The antecedents of corporate social responsibility versus corporate social irresponsibility : an integration of case study and grounded theory analysis

Abstract

This research sought to explore the antecedents of corporate social responsibility (CSR) and corporate social irresponsibility (CSI) of selected organisations operating in Malaysia. This is in response to the paucity of research on CSI and the continuous focus on CSR despite the suggestion that CSR reporting can potentially be used to cover up CSI. This research examined four selected cases, two local and two foreign organisations operating in Malaysia to generate in-depth descriptions of CSR and CSI practices and explore the internal and external factors that drive the two. Data collection occurred over a period of one and a half year, including document reviews and ten interviews with CSR and non-CSR managers. Constructivist grounded theory analysis guided data analysis. The integrative framework generated from the cross-case analysis explores the contextual drivers of CSR and CSI. Findings lead to the conclusion that internally good governance is a precursor to CSR performance. In addition, CSR is viewed as a strategic tool that helps in promoting organisational CSR and prevents CSI. Particularly, the role of leadership is important for having direct as well as indirect impact in influencing behaviour across the organisation via ethical organisational culture. In the absence of control mechanisms, the role of leadership becomes important in promoting CSR and preventing CSI. Laws, regulations and environmental factors help in the prevention of CSI. However, weak regulatory framework and lack of enforcement in Malaysia provide an opportunity for CSI for both local and foreign organisations. As such, political factors play a critical role in pushing for CSR agenda, especially in the context of developing countries like Malaysia. Socio-cultural factors influence organisational ethical culture and individual values. The adoption and use of technology provide opportunities for CSR adoption and CSI prevention. Moreover, the market performance affects the availability of resources for CSR. In the phase of weak economic performance, the bargaining power of shareholders comes into play where the shareholder's interest takes precedence over that of the others. The data suggest that internal drivers may mediate the relationship between the external environment and organisational CSR and CSI. The study findings have implication for both theory and practice. First, it clarifies the distinction between CSR and CSI. Second, it provides a fresh perspective on the institutional theory by disentangling the external drivers of actual CSR and CSI activities. In particular, the study highlights the role of social media in consumer and civil society activism in preventing CSI. Third, from an internal perspective, the study contributes to normative perspective by elaborating on the role of millennial in driving CSR and preventing CSI. Finally, the study contributes to the growing CSR, CSI literature by inducting an integrative framework of the internal and external drivers of CSR and CSI. Overall, the study attempts to enrich theoretical conversation on the relationship between CSR and CSI.