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Outward Foreign Direct Investment as a Corporate Social Responsibility Challenge
Abstract
Corporate Social Responsibility has developed rapidly in the last decades, and its role has increased due to the new challenges of the global economy, as companies need a positive reputation in order to obtain a “social license to operate”. The aims of this study are: (1) to describe the concepts of corporate social responsibility and Outward Foreign Direct Investment (OFDI), focusing on the relationship between them, (2) to introduce the main CSR risks and opportunities of OFDI, and (3) to summarize the possible solutions for addressing CSR-related risks in OFDI activities. Our study indicates that zero tolerance of corruption is a strategic objective of investing companies. Prevention and mitigation of human rights violations are ethical obligations and in the business interest of corporations. Companies face significant social, environmental, and economic risks, as well as risks to their reputations, because of their supply chains.
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