Local directors and corporate social responsibility activities of multinational companies in Africa

Abstract

Many multinational companies (MNCs) in Africa claim to support the continent's sustainable development through corporate social responsibility (CSR) initiatives. However, the timing and relevance of these projects to local communities have often been questioned. Little is known about how local directors shape the sustainability activities of MNCs in their host regions. Drawing on image motivation theory, we investigated the influence of local directors on MNCs' sustainability activities in Nigeria, an emerging economy. We conducted content analyses and a series of semi-structured interviews with local directors in MNCs. Consistent with our expectations and stakeholder theory, we find that local directors significantly drive the consistent and continuous sustainable development activities of MNCs through CSR in their host communities. Many local directors indicated that, unlike the traditional approach of MNCs consulting with local leaders, being a director provides the opportunity to understand the firms' activities and advocate for appropriate projects for the host region. The presence of local directors helps bridge the expectation gap between MNCs and the host region. Our study provides evidence of the relevance of local individuals in the directorship of MNCs and their contribution to sustainable development in Africa.