How Do Stakeholder Pressures Affect Corporate Social Responsibility Adoption? Evidence from Chinese Manufacturing Enterprises in Ethiopia

Abstract

In today’s globalized world, one of the great challenges for enterprises is integrating CSR adoption into their operations. The study aims to investigate how stakeholder pressure influences the adoption of corporate social responsibility (CSR) practices by Chinese medium and large-scale manufacturing enterprises in Ethiopia. This study used a mixed-methods research approach that includes primary and secondary data sources. The employed research data were analyzed using stakeholder theory, structural equation modeling, and multivariate regression analysis to identify the causal relationship between the stakeholder pressures and CSR adoption. The finding shows that overseas Chinese medium and large-scale enterprises at least have CSR awareness to meet compliance requirements. Comparatively, employees, community, and customers are the most influential and significant factors determining the enterprises’ stakeholder pressure on the CSR engagement. The finding indicates that Chinese enterprises are unrecognized for their CSR contribution due to a lack of public relation in displaying what they display the firms are doing. There is no strong link between Chinese manufacturing enterprises and the regulatory stakeholders to implement inclusive CSR awareness and eliminate conflicts of interest on legal frameworks. The study proposed some recommendations to solve the gaps regarding indifference to CSR adoption, the community’s lack of concern for CSR, and lack of proactive involvement. Government laws are required to legally control unbalanced practices and distorted views, as well as to guide fixing conflicts of interest. These finding are important for enterprises, policymakers, government officials, and local and foreign investors to identify, understand, and use the driving factors of stakeholder pressures on CSR practices.

Stakeholder Salience Analysis in the Policy Formulation of Anti-Violence Against Women and Children

“…The attention given to stakeholders by policymakers is said to depend on factors such as legitimacy, urgency, power, interest, organisational culture, motivation, the mindset of the stakeholder, stakeholder capacity, and organisational leadership. These factors have been discussed in previous studies (Aaltonen & Kujala, 2010;Ackermann & Eden, 2011;Jones, Felps, & Bigley, 2007;Squires et al, 2022;Windsor, 2010;Wosahlo, 2014;Ying, Shan, & Tikuye, 2022). However, this study argues that the anti-violence against women and children policy process is affected by factors such as legitimacy, urgency, power, interest, social norms, awareness, and stakeholder capacity.…”

How Halo Effect Phenomena Works on Financial Performance, Corporate Social Responsibility Disclosure, and Stakeholder Pressure

“…Cho et al, 2019). Research conducted by Ying, (2022) found that stakeholder pressure influences corporate CSR adoption in China. Mawardi (2019) in his research stated that there are two stakeholder groups that play a very important role in supporting CSR activities which will ultimately affect financial performance, namely customer groups and employee groups.…”

Does Government-Led Publicity Enhance Corporate Green Behavior? Empirical Evidence from Green Xuanguan in China

“…Green behavior was largely discussed in the literature on corporate performance [26][27][28][29][30][31], social responsibility, and corporate sustainability [32][33][34][35]. Green actions include green product design [36,37], green production management [38][39][40], green brand promotion [41][42][43], and so on.…”