Environmental Dilemma? Explicating Stakeholder Engagement in Kenyan Firms

An empirical study on the cushioning effect of corporate social responsibility on the negative impact of COVID‐19 on firm performance

“…According to legitimacy theory, firms engage in CSR to legitimize their presence and be viewed as responsible corporate citizens, gaining approval and recognition in society, which is crucial for their survival and growth (L'Abate et al, 2023; Thompson et al, 2022). Similarly, CSR efforts aimed at stakeholders promote the idea of maximizing stakeholder value, a departure from the traditional focus on shareholder value (Freeman & Reed, 1983; Mungai et al, 2022). From both the legitimacy and stakeholder theoretical point of view, engaging in CSR activities may improve the lot of a firm in the long run.…”

Firm-Level Attributes, Industry-Specific Factors, Stakeholder Pressure, and Country-Level Attributes: Global Evidence of What Inspires Corporate Sustainability Practices and Performance

“…Because they supply the resources and support for the long-term viability of the business [38], the stakeholders are a crucial concern for any organization that wishes to prosper. Likewise, a critical tool that can support corporate sustainability initiatives, especially in emerging countries, is the voice of stakeholders [44], as the stakeholders essentially demand that businesses actively respond to their value offers. As such, we argue that organizations have different stakeholder groups that have a vested interest.…”

“…According to [1], normative pressure is generally exerted by a variety of social actors, including academics, social activist groups, institutional financiers, or the media, and they can force companies to adopt new practices [49]. Mimetic pressure, as argued by [3,44], emanates from competitors due to immense peer pressure, especially when companies imitate the practices of competitors who are usually regarded as role models or industry leaders [1]. Competition-derived pressure aids businesses in developing more effective environmental response strategies [44].…”

“…Mimetic pressure, as argued by [3,44], emanates from competitors due to immense peer pressure, especially when companies imitate the practices of competitors who are usually regarded as role models or industry leaders [1]. Competition-derived pressure aids businesses in developing more effective environmental response strategies [44]. Others noted that when firms operate in a similar industry and provide competing products, they tend to imitate their actions with the replication of said action, resulting in 'homogenization' where everybody performs the same measures [9].…”