The complexity of stakeholder pressures and their influence on social and environmental responsibilities

Abstract

By applying the stakeholder theory and institutional theory approach, this study aimed to develop a more refined understanding of primary and secondary stakeholder pressure by considering social and environmental responsibility, the role of barriers to adoption as a mediator, and the differences of firm size on social businesses. This research shows that social and environmental values are recognised not as a standard euphemism i.e., as Corporate Social Responsibility would consider but as two separate concepts weighing on different objectives, yet both are recognised as part of their society on which they would thrive. Both primary and secondary stakeholder pressure was analysed separately. A sample of 286 social businesses from Bangladesh was recruited for this study. Structural Equation Modelling and non-parametric tests were used to analyse the data.