Corporate social responsibility and stakeholder dialogue under institutional voids: decoupling the role of corporate motives, ethics, and resources

Laura Maria Ferri,Marco Minciullo,Matteo Pedrini

doi:10.1007/s10997-021-09598-2

Laura Maria Ferri, Marco Minciullo + Show 1 more

Open Access

https://doi.org/10.1007/s10997-021-09598-2

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Abstract

The present study aims at further understanding the relationships between Corporate Social Responsibility (CSR) and Stakeholder Dialogue (SD) by exploring whether and how corporate motives for CSR affect the engagement into SD under institutional voids. The study also builds on the vast existing literature discussing the role of institutional mechanisms, analyzing how local ethics influence the vision of stakeholders, and on the resource-based view, highlighting how the availability of resources shapes CSR and SD. The paper discusses the results of a study we ran in Mozambique and which involved 235 domestic and foreign firms operating in the country. Mozambique is an interesting setting to analyze CSR as it is characterized by institutional voids, it has a vibrant economic environment, and it is influenced by Ubuntu ethics. Our findings confirm that under institutional voids corporate motives for CSR influence firms’ commitment to SD, especially with regards to profitability, whereas firm driven by legitimacy reasons resulted in being less involved in activities towards stakeholders. Contrary to previous studies, the study highlights that ethics do not affect SD. Differently, the study support literature on the role of resources in influencing the behaviour of companies towards CSR and SD.

Highlights

Stakeholder dialogue (SD) is “a process in which parties with different interests and values at stake in a particular issue work together toward mutually acceptable solutions” (Perret, 2003: 385)
The study has explored whether and how different motives to corporate social responsibility (CSR) commitment determine different approaches to SD, considering a large sample of 235 local and foreign firms operating in Mozambique
The country has represented an interesting setting for the considered topic, since it is characterized by institutional voids allowing the investigation of firms’ behavior in non-enabling context, and by Ubuntu ethics, which roots firm responsibility in the value of caring of others and commonality as an a-priori moral duty

Summary

Introduction

Stakeholder dialogue (SD) is “a process in which parties with different interests and values at stake in a particular issue work together toward mutually acceptable solutions” (Perret, 2003: 385). Extant research has identified different corporate motives for CSR (Brønn & Vidaver-Cohen, 2009; Santos, 2011), recognizing their fundamental role in firms’ decision to adopt responsible practices. Such motives shape the way firms govern CSR topic (Matten & Moon, 2008) and engage in institutionalized dialogue with their stakeholders (Babiak & Trendafilova, 2011)

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Discussion

Conclusion