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Social responsibilities of MNCs in downsizing operations: A Finnish forest sector case analysed from the stakeholder, social contract and legitimacy theory point of view

Hannele Mäkelä (Department of Economics and Accounting, University of Tampere, Tampere, Finland)
Salme Näsi (Department of Economics and Accounting, University of Tampere, Tampere, Finland)

Accounting, Auditing & Accountability Journal

ISSN: 0951-3574

Article publication date: 16 February 2010

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Abstract

Purpose

This paper aims to contribute to the understanding of the social aspects of corporate social responsibility (CSR) by studying a case of organizational downsizing.

Design/methodology/approach

The paper uses a theoretical framework consisting of stakeholder theory and legitimacy theory together with the concept of social contract. Textual analysis methods are used to analyse and interpret the empirical data, which consist of mass media articles.

Findings

The main finding is that key stakeholders, especially employees and their representatives and the multinational corporation (MNC) itself perceive social aspects of CSR differently. The economic dimension dominates the social aspect in the corporate representatives' argumentation. Accounting information is used as a rhetorical tool to legitimise the downsizing actions rather than for purposes of accountability and transparent informative content.

Research limitations/implications

The research is based on a detailed analysis of a specific context. This may limit the wider applicability of the findings. Even so, it adds insights to the academic literature on the varying conceptions of the social responsibilities of corporations, perceived not only by the firm itself, but also by different stakeholders.

Originality/value

The paper contributes to the literature on CSR by investigating understandings of corporate social responsibility in a case where the economic and social responsibilities of a firm are publicly debated. The study also links the theoretical debate on corporate social responsibility to a context with a complex range of political and social factors affecting the construction of the social and economic responsibilities of a firm.

Keywords

Citation

Mäkelä, H. and Näsi, S. (2010), "Social responsibilities of MNCs in downsizing operations: A Finnish forest sector case analysed from the stakeholder, social contract and legitimacy theory point of view", Accounting, Auditing & Accountability Journal, Vol. 23 No. 2, pp. 149-174. https://doi.org/10.1108/09513571011023174

Publisher

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Emerald Group Publishing Limited

Copyright © 2010, Emerald Group Publishing Limited

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