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Promoting Foreign Direct Investment: Corporate Social Responsibility as Signaling Device and Tool for Corporate Governance
Abstract
If audits serve as formidable internal monitoring tools which facilitate corporate governance, and Corporate Social Responsibility has been proven to serve as “an extension of corporate governance”, as well as a signaling device, are both tools not instrumental in promoting Foreign Direct Investment? Through an analysis and evaluation of the literature relating to audits and Corporate Social Responsibility, this chapter aims to investigate the above claim and question on how Corporate Social Responsibility, as “an extension of corporate governance”, as well as a signaling mechanism, could facilitate and promote Foreign Direct Investment.
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