Playing to the audience? Multilevel interactions between stakeholders and institutions around CSR in Bangladesh

Abstract

PurposeWhile corporate social responsibility (CSR) research and practice has expanded and evolved rapidly in recent years, little is known about how MNC subsidiaries develop their CSR strategies and how they reconcile global and local demands and pressures from both institutions and stakeholders. The paper aims to understand how institutions and stakeholder pressures interact at both national and international levels and how these interactions shape MNC subsidiaries' CSR in Bangladesh.Design/methodology/approachMultiple case studies were used to investigate the CSR practices of 10 MNC subsidiaries operating in Bangladesh. To collect data, twenty-one semi-structured interviews were conducted. For supplementing primary data, secondary data from annual reports and websites were collected.FindingsThe article demonstrates that the practice of CSR in Bangladesh is a result of pressures exerted by parent companies, international institutions and international stakeholders. The article reveals how lack of pressure from local stakeholders and institutions enables subsidiaries to gain traction and use their agency to apply globalised CSR conceptualisations not necessarily applicable to the localised context.Originality/valueThe study has synthesised existing approaches to develop a multilevel framework for understanding how the intricate interactions between institutions and stakeholders from different levels (i.e. national and international levels) determine the trajectory of CSR adopted by subsidiaries in developing countries. This interaction undoubtedly plays a key role in determining the types of CSR strategy being enacted, the potential agency of different actors to shape change and the extent to which such pressures are likely to lead to CSR strategies that actually reflect and respond to the needs of local stakeholders.

Foreign ownership, passive‐learning knowledge spillovers, and corporate social responsibility reporting in China

“…Institutional transition in China shapes the relationship between CSR reporting and financial performance (Sun et al, 2019). Pressures from international institutions, international stakeholders, and parent companies promote the practice of CSR in Bangladesh (Roy et al, 2023). Firms with QFIIs from countries with high social awareness are better able to comply with Global Reporting Initiative guidelines (Li et al, 2021).…”

Do stakeholders’ interaction and collaboration influence CSR practice within supplier premises in Bangladesh? A managerial perception study

“…Important to this study is stakeholder multiplicity and the influence of stakeholder interactions (Beringer et al , 2012; Daniluk, 2016; Neville et al , 2011; Neville and Menguc, 2006; Phiri et al , 2019; Roy et al , 2022). Stakeholders with common interests or concerns interact, share resources and form coalitions to gain salience and power to influence a firm’s CSR activities (Aguilera et al , 2007; Frooman, 1999; Soule, 2012).…”

“…However, despite this advancement, there have been limited empirical studies examining the influence of stakeholder interactions and connectedness on CSR, especially in emerging countries such as Bangladesh. Little is known about the interactions between stakeholders that drive, enhance or limit CSR outcomes in developing nations (Phiri et al , 2019; Roy et al , 2022). This study investigates the influence of stakeholder interactions and connectedness on apparel suppliers’ CSR practices in Bangladesh.…”

“…Early CSR research suggests that individual stakeholders such as chief executive officers, international buyers, non-government organisations, the media and government agencies influence CSR practices in Bangladesh (Ahmad et al , 2022; Hossain et al , 2017; Rashid et al , 2020; Roy et al , 2022). The supply chain literature also suggests that each stakeholder group individually influences supplier firms’ CSR (Blome and Paulraj, 2013; Carter and Easton, 2011; Carter and Jennings, 2004; Duarte, 2010; Griffis et al , 2014).…”

“…Despite the Bangladeshi economy experiencing tremendous growth in recent times (World Bank, 2017), the country continues to encounter many social problems impacting workplace health and safety (Ahmad et al, 2022;Haque and Azmat, 2015;Islam et al, 2018Islam et al, , 2021. Second, government reliance on foreign investment creates power asymmetries among the government, international buyers and foreign subsidiaries, preventing the government from implementing essential regulations related to workplace safety (Roy et al, 2022). Third, the Bangladeshi apparel industry represents the world's second-largest apparel supplier (Mirdha, 2016) and is susceptible to global stakeholder concerns due to its unethical treatment of workers (Ahmad et al, 2022;Haque and Azmat, 2015;Islam et al, 2018Islam et al, , 2021.…”