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Influence of CSR stakeholders on the textile firms performances:The mediating role of organizational legitimacy

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Listed:
  • Md. Nurun Nabi

    (Department of Business Administration, School of Management, Huazhong University of Science & Technology (HUST), Wuhan, P.R. China)

  • Mst. Marium Akter

    (Department of Business Administration, School of Management, Huazhong University of Science & Technology (HUST), Wuhan, P.R. China)

  • Ahashan Habib

    (Assistant Professor, Department of Management Studies, University of Barisal, Bangladesh)

  • Abdullah Al Masud

    (Associate Professor, Textile Engineering Management Department, Bangladesh University of Textiles, Bangladesh)

  • Subrata Kumer Pal

    (Department of Management, New Government Degree Colleage, Bangladesh)

Abstract

Ready-made garments (RMG) are one of the most critical sectors in the economy of the South Asian region in terms of the labor force employed and export earnings. This research study aims to determine the Corporate Social Responsibility Stakeholders dimension and its influence on textile firms Performance. The study used organizational legitimacy as mediating variable between the CSR stakeholders and firms’ performances. The research study was used in the quantitative analysis approach to determine the cause and effect of the relationship between CSR and Textile firm’s financial and non-financial performance. Though the study collected primary data & secondary data from 250 respondents using survey questionnaires, the researcher obtained secondary data by analyzing the audited annual and sustainability reports of various RMG companies. We have collected data by conducting a focus group interview forming a team of employers, top-level managers, and CSR officers. We asked them all the questions, filled it, tapped it, reserved it for the interpretations. We have surveyed 67 industries, but it enabled us to collect the data from the 50 sectors—the data collected from 2016 April to 2018 December. Our study has some limitations in that the sample size is small compared to the other research. SPSS-23 & MS-Excel were used to analyze the collected data. CSR practices benefitted RMG companies in terms of long-term sustainable development by increasing the firm’s financial and non-financial performance of the RMG sector. Key Words:Corporate Social Responsibility, Financial and non-Financial Performances, Organizational legitimacy, Ready-made Garments (RMG) industry

Suggested Citation

  • Md. Nurun Nabi & Mst. Marium Akter & Ahashan Habib & Abdullah Al Masud & Subrata Kumer Pal, 2021. "Influence of CSR stakeholders on the textile firms performances:The mediating role of organizational legitimacy," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 10(8), pages 25-38, December.
    • Handle: RePEc:rbs:ijbrss:v:10:y:2021:i:8:p:25-38
    DOI: 10.20525/ijrbs.v10i8.1502
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    References listed on IDEAS

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    1. Ali Quazi & Alice Richardson, 2012. "Sources of variation in linking corporate social responsibility and financial performance," Social Responsibility Journal, Emerald Group Publishing Limited, vol. 8(2), pages 242-256, June.
    2. Krishna Udayasankar, 2008. "Corporate Social Responsibility and Firm Size," Journal of Business Ethics, Springer, vol. 83(2), pages 167-175, December.
    3. Yosefa Sayekti, 2017. "The Effect of Slack Resources on Strategic Corporate Social Responsibility (CSR): Empirical Evidence on Indonesian Listed Companies," GATR Journals gjbssr472, Global Academy of Training and Research (GATR) Enterprise.
    4. Tornikoski, Erno T. & Newbert, Scott L., 2007. "Exploring the determinants of organizational emergence: A legitimacy perspective," Journal of Business Venturing, Elsevier, vol. 22(2), pages 311-335, March.
    5. Hao Liang & Luc Renneboog, 2017. "On the Foundations of Corporate Social Responsibility," Journal of Finance, American Finance Association, vol. 72(2), pages 853-910, April.
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