Inherited Scepticism and CSR-Washing: Evidence from a Post-Communist Society

Abstract

The sizeable theoretical and empirical literature on corporate social responsibility (CSR) and business ethics in developed economies and Western countries indicates that the topic has attracted significant interest from academics and practitioners. There is, however, less evidence of the practice of CSR and business ethics in non-Western, transition economies, and insufficient attention is paid to the contextual specification and underlying processes that may lead to different versions of CSR. Therefore, this paper examines the practice and sense-making of CSR and business ethics from the perspective of the fertile and under researched post-communist context of Central and Eastern Europe (CEE), in order to join the growing academic debate about the impact of cultural and historical traditions on the practice and sense-making of CSR and business ethics in non-Western contexts. The study adopts a particular focus on the post-communist and under researched context of Bulgaria where CSR is still a relatively new phenomenon. By following an exploratory research design and by collecting qualitative data from 34 executives employed by public and private sector organisations in Bulgaria, the study finds that the local business environment is composed of a complex mix of various institutionalised pressures and challenges that predispose organisations to adopt a particular approach to CSR, ethical misconduct and CSR-washing. As a result, apart from the significant contributions to the CSR literature related to divergence in the practice, understanding and contextualisation of CSR in non-Western countries, the study also adds depth to the emerging literature on CSR-washing, literature on entrepreneurship, business ethics and the challenges of transition economies. The study also offers important contributions for practitioners and policy makers.