Institutionalisation of sustainability reporting in Pakistan: the role of field-configuring events and situational context

Abstract

PurposeThis paper aims to investigate the role of field-configuring events (FCEs) and situational context in the institutionalisation of sustainability reporting (SR) in Pakistan.Design/methodology/approachThis paper uses insights from the institutional logics perspective and qualitative research design to analyse the interplay of the institutional logics, FCEs, situational context and social actors’ agency for the institutionalisation of SR among leading corporations in Pakistan. A total of 28 semi-structured interviews were carried out and were supplemented by analysis of secondary data including reports, newspaper articles and books.FindingsThe emerging field of SR in Pakistan is shaped by societal institutions, where key social actors (regulators, enablers and reporters) were involved in the institutionalisation of SR through FCEs. FCEs provided space for agency and were intentionally designed by key social actors to promote SR in Pakistan. The situational context connected the case organisations with FCEs and field-level institutional logics that shaped their decision to initiate SR. Overall, intricate interplay of institutional logics, FCEs, situational context and social actors’ agency has contributed to the institutionalisation of SR in Pakistan. Corporate managers navigated institutional logics based on situational context and initiated SR that is aligned with corporate goals and stakeholder expectations.Practical implicationsFor corporate managers, this paper highlights the role of active agency in navigating and integrating institutional logics and stakeholders’ expectations in their decision-making process. For practitioners and policymakers, this paper highlights the importance of FCEs and situational context in the emergence and institutionalisation of SR in developing countries. From a societal point of view, dominance of business actors in FCEs highlights the need for non-business actors to participate in FCEs to shape logics and practice of SR for wider societal benefits.Social implicationsFrom a societal point of view, dominance of business actors in FCEs highlights the need for non-business actors to participate in FCEs to shape logics and practice of SR for wider societal benefits.Originality/valueThis paper focuses on the role of FCEs and situational context as key social mechanisms for explaining the institutionalisation of SR.