Study On The Mechanism Of Corporate Social Responsibility Strategy Choice Of Multinational Corporations

In the 21 st century, Corporate Social Responsibility has began to integrate with Strategic Management. As a new strategic element, corporate social responsibility is adapted into corporate strategy, which forms a new strategic choice, Corporate Social Responsibility Strategy. Integrated with traditional market strategy, social responsibility strategy can realize the promotion of the advantage of corporate competition through the overall and fundamental planning of social responsibility behaviors while in the same time to achieve social benefits. As followers of advanced management mode, multinational companies start to explore social responsibility with strategic vision and logical problems, explore how to use social responsibility strategy choice, promote the improvement of competitive advantage and long-term development of the company.This paper, by means of theoretical analysis and empirical research, attempt to discuss the mechanism of corporate social responsibility strategy choice of the multinationals in China, provide in-depth exploration of the motivation, type and contributory factor of socail responsibility strategy choice as well as the impact to corporate performance in the hope of providing theoretical support and decision-making reference to further promote multinational corporations to better fulfill their social responsibilities.This paper mainly launches the research from the following several aspects:Firstly, by building a framework of "key problem of the social responsibility, the responsibility competitive advantage- multinationals competitive advantage", it analyzes the intrinsic motivation of the multinational companies‘ practice of social responsibility strategy. In addition, with static game between multinational corporations and their stakeholders, it puts forward the necessity of implementing the strategy of social responsibility multinational corporations choose to.Secondly, based on the related theory, this paper analyzes the multinational corporation social responsibility strategy choice type, the influence factors of social responsibility strategy choice, and the influence that different social responsibility strategy choice on the corporate performance. With the model of the "social responsibility strategy choice factors- social responsibility strategy choice type- social responsibility strategy performance", this paper build the theory of multinational corporation social responsibility strategy choice mechanism model.Finally, with the aid of the empirical survey data, it analyzes the different influence factors on the impact of different strategy choices, and analyzes the different social responsibility strategy choice for the different influence to the company’s financial performance, as well as different kinds of social responsibility strategy for different intermediary effect between influence factors and the company’s financial performance, and gives the corresponding conclusion and management implications and Suggestions.This article‘s conclusions are as follows:1. The social responsibility strategy choice for multinationals has its inevitability. The pursuit of competitive advantage as its choice is the inner driving force of social responsibility strategy. According to the competitive advantages that may be brought to multinationals by social responsibility, multinational social responsibility strategy choice types include: low cost value chain social responsibility strategy, product differentiation strategy of social responsibility, cluster relationship resources social responsibility strategy and market pioneering social responsibility strategy.2. According to strategy management theory, there are 5 factors that mutually influence the choice of social responsibility strategy of multinational corporations in China, which are competitive advantage expectation, ability to establish shared vision, stakeholder management, the host country market environment resource availability, stakeholder pressure. These factors further influence the financial performance of the companies through the choice of the strategic path of social responsibility, and form the influence of multinational corporation social responsibility strategy choice mechanism..3. With the subsidiary of multinational corporations as case studies and by using empirical investigation method and structural equation model(SEM) with the tool of Amos, the paper verified that all the five different factors have influence on the four different types of social responsibility strategy choice of multinationals in China. But the same influence factors on the impact of different social responsibility strategy choice effect are different.4. This paper, through the way of empirical test, verifies the positive correlation relationship between the four different types of multinational company social responsibility strategy choice and multinational corporations performance, and different social responsibility strategy choice have different impact effect on corporate performance. In the meantime, it verifies that the four different types of multinational company social responsibility strategy choice make different intermediary effect between influence factors and the company’s financial performance, and for different factors, the impact of intermediary effect has different paths.This paper‘s innovation mainly displays in the following aspects:1. Put forward the four types of social responsibility strategy choice. There is no clear classification of social responsibility strategy type in order to promote competitive advantage from the perspective of competitive advantage in most of the current research about the strategy model of social responsibility. By means of theoretical analysis, this paper traces the source of competitive advantage that the social responsibility strategy can realize, and classified the types of social responsibility strategy choice. The categorization of social responsibility strategy choice type is beneficial to the social responsibility of multinational companies according to different strategy types, and makes specific social responsibility strategy choice.2. Build the influence mechanism of corporate social responsibility strategy choice of multinational corporations in ChinaMost of the current literature on strategic analysis of the influence factors of the social responsibility is based on the analysis of a certain category. There is no systemic research about social responsibility strategy influence factors. Based on the theory of strategy management related, this paper systematically constructs the influence mechanism of the strategic social responsibility choice of the multinationals in China, and analysis the different influence factors‘ impact on the multinational corporation social responsibility strategy choice.3. Build the theoretical model of ―social responsibility strategy influence factors-social responsibility strategy choice- corporate performance‖, the paper verifies the influence of different social responsibility strategy choice on corporate performance and the intermediary effect between influence factors and the corporate performance.There are existing empirical study about the positive influence of social responsibility strategy on corporate performance, but not including the verification of different social responsibility strategy category‘s influence on the corporation performance, and the verification that different types of multinationals social responsibility strategy choice make different intermediary effect between influence factors and the company’s financial performance. The empirical result shows that all of the four types of social responsibility strategy can have positive impact on corporate performance; In addition, the four different types of coporate social responsibility strategy have intermediary effect on influential factors and corporation performance, but the way is different for different factors.