI—was truly impressed by what SEMTHAI had done for
the country and wanted to return the favor with whatever support it could offer. The
Thai government’s commending assessment of SEMTHAI further created an unex-
pected asset: a relationship-based resource that directly impacted SEMTHAI’s per-
formance (Godfrey, 2005; Kobeissi & Damanpour, 2009; Wood & Jones, 1995;
Yang & Rivers, 2009). The Thai society, too, was inspired by this medium-sized
Korean manufacturer who, in many ways, cared for them even more than their own
local companies did. Thus, it was not surprising that a considerable number of Thai
nationals mistook SEMTHAI for a Thai company (Lee, 2009b).
Where did SEMTHAI’s extraordinary power come from? We argue that
SEMTHAI’s secret ingredient was the moral capital it created through its authentic
and localized CSR activities. SEMTHAI was willing to consistently contribute its
resources to help local people in need without expecting anything in return. Such
286 N. N. Jeon and S. H. Nam

altruistic morality was not typical of business entities such as MNCs (Amba-Rao,
1993; Tavis, 1988).
SEMTHAI was perceived to genuinely care for people in need. Both the internal
and external stakeholders (e.g., local employees, expatriate managers, Thai govern-
ment, Prime Ministers, and Samsung Group) were inspired by SEMTHAI’s selfless
acts and good will. They responded enthusiastically with their willingness to sup-
port SEMTHAI and its CSR activities in whatever way they could. SEMTHAI
undoubtedly tapped a hidden geyser of energy in moral capital.
SEMTHAI’s experience also suggests another source of power in moral capital:
a halo effect. Once SEMTHAI was seen as a company with strong morality, other
areas of their managerial capability became more visible and positively recognized.
A company perceived as “good” had an increased chance of being perceived as
competent in its managerial capabilities. We believe such a halo effect has the
potential to magnify the power of moral capital on MNCs’ performance.
From the observations made about SEMTHAI’s unique CSR activities contribut-
ing to its improved performance and recognition, we suggest the following
propositions:
Proposition 1: Moral capital has the power to affect MNC performance positively,
more powerfully than usually assumed.
Proposition 2: The more authentic CSR is perceived to be, the more powerful its
moral capital becomes.

11.5.2 The Perceived Authenticity of CSR

CSR practices of corporations have become increasingly common. In today’s cul-

ture of overwhelming media exposure, it is difficult to find a company that does not
engage in any kind of CSR activity at all. MNCs create organizational units respon-
sible for CSR, mostly within their public relations (PR) departments. Business enti-
ties diligently promote their CSR activities to make sure that their stakeholders will
be informed of their “good deeds.” The goal is to be perceived as good, or at least
not evil. The stakeholders, however, are not so quick to accept the self-portrait the
companies try to sell through their CSR activities. Stakeholders basically ask two
questions: Is the “good deed” symbolic or substantial? Is the “goodness” intentional
or pure? The question about the authenticity of CSR comes down to: is this CSR
fake or real?
The concept of authenticity has received increasing research attention lately in
management literature, especially in the area of leadership (Walumbwa et al., 2008).
Management leadership is often perceived as insincere, dishonest, and unethical
(James, 2012; Sutton, 2007). There is often a big gap between what managements
say (or pretend) and what they actually do, ultimately destroying trust. Contrastingly,
authenticity demonstrated through honesty, genuineness, transparency, and moral-
ity acts like a breath of fresh air in management leadership that has been polluted by
11 Successful MNC CSR Activities in Asia… 287

images of dishonesty, self-interest, disguise, and sometimes even immorality. The

sad truth is that while increasingly informed consumers seek (and demand) authen-
tic business leaders, they are in short supply.
In the same light, stakeholders expect CSR to be authentic. They do not want to
see another sleek, but artificial, PR stunt from the company. They instead want CSR
carried out with sincerity, honesty, and morality. Inauthentic CSR, like inauthentic
leadership, destroys trust. Nevertheless, companies have too often utilized CSR to
cover up their unethical behaviors. Consequently, engaging in CSR does not neces-
sarily signal the existence of a moral quality in a company. It has become increas-
ingly harder to trust (or prove) the authenticity of CSR in recent days.
SEMTHAI, on the other hand, gives hope by modeling how CSR authenticity
enables MNCs to accrue moral capital. We attribute SEMTHAI’s CSR authenticity
to three factors: voluntariness, consistency, and distinctiveness. Godfrey et al.
(2009) argued that the positive reputational value would be strengthened further if
the firm’s CSR activities could be perceived (and believed) to be voluntary in nature.
The consistency of CSR activities likewise has the potential to increase the eco-
nomic value (Cruz & Pedrozo, 2009). Consistent or patterned philanthropic activ-
ity—portraying truly altruistic commitment continued over time—avoids the
appearance of ingratiation by providing counterfactual evidence against the general
perception of philanthropic activities being largely “opportunistic or capricious”
(Godfrey, 2005: 795). Our case analysis finds that SEMTHAI’s CSR clearly dem-
onstrated both authenticity and consistency.
SEMTHAI had no outside pressure or expectation to engage in CSR. Rather,
SEMTHAI’s CSR was for HR, meant to promote cooperation and team spirit among
the diverse members inside the company. Over time, SEMTHAI expanded its CSR
activities to address other areas of concerns in Thailand. Its commitment to a “good
cause” was escalated and reinforced by the enthusiastic responses from its organi-
zational, local, and national communities. SEMTHAI’s long period of commitment
clearly indicated that its CSR was genuine—far from being capricious or
opportunistic.
SEMTHAI went the extra mile to help those in need whenever opportunities
arose. A prime example is SEMTHAI’s quick and aggressive response to the huge
tsunami in 2005. Aid poured in from both for profit and nonprofit organizations to
help people devastated by the disaster, but this aid was mostly in the form of finan-
cial donations and materials. SEMTHAI, likewise, made material and financial
donations, but also went further, beyond what was normally expected from a foreign
company—or any company for that matter.
SEMTHAI sent a large group of organizational members, both local and Korean,
to the devastated area to directly assist victims for 3 days in a row. SEMTHAI even
arranged a group of medical doctors to be dispatched from Samsung Medical Center
in Korea to meet the urgent medical needs of those injured by the natural disaster.
SEMTHAI’s immediate and direct reaction to the natural disaster-stricken country,
accompanied by its extraordinary level of dedication to directly address those in
desperate need, distinguished SEMTHAI from all other companies, foreign or local,
288 N. N. Jeon and S. H. Nam

whose help was mostly materialistic and indirect. Therefore, we take SEMTHAI’s
authentic CSR to suggest the following:
Proposition 3a: The perceived authenticity of CSR is positively influenced by
voluntariness.
Proposition 3b: The perceived authenticity of CSR is positively influenced by
consistency.
Proposition 3c: The perceived authenticity of CSR is positively influenced by
distinctiveness.

11.5.3 CSR for HR

SEMTHAI utilized CSR for HR, against the popular practice to employ CSR for
PR. MNC subsidiaries often experience various types of HR difficulties, such as low
levels of employee motivation, weak organizational commitment, and conflicts
between local employees and expatriate managers, just to name a few. SEMTHAI
showed how an effective CSR could address these HR-related problems.
SEMTHAI was once chosen as Thailand’s “most admired company to work for.”
It was quite a significant HR achievement for a medium-sized B2B company from
Korea. What was SEMTHAI’s secret that made it more attractive than the other
more prestigious and powerful MNCs from North America and Europe or the well-­
known local companies?
Companies usually attract potential employees with monetary incentives, job
security, and promotional opportunities. There is no doubt that such tangible incen-
tives are important. Yet, SEMTHAI’s experience suggests that the morality of a
company can work as a more powerful recruiting force than money or other tangible
incentives. The Thai people wanted to become a part of a company that did (and had
the reputation of doing) something good for Thailand. SEMTHAI’s good reputation
became a valuable asset that served as a basis for its stakeholders’ interactions with
SEMTHAI. The Thai people evidently considered “meaning” as a significant factor
in their job searches, and SEMTHAI was one of the few companies that offered the
chance to satisfy this heightened ethical preference with its strong moral capital.
SEMTHAI also showed that CSR could be effective in increasing employees’
motivation and loyalty to the company. The local employees—inspired by
SEMTHAI’s continued selfless acts benefiting their home country—wanted to
become affiliated with the company. The pride and loyalty the local employees felt
toward SEMTHAI motivated them to work harder and more harmoniously with oth-
ers. This, in turn, improved SEMTHAI’s overall performance in the long run.
More importantly, CSR activities helped the local employees and the Korean
expatriate managers develop a cooperative relationship. Anecdotal evidence sug-
gests that conflicts between local employees and expatriate managers are not
uncommon in developing countries, and Korean subsidiaries are no exception
(Chung, 2009). But at SEMTHAI, numerous periodical CSR projects provided
11 Successful MNC CSR Activities in Asia… 289

natural opportunities for the local employees and the Korean expatriate managers to
work together, share the same purpose, and communicate often. The resulting out-
come was a deeper mutual understanding and trust. SEMTHAI’s case further sug-
gests that cultural differences can become a source of synergy rather than conflict
when there is a strong sense of trust between different cultural groups. As such, we
take SEMTHAI’s harmonious corporate culture achieved by its unique CSR to
suggest:
Proposition 4a: MNC’s CSR contributes to creating harmonious relationships
between expatriate managers and local employees.
Proposition 4b: MNC’s CSR contributes to increasing organizational citizenship
behavior.
Proposition 4c: MNC’s CSR contributes to reducing turnover rates among the local
employees.

11.6 CSR’s Localization

An online article of the Chosun Media indicated that the successful management of
SEMTHAI was the result of “promoting localization [of SEMTHAI] through
recruiting local employees and encouraging social services” (Lee, 2009b). The arti-
cle also indicated that the frequent exposure of SEMTHAI’s social contributions in
the local media led many Thai citizens to believe that SEMTHAI was a Thai corpo-
ration. What truly deserves attention here is the extent of SEMTHAI’s localization,
which surpasses the simple recruitment of local employees. SEMTHAI actively
engaged its local employees at all stages of CSR.
The literature suggests that, in order for CSR of MNCs in developing countries
to be effective, it should be localized because the cultures of the host country and
the MNC’s home country could be vastly different (Bustamante, 2011; Godfrey,
2005). The greater the value gap between the MNCs and developing countries, the
greater the obstacle becomes in emerging markets that preconceive MNCs as selfish
entities entering their market to reap profits at the expense of the local communities
and the nation (Paz-Vega, 2010). Localization of CSR, however, is a challenging
task for expatriate managers because it requires a deep and meaningful understand-
ing of the local values and culture. Helping the local community requires the ability
to identify local problems, prioritize them, understand their root causes, and be able
to provide effective solutions. Such complicated tasks require intimate knowledge
of the local culture, values, and circumstances—which expatriate managers often
lack due to the linguistic and cultural barriers (Paz-Vega, 2010).
Amidst an imperfect understanding of the local community, culture, and values,
the effectiveness of MNC’s CSR activities may diminish regardless of the good
intentions. Therefore, it is important to actively engage those with an intimate
understanding of the local culture at every stage of the MNC’s CSR activities, from
design to execution. This is exactly what SEMTHAI did from the beginning. Local
290 N. N. Jeon and S. H. Nam

employees led SEMTHAI’s CSR initiatives and the Korean expatriate managers
provided support. SEMTHAI’s CSR activities were truly localized—local employ-
ees planned activities aligned to local values in order to meet local communities’
needs in ways that the local people would appreciate. SEMTHAI’s CSR was of the
local people, by the local people, and for the local people.
The result of SEMTHAI’s CSR localization on its employees is clear. It induced
a positive image of SEMTHAI, satisfied the employees’ sense of belonging, and
further fostered their loyalty. The public’s recognition of SEMTHAI’s moral capital
and the loyalty induced by the employees’ satisfaction further enhanced individual
employee performance and naturally improved overall company performance.
SEMTHAI thus provides additional evidence to support Duboff and Heaton’s
(1999) analysis of over 300 companies that indicated a positive effect of employee
loyalty and motivation on shareholder value. SEMTHAI’s uniquely localized CSR
adds to the argument that there is a positive correlation between employee loyalty
and CSR localization.
SEMTHAI’s true localization of CSR was undoubtedly responsible for
SEMTHAI’s success in CSR activities and performance. While we recognize that
the local employees’ role in SEMTHAI’s CSR were absolutely critical, we also
suspect that the Korean expatriate managers’ input was also invaluable in creating
culturally synergistic CSR programs. Localized CSR is good, but synergetic CSR is
great. This is what MNCs should aim for when they engage in CSR localization.
With that said, we propose the following from our observations of SEMTHAI’s suc-
cessful CSR localization:
Proposition 5: The more localized CSR of MNC is, the more effective it becomes in
achieving its desired effects.
Proposition 6: The more actively local employees are involved in CSR, the more
effective CSR becomes.

11.6.1 Limitations

One limitation of this study would be the absence of input from SEMTHAI’s local
employees, especially with regard to the experienced effects of SEMTHAI’s CSR
activities and the various factors highlighted in this chapter. A few in-depth inter-
views or at least a customized survey of the local employees would have helped
further verify this study’s findings. We recognize this limitation with our under-
standing of the possibility that interview data could be subject to biases.
Another obvious limitation is the generalizability of the findings from a single
case study to other companies. Nonetheless, a single case study has proven to be
significant with regard to its contribution in combining theoretical and pragmatic
aspects of phenomena (Pettigrew, 1990). It is therefore our hope that this case study
will shed light on understanding the dynamics and complexity of CSR of Asian
MNCs or MNC’s CSR in Asia, both of which are a fascinating topic awaiting other
scholars’ interests.
11 Successful MNC CSR Activities in Asia… 291

11.7 Conclusion

In his study of high-performing companies, Jim Collins (2001) differentiated

“great” companies from “good” ones. “Greatness” was defined by the firm’s ability
to financially perform multiple times better than their competitors for a sustainable
period of time. To our knowledge, no attempt has been made to study “great” com-
panies in the area of corporate social performance, especially among MNC subsid-
iaries in Asia. It is hard to find financially “great” performers, but socially “great”
performers are even harder to find. In this study, we attempted to unlock the secret
formula that made a Korean MNC a “great” social performer in Thailand.
The concept of CSR originated in the United States and spread to Europe (Heiduk
& McCaleb, 2014). As a result, CSR is still a relatively unexplored concept for
Asian MNCs. SEMTHAI therefore could have easily imitated the CSR practices of
its Western competitors, whose CSR was generally carried out as a business transac-
tion, a PR stunt. Strategically speaking, CSR has long been known to ultimately
serve the interest of the firm. The success or effectiveness of CSR continues to be
measured by what the firm can get in return in the form of legitimacy or even finan-
cial performance. Such transactional CSR may make sense business-wise. Yet, it
also creates a philosophical dilemma: the supposedly selfless activities of CSR are
fundamentally self-serving for most companies.
SEMTHAI’s CSR was far from being transactional or strategic. SEMTHAI did
not expect to get something in return for its efforts to help Thai people in need.
SEMTHAI employed CSR as an opportunity for the local employees and Korean
expatriate managers to work together for a common and noble cause, while making
the world a better place. SEMTHAI did not employ CSR for PR. Sincere apprecia-
tion from those who received its help and seeing the world become a better place
through its efforts motivated SEMTHAI to continue with its regular and authentic
CSR activities over a long period of time.
The selflessness of SEMTHAI inspired both its internal and external stakehold-
ers. The morale of the employees was boosted. The local employees and Korean
expatriates enjoyed a harmonious relationship. The Thai government showered
SEMTHAI with various awards—for both its CSR and performance. The employ-
ees working at SEMTHAI’s sister companies in Korea were inspired by SEMTHAI’s
altruistic behavior and joined in SEMTHAI’s selfless cause. In this sense,
SEMTHAI’s CSR was more transformational than transactional.
Transformational leadership theory suggests that transformational leaders, in
contrast with transactional leaders, inspire people to go beyond their selfish interest.
When people are inspired to go beyond their selfish interest for something bigger
than themselves, they can perform beyond expectation (Bass & Riggio, 2006). We
believe that the extraordinary performance of SEMTHAI was a result of such trans-
formational CSR.
CSR as a strategic choice for MNCs has now been studied for decades. Yet, the
debate between CSR localization or centralization persists and the best-practice sce-
nario is yet to be established. Hence, the implications of SEMTHAI’s
292 N. N. Jeon and S. H. Nam

transformational CSR seem promising—at least for MNCs headquartered in devel-

oped countries trying to enter or survive in emerging markets. The greater the cul-
tural difference between the headquartering and subsidiary nation, the more
applicable SEMTHAI’s implications will be. After all, the beginning point of
SEMTHAI’s successful establishment and recognition in Thailand was its authentic
CSR to care for those who were abandoned by their own.
The real story of the SEMTHAI case is this: if you want the true force of moral
capital to be released, an authentic CSR is your best shot. The ultimate goal of CSR
is to transform not just your employees or your company, but the world. When a
company is faithful to this spirit, CSR can be more powerful than expected. The
case of SEMTHAI is living proof.
Ackowledgments We appreciate the useful and constructive comments from the four anonymous
reviewers and the editors.

References

Amba-Rao, S. C. (1993). Multinational corporate social responsibility, ethics, interactions and

third world governments: An agenda for the 1990s. Journal of Business Ethics, 12(7), 553–572.
Bartlett, C. A., Ghoshal, S., & Beamish, P. W. (2006). Transnational management: Text, cases, and
readings in cross-border management. McGraw-Hill Companies.
Bass, M. B., & Riggio, R. E. (2006). Transformational leadership (2nd ed.). Lawrence Erlbaum
Associates.
Bustamante, S. (March 2011 2011). Localization vs. standardization: Global approaches to
CSR management in multinational companies. In G. Bruche, C. Dorrenbacher, F. Nagel &
S. Ripsas (Eds), Berlin School of Economics and Law, working paper No. 60 of the Institute of
Management, Berlin, HWR Berlin.
Choi, D. Y. (December 31 2009). [Purse of Asia-Thailand] Consistent contribution activities touch
the hearts of local citizens. Asia Gyungje. Retrieved February 6, 2021, from http://www.asiae.
co.kr/news/view.htm?idxno=% 202009123113315917305
Chung, H. K. January 1 (2009) How to hire competent global managers, Dong-A Business Review.
Retrieved February 6, 2021, from https://dbr.donga.com/article/view/1306/article_no/1356/ac/
magazine#
Collins, J. (2001). Good to great: Why some companies make the leap others don’t. Harper
Business.
Cruz, L. B., & Pedrozo, E. A. (2009). Corporate social responsibility and green management:
Relation between headquarters and subsidiary in multinational corporations. Management
Decision, 47(7), 1174–1199.
Doz, Y. (2011). Qualitative research for international business. Journal of International Business
Studies, 42(5), 582–590.
Duboff, R., & Heaton, C. (1999). Employee loyalty: A key link to value growth. Strategy &
Leadership, 27(1), 8–13.
Eskildsen, J. K., & Nussler, M. L. (2000). The managerial drivers of employee satisfaction and
loyalty. Total Quality Management, 11(4-6), 581–588.
Godfrey, P. C. (2005). The relationship between corporate philanthropy and shareholder wealth: A
risk management perspective. The Academy of Management Review, 30(4), 777–798.
Godfrey, P. C., Merrill, C. B., & Hansen, J. M. (2009). The relationship between corporate social
responsibility and shareholder value: An empirical test of the risk management hypothesis.
Strategic Management Journal, 30, 425–445.
11 Successful MNC CSR Activities in Asia… 293

Godfrey, P. C., Hatch, N. W., & Hansen, J. M. (2010). Toward a general theory of CSRs: The roles
of beneficence, profitability, insurance, and industry heterogeneity. Business & Society, 49(2),
316–344.
Heiduk, G., & McCaleb, A. (2014). CSR strategies in greater China: Global, East Asian, American,
European style? International Journal of Management and Economics, 37(1), 169–189.
Hyun, K. (September 23 1998). Samsung Electro-Mechanics receives the ‘Social Contribution
Award’. Yonhap News. Retrieved February 6, 2021, from https://news.naver.com/main/read.
nhn?mode=LSD&mid=sec&sid1=101&oid=001 &aid=0004322057
James, A. (2012). Ass-holes: A theory. Doubleday.
Judge, T. A., Thoresen, C. J., Bono, J. E., & Patton, G. K. (2001). The job satisfaction-job per-
formance relationship: A qualitative and quantitative review. Psychological Bulletin, 127(3),
376–407.
Kang, D. G. (March 30 2003). Samsung Electro-Mechanics receives the ‘Exemplary Company
of Social Purification Award’ in Thailand. Hankook Gyungje. Retrieved February 6, 2021,
from https://news.naver.com/main/read.nhn?mode= LSD&mid=sec&sid1=101&oid=015&ai
d=0000603023
Kim, Y. M. (August 31 2007). Samsung completes the building of ‘Samsung Community Center,
Thailand’. Financial News. Retrieved February 6, 2021, from http://www.fnnews.com/
view?ra=Sent0601m_View&corp=fnnews&arcid=00000921088100&cDateYear=2007&cDat
eMonth=08&cDateDay=31
Kobeissi, N., & Damanpour, F. (2009). Corporate responsiveness to community stakeholders:
Effects of contextual and organizational characteristics. Business & Society, 48(3), 326–359.
Lee, H. S. (July 16 2009a). Samsung Electro-Mechanics Thailand receives the ‘Prime Minister
Award’. Chosun Media. Retrieved February 6, 2021, from http://news.chosun.com/site/data/
html_dir/2009/07/15/2009071501985.html
Lee, H. S. (October 302009b). A Korean executive manager complimented repeatedly by the Thai
prime minister. Chosun Media. Retrieved February 6, 2021, from https://news.chosun.com/
site/data/html_dir/2009/10/29/2009102902079.html
Leung, A. S. M. (2008). Matching ethical work climate to in-role and extra-role behaviors in a
collectivist work setting. Journal of Business Ethics, 79(1-2), 43–55.
Lev, B., Petrovits, C., & Radhakrishnan, S. (2010). Is doing good good for you? How corpo-
rate charitable contributions enhance revenue growth. Strategic Management Journal, 31(2),
182–200.
McWilliams, A., & Siegel, D. S. (2001). Corporate social responsibility: A theory of the firm per-
spective. The Academy of Management Review, 26(1), 117–127.
Muller, A. (2006). Global versus local CSR strategies. European Management Journal, 24(2-3),
189–198.
Naver Encyclopedia. (2019) Samsung Electro-Mechanics Co., Ltd. Retrieved February 6,
2021, from https://terms.naver.com/entry.nhn?docId=650569&ref=y&cid=43167&catego
ryId=43167
Naver Encyclopedia. (2020) Samsung group. Retrieved February 6, 2021, from https://terms.naver.
com/entry.nhn?docId=649960&cid=43167&categoryId=43167
Paz-Vega, R. (2010). Corporate social responsibility in international settings: A critical realist
perspective. VDM Verlag Dr. Műller.
Pettigrew, A. M. (1990). Longitudinal field research on change: Theory and practice. Organization
Science, 1(3), 267–292.
K-Biz News. (May 7 2019). President YoonTae Lee of Samsung Electro-Mechanics decidedly puts
all efforts in expanding MLCC to decrease dependency on Samsung Electronics. Retrieved
February 6, 2021, from http://news.kbiz.or.kr/news/articleView.html?idxno=50147
Roh, S. H. (April 30 2010). In-person interview
Rodrigues, S., & Child, J. (2003). Co-evolution in an institutionalized environment. Journal of
Management Studies, 40(8), 2137–2162.
294 N. N. Jeon and S. H. Nam

Song, W. J. (September 20 2005). Samsung Electro-Mechanics fosters outstanding employees of

foreign subsidiaries as ‘Experts of Korea’. Digital Times. Retrieved February 6, 2021, from
https://news.naver.com/main/read.nhn?%20mode=LSD&mid=sec&sid1=105&oid=029&
aid=0000115183
Sung, Y. G. (November 11 2003). Samsung Electro-Mechanics, Thailand Corporation receives the
‘Company of Social Contribution Award’ from the Thai government. Digital Times. Retrieved
February 6, 2021, from https://news.naver.com/main/read.nhn?mode=LSD&mid=sec&sid
1=105&oid=029&aid=0000047572
Sutton, R. I. (2007). The no asshole rule: Building a civilized workplace and surviving one that
isn’t. Business Plus.
Tavis, L. A. (1988). Multinational managers and host government interactions. University of
Notre Dame Press.
Turban, B. D., & Greening, D. W. (1997). Corporate social performance and organizational attrac-
tiveness to prospective employees. Academy of Management Journal, 40(3), 658–672.
Van de Ven, A. (2007). Engaged scholarship: A guide for organizational and social research.
Oxford University Press.
Waddock, S. A., & Graves, S. B. (1997). The corporate social performance-financial performance
link. Strategic Management Journal, 18(4), 303–319.
Wood, D. J., & Jones, R. E. (1995). Stakeholder mismatching: A theoretical problem in empiri-
cal research on corporate social performance. The International Journal of Organizational
Analysis, 3(3), 229–267.
Walsh, J. P., Weber, K., & Margolis, J. D. (2003). Social issues and management: Our lost cause
found. Journal of Management, 29(6), 859–881.
Walumbwa, F. O., Avolio, B. J., Gardner, W. L., Wernsing, T. S., & Peterson, S. J. (2008). Authentic
leadership: Development and validation of a theory-based measure. Journal of Management,
34(1), 89–126.
Yang, X., & Rivers, C. (2009). Antecedents of CSR practices in MNCs’ subsidiaries: A stakeholder
and institutional perspective. Journal of Business Ethics, 86(2), 155–169.