Corporate Social Responsibility, Performance, and Strategic Interaction in a Global Context

The role of strategic interaction has been largely neglected in research on global corporate social responsibility (CSR). This chapter addresses this gap by analyzing two contexts for strategic interaction: In the intra-firm context, coordination and control problems may arise between subsidiaries, and between HQ and subsidiaries, as local CSR compliance has repercussions for the shared social reputation of the firm. In the inter-firm context, similar problems may arise across global supply chains where firms are held accountable for the actions of their suppliers, while CSR actions of rival firms interact in determining their relative competitive advantages or disadvantages. Combining insights from game theory and research on CSR, the chapter outlines the challenges arising from these issues and identifies avenues for future research.