International Corporate Responsibility Series

Volume 4, 2009

A Survey of International Corporate Responsibility

Global Players in the Local Field
Changing Corporate Practices in Response to the Local Culture

For the most part, the primary driver for international businesses in establishing operations in other countries is the reduction of overall operating costs. Host countries, especially developing nations, welcome multinational corporations (MNCs) because of the perceived economic benefits that international businesses can bring to their local communities. Surprisingly, one of the most understudied, under-analyzed, and sometimes even completely neglected factors when international businesses consider setting up shop in other countries is the local culture of their chosen destination country. This paper substantiates the thesis that international businesses should adapt their corporate practices to the local cultures in which they operate to achieve effective and superior business performance. The paper goes further in identifying corporate practices that were adapted or revised by international businesses to respond to the culture of local communities in the Philippines.