The Influence of Power Distance on CSR Programs in Hainan China

The Influence of Power Distance on Corporate Social Responsibility Programs by Carol Ann Hoshiko MA, San Jose State University, 1984 BS, University of Colorado, 1977 Dissertation Submitted in Partial Fulfillment of the Requirements for the Degree of Doctor of Philosophy Public Policy and Administration Walden University June 2015 Abstract As China emerges as one of the world’s top 5 economies, it attracts more multinational corporations (MNCs) that want to expand there and implement corporate social responsibility (CSR) programs. Despite this emergence, since China entered the World Trade Organization, it has not perceived or welcomed MNCs in the same manner as in the 1970s to 1990s. Further, MNCs have had challenges adapting Western-style CSRAs China emerges as one of the world’s top 5 economies, it attracts more multinational corporations (MNCs) that want to expand there and implement corporate social responsibility (CSR) programs. Despite this emergence, since China entered the World Trade Organization, it has not perceived or welcomed MNCs in the same manner as in the 1970s to 1990s. Further, MNCs have had challenges adapting Western-style CSR programs in China’s local communities. There is no widely-accepted multidisciplinary theory that integrates CSR, organizational culture, and culture. Hofstede’s theory of cultural relativism classified China as a high power distance country where the population has a strong acceptance of large social differences. The purpose of this case study was to discover the extent to which Hofstede’s cultural dimension of power distance impacts MNC CSR programs offered in Hainan, China. Five MNC executives and 1 government sector representative were interviewed, and were reviewed in 5 organizations in Hainan, China. Cross case analyses showed that CSR programs were mutually accepted by the local communities and government. Some local community members, however, did not passively accept what those in higher socioeconomic positions believed about the efficacy and need for CSR programs. Rather, local community and government appeared to collaborate, regardless of the government leaders, who are perceived to have more power and influence. These results can inform policy makers, MNCs, international organizations, and nongovernmental organizations about cultural relativity and its impact on MNCs doing business in foreign communities. The Influence of Power Distance on Corporate Social Responsibility Programs by Carol Ann Hoshiko MA, San Jose State University, 1984 BS, University of Colorado, 1977 Dissertation Submitted in Partial Fulfillment of the Requirements for the Degree of Doctor of Philosophy Public Policy and Public Administration Walden University June 2015 Dedication This dissertation is dedicated to my colleagues and friends in Hawai`i, China, and Hainan Province who introduced me to and helped me learn about a fascinating country and culture. Every time I visited China was a memorable experience that taught me more about the intricacies and importance of relationships that influence all aspects of life, including personal, professional, social, and political. Although China’s face and practices are changing, its 5,000-year-old culture and core values are slow to change. It has been fascinating to witness how the old and new coexist with dynamic tension, like Yin and Yang. I realized that I could spend a lifetime studying China and never fully understand its complexities. Nonetheless, I feel extremely blessed and thankful that I was able to do and to learn what I have, a mere grain of sand in the infinite universe. I am also happy that I made lifelong friendships and witnessed the awakening of the sleeping dragon--