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

Author

Listed:
  • Ma Ying

    (School of Management, Wuhan University of Technology, Wuhan 430070, China)

  • He Shan

    (School of Management, Wuhan University of Technology, Wuhan 430070, China)

  • Gashaw Awoke Tikuye

    (School of Management, Wuhan University of Technology, Wuhan 430070, China)

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.

Suggested Citation

  • Ma Ying & He Shan & Gashaw Awoke Tikuye, 2021. "How Do Stakeholder Pressures Affect Corporate Social Responsibility Adoption? Evidence from Chinese Manufacturing Enterprises in Ethiopia," Sustainability, MDPI, vol. 14(1), pages 1-23, December.
    • Handle: RePEc:gam:jsusta:v:14:y:2021:i:1:p:443-:d:715763
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    References listed on IDEAS

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    1. Rafał Kowalczyk & Wioleta Kucharska, 2020. "Corporate social responsibility practices incomes and outcomes: Stakeholders' pressure, culture, employee commitment, corporate reputation, and brand performance. A Polish–German cross‐country study," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(2), pages 595-615, March.
    2. Chiou, Chyi-Lun & Shu, Pei-Gi, 2019. "How does foreign pressure affect a firm's corporate social performance? Evidence from listed firms in Taiwan," Journal of Multinational Financial Management, Elsevier, vol. 51(C), pages 1-22.
    3. Carol Newman & John Rand & Finn Tarp & Neda Trifkovic, 2020. "Corporate Social Responsibility in a Competitive Business Environment," Journal of Development Studies, Taylor & Francis Journals, vol. 56(8), pages 1455-1472, July.
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    Cited by:

    1. Haifei Wang & Hongjun Wu & Peter Humphreys, 2022. "Chinese Merchant Group Culture, Corporate Social Responsibility, and Cost of Debt: Evidence from Private Listed Firms in China," Sustainability, MDPI, vol. 14(5), pages 1-18, February.
    2. Yuan Wu & Jin Zhang & Shoulin Liu & Lianrui Ma, 2022. "Does Government-Led Publicity Enhance Corporate Green Behavior? Empirical Evidence from Green Xuanguan in China," Sustainability, MDPI, vol. 14(6), pages 1-32, March.

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