Ownership structure and corporate social responsibility in an emerging market
- PDF / 793,816 Bytes
- 28 Pages / 439.37 x 666.142 pts Page_size
- 26 Downloads / 254 Views
Ownership structure and corporate social responsibility in an emerging market Sreevas Sahasranamam 1
& Bindu
Arya 2 & Mukesh Sud 3
# The Author(s) 2019
Abstract While scholarship exploring the impact of ownership structure on corporate social responsibility (CSR) has investigated firms in developed markets, less work has examined how ownership in firms from emerging markets influences community-related CSR. Both internal and external forces potentially drive community-related CSR decisions. It is hence important to understand the role of internal constraints arising due to agency problems along with institutional pressures from external stakeholders in emerging markets in shaping CSR. In this study, we draw on agency theory and sociological perspectives of institutions to explore variations in the motivation of different owners to pursue a socially responsible agenda. Our analysis of a sample of Indian firms for the period 2008–2015 illustrates that business group and family ownership is beneficial for community-related CSR. Our theoretical arguments and results highlight the importance of combining multiple lenses to assess the influence of ownership structures on CSR in emerging markets. Keywords Agency theory . Institutional theory . Ownership structure . CSR . Emerging market
Over the past few decades, researchers have been keenly interested in understanding the drivers and consequences of corporate social responsibility (CSR) in firms from emerging markets (Aguinis & Glavas, 2012; Arnold & Valentin, 2013; Jamali & * Sreevas Sahasranamam [email protected] Bindu Arya [email protected] Mukesh Sud [email protected]
1
Strathclyde Business School, , University of Strathclyde, Sir William Duncan Building, Glasgow G4 0GE, UK
2
College of Business Administration, University of Missouri- St. Louis, 1003 SSB Tower, St. Louis, MO 63121, USA
3
Indian Institute of Management Ahmedabad, Vastrapur, Ahmedabad, Gujarat 380015, India
S. Sahasranamam et al.
Karam, 2018). CSR includes ‘explicit’ activities which firms voluntarily engage in to address social problems that go beyond their economic and legal responsibilities, and ‘implicit’ practices dictated by the legal framework they operate in (Matten & Moon, 2008). The international CSR literature focuses on understanding how institutional conditions influence the CSR strategies of firms in emerging markets (Jamali & Neville, 2011; Visser, 2008). Given that diverse institutional pressures in emerging markets can shape the public’s expectations of the scope, scale, and beneficiaries of CSR strategies (Doh & Guay, 2006; Gardberg & Fombrun, 2006; Marano & Kostova, 2016), several researchers rely on sociological perspectives of institutions to better understand how these firms utilize CSR to garner legitimacy with regulators and other stakeholders (Ioannou & Serafeim, 2012; Jamali & Karam, 2018; Jamali, Karam, Yin, & Soundararajan, 2017). The institutional sociological framework emphasizes that coercive (regulatory), normative and mimetic institutional p
Data Loading...
