THE INSTITUTIONAL COMPLEXITY OF BUSINESS SOCIAL RESPONSIBILITY (NATURE, INSTITUTIONS, MECHANISM)

Daniel Frolov, Anna Shulimova

DOI: http://dx.doi.org/10.12775/JPM.2013.001

Abstract


Purpose: Business social responsibility or BSR is strengthened by innovative management and marketing practices of Russian enterprises to form their reputation capital and increase commercial benefits. The reasons of these ones are not able to explain in terms of full rationality. The aim of the paper is to examine nature and specifi city of BSR in institutional logics of the fi rm evolution. Methodology & Approach: The theoretical analyses presented in this paper are based on the tools of modern institutional theory and corporate management. BSR is considered as an institutional form of the compelled adaptation of corporations to growing requirements of civil society and regulators (protective reaction), as marketing technology of strengthening of a brand image (response) and as a way of expansion of norms and practices on counteragents and partners in global supply chains (return reaction). Implications for future research: The paper highlights the puzzling essence of BSR determined political, cultural and other social institutions which have produced exogenous effects on organizational behavior. Better understanding of an economic mechanism of introducing BSR institute into a representative firm accelerates the adaptive process of this transplanted institute. Findings: The system of institutions of the socio-responsible company is detailed. Positive effects, contradictions and the mechanism of social orientation of corporate sector are proved. 


Keywords


business social responsibility; stakeholders; firm expansion; institutions; institutionalization; transplantation

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