Institutional Theory Framework and Perspectives on CSR: A Review.

• In Event: CsR

Abstract

The paper evaluates theoretical perspectives to understand forces that shape Corporate Social Responsibility and its more recent offshoot, sustainability, seen in its diverse forms, i.e., environment, social and economic. New initiatives provide direction to capitalism and address externalities whether inequality and social ills within economic systems or environmental stewardship falling short of what is desirable. In considering the role of CSR, this paper applies institutional theory to present a theoretical framework. The demand for information and nature of value creation are driven by institutional logics of markets, translated by the views of the stockholder and extending to other stakeholders, and by the state. Markets evolve within the regulatory environment presented by the state. Corporations differ in how they approach sustainability strategy. Where corporations are proactive, the stakeholder approach presents opportunity to increase their impact on sustainability. However, for others, regulations tend to constrain negative impacts, but would also limit their role and responsibility. Drawing from these theories, the paper further presents a review of the CSR literature on research questions and propositions that highlight the evolution on the role and perceptions on corporate social responsibility. The shifts are indicated by the new perspectives of management and stakeholders, growing global organizations addressing institutional voids and increased activism that has provided power and visibility to groups that were largely underrepresented in the past. The paper also highlights how CSR developments are constrained by institutional developments at the firm level, and the associated factors that may present challenges to such developments, including relevance and reliability of information

Author

• George Joseph, University of Massachusetts-Lowell