Institutional Investors and Corporate Social Responsibility (CSR): A Comprehensive Review of Theoretical Frameworks and Empirical Insights
Year: 2024
Type: article
Abstract: In the evolving discourse of Corporate Social Responsibility (CSR), the role of institutional investors stands out as a pivotal area of exploration. This work delves deep into the intricate interplay between these investors and CSR, emphasizing its significance in the modern corporate landscape. Drawing upon the Institutional, Legitimacy, Agency, and Resource-Based View theories, this paper elucidates how societal norms, alignment with societal expectations, and strategic asset perspectives shape corporate behavior toward CSR. In this work, we highlight the diverse strategies and objectives of institutional investors, such as pension funds and hedge funds, and their profound influence on the CSR landscape. Our findings underscore that these investors not only steer corporations toward sustainable actions but also redefine the very essence of corporate responsibility. The conclusions drawn emphasize the need for synergistic regulations and incentives, aligning with the CSR objectives of these influential stakeholders. Furthermore, the significance of this study lies in its potential to guide future research, especially in understanding the nuanced roles of different investor types and their global implications. In summation, this paper offers a comprehensive insight into the institutional investor-CSR dynamic, spotlighting its profound responsibility and potential in shaping the future of corporate sustainability.
Authors: Dan JR Yao, Shuo Wang
Language: English
Subfield: Strategy and Management
Domain: Social Sciences
Open Access status: hybrid
OpenAlex ID: W4401965906