Adams, D., Adams, K. orcid.org/0000-0002-3737-954X, Attah-Boakye, R. et al. (3 more authors) (2022) Social and environmental practices and corporate financial performance of multinational corporations in emerging markets: Evidence from 20 oil-rich African countries. Resources Policy, 78. 102756. ISSN 0301-4207
Abstract
Studies find that oil-rich African countries (OACs) suffer slow socio-economic growth and development. The petroleum operations in these countries are also primarily in the hands of multinational corporations (MNCs). Motivated by their profit maximisation prospects (PMPs), the MNCs face significant corporate social responsibility (CSR) dilemmas with reference to their contribution to the socio-economic growth of these African economies. Even though there are few studies on CSR and corporate financial performance (CFP) within the African context, little or no attention has been paid to how and the extent to which MNCs' PMPs, CSR and CFP interact to affect the socio-economic growth of OACs. Drawing from legitimacy, institutional, and agency theories we employ a panel data approach covering 14 years (2003–2017) to understand the drivers of these PMPs, how PMPs affect corporate ethical considerations, and CFP and their implications on OACs' socio-economic growth. We find that PMPs of MNCs within OACs impede their CSR commitment. There is a significant positive relationship between CSR and CFP; efficient CSR practices impact CFP positively, and MNCs' contribution to OACs' socio-economic growth is significantly constrained by weak institutional environments. We conclude that institutional reforms and strategic investment in CSR could foster rapid socio-economic growth and development within OACs. Our study contributes to policy and knowledge on MNC's PMPs, CSR practices, CFP and literature on business ethics and the natural resource-curse.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | © 2022 Elsevier Ltd. This is an author produced version of a paper subsequently published in Resources Policy. Uploaded in accordance with the publisher's self-archiving policy. Article available under the terms of the CC-BY-NC-ND licence (https://creativecommons.org/licenses/by-nc-nd/4.0/). |
Keywords: | Profit maximisation motives; Corporate social responsibility; Corporate financial performance; Oil-rich african countries; Socio-economic growth |
Dates: |
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Institution: | The University of Sheffield |
Academic Units: | The University of Sheffield > Faculty of Social Sciences (Sheffield) > Management School (Sheffield) |
Depositing User: | Symplectic Sheffield |
Date Deposited: | 08 Mar 2024 11:29 |
Last Modified: | 08 Mar 2024 11:29 |
Status: | Published |
Publisher: | Elsevier BV |
Refereed: | Yes |
Identification Number: | 10.1016/j.resourpol.2022.102756 |
Related URLs: | |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:210075 |
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