1 
 
 
 
 
 
 
 
 
 
Relation Between Legitimacy and Adoption 
of CSR Practices 
 
 
 
 
 
 
 
 
 
 
 
Department of Business Administration 
International Business 
Bachelor thesis 
Spring 2020 
Michelle Riedenfalk 951110 
Fanny Wetter 980821 
Dr. Johan Jakobsson 
  
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Abstract  
The interest to incorporate CSR in operational business has in recent time grown within 
companies. For MNCs, this means that CSR needs to be incorporated in all subsidiary units 
around the world. It is a complicated procedure since subsidiaries are legally autonomous units 
which operate in widely spread geographical areas with regional variations in the value and 
perception of CSR. It is, therefore, especially important for MNCs to understand the underlying 
reasons behind how subsidiaries adopt their MNCs’ CSR practices and what role their 
respective society plays in the adoption. In order to gain a more extensive understanding of 
these reasons, it was considered essential to study the relationship between the adoption of CSR 
practices and the legitimacy MNCs gain from society. The study was, therefore, conducted in 
a deductive manner with regard to the theory about adoption of practice and the legitimacy 
theory. The study’s findings showed that the factors affecting the adoption of CSR practices 
were societies’ view on CSR, the internal relationship within the MNC, and the creation of 
CSR practices. These factors had both direct and indirect connections to the legitimacy MNCs 
gain from society. The two factors which had a direct connection with legitimacy were 
societies’ view on CSR, and when parent companies and subsidiaries create CSR practices 
together. The two factors which had an indirect connection to legitimacy were the internal 
relationship between parent companies and subsidiaries, and when parent companies create 
CSR practices alone. Findings further showed that MNCs gain legitimacy from both local 
societies and the global society. 
Keywords: corporate social responsibility, practice adoption, legitimacy, multinational 
corporations, local society, global society  
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Definition List 
Adoption of practice: the process when a subsidiary introduces, or adopts, a practice initially 
not created solely by the subsidiary itself, but with the parent company’s involvement.  
 
CSR: corporate social responsibility, “the continuing commitment by business to behave 
ethically and contribute to economic development while improving the quality of life of the 
workforce and their families as well as of the local community and society at large” (Holme & 
Watts, 2000, p. 8). 
 
Legitimacy: gained by companies from societies if the societies consider the companies’ 
operational actions as desirable, proper, or appropriate. 
 
MNC: multinational corporation, a company with international operations in more than one 
country outside its home country. 
 
Organisational practice: “an organization’s routine use of knowledge for conducting a 
particular function that has evolved over time under the influence of the organization’s history, 
people, interests and actions” (Kostova & Roth, 2002, p. 216) 
 
Parent company: a head company in a group which has main ownership or influence of other 
companies within the group. 
 
Subsidiary: a company which is mainly owned or influenced by a parent company within a 
group. 
 
  
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Table of Contents  
 
1 Introduction 6 
1.1 Background 6 
1.2 Problem Discussion 8 
1.3 Purpose 9 
1.4 Research Question 9 
2 Method 10 
2.1 Research Approach 10 
2.2 Research Process 10 
2.3 Study Design 11 
2.4 Data Collection 11 
2.4.1 Primary Data 11 
2.4.2 Secondary Data 12 
2.5 Analysis Process 13 
2.6 Quality of Study 13 
2.6.1 Credibility 14 
2.6.2 Transferability 15 
2.6.3 Dependability 15 
2.6.4 Confirmability 16 
2.6.5 Ethical Considerations 16 
2.7 Limitations 17 
3 Theory 18 
3.1 Adoption of Practice 18 
3.1.1 Institutional Profile 19 
3.1.2 Relational Context 20 
3.1.4 Patterns of Adoption 21 
3.2 Legitimacy Theory 22 
3.2.1 Approaches 23 
3.2.2 Types of Legitimacy 24 
3.2.3 Gaining Legitimacy 25 
3.2.4 Maintaining Legitimacy 27 
3.3 Conceptual Model 28 
4 Empirics 30 
4.1 Creation of CSR Practices 30 
4.1.1 Parent Company and Subsidiaries Create CSR Practices Together 30 
4.1.2 Parent Company Creates CSR Practices Alone 31 
4.1.3 Local Implementation of CSR Practices at Subsidiaries 31 
4.2 Internal Relationship Between Parent Company and Subsidiaries 33 
4.2.1 Dependence Between Parent Company and Subsidiaries 34 
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4.2.2 Perception Between Parent Company and Subsidiaries 34 
4.3 Societies’ View on CSR 35 
4.3.1 CSR Through a Normative Perspective 35 
4.3.2 CSR Through a Cognitive Perspective 36 
4.3.3 CSR Through a Regulatory Perspective 37 
5 Analysis 38 
5.1 Factors Influencing Adoption of Practice 38 
5.1.1 External Factors 38 
5.1.2 Internal Factors 39 
5.1.3 Creation of CSR Practices 41 
5.2 The Factors’ Relation to Legitimacy 42 
5.2.1 External Factors 43 
5.2.2 Internal Factors 45 
5.2.3 Creation of CSR Practices 46 
5.3 Amended Conceptual Model 47 
5.4 Balance Between Global and Local Societies 48 
6 Conclusion 50 
6.1 Theoretical Contributions 51 
6.2 Managerial Implications 52 
6.3 Future Research 52 
7 References 53 
8 Appendix 60 
8.1 Interview Questions 60 
 
Table of Figures 
Figure 1 A Conceptual Model of the Connection Between the Legitimacy Theory and 
Adoption of Practice            30 
Figure 2 An Updated Conceptual Model of the Connection Between the Legitimacy 
Theory and Adoption of Practice               51, 54 
 
Tables 
Table 1 Patterns of Adoption           22  
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1 Introduction 
As expressed in the Brundtland Report (Brundtland, 1987), a development is needed in the 
world that meets the needs of the present without compromising the ability of future 
generations to meet their own needs. Businesses need to be in the front line of making changes 
in the way they operate to ensure sustainable development. The UN Global Compact (n.d.) 
aims to mobilise a global movement where sustainable companies and stakeholders can take 
shared responsibility for achieving a better world. To do this, The UN Global Compact (n.d.) 
strives to help companies: 
Do business responsibly by aligning their strategies and operations with Ten Principles 
on human rights, labour, environment and anti-corruption; and take strategic actions to 
advance broader societal goals, such as the UN Sustainable Development Goals, with 
an emphasis on collaboration and innovation (para. 2) 
By changing the way companies in different industries and sectors implement responsible 
practices and devote effort to fight poverty and inequality, support education, health and peace 
through innovative solutions, companies can contribute to achieving a better world. As the 
importance of sustainability is a global matter, multinational corporations (henceforth MNCs) 
have a natural responsibility to adopt corporate social responsibility (henceforth CSR) practices 
as they have operations worldwide. Before MNCs’ CSR work can further be discussed, CSR 
needs to be fully defined. 
1.1 Background 
In recent years, numerous definitions and facets to CSR have been developed. Marens (2004) 
argues that a universal definition of CSR is hard to achieve as CSR is not merely a technical 
exercise that aims to describe what social change corporations are contributing within society 
but also a normative exercise on what corporations should be responsible for. Friedman’s 
(1970) definition of CSR is one of the earlier and narrower ones where it is argued that the only 
social responsibility a corporation has is “to use its resources and engage in activities designed 
to increase its profits so long as it stays within the rules of the game, which is to say, engages 
in open and free competition without deception or fraud” (p. 6). Carroll (1979) presents a 
broader perspective that “the social responsibility of business encompasses the economic, legal, 
ethical and discretionary expectations that society has of organizations at a given point in time” 
(Carroll, 1979, p. 500).  
McWilliams et al. (2006) define CSR as “situations where the firm goes beyond 
compliance and engages in actions that appear to further some social good, beyond the interests 
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of the firm and that which is required by law” (p. 1), which goes even further than Carroll’s 
(1979) widely used definition by including a philanthropic aspect. Managers and corporate 
leaders are aware that business standards and norms, regulatory frameworks and stakeholder 
demand, as well as expectations from society, vary across borders, regions and lines of 
business. Furthermore, managers involved in CSR activities are under increasing pressure from 
employees, suppliers, community groups, non-governmental organisations as well as 
governments to increasingly engage in CSR activities to promote positive social change. 
(McWilliams et al., 2006)  
This view on societal pressure and the importance to include parts of society in CSR 
leads into the CSR definition this thesis will further refer to when mentioning CSR. The World 
Business Council for Sustainable Development (WBCSD) define CSR as “the continuing 
commitment by business to behave ethically and contribute to economic development while 
improving the quality of life of the workforce and their families as well as of the local 
community and society at large” (Holme & Watts, 2000, p. 8). Besides emphasising activities 
that go further than solely profitability, this definition allows an interpretation of what the aim 
of CSR should be on an international level when capturing the responsibility companies have 
for society at large. It further highlights the importance to act in accordance with local 
communities which is an essential aspect for this thesis. Holme and Watts (2000) further imply 
regional variations on where CSR fit into the business agenda and how companies deal with 
the broad and dynamic concept of CSR. It was further found to be high on the agenda for most 
businesses in various regions, although the meaning and importance varied from region to 
region. However, the common denominator is that companies believe that CSR is going to be 
increasingly important in the near future. 
The theory behind CSR thus explains it as an extensively dynamic concept that is 
continuously evolving and has many regional variations. It provides MNCs with a 
responsibility to think beyond profit to fulfil social objectives and meet expectations on 
sustainable economic development. As a result of this responsibility along with the regional 
variations, MNCs face a greater challenge to implement CSR work. The implementation is also 
challenging because of its complex organisational structure including a parent company, 
subsidiaries, headquarters (henceforth HQs), regional HQs and local sites, all with often vast 
geographical distances which complicates communication. Subsidiaries can, therefore, make 
different stands in locally adopting the MNC’s CSR practices. Their adoption of CSR practices 
is what this thesis further will focus on. In order to understand the purpose of the thesis, basic 
theoretical concepts will be explained. 
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An organisational practice is defined by Kostova and Roth (2002) as “an organization’s 
routine use of knowledge for conducting a particular function that has evolved over time under 
the influence of the organization’s history, people, interests and actions” (p. 216). Two factors 
that are found to influence subsidiaries’ adoption of practice are the institutional profile and 
the relational context within the MNC. The institutional profile in the host country is 
determined by a set of regulatory, cognitive and normative components while the relational 
context is influenced by the identification with and trust in the parent company, and the 
dependence between the parent company and subsidiaries (Kostova & Roth, 2002, p. 217).  
A theoretical framework which can be used to understand the behaviour and use of 
practices of MNCs and their subsidiaries is the legitimacy theory (Frynas & Yamahaki, 2016). 
It explains that companies act in a certain way to ensure the survival of the business and that 
survival is dependent on becoming isomorphic with its society (the collective network of 
consumers, media, government, employees, suppliers, other companies and other 
stakeholders). By conforming to a society’s demands of which a MNC belongs to, the MNC is 
provided legitimacy and an approval to continue its business in that particular society (Zucker, 
1987). The degree of legitimacy a company can gain is thus dependent on how isomorphic it 
is with society’s demands. MNCs, therefore, need to understand how to act in order to gain the 
most legitimacy from society. 
1.2 Problem Discussion  
As previously stated, CSR is considered an increasingly important building block of MNCs 
(Holme & Watts, 2000). While the use of CSR is geographically spread, it is known that the 
importance and meaning of it varies. For MNCs, this means there are differences in the 
importance and meaning of CSR at the subsidiaries’ locations. Kostova and Roth (2002) have 
tried to provide an understanding of this area by explaining how subsidiaries adopt the parent 
company’s organisational practices, and what the adoption depends on. However, as practices 
are developed in numerous organisational areas, it is not necessarily possible to generalise 
Kostova and Roth’s findings for the specific area of CSR practices (Shanton, 2004). In order 
to ensure the possibility of full generalisation, in-depth studies are required specifically on CSR 
practices. An important aspect to take notice of when researching on CSR practices is that CSR 
has a close connection to the society, since it is a commitment by businesses to, among other 
things, improve conditions for local communities and societies (Holme & Watts, 2000). A 
suitable way of recognising the societal influence on the adoption of CSR practices is to 
combine the theoretical framework of adoption of practice with the legitimacy theory.  
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It is necessary to understand the global differences in the work of CSR and what reasons 
lie behind since the global demand for CSR is increasing (Holme & Watts, 2000). As CSR is 
currently high on businesses’ agendas (Holme & Watts, 2000), it is a highly relevant 
organisational area to do an in-depth study of. Moreover, since it is increasingly more common 
for companies to develop into MNCs (Dicken, 2016), differences in CSR will be increasingly 
more important to be aware of at the subsidiary level. A well established theoretical background 
on the subject of CSR practices can provide a faster and more effective path towards creating 
a more sustainable and better world. 
1.3 Purpose 
The purpose of this thesis is to develop a broader understanding of the reasons behind local 
adoption of CSR practices in subsidiaries of MNCs. It will be done by looking into the factors 
influencing CSR practice adoption and the role of legitimacy in adoption due to societies’ close 
connection to CSR. 
1.4 Research Question 
The purpose of the study led to the creation of the following research question. 
● How is the local adoption of CSR practices in MNCs related to the legitimacy MNCs 
gain from society? 
  
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2 Method 
This chapter will concern the methods used when undergoing the study of the thesis. 
2.1 Research Approach 
At the beginning of the study, a research approach had to be decided upon. After consideration, 
it was decided to conduct the study with a qualitative method in a deductive manner, because 
it seemed the most appropriate for the research idea and research question. The deductive 
approach meant that the empirical data would be analysed with consideration to a theoretical 
framework, which would then provide opportunities for answering the research question (Patel 
& Davidson, 2019). Essential to emphasise is that although a deductive approach has been 
used, emergence of other relevant data has not been neglected. The use of a deductive approach 
is distinguishable from the collection and use of data in the thesis. After the research idea was 
decided upon, a theory chapter was created to give a foundation for the research question. This 
theoretical framework was later used when analysing the empirical data. 
2.2 Research Process 
Firstly, a general research idea based on personal interests was decided on as a starting point 
for the thesis. Thereafter, multiple scientific articles on the subject were read to develop the 
generalised research idea into a detailed and specific idea on which the research question was 
based. Relevant theories on the topic were then investigated from articles and reviews. These 
were gathered from Gothenburg University’s online library and Google Scholar where searches 
were done on “legitimacy”, “institutional theory”, “corporate social responsibility”, “adoption 
of practice”, and detailed phrases within the theories used. The most utilised method of finding 
relevant theory was searching for articles cited in other articles already found useful. 
 After the theoretical framework was finished, the focus shifted to the empirics. The 
work of finding primary sources was intensified, alongside finding secondary sources potential 
useful if primary sources could not the gathered at all or not sufficiently. The secondary data, 
later found necessary, was gathered from Gothenburg University’s online library. Late in the 
research process, the opportunity to gather primary data through a personal interview arose. 
Thereafter, all data was summarised in the empirical chapter, later ready to be analysed in the 
analytical chapter. Overall, the total data collecting time was over four weeks. 
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2.3 Study Design 
The chosen design for this qualitative study is a desktop study combined with a case study 
consisting of one investigated MNC, where an in-depth analysis was made of the parent 
company and the parent’s subsidiaries. Although case studies have traditionally been 
considered a design suitable for studies with inductive approaches, research shows that case 
studies are also appropriate for conducting deductive studies and should furthermore be 
encouraged (Patel & Davidson, 2019; Løkke & Sørensen, 2014). The intention of the case study 
was to gain knowledge and a generalised understanding of different international environments 
with help from a parent company’s view on its international subsidiaries. By doing a case study 
on an MNC’s international units instead of single units from different MNCs, as many 
surrounding factors as possible could remain alike which could otherwise affect the result, such 
as type of industry, type of operations, organisational structure, market presence (e.g. physical 
stores), and target group. 
 The desktop study, i.e. collecting data from existing research, was done in addition to 
the case study to receive access to more empirical data which could later be analysed. The 
importance of the desktop study increased when not enough interviews could be ensured due 
to the COVID-19 pandemic. The aim was to find empirical data which could be analysed 
together with the primary data in the context of practice adoption and legitimacy. The study 
could then ultimately provide supported analytical statements and conclusions which could be 
trusted by the readers. 
2.4 Data Collection 
Both primary and secondary sources were used when collecting data to ensure the thesis would 
have a broad, trustworthy and objective foundation.  
2.4.1 Primary Data  
It was considered that collecting data for the case study through an interview was the most 
appropriate method, because of the difficulty to comprehend the extent and depth of the topic 
if data would be collected through surveys. When collecting data for a study requiring an 
understanding of personal perceptions, an interview is preferred over a survey as detailed and 
unmeasurable information is required (Gill et al., 2008). An interview was especially required 
for gathering empirical data on internal relationships within MNCs since opinions of such 
relationships is based on personal perceptions. 
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The process of gathering primary data started with choosing an MNC to interview. It 
was decided that one of the international units (parent company or subsidiary) should be located 
in Sweden, as it could increase the chances of creating a contact and being granted an interview 
due to possible recognition of the School of Business, Economics and Law at the University of 
Gothenburg where the authors are registered students. To find an MNC willing to be 
interviewed, companies from lists of members at Swedish Chambers of Commerce were 
contacted as well as MNCs accessible from personal contacts. Additionally, MNCs were 
contacted at random selection based on general awareness of existence. Of all the MNCs 
contacted, one left a positive response, which was also the MNC ultimately chosen and 
interviewed for the thesis. 
The interviewed MNC of this thesis is Nudie Jeans Marketing AB. It belongs in a group 
of 13 companies where operations are within the clothing industry. Nudie Jeans Marketing AB 
is one of nine subsidiaries of Nudie Jeans AB. Although Nudie Jeans Marketing AB is legally 
a subsidiary of Nudie Jeans AB, it serves as the parent company in the sense of being the HQ 
for the other subsidiaries, and it is where all the HQ employees are employed (the legal parent 
company Nudie Jeans AB does not have any employees). Of the subsidiaries, seven are located 
internationally in different parts in Europe, USA and Australia, where six are sales companies 
with their own revenue. These are the subsidiaries which will be further discussed when 
referring to the subsidiaries of Nudie Jeans Marketing AB (henceforth Nudie Jeans). 
The interview was conducted on 8 May 2020, lasted 35 minutes and was conducted on 
the digital meeting programme Zoom instead of face-to-face because of social distancing 
recommendations due to the ongoing COVID-19 pandemic. The interview was semi-
structured, meaning the questions for the interviewee were asked in an open manner (Bell et 
al., 2019). The interview questions can further be found in appendix 1. During the interview, 
both thesis authors were present together with the company representative. The company 
representative who acted as the interviewee was the MNC’s sustainability manager, which was 
the desired position to interview due to the topic of the thesis (although, the type of position 
did not limit the search for an interviewee). 
2.4.2 Secondary Data  
The secondary data used for the empirical chapter was collected with the intention to interpret 
data, initially gathered for another purpose, from the viewpoint of the subject of this thesis to 
be able to answer the research question. The secondary data used was primarily gathered from 
journal articles, as such sources provided the ability to use reliable empirical data originating 
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from previous interviews with MNCs. Data from journal articles were gathered from empirical 
chapters to ensure it had not yet been analysed or interpreted by the authors. Some data was 
gathered from webpages to be able to find historical examples of how MNCs have acted in 
accordance with their practices. When webpages were used, the source was analysed to ensure 
its trustworthiness. If a webpage’s credibility could not be confirmed, it was not used as a 
source. Since the secondary data was initially gathered for other purposes, it was critical to 
ensure that the data would not deviate from the topic of the thesis. Therefore, when all 
secondary data was collected, it was summarised and relevant information for the thesis’s topic 
was extracted. 
2.5 Analysis Process 
The analysis was created by coding the empirical data. Bell et al. (2019) describe this process 
as when “data are treated as potential indicators of concepts and the indicators are constantly 
compared for concepts they best fit with” (p. 523). The coding was thus done by finding 
corresponding indicators in the empirical chapter with the theoretical framework. The coding 
resulted in the analysis chapter first starting with an identification of factors influencing 
adoption of CSR practices and a comparison to concepts in existing theory about adoption of 
practice. Once established, the factors were later on analysed in relation to legitimacy by using 
the legitimacy theory described in the theoretical framework. The results of the analysis 
enabled an interpretation of generalised patterns of how the legitimacy MNCs gain from society 
is related to their adoption of CSR practices. To fully understand the width and depth of the 
findings, a discussion followed on the types of societies which grant the legitimacy MNCs gain. 
2.6 Quality of Study 
During the development process of the thesis, it was necessary to ensure certain aspects so the 
thesis would be trustworthy. These were credibility, to ensure accuracy of information; 
transferability, to ensure the conclusion is suitable for generalisation; dependability, to ensure 
conclusions are reliable; and confirmability, to ensure information and conclusion provided is 
purely objective (Schwandt et al., 2007). This section of the methods contains a detailed 
description of how these aspects were ensured.  
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2.6.1 Credibility 
In ensuring accurate information, several actions expressed by Lincoln and Guba (Schwandt et 
al., 2007) were taken into consideration. Firstly, data collection took place over a long time to 
ensure the information provided in the thesis was relevant and correctly interpreted. Also, when 
information turned out to fulfil those requirements, it became easier to do further research on 
salient patterns or phenomena. During the development of the theoretical framework, this 
information was also cross-checked with other sources to ensure accuracy. The method of 
triangulation was further used in the empirics by using several resourcing methods (Shenton, 
2004). This process simultaneously enabled the possibility to search for and find any 
contradicting information. If such information for the theoretical framework became evident, 
it was in detail investigated to find any factors influencing the contradiction (for the opportunity 
to disregard the contradiction). If not found, the information could not be guaranteed accurate, 
and therefore it was not included. Lastly, to ensure credibility during the thesis’s development, 
regular meetings with a supervisor assured the progress of writing and researching was 
conducted in the right manner and that the thesis was being developed in an appropriate 
direction. Similarly, regular weekly seminars were attended where other objective scholars 
gave insights on development opportunities and constructive feedback on the thesis content 
(Schwandt et al., 2007; Shenton, 2004). 
 An aspect which reduces the credibility of the thesis is the number of primary sources 
(Shenton, 2004). Due to the current circumstance of the COVID-19 pandemic, many 
companies contacted for the possibility of an interview declined because of a lack of resources, 
which decreased the time available for interviews. Although it would maybe have been possible 
to conduct more interviews within the company ultimately accepting a meeting, it would have 
occurred in a too late stage of the process. It was considered that the remaining time available 
for finishing the thesis would not be sufficient if further interviews were conducted. An vital 
input, however, is that the lack of numerous interviews does not necessarily mean the 
credibility is fully reduced as the “quality, detail, and depth of the interview data collected” 
(Bell et al., 2019, p. 339) can weigh up for a potentially reduced credibility. Therefore, as much 
preparation as possible was done within the assessable time frame before the interview to 
ensure the interview would provide enough comprehensive data. Furthermore, an iterative 
questioning was made during the interview to ensure the credibility of the data gathered 
(Shenton, 2004). 
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2.6.2 Transferability 
For the ability to provide a scientific contribution which can be useful for future studies, a 
conclusion with generalisation possibilities was sought. Essential to mention is that this is a 
qualitative study where the subject has detailed specifications, which means any generalisation 
opportunities will only be possible on situations like the one studied in this thesis (Shanton, 
2004). There are two different approaches of generalisation which can be strived for: statistical 
and analytical (Bell et al. 2019). When considering the design of the thesis, the most appropriate 
generalisation type was the analytical approach. This because of the combination of the in-
depth information gathered from the one available primary source, together with the many 
other peer-reviewed secondary sources. As it was possible to find empirical patterns in both 
the primary and secondary sources which could be analysed collectively, an analytical 
generalisation with an explanatory contribution was possible from the conclusion (Welch et 
al., 2011). To further ensure the generalisation possibilities, detailed information, as much as 
possible while considering ethical aspects, has been provided about the interviewee, the MNC, 
the interview, its content and length, the process of data collection and the total time spent on 
gathering data (Shenton, 2004). 
2.6.3 Dependability  
To achieve high dependability, the ability to make an external audit trail should be possible 
(Schwandt et al., 2007). In achieving a clear trail of the research process, the development of 
the thesis has been made structurally. Both authors have simultaneously worked on the same 
chapter throughout the process, and individual work tasks have been decided upon together. 
The interview questions were created together to ensure both had the same perception of what 
the goal of the interview would be. Both authors also conducted the interview together, to 
ensure no misunderstandings arose and that the interviewee answered the questions in the way 
it was sought. This structural research process has enabled both authors to be aware of the 
development of the research process, which in turn has enabled a red thread between the 
chapters, and a methodological description of it; a descriptive section informing readers about 
the research process, data collection and analysis process. These descriptions provide 
transparency to the study and a clear audit trail for readers which increase the study’s 
dependability. Furthermore, the effectiveness of the research approach has been evaluated and 
described to note to readers about any negative instances which can affect the results and 
conclusion of the thesis (Shanton, 2004). 
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2.6.4 Confirmability 
The importance of objectivity is highlighted when discussing the confirmability of the thesis 
(Shanton, 2004). As any subjectivity will have an impact on the content and analytical findings 
of the conclusion, several measures have to be taken in the strive for pure objectivity. These 
measures include, as previously mentioned, using triangulation to reduce the risk of using 
subjective ideas, hypotheses, and unsupported statements as pillars when creating new 
theoretical contributions. Decisions based on a subjective liking which were made during the 
writing process are only concentrated on the decision of the research area. Furthermore, the 
choice of investigated MNC was purely randomised, and the choices of secondary sources and 
research approach were based on the appropriateness of being able to answer the thesis’s 
purpose and research question. Additional measures which have decreased potential bias are 
weekly supervisor meetings and discussion seminars, as well as a final opposition seminar, 
where other scholars have assessed the work and provided feedback throughout the writing 
process. 
2.6.5 Ethical Considerations 
When gathering primary data from personal interviews, it is necessary to be aware of the ethical 
challenges that come along with the data collection method. It is of importance to continuously 
treat the interviewee with “respect,  dignity,  and care throughout” the interview (Pearson et 
al., 2015, p. 3). Specific ethical considerations were, therefore, taken into account (Patel & 
Davidson, 2019). Firstly, the interviewee was informed of the thesis subject, so no 
misunderstanding would arise of what the information would be used for. The interviewee was 
further on informed of the estimated date of when the thesis is completed and that it will then 
be publicly accessible. Before the interview began, permission was asked from the interviewee 
to record the conversation for the purpose of going back and ensuring the interviewee’s answers 
instead of relying on the memory of what was being said. The interviewee further expressed 
that no anonymity was necessary for the thesis. Although it was possible to write the thesis 
without naming the MNC, the grant of naming the MNC was used. This because naming the 
MNC creates a transparency in the thesis, and it provides a further background understanding 
of the MNC and its international presence for readers who are already familiar with the MNC. 
However, the interviewee’s identity, besides its position within the MNC, was not considered 
useful for specific purposes in the thesis, and thus the interviewee was anonymised. 
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2.7 Limitations 
Certain limitations centred around the case study and the data collection were apparent in the 
thesis. Firstly, only one interview with the parent company was conducted in the case study of 
Nudie Jeans. Since the purpose of the thesis was to develop a broader understanding of the 
reasons behind local adoption of CSR practices in subsidiaries of MNCs, and role of legitimacy 
in adoption, an evident limitation is that no subsidiaries of Nudie Jeans were interviewed. 
Although there might have been a possibility to conduct further interviews with the 
international subsidiaries, not enough time could be spared on more data collection due to time 
constraints (as previously mentioned under the discussion of the credibility of the study). The 
decision was instead made to ensure the empirical and analysis chapters could be well-
developed with the remaining available time before the thesis was due. A factor which, 
however, mitigated the effect of the limitation was that the parent company expressed that it 
has close cooperation and communication with its subsidiaries, which implies the parent 
company and the subsidiaries are like-minded. If the subsidiaries were completely 
decentralised, the need for additional interviews would be more significant. 
 An additional limitation is that the case study only includes an MNC within the clothing 
industry and that findings and generalisations from the study could, therefore, potentially only 
be reliable on MNCs within the clothing industry. To eliminate this limitation, a multi-case 
study looking into multiple MNCs would have been necessary. Although such a multi-case 
study could provide further trustworthiness for the findings, it is considered that the supporting 
secondary data in the empirical chapter is correspondent in importance. Therefore, it is 
considered that the results and findings of this thesis can still be used in analytical contexts and 
as a basis for future research. 
 The last limitation of the study identified is that the studied CSR practices are practices 
in general. Thus, concerning the case study, no specific CSR practices were asked about during 
the interview. Instead, the interview concerned CSR practices and CSR work in general at the 
parent company and subsidiaries of Nudie Jeans. It was considered that if specific CSR 
practices were studied, the importance of interviews with subsidiaries would be more 
significant. Since such interviews could not be conducted, the decision of studying general 
CSR practices was made. 
  
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3 Theory  
The theoretical foundation firstly consists of an in-depth mapping of adoption of practice, 
which is relevant for explaining on how practices and strategies are being adopted depending 
on the cohesion of values and beliefs between the subsidiaries and the parent company, and 
how well the practice fits with society (Kostova & Roth, 2002). The theoretical foundation 
secondly consists of the legitimacy theory, which includes research in companies’ process of 
being approved for their operations (Suchman, 1995). This section is essential in answering 
how potential differences in societies can have an impact on companies, as different 
international societies value CSR differently. These two theoretical frameworks, adoption of 
practice and legitimacy theory, are intended to jointly explain how adoption of CSR practices 
at subsidiaries is related to the legitimacy they gain from society.  
3.1 Adoption of Practice 
An organisational practice is defined as “an organization’s routine use of knowledge for 
conducting a particular function that has evolved over time under the influence of the 
organisation’s history, people, interests and actions” (Kostova & Roth, 2002, p. 216). How 
practice can be adopted is conceptualised by Kostova and Roth (2002) with two dimensions: 
implementation and internalisation. Implementation is expressed as “the external and objective 
behaviours and the actions required, or implied, by the practice” (p. 217). Internalisation is 
defined as “that state in which the employees at the recipient unit view the practice as valuable 
for the unit and become committed to the practice” (p. 217). Kostova and Roth imply that 
“implementation and internalization reflect the overall level, or ‘depth’ of adoption of the 
practice within the subsidiary” (p. 217). The level of implementation and internalisation of a 
practice in a subsidiary is found to be influenced by its institutional profile in the host country 
and the relational context within the MNC. These influential factors cause variations between 
foreign subsidiaries regarding implementation and internalisation. The influences from the 
institutional profile and the relational context result in different types of motivation for 
subsidiaries to adopt practices. Kostova and Roth (2002) define these types of motivation as 
coercive, mimetic or normative. Coercive motivation “occurs when organizational patterns are 
imposed on organizations by a more powerful authority” (p. 216), mimetic motivation occurs 
“when organizations respond to uncertainty by adopting the patterns of other, successful 
organizations” (p. 216), and normative motivation occurs “when organizations adopt patterns 
considered appropriate in the environment” (p. 216). 
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3.1.1 Institutional Profile 
The institutional profile of the host country is determined by a set of regulatory, cognitive, and 
normative components in the host country’s society. The regulatory component is reflected by 
“the laws and rules in a national environment that promotes certain types of behaviours whilst 
restricting others” (Kostova, 1999, p. 314). According to Kostova and Roth (2002), both the 
level of implementation and internalisation of a practice at a subsidiary is not favoured, thus 
not high, when the practice fits the regulatory component of the society because subsidiaries 
perceive the adoption as coercive. 
Kostova and Roth (2002) define the cognitive component as the “widely shared social 
knowledge and cognitive categories used by the people in a given country that influence the 
way a particular phenomenon is categorized and interpreted” (p. 217). Both the implementation 
and internalisation of a practice at a subsidiary is favoured when the practice fits the cognitive 
component, since the social knowledge and understanding of the practice is high (Kostova & 
Roth, 2002). 
The normative component in the society is characterised by “values, beliefs, norms and 
assumptions about human nature and human behaviour held by the individuals in a given 
country” (p. 217). The implementation of a practice at a subsidiary is not favoured when the 
practice fits the normative component of society; however, the internalisation is, due to the 
consistency of normative beliefs between the subsidiary and the practice (Kostova & Roth, 
2002). 
The adoption of a practice in a foreign subsidiary can be affected by the institutional 
profile in different ways. Firstly, Kostova and Roth (2002) express how the subsidiary’s host 
country society may practice direct institutional pressure on the subsidiary to adopt a practice, 
which both is a form of coercive and normative motivation for the subsidiary. The institutional 
profile can also affect the subsidiaries’ aim to become isomorphic with other local 
organisations in the same sector (i.e. mimetic motivation). However, Meyer & Zucker (1989) 
express how the subsidiary is to some extent still considered “foreign” and is consequently not 
expected to be isomorphic with other local organisations and are in a way excluded from local 
institutional pressures. This especially when the MNC is powerful and the subsidiary is, 
therefore, less dependent on the host country. Secondly, the society in which the subsidiary 
employees operate will influence their cognitions, beliefs, and values, and it will have an 
impact on how they judge and perceive the new practice. This influence means that even though 
 20 
a subsidiary is relatively separated from its host country society, institutional elements enter 
organisations through the subsidiary employees (Kostova and Roth, 2002).  
3.1.2 Relational Context 
The relational context and how it affects the level of practice adoption between the subsidiary 
and the parent company is defined by Kostova and Roth (2002) as through dependence, trust 
and identification. These characteristics are important as they influence the perceived pressure 
to adopt and the perceived value of the practice.  
Dependence is defined by Kostova and Roth (2002) as “the belief held by subsidiary 
managers that the subsidiary relies on, and is contingent on, the support of the parent 
organization for providing major resources, including technology, capital, and expertise” (p. 
219). Kostova and Roth (2002) found that rather than viewing the relationship between the 
subsidiary and the parent as power-based, of nonsymmetric and hierarchical nature, it can be 
viewed as interdependent and integrated. It is argued that dependence between a parent 
company and subsidiaries within an organisational context has a different meaning than 
dependence on powerful suppliers or government agencies, where the latter usually have a 
more hierarchical and nonsymmetric relationship. Thus, the parent may also view itself as 
being dependent on its subsidiaries, and consequently, the power between them is expected to 
be more equally distributed. When the dependence between the subsidiary and the parent 
company is high, implementation of a practice at a subsidiary is not favoured while 
internalisation is favoured. This because of the MNCs tendency to experience tension between 
subsidiary managers’ autonomy and the parent’s need for control (Doz & Prahalad, 1984; 
Rosenzweig & Singh, 1991). 
 The trust a subsidiary has in its parent company is defined by Bromiley and Cummings 
(1995) as the subsidiary’s common belief that the parent both explicitly and implicitly makes 
efforts to behave in accordance with commitments; is honest in prior discussions about such 
commitments; and does not take disproportionate advantage of the subsidiary even if the parent 
has the opportunity to. Moreover, the trust between subsidiary and parent will thus generate a 
positive effect on the adoption of practice. Trust becomes crucial when a practice is exported 
from the parent to the subsidiary, where the subsidiary’s uncertainty and ambiguity related to 
efficiency and value of practices increase. Therefore, when a subsidiary trusts the parent, it will 
shape the perception that the practice is efficient which results in a mimetic adoption rather 
than a coercive adoption (Tsai & Ghoshal, 1998) which, in turn, benefit both implementation 
and internalisation (Kostova and Roth, 2002).   
 21 
 Identification is defined as “the degree to which subsidiary employees experience a 
state of attachment to the parent” (Kostova and Roth, 2002, p. 220). Believing in and accepting 
the values and goals of an organisation result in individuals’ identification with the organisation 
(Kagan, 1958; O'Reilly & Chatman, 1986). When a subsidiary perceives itself as similar to the 
parent, it increases the diffusion of a practice and subsidiary employees better understand the 
value of the practice and therefore engage more actively in the adoption (Strang & Meyer, 
1993). The identification between the subsidiary and the parent furthermore reduce the “not-
invented-here” syndrome and drive the subsidiary’s preference through mimetic and normative 
motivation to become even more isomorphic with the parent through practice adoption. Kosova 
and Roth (2002) indicate that the greater extent to which the subsidiary identifies with the 
parent, the higher level of implementation is seen. No relationship between identification and 
internalisation was found. 
3.1.4 Patterns of Adoption  
The analysis of the combined effect of institutional and relational contexts when it comes to 
ceremonial adoption led Kostova and Roth (2002) to identify four patterns of adoption: active, 
minimal, assent and ceremonial. The four patterns reflect different levels or degrees of adoption 
and different levels of implementation and internalisation. 
 
Table 1. Patterns of Adoption, derived from Kostova & Roth (2002, p. 229). 
 
Active adoption is characterised by a high level of both implementation and 
internalisation of a practice at the subsidiary level and, therefore, represent the deepest level of 
adoption. Subsidiaries using active adoption are considered to have a favourable institutional 
duality (Kostova & Roth, 2002). Minimal adoption is characterised by a low level of both 
implementation and internalisation, where subsidiaries virtually reject the practice. Kostova 
and Roth (2002) observed that subsidiaries using minimal adoption have the lowest level of 
cognitive and normative favourability in their societies, accompanied by the lowest dependence 
between the parent company and the subsidiary and the lowest trust in and identification with 
 22 
the parent company. Assent adoption is characterised by having the lowest implementation of 
practice but a high level of internalisation, thus subsidiaries still believe in the value of the 
practice. Kostova and Roth (2002) argue that the simple reason why the practice is not 
implemented may be insufficient capabilities at the subsidiary unit. Ceremonial adoption is 
characterised by having a low level of internalisation and relatively high level of 
implementation (Kostova & Roth, 2002). Ceremonial adoption is usually the result of high 
uncertainty about the practice as well as disbelief in the value of the practice in combination 
with strict pressure to adopt the practice from the local society. The institutional duality where 
the subsidiary is torn between its local society and the MNC thus results in difficulties to unite 
and harmonise both institutional pressures (Kostova & Roth, 2002).   
3.2 Legitimacy Theory 
Early legitimacy theory definitions have focused on different aspects of what makes companies 
legitimate. Such aspects have included a discussion of legitimacy depending on companies’ 
ability to justify themselves towards their approving society, and their ability to adapt internal 
values coherent with those accepted by the approving society (Suchman, 1995). While early 
definitions have not necessarily been inaccurate, aspects have been missing in order to explain 
the full content of the theory. For example, early definitions by Dowling and Pfeffer (1975) did 
not take in consideration that a company can gain legitimacy through activities which, if known 
to the approving society, would otherwise be rejected. It was simply stated that a company 
seeking congruence between their social values and those of the approving society gains and 
maintains legitimacy when it actively agrees on and follows the approving society’s conditions. 
Suchman (1995) addresses the mentioned issue by stating “an organization may diverge 
dramatically from societal norms yet retain legitimacy because the divergence goes unnoticed” 
(p. 574). His broader definition of the legitimacy theory, therefore, takes this in consideration 
by stating “legitimacy is a generalized perception or assumption that the actions of an entity 
are desirable, proper, or appropriate within some socially constructed system of norms, values, 
beliefs, and definitions” (p. 574). Companies’ operations thus have to be perceived congruent 
with actions desirable, proper, or appropriate by the socially constructed system respective 
company belongs to. 
If congruence does not occur between a company’s values and the societal context it 
belongs to, legitimacy is not maintained. The company will then, as Dowling and Pfeffer (1975) 
described it, experience “[forms] of legal, economic, and other social sanctions” (p. 122), which 
 23 
could include lawsuits, trade restrictions and reduced demand. Such disparity occurs when a 
company’s activities do not correspond with those of the society, thus falling into legitimacy 
gaps (O’Donovan, 2002). These legitimacy gaps take place after a shift in values, assuming 
legitimacy was once obtained (Dowling & Pfeffer, 1975; O’Donovan, 2002; Wartick & Mahon, 
1994). Value changes can source from either the company or the society itself, or source from 
both, but then through shifts in different directions or time (O’Donovan, 2002). The size of 
legitimacy gaps, and hence the risk of becoming illegitimate, can be reduced by companies 
consciously choosing appropriate business strategies (O’Donovan, 2002). Implementing 
mentioned strategies can, therefore, instead encourage the opposite of legal, economic, and 
social sanctions. Firm-specific competitiveness can be achieved with societal approval, which 
implies a company’s ability to survive can depend on legitimacy (Dowling & Pfeffer, 1975). 
3.2.1 Approaches 
The legitimacy theory can be divided into two approaches, strategic and institutional. The 
strategic approach is often referred to in accounting situations where companies use social 
disclosure to maintain legitimacy (Deegan, 2002; Frynas & Yamahaki, 2016; Suchman, 1995). 
Deegan (2002) further underlines that unless the disclosure is noticed and illuminated on by 
society, companies may choose to not continue with it further in the future. Moreover, it has 
been described through the strategic approach that legitimacy can be considered an 
organisational resource which companies can use for competitive issues and survival strategies. 
This view can be derived from the previously mentioned context about competitiveness 
increasing a company’s survival chances, as well as legitimacy (Deegan, 2014; Dowling & 
Pfeffer, 1975). 
The institutional approach differentiates from the strategic approach by not focusing on 
legitimacy as a resource, but rather as something which permeates the company through a 
structure of cultural beliefs (Suchman, 1995). Even though described as two separate ways of 
assessing the legitimacy theory, both the strategic and institutional approaches are likely to be 
implemented in companies’ businesses. Suchman (1995) states that companies may have 
consciously developed thought-through strategies with the motive of gaining and maintaining 
legitimacy, in addition to having legitimacy as a part of their cultural belief systems coherent 
with society.  
 24 
3.2.2 Types of Legitimacy 
There are several types of legitimacy with different characteristics described by Suchman 
(1995): pragmatic, moral and cognitive legitimacy. He mentions that a company can rarely gain 
and maintain all, thus focusing on the legitimacy most appropriate for its operations. 
Pragmatic Legitimacy. Suchman (1995) described pragmatic legitimacy to be gained 
through society’s scrutiny and evaluation of companies’ operations which are favourable to 
self-interests. Pragmatic legitimacy can be gained by the company conducting policy business 
profitable for the approving society, by giving the approving society influence in business 
decisions, and by withholding an organisational character which tends to the same issues that 
society considers important (Suchman, 1995). 
Moral Legitimacy. Moral, or sometimes normative, legitimacy is gained when the 
company aligns with the moral and cultural standards of the approving society (Aldrich & Fiol, 
1994; Suchman, 1995). As pragmatic legitimacy, moral legitimacy can be gained through 
different measures, all explained by Suchman (1995). Firstly, moral legitimacy can be gained 
when the company is being evaluated based on its performance. However, if a company 
conducts operations of which performance can not easily be measured and evaluated, it is easier 
to gain moral legitimacy if the socially acknowledged procedures relevant to the company’s 
operations are being followed (Brinkerhoff, 2005; Suchman, 1995). Slightly similar, moral 
legitimacy can be gained when a company maintains an organisational structure with matching 
characteristics of other companies in the same industry (Suchman, 1995). It provides the 
approving society with credibility for the company being qualified and prepared for its 
industrial operations (Brinkerhoff, 2005). Lastly, Suchman (1995) stated that moral legitimacy 
can depend “on the charisma of individual organizational leaders” (p. 581). Thus, legitimacy 
is not gained depending on the performance or perception of the company itself, but rather 
through the perceiving image of the prominent voices of the company. If they appear 
reasonable and reliable, so might the society identify the associated company (Brinkerhoff, 
2005). 
Cognitive Legitimacy. The third and last type of legitimacy is cognitive. It can be 
gained in two different ways, based on society’s perception of the company’s operations. 
Society may perceive the company and its actions as comprehensive, considering their cultural 
beliefs and understanding of reality, and thus understand the necessity and reasons behind them 
(Scott, 1991; Suchman, 1995). The company’s existence is, therefore, justified when its 
operations are ”predictable, meaningful, and inviting” (Suchman, 1995, p. 582). Cognitive 
 25 
legitimacy is moreover gained when the operations of a company, through its products or 
services, is taken for granted by the society (Aldrich & Fiol, 1994; Brinkerhoff, 2005; 
Suchman, 1995). This type of legitimacy is viewed as generally complicated to achieve since 
it is achieved when society considers other options than the company’s as ”unthinkable” 
(Suchman, 1995, s. 583). 
3.2.3 Gaining Legitimacy 
As a novel company, legitimacy is often not immediately gained due to the liability of newness, 
which complies with being a new entity in an existing industry or the first entity in an entirely 
new industry (Rabbiosi & Santangelo, 2013). To overcome the liability of newness and prove 
the worthiness of its existence, the novel company needs to, if necessary, utilise resources to 
prove the necessity of the new industry, and find parts of society that will approve of its 
operations (Suchman, 1995). Three separate strategies can be used to find an approving society 
and gain legitimacy. 
Complying with the Approving Society. The first strategy for gaining legitimacy is 
to comply with the approving society, and if any changes need to be done to create such 
isomorphism, it is on the company (Suchman, 1995). Meyer & Rowan (1977) explained that 
to do so, ”they incorporate elements which are legitimated externally” (p. 348), which 
essentially provides the company with already legitimate business activities. Moreover, 
companies can use this strategy to achieve specific forms of legitimacy. For a pragmatic 
manner, companies need to engage with the approving society by, as Suchman (1995) stated, 
”[meeting] the substantive needs of various audiences or [offering] decision-making access, or 
both” (p. 587). He further elaborated this by explaining that companies need to develop their 
business to be aligned with society and use any preexisting prestige within the company to 
enhance the possible legitimacy of the newly developed activities. 
When gaining moral legitimacy using a complying strategy, it is common for 
companies to anchor the new activities in associations of those already legitimate (Suchman, 
1995). The motive is to create a link which, once settled, implies proof of worth for legitimacy. 
Dowling & Pfeffer (1975) provided the example of an organisation connecting its operations 
with other established, already legitimate, organisations in order to gain moral support. Further 
on, companies can implement actions which, by only its appearance, signal enough 
organisational change to gain moral support; Ashforth & Gibbs (1983) describes it as “the 
organization might simply portray–or symbolically manage–them so as to appear consistent 
with social values and expectations” (p. 180). 
 26 
Lastly, to gain cognitive legitimacy with the strategy of complying with the approving 
society’s beliefs and values, companies can search for what other organisational colleagues 
with an existing cognitive legitimacy have accomplished. If suitable, companies may then 
duplicate such a successful business model through mimetic isomorphism with the aim to as 
well become legitimate (DiMaggio & Powell, 1983; Kostova & Roth, 2002; Suchman, 1995). 
Furthermore, companies may use tools to simplify any complexity of their business and 
validate it, and thus enhance the comprehensibility, and also develop professionalism where it 
is possible (Suchman, 1995; cf. DiMaggio & Powell, 1983). 
Choosing Support Within an Approving Society. A second strategy for gaining 
legitimacy is not to change the business or activities of the company to gain support, but rather 
to find pragmatic, moral or cognitive support for its already existing operations. For pragmatic 
legitimacy, Suchman (1995) states that market research is the method of finding approval, and, 
potentially in a more social context, to incorporate central actors which an approving entity 
would find appropriate. In the moral aspect, companies’ aims and missions lay the foundation 
of which moral support is available. Therefore, companies are required to have strategically 
defined goals in order to find an appropriate match (Suchman, 1995). Regarding cognitive 
legitimacy, companies are limited to decide from where they wish to gain legitimacy depending 
on the approving society’s comprehensibility (Aldrich & Fiol, 1994; Suchman, 1995). If the 
conducted business is familiar and understandable, and thus located in a well-known, 
dependable and demanded industry, the company will receive an easier grant (Aldrich & Fiol, 
1994). 
Controlling the Approving Society. The third, and possibly least used, strategy 
companies can use to gain legitimacy is to control the society admitting it (Aldrich & Fiol, 
1994). Generally, this strategy is used when the previous two have not proven to work 
(Suchman, 1995). Due to the double-edge of legitimation, as Ashforth & Gibbs (1990) call it, 
companies may experience that “the very need for legitimacy may trigger events which prevent 
the realization of that need” (p. 191). The ability to control the approving society, and hence 
the ability to gain legitimacy, could, therefore, prove to be effective. Such ability is usually 
higher for larger companies with long-time experience as they “reach a point where they can 
dominate their environments rather than adjust to them” (DiMaggio & Powell, 1983, p. 149). 
When gaining pragmatic legitimacy, this strategy is usually exercised by some form of 
marketing in order to convince society to give its approval (Suchman, 1995). Gaining moral 
legitimacy imposes a greater difficulty as it has its base in what society considers is 
fundamentally right. Therefore, companies need to display such performance and persuade 
 27 
society of their credibility in the matter, and, if possible, do so collectively with other 
companies to be more persuasive and to achieve a greater influencing effect (Ashforth & Gibbs, 
1990; Suchman, 1995). Lastly, to control society for gaining cognitive legitimacy, companies 
can alter society’s perception of comprehensibility by being patient in their operational 
confidence (Suchman, 1995). Ultimately, the chance of being acknowledged cognitively might 
be higher. Similar to the strategy for moral legitimacy, the chance increases if done collectively 
as the probability of greater comprehensibility and taken-for-grantedness within society 
increases (DiMaggio & Powell, 1983; Suchman, 1995). 
3.2.4 Maintaining Legitimacy 
After any legitimacy is gained, situations which risk a lost legitimacy need to be assessed. Even 
though the process of gaining legitimacy might be more difficult, developing and practising 
proactive strategies in order to maintain it is equally necessary. Risks which can pose problems 
for gained legitimacy can originate from both internal and external sources, such as 
unsuccessful business implementations and market changes (Ashforth & Gibbs, 1990; 
Suchman, 1995). According to Suchman (1995), companies can be aware of such risks by 
remaining updated on potential environmental shifts, and continuing with operations earlier 
proven successful can also help them in the process of maintaining the gained legitimacy. He 
further suggests shifts in the environment can emerge from different reasons, all which can be 
located within the different forms of legitimacy. Changes in the foundation of pragmatic 
legitimacy are shifts in the self-interests of society. Companies, therefore, need to assess and 
evaluate the current demands. To be able to respond to shifts in the foundation of moral 
legitimacy, companies need to incorporate the outcomes of the shifts, such as developed values, 
in the professionalisation process to update the definition of ”the conditions and methods of 
their work” (DiMaggio & Powell, 1983, p. 152; Suchman, 1995). To remain updated and 
prepared for cognitive changes in society, companies need to continuously analyse society’s 
perception of taken-for-grantedness (Suchman, 1995). By doing so, companies can respond to 
such changes themselves in the process of maintaining legitimacy. 
A second strategic measure of maintaining legitimacy, as previously mentioned, is to 
continue with operations earlier proven successful. By doing so, companies ”can enhance their 
security by converting legitimacy from episodic to continual form” and avoid complaints from 
society over operations (Suchman, 1995, p. 595). Similar to the previous strategy, this can be 
assessed in all legitimacy forms. Companies can ensure pragmatic legitimacy by persisting 
with business operations which society can trust and benefit from regarding self-interest. A 
 28 
form of trust is additionally essential for moral legitimacy, as the operations continuously need 
to be conducted in a responsible and rightful manner. When maintaining cognitive legitimacy, 
it is vital to ensure business operations are on a comprehensive level for society, even simple, 
in the lead up to being considered an inevitable part of the market or industry (Suchman, 1995). 
3.3 Conceptual Model 
 
Figure 1. A Conceptual Model of the Connection Between the Legitimacy Theory and Adoption of Practice. 
 
Provided above in figure 1 is a conceptual model made by the authors of the thesis. It is a model 
of the connecting components of the legitimacy theory and adoption of practice. The theoretical 
framework explained that two factors influence the adoption of practice by subsidiaries of 
MNCs: the institutional profile and the relational context within the MNC (Kostova & Roth, 
2002). The relational context refers to the relationship between a parent company and its 
subsidiary. It is, therefore, an internal factor influencing the adoption of practice. The 
institutional profile, however, consists of external components influencing the adoption of 
practice. These are regulatory, cognitive and normative components within the host country of 
the subsidiary. These components consist of different parts and perceptions of the local host 
country’s society. This local society is also what is considered the approving society, which 
can grant an MNC legitimacy. The conceptual model describes which types of legitimacy can 
be gained from which parts within a society.  
 29 
 The regulatory component of the local society can grant moral legitimacy when laws 
and rules are followed (Kostova & Roth, 2002), since MNCs will then follow the moral and 
cultural standards of the approving society (Aldrich & Fiol, 1994; Suchman, 1995). The 
cognitive component can grant cognitive legitimacy, as the “widely shared social knowledge 
and cognitive categories” (Kostova & Roth, 2002, p. 217) are reflected in society’s 
comprehensibility and taken-for-grantedness of specific operations (Suchman, 1995). The 
normative component, characterised by “values, beliefs, norms and assumptions about human 
nature and human behaviour” (Kostova & Roth, 2002, p. 217), can grant pragmatic legitimacy 
since it has a self-interest of those values being followed, and moral legitimacy when MNCs’ 
procedures and organisational structures are socially acknowledged and are according to norms 
(Brinkerhoff, 2005; Suchman, 1995). 
  
 30 
4 Empirics 
When searching for data regarding grounds for local adoption of CSR practices, three 
significant areas became apparent: the creation of CSR practices, the internal relationship 
between parent company and subsidiaries, and societies’ view on CSR. The creation of CSR 
practices is about creating the CSR practices which the subsidiaries eventually adopt. The 
internal relationship concerns influences within the MNC. The societies’ view on CSR 
concerns the influences outside the MNC. The empirical data found on these three areas will 
be further described in detail in this chapter. 
4.1 Creation of CSR Practices 
This section will concern the creation of CSR practices. It will highlight the two different 
strategies of creating CSR practices; when the parent company on an HQ level creates CSR 
practices alone, and when HQ and subsidiaries through close communication create CSR 
practices together. Presented empirical data will show that depending on the strategy, 
prerequisites for local adoption of CSR practices differ. 
4.1.1 Parent Company and Subsidiaries Create CSR Practices Together 
In an MNC study made by Cruz & Boehe (2010), empirics showed that when the parent 
companies created CSR practices in coordination with its subsidiaries, the decision-making 
included different types of representatives from each unit. The parent companies utilised 
resources from their top management teams to ensure the companies as a whole benefit from 
and identify with the practices. Decision-making also included representatives from different 
departments to ensure their expertise and knowledge were utilised in the creation of detailed 
and thought-through CSR practices. In order to ensure the CSR practices’ functionality in the 
MNC’s geographical areas, subsidiaries were included in the decision-making. They were able 
to represent their respective society and provide the process with knowledge about what their 
local societies demanded from the MNC’s CSR engagement. Lastly, representatives from local 
societies affected by the created CSR practices were invited to fully ensure the practices’ 
suitability. MNCs’ argument for using this process when creating CSR practices was to 
ultimately assure the CSR practices had a foundation based on the demands from the parent 
company and the demands from local societies where the subsidiaries were located, and that 
the different units within the MNC could learn from each other in CSR-related problem-solving 
(Cruz & Boehe, 2010). 
 31 
4.1.2 Parent Company Creates CSR Practices Alone 
A majority of the MNCs interviewed, both in several previous studies and this thesis, expressed 
that the parent company creates CSR practices alone for the MNC to follow without regard to 
local differentiation of its subsidiaries and their specific societal demands (Bondy & Starkey, 
2014; Mohan & Anupama, 2006; Cruz & Boehe, 2010; Nudie Jeans, personal communication, 
8 May 2020). Subsidiaries of MNCs, where this have been the case, have explicitly expressed 
this disregard is not due to the difficulties of geographic distance (Jamali, 2010). It has instead 
shown to be partly due to MNCs’ aspiration to operate according to international indicators 
specified towards CSR (Mohan & Anupama, 2006). 
Data have shown this aspiration builds on MNCs’ desire to create operational coherence 
across borders and to ”provide their subsidiaries with well-established and defined criteria for 
creating a unique CSR profile for the corporation” (Cruz & Boehe, 2010, p. 254; Nudie Jeans, 
personal communication, 8 May 2020). Additionally, the advantage MNCs have expressed by 
using international indicators is that it enables transparency of the MNC available for societies 
to assess (Mohan & Anupama, 2006). Another reason for the conscious decision of not 
including subsidiaries in the creation of CSR practices has shown to be because there is a lack 
of time and insufficient knowledge of local CSR challenges, even though parent companies are 
aware such challenges exist (Bondy & Starkey, 2014; Källström & Karlsson, 2017). Parent 
companies instead assign the problem-solving of local challenges of global CSR practices to 
the subsidiaries (Bondy & Starkey, 2014). 
4.1.3 Local Implementation of CSR Practices at Subsidiaries 
Empirics showed that when practices have been created, they are communicated to the 
subsidiaries for local adoption (Jamali, 2010). Empirics further showed that parent companies 
communicate out these practices along with certain expectations how they should be adopted; 
either the subsidiaries are expected to follow the practices as they are, or they are allowed by 
the parent companies to make local alterations. 
Without Local Practice Alterations. Previously studied parent companies of MNCs 
have expressed that their CSR policies are ”either ‘strongly recommended’ as a starting point 
for CSR in different operational locations or a politely worded edict from head office” (Bondy 
& Starkey, 2014, p. 11). Observations showed that when a CSR practice has been referred to 
as an edict, the parent company took a majority of implementation initiative even when the 
CSR practice had a clear connection to a location of a subsidiary (Mohan & Anupama, 2006). 
 32 
In some cases, this occurs but with a responsible subsidiary acting as a regional HQ instead 
(Jamali, 2010). 
Data has shown that there are different areas within CSR which subsidiaries are more 
commonly not allowed to make local practice alterations in. For example, empirics of one MNC 
study showed that CSR practices concerning working conditions for employees were strict 
principles of the parent company (Mohan & Anupama, 2006). These included assurance of 
employee safety while at work, and that the employees’ health would not come to damage due 
to poor working conditions. Additionally, empirics showed that customer CSR was prioritised 
globally and that no local adaption was made on the subsidiary level. Customer CSR involved 
the creation of long-term sustainable relationships so that no customers would experience 
varied access to goods and services depending on geographical location (Mohan & Anupama, 
2006). Lastly, the study showed no patterns of local practice alterations of CSR connected to 
environmental performance, such as preservation and minimising the human impact on the 
environment. Such related activities were typically managed and controlled directly by the 
parent company to ensure no local variations and operations entirely in accordance with the 
parent company’s regulations (Mohan & Anupama, 2006). 
After the parent company of Nudie Jeans creates the MNC’s CSR practices alone, they 
are communicated to the subsidiaries for local adoption. In general, the parent company takes 
the most responsibility for ensuring the CSR practices are adopted and then further expects the 
subsidiaries to continue with the operations. The interviewee further mentioned that the 
subsidiaries comply with what the parent company decides, actively embrace the CSR practices 
and thus that the work processes are similar between the subsidiaries. It was mentioned that no 
local alterations from the parent company’s CSR practices are allowed within subsidiaries, but 
with one exception: when a practice is not possible to implement due to local circumstances. 
When a practice is not possible to adopt, the subsidiary ensures the parent company stays 
informed on the matter. The interviewee mentioned that in some cases, Nudie Jeans has the 
power to affect the circumstances so that the practices can be adopted, such as recycling 
opportunities, but sometimes not. Although it is not in terms a local alteration, the only other 
occasion when subsidiaries can affect the local CSR practices is when subsidiaries can actively 
engage in further CSR work not required initially from the parent company. In such cases, 
when subsidiaries have the possibility to engage further within CSR, such as using renewable 
energy sources, the opportunity is encouraged by the parent company. (Nudie Jeans, personal 
communication, 8 May 2020) 
 33 
With Local Practice Alterations. Cases have been found of subsidiaries not being 
involved in the creation of CSR practices, but when the parent company allows local flexibility 
within the practices. Such local flexibility allows subsidiaries to act more in accordance with 
their society when adopting practices “to better fit local conditions” (Bondy & Starkey, 2014, 
p. 10). One MNC study presented varied results of subsidiaries adopting CSR practices in 
various extents; even though the occasional subsidiary of an MNC expressed it was ”keen to 
promote and adapt to the values and standards of the mother company” (p. 193), it was more 
common for the parent company’s practice to serve as an inspiration for the subsidiary’s local 
practice (Jamali, 2010). 
 Similar to occasions when parent companies exercise full control and allow no local 
adoption of a CSR practice, areas within CSR have been evident from data where subsidiaries 
are generally more allowed to local adopt in. One of the most prominent is CSR regarding HR, 
such as wages and employee training, which is decided according to local conditions and 
sometimes together with another subsidiary acting as a regional HQ (Mohan & Anupama, 
2006). Another area has shown to be CSR regarding community care. The empirics of an MNC 
study showed that while HQs are responsible for community care relevant on a global level, 
issues in local communities are managed solely by subsidiaries (Mohan & Anupama, 2006). 
An example of when a CSR practice has been locally altered is in 2012 when the parent 
company of IKEA, which creates the MNC’s CSR practices alone, tried to please local interests 
and abide by the Saudi Arabian view of gender equality and the status of women in society by 
removing women from their catalogues for the Saudi market (Filatotchev & Stahl, 2015). This 
action was an alteration from IKEA’s CSR work which usually promotes the opposite, by 
funding organisations which empower women from disadvantaged families and create 
employment for women (Abad-Santos, 2 October 2012). 
Another example of a local CSR practice alteration is when Shell Nigeria in the 1990s 
did not stand by the MNC’s “policy of noninterference in the internal affairs of the nation” 
(Filatotchev & Stahl, 2015, p. 122). During civil protests of Shell’s operations in the Ogoniland 
region, Shell Nigeria encouraged the military to silence the protests even though “it knew the 
horrors this would lead to”, and thus deviated from the MNC policy which initially required 
Shell Nigeria not interfere (Amnesty, 2017, para. 4).  
4.2 Internal Relationship Between Parent Company and Subsidiaries 
This section will concern the internal relationship between parent company and subsidiaries, 
i.e. the internal relationship within the MNC, which concerns how dependent the units are on 
 34 
each other, and how the units perceive each other. Presented empirical data will show how the 
internal relationship within the MNC influences prerequisites for local adoption of CSR 
practices. Nudie Jeans will be the only referral since it is considered that a primary source is 
needed to study internal relationships within an MNC, as they are based on personal and unique 
perceptions. 
4.2.1 Dependence Between Parent Company and Subsidiaries 
The interviewee from Nudie Jeans explained that there exists certain independence between 
the parent company and subsidiaries with regards to the units being their own organisations 
with their own managers. No dependence was expressed concerning the units being dependent 
on each other for technology or capital. However, another type of close dependence between 
the parent company and subsidiaries was expressed; there existed, on the subsidiaries behalf, a 
presence of a certain dependence on the parent’s expertise. Examples brought up during the 
interview were when subsidiaries were invited to speak at big gatherings, and that an 
agreement, either explicit or implicit, existed that the parent company in some way would be 
involved in the content of what would be communicated at the gathering. The parent company 
could either write the speech if the manager conducting it was inexperienced or cooperate with 
the manager what would be said or only brief the manager on the information of the subject 
before formulating the speech itself. As the parent company is in charge of the developments 
of policies and guidelines relevant for the company, the subsidiaries trust that the parent 
company have sufficient expertise within the area of CSR and are committed to providing the 
subsidiaries with accurate information for these occasions. The interviewee furthermore 
expressed that the subsidiaries have trust in the CSR practices the parent company creates and 
that they in a high degree follow the CSR practices the parent company creates. The work 
processes thus are very similar across the subsidiaries and the parent company. (Nudie Jeans, 
personal communication, 8 May 2020) 
4.2.2 Perception Between Parent Company and Subsidiaries 
It was expressed during the interview that the parent company believes the subsidiaries 
probably identify themselves with the parent company 100 per cent. A high level of 
identification is also considered essential for the parent company since it is sought for that the 
subsidiaries and the parent share the same beliefs and values. Examples mentioned how efforts 
are put in to pursue a high identification and a global company culture are through a continuous 
close dialogue between the parent company and the subsidiaries, and that this communication 
 35 
occurs daily. Additionally, annual gatherings are arranged where all subsidiaries and the parent 
meet to connect and communicate company values, work strategies and perceptions of 
sustainability. During the times of the COVID-19 pandemic, the interviewee expressed that 
focus of communication instead lies in business-related contexts and crisis management, but 
that united company culture is an important part of it as well. (Nudie Jeans, personal 
communication, 8 May 2020) 
4.3 Societies’ View on CSR 
This section will concern the societies’ view on CSR, which includes how societies outside the 
MNC view CSR through normative, cognitive and regulatory perspectives. Presented empirical 
data will show how societies’ view on CSR influences prerequisites for local adoption of CSR 
practices. 
4.3.1 CSR Through a Normative Perspective 
Results from empirical data showed that external factors which play a part in deciding local 
adoption are the societies’ (where the MNCs are located) view on CSR, and how openly and 
demandingly societies express their expectations how MNC should act upon CSR (Bondy et 
al., 2012; Filatotchev & Stahl, 2015; Nudie Jeans, personal communication, 8 May 2020). 
Empirical data showed that societies with strong belief and value systems regarding CSR, and 
which communicate these out openly to MNCs in order to explain current expectations, have a 
large influence capacity. The large influence capacity of these societies is evident in the 
previously mentioned example (section 4.1.3) of when IKEA removed women from their 
catalogues in Saudi Arabia, and the MNC ended up being criticised for the action from 
countries outside the host market. The local practice alteration thus had the opposite effect of 
what was desired when other international societies, other than the local, strongly disagreed 
with the decision. Societies reacted on the actions of the MNC, expressed their expectations on 
CSR based on their social values, beliefs and norms, and after that wanted the MNC to act 
accordingly (Filatotchev & Stahl, 2015).  
While discussing differences in expectations of CSR engagement between societies, the 
interviewee expressed differences between the markets where the company has subsidiaries. 
One of the most prominent examples of the interview is Germany, one of Nudie Jeans’s most 
important and biggest markets. The interviewee expressed the expectations of CSR 
engagement are high in Germany because of the overall high interest and dedication of the 
matter in the country. It was further explained that the German clients of the company were the 
 36 
most assertive with regard to sustainability reporting. Even though other locations, like the UK, 
also have certain similar expectations, the society in Germany was considered to be at the 
forefront of CSR awareness. The high expectations coming from the German society were the 
foundation of the reason why the interviewee considered that particular market the most 
demanding, and why more work was needed to fulfil those expectations. The work consisted 
of continuously bringing forward and highlighting the unique sustainability practices the MNC 
has to satisfy the society’s expectations. (Nudie Jeans, personal communication, 8 May 2020) 
4.3.2 CSR Through a Cognitive Perspective 
The interviewee from Nudie Jeans mentioned decisions regarding market expansion depended 
on CSR awareness. Markets, where there are high expectations and a high level of sustainability 
awareness, are the ones which the MNC aims at because those markets have the highest 
comprehensibility of sustainable products and it is where the company fits in the most in 
accordance to the business model. As an example, the interviewee mentioned Spain as a market 
where they probably could become market leaders quite easily due to a small number of present 
actors. However, the market itself of sustainable products is not equally large as, e.g. Germany, 
because the overall sustainability awareness is not as high. Thus, although there are advantages, 
the company has chosen not to currently expand to Spain because of the lower 
comprehensibility of sustainable products. (Nudie Jeans, personal communication, 8 May 
2020) 
 When asked about the MNCs’ most important markets, the interviewee mentioned 
Scandinavia, North Europe, USA and Australia. It was further explained that the interviewee’s 
perception was that Germany was the country which is at the forefront of sustainability 
awareness, while still stressing that the interest in sustainability has grown a lot in Australia. 
The interviewee further believed that, even though the global interest for sustainability issues 
is growing, the overall fastest-growing interest is in Germany, the UK, Australia, and maybe 
the USA. Thus the same markets the interview considered the most important for Nudie Jeans. 
The USA was also the market the interviewee mentioned was the hardest market to penetrate 
even though a lot of focus and effort has been put on it. The interviewee explained that it could 
be because USA is a very large country, but also because the market as such is different. (Nudie 
Jeans, personal communication, 8 May 2020) 
 37 
4.3.3 CSR Through a Regulatory Perspective 
Empirical data showed that differences in simple government recommendations had been 
reasons why MNCs conduct CSR practices differently within the subsidiaries (Bondy et al., 
2012). As recommendations on CSR are not as coercive as official regulations, MNCs can act 
differently even within the same industry and society. However, data showed that when 
competitors have engaged in CSR activities, MNCs have experienced mimetic pressures of 
implementing the same practices to not be less engaging and competitive within CSR than 
competitors (Bondy et al., 2012). 
Other than government recommendations, empirical data showed that regulatory 
differences between countries do not always have an impact on MNCs’ CSR work. The 
interviewee from Nudie Jeans expressed that the MNC had not yet encountered any regulatory 
obstacles so far. This because the work Nudie Jeans does with CSR is on a high, voluntary 
basis, and the conducted CSR work has already met all the regulatory requirements on every 
market. Subsidiaries have thus not been required to make adjustments in CSR practices to reach 
the demands. This because sustainability is already an essential aspect of Nudie Jeans’s 
business model. (Nudie Jeans, personal communication, 8 May 2020). 
The previously mentioned example of Shell (section 4.1.3) is a situation which reflects 
how societies view CSR through a regulatory perspective. Shell Nigeria encouraged the 
Nigerian military to silence the ongoing protests, which resulted in “unlawful killings, rape, 
torture, [and] the burning of villages” (Amnesty 2017, paragraph 4). Shell Nigeria claimed it 
did not interfere with the violations the Nigerian military committed since it would not be 
consistent with its “policy of noninterference in the internal affairs of the nation” (Filatotchev 
& Stahl, 2015, p. 122). This resulted in Shell Nigeria committing criminal offences regarding 
serious human rights violations, something which has evoked many negative reactions from 
societies worldwide and caused international human rights organisations to engage in the 
matter actively (Amnesty, 2017). Shell thus created the impression for international societies 
that it condoned human rights violations, which damaged their reputation globally. 
 
  
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5 Analysis 
The analytical chapter will touch upon three analytical areas. Firstly, the factors found to 
influence adoption of practice will be discussed. Connections will here be made to the 
theoretical framework. Secondly, an analysis will be made on how these factors are related to 
legitimacy. This section will also include connections to the theoretical framework. Thirdly, an 
important discussion about societies and legitimacy will be made to understand the width of 
the thesis’s findings fully. 
5.1 Factors Influencing Adoption of Practice  
This section will discuss the factors found in the empirical data that influence adoption of 
practice, and which be the foundation of the following sections of the analysis chapter. These 
were found to be external factors, through societies’ view on CSR; internal factors, through the 
internal relationship with the MNC; and, additionally, the creation aspect of CSR practices.  
5.1.1 External Factors 
The external factors in the empirical data found to influence adoption of practice are all 
concerned with societies’ view on CSR, which is consistent with the factors of the institutional 
profile explained in the theoretical chapter: the regulatory, cognitive and normative 
components of the institutional profile (Kostova & Roth, 2002). An analysis will thus be 
conducted in the following sections concerning how regulatory, normative and cognitive 
components are related to the adoption of the parent’s CSR practices at subsidiary level.  
Regulatory Component. It was expressed in the interview that Nudie Jeans’s 
subsidiaries already fulfil and meet all their regulatory requirements in all their markets, and 
therefore no regulatory obstacles have been encountered. (Nudie Jeans, personal 
communication, 8 May 2020). However, as empirical data also showed that the effects of 
governmental recommendations on CSR practices are similar to official regulations, even 
though they are not coercive (Bondy et al., 2012), it is evident that the regulatory component 
influences the adoption of CSR practices. This since MNCs would not fully adopt certain 
practices if it were not for their competitors, thus experiencing mimetic pressures to adopt 
according to theory (Kostova & Roth, 2002). Thus, the regulatory component affects how 
MNCs adopt CSR practices. A possible reason why Nudie Jeans is not affected by the 
regulatory component is that it has CSR as a foundation of their business model; it is a part of 
Nudie Jeans’s operations to engage in sustainability matters actively, and it is why Nudie Jeans 
conduct a lot of CSR work voluntarily. The regulatory component’s influence on the adoption 
 39 
of CSR practices can, therefore, be considered to be higher if CSR does not permeate the MNC 
or if it is not incorporated in the business model.  
Cognitive Component. The empirical data showed that the cognitive component of 
society was a vital part of influencing the local adoption of practice. It was evident that the 
widely shared social knowledge and understanding of practices were crucial for the interviewed 
MNC, and the interviewee explicitly acknowledged that it was even a criterion for when Nudie 
Jeans researched about potential future markets to establish in (Kostova & Roth, 2002; Nudie 
Jeans, personal communication, 8 May 2020). The cognitive component had to have a profound 
understanding of the necessity of sustainable products and of conducting sustainable business 
since the business model of Nudie Jeans has a foundation in sustainable wear. By ensuring that 
the cognitive components, of the societies where the subsidiaries are located, have a high 
sustainability awareness, Nudie Jeans would be assured that its CSR practices would fit the 
local demands and thus be fully adopted by the subsidiaries without local alterations. It is, 
therefore, considered that the cognitive component is a vital part of influencing local adoption 
of practice. However, it is essential to mention that there exists some uncertainty with this 
conclusion since it was challenging to gather information about the cognitive component from 
the interviewee without mentioning the exact theory behind it, as it was possible when 
gathering information about the regulatory and normative component. However, it was 
considered that enough empirical data was gathered to analyse the subject, but only that the 
conclusions arising from the analysis has an uncertainty aspect. 
Normative Component. Societies with strong values, beliefs and norms, and which 
communicate these actively, are found influence adoption of CSR practice. This influence 
capacity can be portrayed in empirical data where IKEA locally adapted to the local societies’ 
expectations on them due to the strong value, belief and norm systems instead of following the 
original set CSR practice of including multiple genders in the catalogue (Filatotchev & Stahl, 
2015). This influence was also evident in Nudie Jeans, where Germany was considered the 
most demanding market as well as being one of the most interested in sustainability. Nudie 
Jeans thus tried to please the normative component by continuously highlighting and reporting 
about its CSR practice to the society (Nudie Jeans, personal communication, 8 May 2020). 
Empirical data thus showed that the normative component influences adoption of CSR practice.  
5.1.2 Internal Factors 
The internal factors found in the empirical data that influence the adoption of practice 
correspond with the relational context explained in the theoretical chapter: dependence, trust 
 40 
and identification (Kostova & Roth, 2002). Thus, an analysis on the relational context within 
Nudie Jeans will be conducted in the following sections about how the levels of dependence, 
trust and identification are connected to the subsidiaries’ active adoption of the parent’s CSR 
practices (Kostova and Roth, 2015). Nudie Jeans will be the only referral since it was 
considered that a primary source was needed to study internal relationships within an MNC, as 
they are based on personal and unique perceptions. 
Dependence. Kostova and Roth (2002) explain dependence as the subsidiary and the 
parent company being reliant on each other for resources, including technology, capital and 
expertise. Data from Nudie Jeans showed strong involvement from the parent company in the 
subsidiaries’ commitments in their respective host countries, such as speech writing and 
providing content and material for appearances (Nudie Jeans, personal communication, 8 May 
2020). The strong involvement indicates a high dependence on the parent’s expertise but not 
necessarily a high dependence on the parent regarding other significant resources. Overall, the 
subsidiaries of Nudie Jeans thus have an intermediate level of dependence of the parent 
company. 
Since empirical data further showed that Nudie Jeans’s subsidiaries actively embrace 
the parent’s CSR practices, and thus engages in active adoption, a correspondence can be made 
with theory (Nudie Jeans, personal communication, 8 May 2020; Kostova & Roth, 2002). The 
theory states a high level of dependence results in subsidiaries believing that the practices are 
valuable; However, it also suggests that a high level of dependence might have a negative effect 
on the practices being put into effect (Kostova & Roth, 2002). Thus, the active adoption in 
Nudie Jeans’s subsidiaries does not correspond to their dependence on the parent company. 
Theory suggests this negative relation is because subsidiaries experiencing a high level of 
dependence on the parent company are overall more likely to experience a tension towards the 
parent, due to the lack of autonomy and the parent’s need for control (Doz & Prahalad, 1984; 
Rosenzweig & Singh, 1991). It is, however, difficult to analyse any tension between the parent 
company and subsidiaries of Nudie Jeans since no interviews were conducted with the 
subsidiaries. Since the interviewee from the parent company did not address an occurrence of 
tension, it might be because the parent company either does not want express that such tension 
exists, that the parent is not aware of such feelings from the subsidiaries’ behalf, or that such 
tension does not exist. A possible explanation of why tension would not exist is that the level 
of dependence is not high, only intermediate. This would explain the findings’ deviation from 
previous theory, as the subsidiaries of Nudie Jeans are only partly dependent on the parent 
company. 
 41 
Trust. The level of trust that Nudie Jeans’s subsidiaries have for the parent company is 
indicated to be high since the subsidiaries show belief in that the parent is committed to the 
practices it proclaims and has the sufficient expertise necessary in the area of CSR to develop 
such practices. Kostova and Roth (2002) express that the trust between the parent and 
subsidiary is built on the common belief that they both explicitly and implicitly make efforts 
to behave in accordance with commitments and are honest in discussions about such 
commitments, which the close and daily communication between the parent company of Nudie 
Jeans and its subsidiaries is a sign of (Nudie Jeans, personal communication, 8 May 2020). 
These indicators of high trust within the MNC in addition to the subsidiaries active adoption 
of CSR practices correspond with the findings of Kostova and Roth (2002), which states high 
trust favours practice adoption. A high trust seems to foster mimetic adoption rather than a 
coercive (Kostova & Roth, 2002). 
Identification. The interviewee from Nudie Jeans believes the subsidiaries’ 
identification with the parent company is high, and it is something the parent company desired. 
The stated high identification is supported by the parent company’s actions to ensure shared 
beliefs and values, and thus a high identification level (annual gatherings and daily 
communication) (Nudie Jeans, personal communication, 8 May 2020). According to theory, 
identification is positively related to the adoption of practice. The empirical findings can thus 
confirm existing theory, as Nudie Jeans’s subsidiaries experience a high identification level 
while engaging in active adoption of CSR practices.  
5.1.3 Creation of CSR Practices 
An additional factor that influences the adoption of practice is how the CSR practices were 
created in the first place. This influential factor became evident during the search of empirical 
data, and a connection to the theoretical chapter can thus not be made since it is a unique finding 
of this thesis. Two distinct ways that practices are created were found from the empirical data; 
practices can either be developed by the parent company alone or together with the subsidiary. 
Parent Company and Subsidiaries Create CSR Practices Together. When the 
parent company creates CSR practices in cooperation with its subsidiaries, the subsidiaries 
along with its local societal representatives can represent and ensure that the practices are 
suitable for their respective societies (Cruz & Boehe, 2010). When they are included in the 
decision-making process, active adoption of CSR practices without local alterations being 
necessary is favoured since the practices are created with the consideration of the local 
societies’ demands as a foundation, along with the parent company’s underlying values. 
 42 
Although the societies’ demands have their foundation in the institutional profile, this is 
considered a newly found influencing factor as the process of creating CSR practices together 
lays the foundation of CSR practice adoption in an early stage. Subsidiaries do not have to 
consider the institutional profile when adopting CSR practices because the practices are already 
customised to fit the institutional profile. This influencing factor is thus considered to be 
independent of Kostova and Roth’s (2002) findings since the creation of CSR practices takes 
place before practice adoption is possible, but is still relevant for the adoption process. 
Parent Company Creates CSR Practices Alone. The second strategy of creating CSR 
practices is for the parent company to create CSR practice alone. As this strategy does not 
consider local differences, the CSR practices will more likely not reflect the institutional profile 
of the subsidiaries’ societies as they would if the practices were created through a cooperative 
process. If subsidiaries have a favourable relationship with their parent company, and they have 
institutional profiles that match the CSR practices, this strategy of creating CSR practices will 
likely not have a negative effect on practice adoption. An example of this is Nudie Jeans where 
the relational context is advantageous, and the institutional profiles match the CSR practices, 
and the subsidiaries engage in active adoption (Nudie Jeans, personal communication, 8 May 
2020). 
However, if the situation is contrary with an unfavourable relational context and 
institutional profile, subsidiaries are more likely to take the relational context in consideration 
when adopting CSR practices, and they are more likely to need local alterations to the practices 
in order to fit their institutional profiles. An example of this is IKEA, where the institutional 
profile in Saudi Arabia did not match the CSR practice, which led to a need for local alteration. 
It is important to note, however, that even though that this strategy of creating CSR practices 
may lead to other types of adoption than active, it might be the only option for large MNCs 
with many subsidiaries. Inclusion of all subsidiaries and their respective societies would lead 
to a complex decision-making process due to too many wills and demands.  
5.2 The Factors’ Relation to Legitimacy 
This section will discuss how the influencing factors of practice adoption, which were found 
from the empirical data and previously discussed in 5.1, are related to the legitimacy MNCs 
gain from society. 
 43 
5.2.1 External Factors 
The external factors which influence the adoption of practice are, as previously mentioned, the 
same factors which Kostova and Roth (2002) found. These are the regulatory, cognitive and 
normative components of the institutional profile. A connection made in the thesis is that the 
institutional profile is the same as the society which grants the legitimacy explained in the 
legitimacy theory (Suchman, 1995). Before an in-depth analysis is made on the legitimacy 
MNCs gain from the different components, an important distinction needs to be made. This 
distinction is based on the interpretation that the regulatory component, as an example, does 
not solely consist of the governments which create the laws and rules it concerns. Several parts 
of a society, which as previously stated are consumers, media, government, employees, 
suppliers, other companies and stakeholders, can take part in the regulatory component by 
having opinions regarding the laws and rules the component concern. 
 Regulatory Component. The regulatory component of a society is directly connected 
to society’s granting of MNCs’ moral legitimacy. Empirical support for this is that the 
interviewed company Nudie Jeans has never encountered any regulatory obstacles in the 
international subsidiaries (Nudie Jeans, personal communication, 8 May 2020). Nudie Jeans’s 
subsidiaries have thus continuously been law-abiding in how they have conducted their CSR 
work. As the interviewee also mentioned, much of their CSR has been voluntary (Nudie Jeans, 
personal communication, 8 May 2020). This further shows evidence of the subsidiaries 
conducting more CSR work than usual or expected by the society, which has resulted in no 
legal sanctions from the societies’ behalf which otherwise be evident if the subsidiaries did not 
follow prevailing laws and rules (Dowling & Pfeffer, 1975). Nudie Jeans’s extra voluntary 
CSR work, then what is expected from society, has also provided Nudie Jeans with the 
opportunity of choosing support from society (without altering operations) when looking to 
establish new business internationally and gaining legitimacy (Nudie Jeans, personal 
communication, 8 May 2020; Suchman, 1995). 
 An additional empirical example of how the regulatory example is directly connected 
to moral legitimacy is the case of Shell’s actions in Nigeria. When Shell encouraged the 
Nigerian military to silence protests of Shell’s operations, which resulted in ”unlawful killings, 
rape, torture, the burning of villages” (Amnesty 2017, paragraph 4), the regulatory component 
of the local and international societies reacted strongly since the values, which are the base of 
moral legitimacy, of human rights were not followed. Shell’s way of acting resulted in Shell 
losing their previously gained and maintained moral legitimacy and receiving legal sanctions 
 44 
because of the criminal offences it committed by indirectly allowing human rights violations 
(Amnesty, 2017). 
 Cognitive Component. The cognitive component concerns how parts of society reflect 
on phenomena (in this case, MNCs’ operations) through their widely shared social knowledge 
and perception of them (Kostova & Roth, 2002). Therefore, according to the conceptual model 
created in the theoretical chapter, is the cognitive component directly connected to cognitive 
legitimacy, since such legitimacy is based on society’s comprehensibility and taken-for-
grantedness of products and services. A company’s existence is, therefore, based upon it (Scott, 
1991; Suchman, 1995). Supporting empirical data is that Nudie Jeans has expanded, and still 
is, in several markets where there are high interest and awareness in CSR. Empirical data show 
that the most important countries for Nudie Jeans are also the countries with the fastest-growing 
interest in sustainability, thus the countries with the highest comprehensibility for sustainable 
business. It would thus not consider several international markets as the most important without 
cognitive legitimacy, as societies’ comprehensibility of Nudie Jeans’s operations have allowed 
the subsidiaries to grow (Suchman, 1995; Nudie Jeans, personal communication, 8 May 2020). 
Without cognitive legitimacy, expanding business will be difficult, and to an extent even 
impossible. With the cognitive components’ cognitive comprehensibility of Nudie Jeans’s 
operations in the international markets, Nudie Jeans could gain cognitive legitimacy by 
choosing its support from societies (Suchman, 1995). 
 An important aspect to highlight about this analysis is that it is based on the findings 
from section 5.1 about the cognitive component’s influence on adoption of CSR practices, 
where some uncertainty existed in the relation between the cognitive component and adoption 
of CSR practices. Therefore, it is essential to mention that this uncertainty also exists in the 
analysis of the cognitive component’s relation to legitimacy. 
 Normative Component. The normative component concerns what parts of society 
believe in, what they value, have an opinion concerning behaviour and which actions should 
be taken by MNCs (Kostova & Roth, 2002). Therefore is, as the conceptual model shows, the 
normative component directly connected to, among two things, pragmatic legitimacy. This 
because pragmatic legitimacy concerns that society’s self-interests are fulfilled (Suchman, 
1995). Empirical support can, for example, be gathered from Nudie Jeans’s discussion about 
societies’ interest in and awareness of the necessity of CSR. The interviewee expressed that 
Germany and Australia are two examples of countries which are remarkably interested in and 
aware of the necessity of CSR (Nudie Jeans, personal communication, 8 May 2020). Nudie 
Jeans has, therefore, made sure the subsidiaries within those societies have emphasised on 
 45 
Nudie Jeans’s unique sustainability profile in the otherwise typical unsustainable industry. 
Nudie Jeans has, in that way, gained pragmatic legitimacy because the societies’ sustainability 
interests and demands have been satisfied. 
 These actions on Nudie Jeans’s behalf, of ensuring societies’ self-interests are fulfilled, 
are furthermore closely related to the grounds of moral legitimacy. This because moral 
legitimacy is gained when the MNC aligns with the moral and cultural standards of the 
approving society (Aldrich & Fiol, 1994; Suchman, 1995). The moral and cultural standards in 
Germany and Australia are, based on the interviewee’s perception of their sustainability 
interests, that companies need to act sustainable during the process of the world trying to 
achieve a sustainable future. By allowing CSR to permeate the business model and operational 
actions, Nudie Jeans has been able to meet those moral and cultural standards of sustainable 
business and, therefore, gained moral legitimacy. In the process of gaining pragmatic and moral 
legitimacy from the normative component, Nudie Jeans can choose support from societies 
(Suchman, 1995). This is derived from the empirical data of Nudie Jeans expressing that 
subsidiaries are chosen to be established in international markets where strong values, beliefs 
and interests prevail in sustainable products (Nudie Jeans, personal communication, 8 May 
2020). 
 Another support for how the normative component is directly connected to pragmatic 
and moral legitimacy is the empirical example of IKEA (Filatotchev & Stahl, 2015). The local 
adoption was noticed and strongly disapproved by international societies (Filatotchev & Stahl, 
2015). Thus, in the pursuit for maintaining legitimacy from a local society, the MNC lost 
pragmatic and moral legitimacy from other international societies as the local adoption resulted 
in practices which did not agree with international societies’ views on CSR; their values and 
beliefs of equality, and interests of including and respecting a social diversity. 
5.2.2 Internal Factors 
The internal factors found to influence the local adoption of practices within MNCs’ 
subsidiaries correspond, as previously mentioned, with the factors mentioned by Kostova and 
Roth (2002). These are the factors within the relational context of parent companies and 
subsidiaries. Since these factors concern an internal relationship within MNCs, no direct 
connection can be made with the legitimacy MNCs gain from society. However, empirical data 
has shown that the outcomes of each factor affect the ultimate choice of local adoption of a 
practice, in other words, the motivations behind practice adoption (like the findings of Kostova 
and Roth (2002)). Thus, a derivation can be made that the internal factors have an indirect 
 46 
connection to the legitimacy MNCs gain from society. This since the ultimate choice of practice 
adoption a subsidiary makes contributes specific operational actions in the subsidiary. The 
legitimacy an MNC gain from these actions is the ultimate response society makes to an MNC. 
Above is the indirect connection the internal factors have with legitimacy. This indirect 
connection makes it difficult to see a clear relationship between the internal factors and the 
strategies of gaining legitimacy. 
5.2.3 Creation of CSR Practices 
Besides the external and internal factors, a new influencing factor on adoption of practice has 
been derived from the empirical data, as previously mentioned. This influencing factor is the 
creation of CSR practices, and it has found to be related to the legitimacy MNCs gain from 
society in two separate ways: when parent companies create CSR practices in cooperation with 
subsidiaries, and when parent companies create CSR practices alone. 
Parent Company and Subsidiaries Create CSR Practice Together. Firstly, as the 
empirical chapter showed and previously discussed upon, CSR practices can be created through 
a cooperative process. The empirics showed that in such a process, the involved parties are the 
parent company, subsidiaries, and the local society, the practice affects (Cruz & Boehe, 2010). 
Due to the involvement of local societies in the decision process, this way of creating CSR 
practices is directly connected to the legitimacy MNCs gain from society through the 
institutional profile. The representation from society creates the connection because an external 
outlook is brought into the decision process. This external outlook contributes with knowledge 
about society which in turn increases the possibility of gaining all types of legitimacy. The 
representatives from society can, for example, contribute with knowledge about which norms 
and values prevail in the society, so that the MNC can gain moral legitimacy; they can 
contribute with knowledge about society’s comprehension of certain products, services and 
practices, so that the MNC can gain cognitive legitimacy; and they receive an opportunity to 
include their self-interests in the CSR practices, to the MNC can gain pragmatic legitimacy. 
This strategy of creating CSR practices requires MNCs to comply with societies when 
wanting to gain legitimacy, as the representatives communicate their expectations of how the 
MNC should act during the decisions-process (Suchman, 1995). In order to gain legitimacy, 
subsidiaries are thus likely to actively adopt the CSR practices without local alterations when 
societies, as previously mentioned, are to a greater extent allowed to participate in the creation 
of CSR practices. 
 47 
 Parent Company Creates CSR Practices Alone. The second strategy found in the 
empirical data is for the parent company to create CSR practices alone before communicating 
them out to the subsidiaries along with practical expectations of how they should be followed 
(Bondy & Starkey, 2014; Mohan & Anupama, 2006; Cruz & Boehe, 2010; Nudie Jeans, 
personal communication, 8 May 2020). This process is, unlike the previous one, indirectly 
connected to the legitimacy MNCs gain from society. Similar to the internal factors, it is an 
indirect connection because the creation process contributes to the ultimate choice of practice 
adoption. Society, in turn, gives a response to the practice adoption through a certain amount 
of legitimacy. Society has, thus, not a direct connection to this creation strategy of CSR 
practices. 
The indirect connection makes it difficult to see a clear relationship between this 
strategy of creating CSR practices and the strategy of gaining legitimacy. However, as 
subsidiaries in some cases need local alterations to practices the parent company creates in 
order to fit their institutional profiles, it is more likely that subsidiaries gain legitimacy by 
complying with the approving society. When the relational context and institutional profile is 
favourable; however, it is more likely that MNCs can choose support within an approving 
society (Suchman, 1995). 
5.3 Amended Conceptual Model 
An amended conceptual model is provided below in figure 2. In addition to the previous 
connections made to legitimacy from the theoretical chapter, this model includes the newly 
found influential factor creation of CSR practices and its connections to legitimacy, as well as 
the newly found indirect connections between legitimacy and internal factors. The lines 
represent direct connections to legitimacy, while the pink boxes represent the factors which are 
indirectly connected to legitimacy. The dotted line represents the uncertain relationship 
between the cognitive component and adoption of CSR practices, which in turn leads to an 
uncertainty in the connection to cognitive legitimacy. 
 48 
 
Figure 2. An Updated Conceptual Model of the Connection Between the Legitimacy Theory and Adoption of 
Practice. 
5.4 Balance Between Global and Local Societies 
Throughout the thesis, societies have been referred to in a local context where they represent 
the subsidiaries host countries. This interpretation of societies was made from the theoretical 
framework, and it was furthermore evident from the empirical data that local societies have a 
significant role in the legitimacy MNCs gain (Nudie Jeans, personal communication, 8 May 
2020; Filatotchev & Stahl, 2015). However, empirical data additionally showed that the local 
society where a practice is adopted is not the sole source of legitimacy. Empirical examples 
showed that international societies could react to an adoption of practice in a local society. 
These examples are the cases of IKEA removing women from the annual catalogue in Saudi 
Arabia, and Shell contributing to human rights violations (Filatotchev & Stahl, 2015; Amnesty, 
2017). In both cases, international societies outside the countries where the practices were 
adopted strongly disapproved of the MNCs’ decisions. Therefore, international societies, or the 
global society as a collective term, affect the legitimacy MNCs gain as well besides local 
societies. This would explain why MNCs, which are more exposed to scrutiny, still receive 
legitimacy and can survive while incorporating global CSR practices without the ability for 
subsidiaries to make local alterations. The global society’s values, beliefs, interests and 
comprehensibility (moreover the foundations for legitimacy) are built on internationally shared 
values, beliefs, interests and comprehensibility between societies. The global society therefore 
grows and evolves when international societies continue to communicate and cooperate, and 
 49 
ultimately become more similar in the aspects mentioned above, i.e. the foundation for 
legitimacy. 
 Because the global society influences legitimacy, MNCs must take into account both 
the legitimacy they can gain from their local societies and the global society as a whole when 
adopting CSR practices. In the decision of adopting a CSR practice, MNCs should analyse 
which legitimacy is ultimately most essential for the company. It must be noted that since all 
cases of adoption are unique, they must be analysed individually. 
 
  
 50 
6 Conclusion 
The purpose of this thesis was to develop a broader understanding of the reasons behind local 
adoption of CSR practices in subsidiaries of MNCs. The intention was to do this by looking 
into the factors influencing CSR practice adoption and the role of legitimacy in adoption due 
to societies’ close connection to CSR. This purpose led to the following research question: 
● How is the local adoption of CSR practices in MNCs related to the legitimacy MNCs 
gain from society? 
The study found the adoption of CSR practices to be influenced by three factors: the internal 
relationship between the parent company and its subsidiaries, the societies’ view on CSR, and 
the creation of CSR practices. The internal relationship was found to be dependent on three 
factors, dependence, trust and identification, which also confirmed the results of a previous 
study by Kostova and Roth (2002). The societies’ view on CSR was found to be based on three 
societal components, regulatory, cognitive and normative, which also confirmed the results of 
the study by Kostova and Roth (2002). Lastly, the creation of CSR practices was found to 
influence adoption of practice in two ways; if the parent company and its subsidiaries create 
CSR practices together, and if the parent company creates CSR practice alone. This finding 
was unique for the thesis, as no previous research within the area has highlighted the same 
influential factor. 
 When studying these influential factors’ relation to the legitimacy MNCs gain from 
society, different patterns emerged of both direct and indirect connections. A direct connection 
states that society through the power of granting legitimacy affects certain factors which 
influence the choice of CSR practice adoption. Findings showed that all components within 
societies’ view on CSR have a direct connection to legitimacy, as well as when the creation of 
CSR practices involves the parent company and subsidiaries creating CSR practices together. 
Conversely, an indirect connection states that society does not have a direct connection with 
the factors influencing the choice of CSR practice adoption. However, the connection is instead 
related by the legitimacy society grants the MNC for its operations when adopting a CSR 
practice in a particular manner. Findings showed that all factors deciding the internal 
relationship between a parent company and its subsidiaries have an indirect connection to 
legitimacy, as well as when the creation of CSR practices involves the parent creating CSR 
practices alone. 
 51 
 An important aspect which became evident during the study is that MNCs can gain 
legitimacy from the global society, rather than solely local societies. The global society consists 
of many international societies which have shared values, beliefs, norms, interests and shared 
cognitive comprehensibility of phenomena. The size of the global society, therefore, grows 
when international societies become more similar in the aspects mentioned above, i.e. the 
foundation for legitimacy. Ultimately, MNCs need to acknowledge if it is with the local or 
global society they want to align their CSR practices.  
6.1 Theoretical Contributions 
Besides the previously mentioned connection between legitimacy and CSR practice adoption, 
an additional factor that influences adoption of CSR practice was found: the creational aspect. 
Since this thesis has not examined specific CSR practices, a generalisation can not be made 
that the creational aspect and the way it affects practice adoption is the same in all sectors nor 
for all types of CSR practices. However, seeing as the empirical findings from MNCs in various 
industries show the same patterns, the possibility can not be discarded, and therefore, an 
analytical generalisation can be made for CSR practices in general.  
Figure 2. An Updated Conceptual Model of the Connection Between the Legitimacy Theory and Adoption of 
Practice. 
 52 
6.2 Managerial Implications 
If prerequisites for legitimacy differ between local societies and the global society, managers 
in MNCs need to consider what society they want to gain legitimacy from when creating CSR 
practices for their subsidiaries to adopt. They must decide if the legitimacy they gain from the 
local society by making appropriate local adoptions compensates for the legitimacy they loose 
from the global society or if the global society’s legitimacy is more important. The perspective 
should be on a case by case basis since different CSR practices are received and perceived 
differently depending on what type of practice it is and the balance between the local and global 
society in the subsidiary country.   
6.3 Future Research 
Since this thesis has examined CSR practices collectively, research is needed on the adoption 
of specific CSR practices at subsidiaries and how they relate to the legitimacy they gain from 
society. This since empirical findings showed that the probability that subsidiaries make local 
alterations vary across different areas of CSR. A suggestion is, therefore, a quantitative study 
where the adoption of distinct practices is examined, with our conceptual model as a theoretical 
framework, in distinct areas of CSR. It is further relevant in the quantitative study to in detail 
examine the creation of CSR practice and how it affects CSR practice adoption, similar to 
Kostova and Roth’s (2002) study, to confirm the findings of the thesis. 
Moreover, differences in legitimacy gained between the local society and the global 
society should be further researched in order to understand differences in the importance of 
where MNCs’ need to gain legitimacy. A possible research idea is to study differences in 
expectations on operations between local societies and the global society. If the values, interests 
and comprehensibility of a local society deviate from the global society, research is needed on 
if the deviations are important to act upon or if the global society is more important regarding 
legitimacy.  
 
  
 53 
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8 Appendix 
8.1 Interview Questions 
● Hur många bolag finns det? 
● Vad gör respektive företag? 
● Var har Nudie Jeans AB kontor/dotterbolag? 
● Har ni kontor på platser där ni inte har upprättat dotterbolag? 
● Vilka dotterbolag/kontor är störst gällande anställda, försäljning? 
● Hur nära kontakt och samarbete har ni som moderbolag med dotterbolagen?  
● Hur självständiga anser ni att dotterbolagen är? 
● Har ni någon uppfattning av hur mycket dotterbolagen identifierar sig med er som 
moderbolag gällande bolagskultur? 
● Hur säkerställer ni att era CSR aktiviteter som är gemensamma följs upp i 
dotterbolagen? Vilken typ av rapportering gör dotterbolagen? 
● Hur mycket ansvarar ni som moderbolag för att implementera CSR globalt? 
● Hur mycket ansvarar ni för att ert CSR-arbete implementeras hos dotterbolagen? 
● Hur mycket ansvar får dotterbolagen att arbeta med CSR anpassat efter deras 
nationella kontext?  
● Uppfattar ni att normativa skillnader mellan er och dotterbolag påverkar CSR arbetet? 
Hur? Vilka är dessa?  
● Uppfattar ni att regelverks-mässiga skillnader mellan er och dotterbolag påverkar 
CSR arbetet?  
● Vilken marknad, där ni har upprättad verksamhet, upplever ni som störst eller 
viktigast? Hur? 
● Hur snabbt har de växt på sina marknader? 
● Är det några marknader ni satsar extra mycket på? Varför, och på vilket sätt gör ni 
det? 
● Var några marknader svårare att ta sig in i? På vilka sätt? 
● Finns det några marknader ni upplever som extra krävande gällande CSR? Isåfall, på 
vilket sätt? 
● Vad upplever ni att det svenska samhället bryr sig mest och minst om gällande CSR?  
 61 
● Vad har ni gjort för att uppmärksamma detta i verksamheten? 
● Upplever ni att ert CSR-arbete påverkar det svenska samhällets syn på hållbarhet? 
● Hur upplever ni att förväntningar inom CSR-arbete från ser ut från de olika utländska 
marknaderna där ni har dotterbolag? Kan du ge exempel från olika länder om vad de 
bryr sig mest och minst om? Hur har ni märkt av dessa förväntningar?  
● Vad har ni och dotterbolagen arbetat för att kunna uppmärksamma dessa lokala 
förväntningar i de utländska verksamheterna? Kan du ge exempel från olika länder?