Social responsibility and foreign market targeting

This chapter examines the relationship between corporate social responsibility (CSR) and various foreign market targeting activities. It first highlights the notion that, in order to gain legitimacy and overcome the liability of foreignness in their host markets, international firms face great urgency to incorporate CSR considerations into their decisions regarding international market selection. It also reveals that their adopted entry mode exerts significant influence on the comprehensiveness and proactiveness of their subsequent CSR strategies. Moreover, a review on prior research suggests that consumers’ psychographic characteristics (e.g., attitudes, lifestyle) constitute useful CSR criteria for international market segmentation. When developing segmentation criteria, international firms must also consider the multi-dimensional nature of CSR. Finally, it is observed that cross-national differences and the dilemma between standardization and customization of CSR practices further pose great challenges and difficulties for international firms to conduct socially responsible targeting and positioning in their foreign markets.