Institutional mirror versus substitute: How regulations affect explicit CSR motivation

Research output: Journal contributionsConference abstract in journalResearch

Authors

  • Anna Jasinenko
  • Steven Brieger
  • Patrick Haack
Prior literature proposes two opposing hypotheses of how national regulations could influence CSR motivation. The mirror hypothesis suggests that corporations will be more motivated to invest in CSR if there are strong and well enforced national CSR-related regulations because such institutional settings pressure CSR not only by direct regulations but also with normative pressures important for an organization’s reputation and legitimacy. On the contrary, the substitute hypothesis proposes that there will be more CSR motivation in countries of lax CSR-related regulations because corporations would feel the need to fill the institutional void or to avoid stricter regulations in the future. We apply a multi-method design focusing on the micro-foundations of CSR motivation to further examine and resolve this contradiction. Specifically, we examine how institutional regulations affect individual-level CSR motivation and elaborate on the role of trust in regulating institutions as a crucial psychological variable in this process. We find that explicit CSR motivation is generally high in laxly regulated contexts but can be equally high in stringently regulated contexts if the trust in regulatory institutions is high. With our findings, we underline and clarify the strong role of regulatory institutions on CSR and the crucial role of trust in regulatory institutions in this process. We discuss theoretical and practical contributions for CSR management, the field of business and society, as well as international business.
Original languageEnglish
Article number15588
JournalAcademy of Management Proceedings
Volume2021
Issue number1
Number of pages1
ISSN0065-0668
DOIs
Publication statusPublished - 01.08.2021
Event81st Annual Meeting of the Academy of Management – AOM 2021: Bringing the Strategist Back to Practice: Communication Perspectives on Actorhood in Strategizing - Virtual, Briarcliff Manor, United States
Duration: 30.07.202103.08.2021
Conference number: 81
https://aom.org/events/annual-meeting
https://my.aom.org/program2021/
https://aom.org/events/annual-meeting/past-annual-meetings/2021-bringing-the-manager-back-in-management

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