In recent years, multinational enterprises (MNEs) have actively developed corporate social responsibility (CSR) strategies to obtain a sustainable competitive advantage in the global market. Up to now a large number of studies have investigated CSR-related issues, but most of them have narrowly focused on the dimensions of interested parties and domestic enterprises. Thus, we analyzed determinants of CSR strategy of MNEs in South Korea, focusing on the institutional environment and the characteristics of their CEOs. We established related hypotheses through literature research and conducted an empirical analysis using the multiple-regression method over the data collected from 100 foreign MNE subsidiaries in South Korea. We found that major relevant determinants of CSR strategy are formal institutions (government policy) and the characteristics of the CEO (religion and academic major). One major implication of this study for academics and policy makers is that both local institutions and CEO characteristics may affect MNE subsidiaries’ CSR strategy.
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