How Do CSR Reporting and Committees Help Emerging Market Firms to Improve the Relationship Between Social Sustainability and Geographic International Diversification?

Abstract

Within today's globalised business sectors, where the demand for socially responsible practices is high, understanding the importance of social sustainability is pivotal. However, the social sustainability dimension has received scarce attention, especially in the context of emerging market firms. Based on stakeholder theory, this study investigates how internal and external social initiatives enhance geographic internationalisation in the context of emerging market firms. The study also examines the moderating influence of CSR reporting and the CSR committees on that relationship. The research uses panel data drawn from the LSEG Workspace database from 2016 to 2022, covering 370 firms from 21 emerging economies. This research helps to further clarify the significance of how internal and external social initiatives impact emerging market firms' internationalisation approaches and assists in developing further understanding among managers and policymakers regarding the need for both transparent disclosures and effective committees to convert external and internal social initiatives into a comparative strategic advantage in international and diverse markets.