Corporate Social Responsibility and Sustainability Strategies of Multinational Companies - Identifying Gaps between Academic Literature and Practical Implementation

Abstract: Multinational companies are one of the primary institutions that negatively impact the environment and society. On the other hand, they have the competence and the financial means to make significant positive contributions toward sustainability. Therefore, research has developed several concepts for integrating social and environmental concerns into business strategies. A commonly used concept in this regard is CSR. Despite its popularity, the different approaches to CSR are scattered and disconnected from practice.   This research uses the five-level model as a lens to categorize and make sense of CSR literature and its practical application in the sustainability strategies of MNCs. The findings of each level are compared. (Mis-) alignments between literature and practice are identified. Lastly, hypotheses are developed on making both more strategic to increase their contribution towards sustainability.   The results show that the most significant misalignment is the underrated significance of regulations and other external standards in literature. Both literature and practice show space for improvement in their impact on sustainable development. Especially, adjustments in the system and success level appear to be essential leverage points.