Green and social certifications make up for home market underdeveloped institutional environment? Evidences from Brazilian subsidiaries

This paper aims to analyse the association of the adoption of proactive CSR practices with internal and external institutional pressures on a group of emerging market MNCs. CSR proactivity is measured by the adoption of green and social certifications through the value chain. CSR is understood by all means as a component of the legitimating strategy of Brazilian subsidiaries to gain competitiveness abroad. Data from primary and secondary sources is analysed by the multiple linear regression technique. Results reveal that CSR proactivity is associated with green and social certifications. Also, companies’ commitment to ethics at their headquarters is reflected by their CSR subsidiaries abroad. Yet, the adoption of green certifications do not make up for the less developed institutional environment found on the home market for companies on their operations abroad.