Corporate Social Responsibility in CEMEX

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Table of Contents

Executive Summary
Introduction
Institutional Analysis
Cultural Analysis
Corporate Social Responsibility
Organisational Structure
Foreign Entry Strategies
Conclusion
Reference List

Executive Summary

CEMEX is a Mexico-based company producing cement, concrete, and other building-related products that have subsidiaries in different regions of the world. CEMEX UK successfully operates in the United Kingdom, but the company’s and its subsidiaries’ activities are greatly influenced by institutions and moderately influenced by cultures in home and host countries. The firm’s corporate social responsibility strategies, organisational structure and foreign entry strategies are affected by political, economic, and legal factors in Mexico and the UK.

These aspects explain why CEMEX’s corporate social responsibility projects are organised according to the principles of sustainability, why a worldwide area structure is followed, and why the path of establishing subsidiaries in the context of the international strategy is selected for entering global markets.

Introduction

CEMEX S.A.B. de C.V. (CEMEX) is a company headquartered in Mexico and specialising in producing different types of building materials, such as ready-mix concrete, aggregates and cement. The company was founded in 1906, and now it has facilities in more than 50 countries globally. According to the company’s data, in 2018, CEMEX had about “92.6 million tons of annual installed cement production capacity”, and cement sales volumes were about 70 million tons (CEMEX, 2019b: p.34). Thus, the company is one of the three world leaders in the industry.

CEMEX’s home country is Mexico that is categorised as a developing country (an emerging economy). One of CEMEX’s host countries is the United Kingdom (an advanced economy), and CEMEX’s subsidiary in the UK is CEMEX UK Limited. The purpose of this paper is to examine how the institutions and cultures of Mexico as a home country and the UK as a host country influence the specifics of corporate social responsibility in CEMEX, its organisational structure and the foreign entry strategy. The information on the competitive advantage (Porter’s Diamond), the management of foreign exchange risks and internationalisation strategies will be provided, and conclusions will be supported by the reference to one more example of a Mexican international company.

Porter’s Diamond of National Competitiveness in Mexico

Michael Porter proposed a model for determining the national competitive advantage: Porter’s Diamond (Figure 1). The main elements of this model, which serve as determinants of the competitive advantage depending on a national environment, are factor endowments, related and supporting industries, demand conditions, and firm structure, rivalry, and strategy (Hill & Hult, 2018). Additionally, the chance and government components have been recently added to the framework.

Factor Endowments

There are basic and advanced factors of production that can influence the progress of a certain industry in a specific national context. In Mexico, the availability of natural resources (basic factors) allowed for the development of the cement and construction industries at the beginning of the 20th century. In the middle part of the 20th century, the improvement of communication infrastructure and facilities, as well as the appearance of a skilled and experienced workforce specialising in cement production, allowed for further progress of the industry depending on advanced factors (CEMEX, 2019e).

By the end of the 1980s, the cement industry in Mexico became actively sponsored because of increased expenditures on public infrastructure (Vargas Hernández & Plascencia, 2017). Currently, there are several successful cement producers in Mexico’s industry, which is explained by the presence of raw and human resources and supporting infrastructure.

Demand Conditions

There is a high demand for cement and concrete in Mexico, which is explained by the active growth of the construction industry. Key consumers of CEMEX’s products are the government and local authorities supervising public projects, actors in the construction industry, and individual buyers. According to CEMEX (2019b), in December 2018, the total construction activity in the country increased by about 1%, and such positive changes are observed each season. Accordingly, there is a continuously high demand for concrete and related products (Cemnet, 2018). Furthermore, the presence of four large competitors in the cement industry and the market of building materials, as well as demanding customers, makes industry leaders integrate innovation in their production processes to address customers’ expectations.

Related and Supporting Industries

The construction industry plays a key role in forming the cement industry in Mexico. Thus, the construction industry is divided into such sectors as public, residential, and industrial and commercial ones (CEMEX, 2019b). The active development of these sectors and investments in their progress at the governmental level led to the associated progress of the cement industry because of the demand for cement and concrete for building different highways, houses, and other facilities. As a result, the cement and construction industry form an economically influential cluster in Mexico, supporting the progress of these related industries.

Firm Strategy, Structure, and Rivalry

In companies operating in the cement industry of Mexico, the management ideology is based on engineers’ performance in leadership positions. Engineering-based industries provide the country with a high percentage of profit annually, and this sphere is actively developed and supported by the national government (Bouhamidi, 2018). Much attention should be paid to high competition between domestic firms performing in the cement industry (CEMEX, LafargeHolcim, Cementos Moctezuma and GCC).

Chance and Government

These factors were added to Porter’s Diamond later to enhance its representativeness in evaluating the national competitive advantage in relation to a specific industry. The Mexican government promotes the development of the cement and construction industries in the country because of their role in completing public construction projects (CEMEX, 2019b). However, governmental policies lead to intensifying the rivalry between domestic actors in these industries. The factor of chance cannot be discussed as directly influencing the progress of the discussed industry in Mexico.

Institutional Analysis

The analysis of institutions and social structures that influence companies’ progress and competition in the markets of home and host countries is important to conclude about external factors affecting firms’ development. In this section, it is important to discuss the aspects of the institutional environments of Mexico and the UK. The details of the institutional theory that guides this analysis should also be provided here.

Theoretical Framework

The institutional theory developed by Paul DiMaggio and Walter Powel in the 1980s is a theoretical basis for institutional analysis. The main idea of this theory is that organisations are significantly influenced by institutions surrounding them in the context of national and social environments because they form a specific social structure (Greenwood et al., 2017). Such institutions as governments, legal bodies, and economic structures impose certain rules and standards on firms making them follow these rules and adapt their business behaviour.

Governmental and regulatory organisations in industries are most influential in this context because firms are expected to address certain guidelines and standards that can significantly restrict their activities (Hill & Hult, 2018). Particular mechanisms that enforce organisations’ behaviour in the context of institutional isomorphism are coercive, mimetic and normative ones (Greenwood et al., 2017). Coercive isomorphism is associated with adhering to regulations and acting accordingly, mimetic isomorphism is related to copying the strategies followed by successful firms in the industry, and normative isomorphism means focusing on professionalisation.

Institutional Analysis of a Home Country

The political system of Mexico is based on a collectivist society and a non-consolidated democracy. The economic system of the country develops according to the path for most emerging economies as it is only at the beginning stage of developing its markets (Ghemawat, 2015). Companies in the country, especially in the cement industry, tend to rely on coercive isomorphism as the industry is subject to environmental laws and other regulations (CEMEX, 2019b). In Mexico, there is a civil law legal system, and contracts are valued (Legal Team Mexico, 2019). The problem is that corruption in the country influences all systems and institutions, decreasing the legitimacy of doing business there.

Institutional Analysis of a Host Country

The political system of the UK is associated with a consolidated democracy and a focus on individualism. Currently, Brexit is the main challenge for businesses operating in the UK that is associated with risks of decreasing sales and profits in the region. The economic system is typical of a developed economy with highly competitive markets. The legal system of the country can be described as a common law system, with strong intellectual property protection and respect for legal norms and rules. The level of corruption in the country is minimal that provides more freedom for developing business there (HSBC, n.d.). The principles of normative isomorphism mainly work in the UK.

Implications on Business

The analysis of institutions in Mexico and the UK indicates that CEMEX is under significant pressure from political and economic institutions, as well as legal regulations in both countries. In Mexico, CEMEX needs to compete in the context of a non-consolidated democracy with a high level of corruption in all spheres, being restricted in activities by environmental laws. To effectively operate in the UK, CEMEX needs to adapt to the principles of normative isomorphism and focus on innovation to succeed in the industry, along with guaranteeing that all operations are realised in accordance with regulations. Furthermore, a risk management strategy should be developed with a focus on overcoming the outcomes of Brexit.

Cultural Analysis

Culture as a complex of people’s values and norms determines their everyday interactions and perception of the world and influences business activities. The factor of culture is extremely important for organisations operating in different cultural contexts because all work-related interactions depend on cultural traditions adopted in a specific context (Hill & Hult, 2018). The influence of home and host cultures on CEMEX is discussed in this section.

Theoretical Framework

Two theoretical perspectives can support visions regarding the role of culture in designing corporate interactions. Firstly, managers need to pay attention to several determinants of culture as a set of values and norms that include the social structure, religion, political philosophy, economic philosophy, education and language (Hill & Hult, 2018). Values and norms are formed by the dominant religion, social structure, politics, economics, education, and language typical of a particular country. For instance, Mexico and the UK significantly differ in their social structures, perceptions of family and business relations, and approaches to political and economic spheres.

The second theoretical model that explains the role of culture in an organisational environment is Geert Hofstede’s model based on comparing countries and their cultures according to such dimensions as power distance, uncertainty avoidance, masculinity/femininity and individualism/collectivism (Hill & Hult, 2018). Power distance explains how society tends to accept people’s inequality in terms of their abilities that influence their vision of hierarchy in society.

Uncertainty avoidance explains how representatives of a certain culture tend to deal with insecurity and ambiguity in their life. Masculinity/femininity accentuates the vision of gender roles’ distribution in organisations. Individualism/collectivism explains how people from different cultures choose to perform as individuals or rely on their fellows.

Cultural Analysis of a Home Country

Hofstede’s analysis of dimensions in relation to Mexico indicates that power distance is an important factor to characterise this society. Mexicans accept the idea that power can be distributed in their society unequally, and they adopt the rules of living in a highly hierarchical society. Furthermore, Mexican society is collectivistic, and all members of a particular group, family, or organisation perceive themselves as dependent on each other (Hofstede Insights, 2019a). People in Mexico also live according to the principles of a masculine society as they pay much attention to their work and build strict corporate cultures.

Cultural Analysis of a Host Country

Referring to Hofstede’s dimensions, one should state that power distance in the UK is minimal, which means the British do not accept inequality in social, intellectual or another status as normal, and they support the vision that all people should be treated equally despite the country’s social and political structure. Furthermore, the British are individualists, and they are not easily ready to work in teams. Society can be characterised as masculine–oriented towards achieving success and realising people’s ambitions (Hofstede Insights, 2019b). Finally, the British are also ready to cope with everyday uncertainties, as they like to overcome challenging situations and explore new horizons in relation to their capacities.

Implications on Business

The cultures of Mexico and the UK are rather different in terms of focusing on power distance and collectivism. CEMEX needed to pay much attention to intercultural management in the UK when establishing its subsidiary there to help employees to accept the principles of teamwork typical of CEMEX’s culture. However, CEMEX managers were more interested in making the company highly competitive in and fitting the UK market, and the culture of the host country was respected and supported to guarantee all employees could realise their potential in the company.

Corporate social responsibility (CSR) is a complex of a firm’s activities oriented towards meeting specific societal goals in terms of supporting communities, decreasing negative effects on the environment, and promoting charity, among others. In the context of its CSR strategy, CEMEX builds “a better future, ensuring our society’s sustainability, wellbeing, and quality of life” (CEMEX, 2019a: p.57). The company develops Community Engagement Plans and promotes dialogue with stakeholders as representatives of CSR Committees. Related theoretical perspectives and the role of institutions and cultures of home and host countries in influencing CEMEX’s CSR should be discussed in detail.

Theoretical Perspectives on CSR

The key theoretical views regarding CSR and the realisation of the associated strategy in a company are the shareholder theory and stakeholder theory of CSR. These models explain the role of shareholders and stakeholders in developing the CSR strategy. According to shareholder theory, actions in the context of CSR should be determined by managers with reference to their potential profit for a company (Hill & Hult, 2018).

The focus should be not only on contributing to a community but also on maximising shareholders’ revenue; therefore, shareholders’ views can influence decisions regarding resource spending in a firm. Stakeholder theory supports the idea that all stakeholders’ opinions and needs are important, and decisions are made to address the interests and ethical rights of not only shareholders but also a wider group of stakeholders, including community members (Hill & Hult, 2018). Nowadays, stakeholder theory is more actively referred to because the CSR strategy grounded in this theory is usually associated with the idea of social benefits and sustainability, and CEMEX follows this model.

CEMEX’s CSR in Mexico and the UK

In Mexico, CEMEX’s CSR programmes include environmental, conservation, and community-oriented projects. In 2018, overall expenditures on environmental projects and the adoption of alternative energy sources in Mexico were $83 million (CEMEX, 2019b). This sum covered the development of the company’s environmental, housing, educational, disaster recovery and sustainability projects to decrease the use of resources, eliminate a negative impact on the environment, and increase well-being in communities (Iturbide, n.d.). In the UK, CEMEX promotes programmes in sustainable construction, restoration, conservation and wildlife management (CEMEX UK, 2019).

The company’s expenditures on maintaining UK landfills in the context of the CSR strategy were more than $167 million in 2018 (CEMEX, 2019b). The difference in CEMEX’s CSR investment in Mexico and the UK can be explained with reference to differences in costs for realising CSR projects in Latin America and Europe and variations in institutional and governmental requirements. Therefore, to adhere to the European CSR and sustainability standards and legal norms, CEMEX needs to invest more in promoting CSR programmes to address community needs in a host country.

Influence of Home and Host Countries’ Institutions

Both home and host institutions influence the activities of CEMEX regarding its CSR, but this impact is different. The environmental laws and regulations influence CEMEX’s CSR in both home and host countries, and the focus is on decreasing energy consumption and air emissions (CEMEX, 2019b). However, in the UK, the impact of legal institutions is more significant because of mandatory reporting of sustainability and CSR activities. In Mexico, CSR reporting is voluntary, but according to CEMEX’s agreement with the Mexican Ministry of Environment and Natural Resources, the company participates in regular environmental audits.

Political uncertainty observed in the UK during the period of 2016-2018 influenced not only CEMEX’s sales in the country but also its CSR strategy that was expected to reflect stakeholders’ interests. In Mexico, the political situation had no particular impact on the company’s CSR during that period. However, changes in the economic environment in both countries had effects on increased costs of CEMEX’s operations, decreased sales, changes in prices, and as a result, CSR programmes (CEMEX, 2019b). Thus, both home and host institutions influence CEMEX’s operations and decisions regarding the CSR strategy requiring annual increases in investments depending on changes in economic and political spheres as well as a legal context.

Influence of Home and Host Countries’ Cultures

The culture of Mexico is characterised as masculine and respecting hierarchy, and CEMEX’s CSR can be discussed as affected in comparison to countries with lower power distance scores. However, the fact that the culture is collectivist has a positive impact on CSR. The culture of the UK has a positive influence on CSR because power distance and uncertainty avoidance scores are low, and executives are interested in contributing to social well-being (CEMEX, 2019c). According to the UK norms, firms’ activities cannot be harmful to individuals, and CEMEX UK pays much attention to adhering to both cultural and legal norms when implementing innovations and IT to make production sustainable.

Conclusion

The analysis of the relationship between institutions and culture of home and host countries and CEMEX’s approach to CSR indicates that institutions have a significant effect on the company’s development and implementation of sustainability-oriented programmes. In both Mexico and the UK, laws and regulations are key motivators for the company to enhance its CSR. Still, the role of cultures is also important in this context as the culture of the UK is oriented towards promoting social well-being and decreasing threats for enterprises, and the collectivist culture of Mexico based on adhering to legal norms also contributes to launching effective CSR projects.

Organisational Structure

The organisational structure of a company can be significantly influenced by the institutions and cultures of home and host countries. The reason is that certain cultural and institutional aspects, such as specifics of the industry and market, can require performing particular roles. Thus, corporate leaders can choose between different types of vertical and horizontal differentiation when determining the most appropriate international division structure for a company.

CEMEX’s Organisational Structure in Internationalising

In CEMEX, international units are headed by executives and managers with reference to a geography-based principle. Thus, the company follows a worldwide area structure, according to which operations in different subsidiaries are regulated by Regional Presidents and Executive Vice Presidents in various countries (Figure 3). CEMEX has subsidiaries in 16 countries and offices and operations in 50 countries (CEMEX, 2019d). This approach allows the company to effectively control operations in different regions of the world when providing national units with more freedom in decision-making. The centralised coordination of operations and activities is realised in the company at the regional level.

Organisational structureю — *Figure 3: Organisational Structure (CEMEX, 2019d).*

Influence of Home and Host Institutions

Political, legal, and economic environments and institutions in Mexico and the UK contributed to making CEMEX focused on both centralised and decentralised decision-making patterns. The economic issues in Mexico make the company rely on centralised decision-making regarding the firm’s financial objectives, expenditures, and shareholders’ interests to determine the sizes of investments in the development of different subsidiaries to support the company’s overall strategy. The strategic decisions regarding operations or problem-solving are centralised (CEMEX, 2019b).

However, subsidiaries in different countries can make independent decisions regarding production and marketing in the context of the major central and regional strategies. Thus, decisions regarding resource distribution, schedules of operations, product and service promotion, recycling, customer relationships, and CSR are delegated to subsidiaries (CEMEX, 2019b). The specifics of the legal, political, and economic environment of Europe explain the necessity of decentralising these discussed practices to address market demands. Still, the centralised coordination of the subsidiary’s activities is typical for the corporate structure and culture of CEMEX.

Influence of Home and Host Cultures

The culture of Mexico as a home country for CEMEX expects a hierarchical organisational structure and centralised decision-making. The reason is that Mexico is characterised by a high score for power distance typical of hierarchical societies. Centralisation associated with focusing on the goals set by heads is also supported by a high score in the area of uncertainty avoidance. A variety of rules and norms adopted in the Mexican society and business environment regulate CEMEX’s activities. Consequently, CEMEX’s organisational structure can be discussed as being representative of a home culture in terms of the centralisation of decisions (Forcadell & Aracil, 2019).

Nevertheless, the elements of the UK culture, as a country with low scores in the areas of power distance and uncertainty avoidance, also influenced CEMEX’s structure to make the overall system a mix of elements typical of both centralisation and decentralisation (CEMEX, 2019b). The reason is that the cultures of Mexico and the UK are extremely different, and leadership in the UK subsidiary was adapted to the needs of the UK industry.

Conclusion

The cultures and institutions of both home and host countries influence the organisational structure of CEMEX that is reflected in its division of units into domestic and regional ones. Referring to the example of the UK, one should state that some extent of decentralisation in decision-making is expected to be applied in CEMEX UK because the culture of the UK differs from the culture of Mexico in terms of power distance and uncertainty avoidance views in addition to views regarding individualism. Although the centralised approach to decision-making is spread with reference to the strategies promoted by the headquarters, the focus on the worldwide area structure allows for maintaining the balance.

One of the main advantages of CEMEX’s worldwide area structure is keeping domestic and international operations at a similar level with reference to the needs of local markets. CEMEX is able to decentralise the operational authority in Europe and other regions to the degree appropriate for the corporate culture while enhancing the localisation strategy.

Foreign Entry Strategies

In the context of foreign entry strategies followed by CEMEX, it is important to focus on discussing its foreign entry mode, the internationalisation strategy and the approach to managing foreign exchange risks. CEMEX started its internationalisation in 1992, and the company entered the UK market in 2005 (CEMEX, 2019e). The details of the foreign entry strategy applied by this organisation will be discussed in this section.

Foreign Entry Mode

CEMEX’s Entry Mode in the UK

Those companies which are oriented towards internationalisation can enter new markets regionally and globally with the help of exporting (as the simplest way), franchising, using a joint venture, and opening a subsidiary. In all countries where CEMEX operates, the company establishes subsidiaries through acquisitions. In 2005, RMC Group was acquired by CEMEX to be able to operate not only in the UK market but also in the European market and become a leader in the sphere of producing cement and ready-mix concrete. Establishing subsidiaries is an effective strategy when a company wants to own all the stocks, control all operations and use resources available to previous owners of a local firm and its facilities (Hill & Hult, 2018).

CEMEX was oriented towards covering RMC Group’s market share, increasing it, using RMC Group’s facilities and resources, and attracting more customers and suppliers. The purpose of entering the UK market with the help of introducing a subsidiary as a result of acquisition was to increase annual production and sales in the UK and European markets, winning the leading position.

Influence of Home and Host Institutions

Political and economic factors in the UK as a host country have a more significant impact on the operations of CEMEX UK. Since 2016, policies and regulations adopted in association with the UK’s decision to withdraw from the European Union have influenced the cement manufacturing industry (CEMEX, 2019b).

Although CEMEX was not a first mover in this industry in the UK, it is a pioneer in establishing vertically integrated sustainable plants in the country. Today, CEMEX effectively opposes negative political and economic impacts, remaining a leader in providing cement, aggregates, ready-mix concrete in the country using innovative technologies. The domestic demand for CEMEX’s products decreased in 2018, but the industrial demand increased, leading to increased sales (FLSmidth, 2018). As a result, in 2018, CEMEX UK performed better than its competitors (Tarmac, Hanson, Aggregate Industries) despite strict environmental regulations adopted in the UK.

Influence of Home and Host Cultures

The UK culture has a critical impact on the performance of CEMEX UK. The path of building a subsidiary as a result of an acquisition helped the company leaders to integrate into the UK culture. Still, as organisational cultures of Mexico and the UK are different, it was important to combine the elements of both cultures when organising the operations at a base of a host-country plant. Later, CEMEX built more plants in the UK and began to adopt the management style to the needs and cultural expectations of the British (CEMEX, 2019b). Today, the majority of employees at CEMEX UK plants and other facilities are British, and this aspect influences the principles of organisational or corporate culture promoted in this firm.

Conclusion

Referring to the data regarding CEMEX’s operations and profits in the UK, it is possible to state that the company successfully selected a foreign entry mode with a focus on utilising the benefits of acquiring local organisations to build subsidiaries in selected markets. The advantages of the chosen mode are in the fact that CEMEX has innovative and profitable wholly-owned facilities in the UK. After entering this market, CEMEX strengthened its position in Europe with a focus on global strategic coordination. However, this strategy for entering the UK market was rather expensive, and the problem is that, during several years after the entry, CEMEX UK did not provide expected revenues (CEMEX, 2019b). The impact of cultural and institutional factors made CEMEX leaders improve their strategy in the UK to win the leading position in the industry.

CEMEX’s Internalisation Strategy

According to Figure 2, there are four strategies selected by organisations for internationalisation: the global strategy, transnational strategy, international strategy, and localisation (multi-domestic) strategy. In this framework, the focus is on pressures for cost reduction and for local responsiveness (Hill & Hult, 2018). Going globally, CEMEX was not aimed to reduce costs, and it did not suffer from pressures for local responsiveness. The key aims of CEMEX in their focus on the global market were to decrease dependence on the Mexican construction industry and serve the needs of both developing and developed economies because of the high worldwide demand for cement and concrete (CEMEX, 2019b; Love et al., 2019).

Therefore, CEMEX follows an international strategy to achieve success when developing its subsidiaries in different countries, including the UK. When CEMEX started realising its international strategy, it had no powerful competitors in developing and developed economies, which contributed to its success and gaining the leadership position in the world. The organisational structure of the firm and the international strategy match, being focused on producing cement and concrete in different regions of the world with minimal customisation to address clients’ universal needs.

Internationalisation strategies — *Figure 2: Internationalisation Strategies (Hill & Hult, 2018: p.435).*

Managing Foreign Exchange Risks

The recent history of fluctuations in exchange currency rates between Mexico and the UK that could influence CEMEX’s operations and financial adjustments is presented in Figure 4. CEMEX follows the strategy of forwarding exchange rates in contracts to address potential problems with fluctuations in rates. Much attention is paid to developing the hedging strategy to address both short-term and medium-term risks (CEMEX, 2019b).

Foreign Exchange Rates

In the context of this strategy, CEMEX regularly adjusts product prices depending on fluctuations in the British Pound Sterling and Mexican Peso exchange rate. The company follows an approach of translating the net assets of operations in the UK into the Mexican currency to predict foreign exchange losses (CEMEX, 2019b; Global Cement, 2019). Still, in 2018, CEMEX did not apply a derivative financing hedging approach to eliminate foreign currency risks depending on forecasting and the application of the foreign exchange forward contracts (CEMEX, 2019b).

Conclusion

The evaluation of the impact of Mexican and UK cultures and institutions on CEMEX’s operations indicates that institutions have a more particular impact on the CSR, organisational structure, and foreign entry strategy than cultures. The most surprising finding of this analysis is that CEMEX succeeded in the global industry following the international strategy when referring only to basic factors according to Porter’s Diamond, and this aspect is explained with reference to the specifics of the industry based on raw material and human resources. Not all international companies from Mexico can follow this path, but FEMSA (a beverage and retail company) uses almost the same strategies.

Thus, the company opened several subsidiaries in Latin American countries, but it follows a global strategy because of a high rivalry in the international market (Hill & Hult, 2018). Much attention is paid to minimising foreign exchange risks through hedging strategies. Therefore, the conclusions made for CEMEX do not apply to all companies in Mexico.

The activities of CEMEX in Mexico are highly regulated by environmental and trade laws; the company needs to address corruption in institutions; the specifics of an emerging economy make it grow internationally to increase profits. Consequently, the selected foreign entry strategy is an international one, and the organisational structure reflects CEMEX’s approach to building subsidiaries in different regions. The CSR strategy in Mexico is oriented towards supporting the community and sponsoring public housing projects according to the principles of a collectivist society. In the UK, political, economic, and legal institutions also significantly influence CEMEX UK’s CSR, structure, and strategies.

CEMEX invests significant resources to guarantee operations in the UK are sustainable, according to environmental laws, and all activities are legal to protect stakeholders’ interests. Recommendations for CEMEX operating globally include further concentrating on implementing innovative technologies at plants in different regions as sustainable and environmentally friendly production is a source of competitive advantage for this firm.

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