Analyzing CSR Decision‐Making by Multinational Corporations: An Institutional Theory Perspective

Charles Antony Diab and Wendy Stubbs

Corporate Social Responsibility and Environmental Management, 2025, vol. 32, issue 5, 6434-6448

Abstract: In an increasingly globalized world, multinational corporations face rising expectations to demonstrate corporate social responsibility, particularly in developing countries characterized by weak governance and institutional ambiguity. This study investigates how MNCs align global CSR strategies with local institutional pressures in the United Arab Emirates, a unique context that combines rapid economic development within a developing country setting. Drawing on institutional theory and qualitative data from 21 participants across 13 MNCs, the study identifies and compares the internal and external isomorphic pressures: coercive, normative, and mimetic, that shape CSR decision‐making at both headquarters and subsidiary levels. The study offers empirical evidence of the intermingling of isomorphic pressures, expanding upon Dimaggio and Powell's (1983) foundational theory, and challenges the one‐size‐fits‐all model of CSR in the Middle East by demonstrating how subsidiaries actively adapt global standards to fit local contexts. The research provides both theoretical advancements and practical guidance for MNCs navigating CSR strategies in institutionally complex environments.

Date: 2025
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https://doi.org/10.1002/csr.70030

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Persistent link: https://EconPapers.repec.org/RePEc:wly:corsem:v:32:y:2025:i:5:p:6434-6448

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