Multinational Company’s Approach to Emerging Markets—Growth Market Unit of IBM

Abstract

Rapid urbanization has impacted communities and environment equally. Global financial crisis has not only pushed the limits of economic policies of nations but also stressed the need for reviewing and retaining the competitive advantages of nations. The need for sustainable development has gained support both at national and international levels. Increase in economic activities and growth rate in emerging markets had shifted the focus of multinational companies towards emerging markets. This article will review the approach taken by IBM for its market expansion in emerging markets outlining how IBM balanced the competing demands of developed and developing countries by adopting strategic CSR initiatives. Theoretical foundations laid down by analytical and empirical research favor the use of strategic CSR as a competitive advantage which is also evident in its growing adoption by large corporations. Making use of CSR disclosures done by IBM, we draw inferences on how strategic CSR practiced in emerging markets is helping in addressing business needs of IBM as well as social needs of host countries.

The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of Author’s employer.