*1.3. Context*

As previously mentioned, the context chosen in this study is Lebanon, a country in the Middle East located on the eastern coast of the Mediterranean Sea. The country is relatively small, covering an area of 10,452 square kilometers. Its population is approximately five million, with almost half of the population living in and around the capital city of Beirut.

Lebanon took independence on 22 November 1943, and formed a government structured as a parliamentary republic. The combination of the power divide between various religious groups and the fourteen years of civil war from 1975 to 1989 destabilized the country and stunted its development. Since the civil war ended with the creation of the "Taef" accord in 1989 Lebanon has been in a reconstruction stage with a primary focus on political, economic, and social structures. In this reconstruction stage, public debt rose to unprecedented levels. The GDP is approximately 45 billion USD, with a growth rate of approximately 0.9% (World Bank 2014), and the public debt-to-GDP ratio is the third highest in the world at 142%. These conditions, coupled with regional instability, have in turn reduced the country's ability to focus on growth and provide fiscal and monetary policies to improve key economic indicators, including stabilization of inflation, growth in GDP, and a reduction in the unemployment rate.

#### *1.4. Non-Governmental Organizations (NGOs) and CSR*

Non-governmental agencies (NGOs) are participating in the international movement for business organizations to implement socially responsible business initiatives. There is a multitude of NGOs that are pushing for socially responsible business; some of these NGOs are active in developing countries and provide guidance to business organizations, and essentially the road map to social responsibility. Examples include the United Nations Global Compact (UNGC), the International Standards Organization with their introduction of (ISO 26000), the Global Reporting Initiative (GRI) with their G4 guidelines, and PRIME organization to name a few.

The significance and influence of the aforementioned organizations are evident in the primary data. Although these NGOs are working in the right direction, some argue that they cannot make a large-scale impact on social problems because they do not have sufficient resources. If we can tap into the resources of large corporations, we will be able to make a large-scale impact (Porter 2013). Policy changes in governments and implementation of hard law initiatives such as mandatory CSR reporting in the European Union are examples of countries taking the first step into 'tapping into this large resource' by changing laws and increasing coercive isomorphic pressures.

## *1.5. Objectives and Theoretical Contribution*

The objective of this study is to make a theoretical contribution to the growing body of research pertaining to social responsibility in developing countries by delineating the underlying institutional factors and related isomorphic pressures, actor motivations, and organizational self-interests that influence organizations to adopt explicit and implicit social initiatives.

A qualitative research design involving a multiple case study was used in this study, with theoretically based propositions to guide the research. This study is grounded in institutional theory, specifically neo-institutional theory, primarily because of its inherent contention that both contextual and institutional environments influence CSR norms and practices.

#### **2. Results**

The high or low position of each variable was determined by the researchers based on the coding of the interviewee's responses. The results of the strategic and operational interviews regarding predictive factors and responses are presented below. The results of the strategic interviews are illustrated in Table 1, and the results of the operational interviews are illustrated in Table 2.

**Table 1.** Results of the strategic interviews.



The results displayed a high degree of consistency in and across cases. The results were analyzed based on the observed patterns within the context of propositions in the conceptual model. The five predetermined themes mentioned earlier are cause, constituents, content, control, and context. The predictive dimensions or observed patterns provided insight into the motivations of internal actors within the context of institutional pressures and responses of the business organizations chosen in the study and were used to verify, modify, or nullify the propositions in the conceptual model.

## *2.1. Results and Analysis, 'Cause' Predictive Factor*

The first institutional antecedent or predictive factor is 'cause' and relates to why the organization is pressured to conform to institutional rules or expectations. The predictive dimensions are legitimacy and efficiency. Legitimacy relates to social fitness and efficiency is related to economic performance. The lower the degree of legitimacy and efficiency attained from conformity to institutional pressures, the greater the likelihood of organizational resistance to institutional pressures (Oliver 1991).

In terms of the operational and strategic responses related to the cause-predictive factor, the themes identified by the responses of Bank 1 and Telecom 1 include both social legitimacy and financial efficiency in their responses; thus, we can conclude that these two dimensions of the cause-predictive factor are high, and the expected response according to Oliver and what is observed in the results is acquiescence or acceding to institutional pressures and implementing CSR.

The conclusions from the operational and strategic responses of Trading Company 1 and Bank 2 conflict with the other two responses. The legitimacy dimension of the predictive factor cause was high, and the financial efficiency dimension was low. This is not specified in the responses of Oliver, and this conflict may be due to the social legitimacy gained by adopting CSR efforts in Trading Company 1, and Bank 2 being viewed as more important than their objective of financial efficiency.

#### *2.2. Results and Analysis, 'Constituents' Predictive Factor*

The second predictive factor is 'constituents'. This relates to who exerts institutional pressure. The predictive dimensions are the multiplicity of constituent demands and the dependence on institutional constituents. Multiplicity relates to the amount of multiple conflicting constituent expectations exerted on an organization. Dependence is related to the degree of external dependence on pressuring constituents. Institutional constituents are the collective normative order of the environment, which includes the government, professional organizations, pressure groups, interest groups, and the general public, which sometimes impose conflicting demands on the organization (Oliver 1991).

The response observed when both the multiplicity and dependence were low in the analysis was acquired. This leads us to the conclusion that internal actor motivations are more powerful than international institutional pressures, instigating CSR use in the chosen cases.

#### *2.3. Results and Analysis, 'Content' Predictive Factor*

The third predictive factor is 'content'. This relates to what norms or requirements organizations are being pressured to conform to. The predictive dimension is consistency of conformity with organizational goals. According to Oliver, when the 'consistence' predictive dimension is high and the 'constraint' predictive dimension is low the expected response is acquiesced. This theme was observed in this study, and we can conclude that the institutional pressures emanating from international sources affect CSR proliferation in developing countries, predominantly in organizations that have the objective of increasing social welfare.

#### *2.4. Results and Analysis, 'Control' Predictive Factor*

The fourth predictive factor is 'control'. This relates to how institutional pressures are exerted, and the predictive dimensions are legal coercion or voluntary diffusion of norms.

According to Oliver, if coercive pressures are low and voluntary diffusion is low, then the anticipated response is 'defy', or not conceding to institutional pressures. The results of the study do not coincide with Oliver's predictive responses because the cases chosen to have an acquiesce response in the face of low coercive pressure from regulative bodies. In view of this weak coercive institutional pressure, we can conclude that voluntary diffusion is the main driver of CSR activity implementation in the cases chosen.

## *2.5. Results and Analysis, 'Context' Predictive Factor*

The fifth predictive factor is 'context'. This relates to the characteristics of the environmental context in which institutional pressure is exerted. The predictive dimensions are environmental uncertainty and environmental interconnectedness. Environmental uncertainty relates to an organization's inability to predict or anticipate future changes; interconnectedness refers to the density of inter-organizational relations among the occupants in the organizational field (Oliver 1991).

In summary, the cause, constituents, and content predictive factors are related to normative pressures. The 'control' predictive factor relates to coercive institutional pressures. The 'context' predictive factor relates to mimetic institutional pressures. According

to Oliver, the lower the level of uncertainty and interconnectedness in an organization's environment, the lower the likelihood of conforming to institutional pressures. In the study, all the responses indicated high 'uncertainty', and high 'interconnectedness', and the results were as predicted by Oliver, which conforms to institutional pressures and implements CSR activities. What is evident in the analysis above is that institutional antecedents and predictive strategic responses are predominantly as indicated in Oliver's (1991) conceptualization, and the strength of internal actor motivations, because even in the absence of coercive pressures, the cases chosen in the study conform to institutional pressures and engage in CSR activities.

#### **3. Materials**

The first part of the literature review categorizes and describes significant theories in the realm of CSR. This illustrates the multiple manifestations and multifaceted view of CSR in the literature. The second part discusses international organizations promoting social business obligations and their role in facilitating CSR proliferation. The purpose of this discussion is to illustrate the mechanics and objectives of growing international organizations influencing the perspectives of policymakers in business organizations in relation to their social obligations.

#### *3.1. Categorization of Corporate Social Responsibility Theories*

Over the years, many attempts have been made to map CSR theories with the primary objective of identifying and categorizing CSR approaches in business organizations. In one study, CSR theories were placed into three categories: ethical, altruistic, and strategic CSR (Lantos 2001). Another study identified three categories of CSR initiatives: ethical responsibility, economic responsibility, and corporate citizenship (Windsor 2006). The most significant empirical study identified four main categories of CSR theory: instrumental, political, integrative, and ethical (Garriga 2021; Garriga and Melé 2004). This is relevant to this study because it facilitates CSR identification in the analysis and discussion of the data in terms of the various manifestations CSR may take within a business organization and provides insight into the intent of business organizations to perform CSR in various forms.

Instrumental theories are tradition-bound. Their primary focus is on using CSR initiatives as a means of profit maximization and shareholder value maximization (Fält and Steffensen 2021). Theories that fit into this category include advocates of using corporate social responsibility to gain a competitive advantage within a competitive context, and as a brand and reputation building tactic (Wang et al. 2021).

Political theories highlight the notion of corporate power and its relationship with responsibility within society (Carroll and Brown 2018). The focus of these theories is the idea that corporations have obligations towards society and markets where the feed and grow. The intent of political theory-based CSR is to ensure that a corporation is a good corporate citizen.

Integrative theories examine how business organizations integrate social demands into their business operations (Garriga 2021; Garriga and Melé 2004). The focus of these theories is to operate businesses in a way that has dual benefits for both business and society. Integrative theories on CSR integration intend to maximize the benefits for all stakeholders internally and externally by integrating the needs of society into business operations. The predominant integrative theories include creating shared value (CSV), corporate social innovation (CSI), stakeholder management, and corporate social performance.

Ethical theories are based on the idea that a corporation should do what is good for society. The focus of these theories is ethics. Ethical CSR theories aim to ensure that businesses operate within a set of ethical guidelines. Prevalent ethical theories include sustainability, supply chain sustainability, stakeholder theory, and the common good approach.

The empirical analysis of CSR theories by Garriga and Melé has important implications in this study because it identifies four primary manifestations of CSR. These categories provide insight into the possible cognitive basis of CSR initiatives undertaken by business organizations and help in the analysis by identifying the various manifestations that CSR may take within an organization.

## *3.2. Theoretical Framework and Conceptual Development*

The focus of this study is to delineate the underlying institutional factors, related isomorphic pressures, and organizational self-interests that influence organizations to adopt and ultimately shape explicit and implicit forms of socially responsible practices practice. The institutional theory perspective is used in this study because its main premise is that to understand the dynamics of organizational change, we must examine the underlying institutional forces at play. In other words, to understand CSR dynamics, we must investigate institutional and social structures and how they affect the behavior of organizations (Berberoglu 2018).

The literature shows that institutional theory embodies a broad domain with many forms and perspectives. Scholars in the field of the institutionalization of CSR view institutional theory as an effective perspective in the analysis pertaining to the proliferation of organizational practice in particular contexts for the analysis of international and local institutional pressures (Alvesson and Spicer 2019; Jain et al. 2017).

In developing countries, culture and societal norms are the primary forces in organizational change (Alvesson and Spicer 2019). Institutional theories complement the subject because they emphasize the primacy of culture and highlight how social structures of resources and meanings are created to have significant effects. Thus, considering the effects of local and global institutions on policymakers in business organizations will help shed light on the isomorphic transformation in the formal structures of business organizations to include explicit and implicit CSR initiatives.

The theory related to CSR, such as the dual conceptualization of CSR, well-grounded conceptualizations of new institutional theory, isomorphic pressures, strategic responses to institutional processes, and the concept of the national business system (NBS), are combined in this study to create a conceptual model with four propositions that will be tested with the objective of gaining insight into the institutional pressures that are driving implicit and explicit CSR adoption by business organizations in a developing country context.

#### *3.3. Theoretical Grounding and Conceptual Model Framework*

This study adopts a multifaceted view in the institutional analysis of implicit and explicit CSR proliferation by considering institutional pressures from global, local, organizational, and internal actor motivations. Both external and internal factors are instrumental in gaining an understanding of the dynamics involved (Alshbili and Elamer 2020).

The institutional pressures from the global context stem from the multitude of global institutions that promote socially responsible business practices by providing guidance to business organizations and essentially providing a road map to social responsibility. The influence of these types of organizations must be considered in the institutional analysis of CSR.

Institutional pressure from the local context includes both formal institutions, such as government, associations, and civil groups, and informal groups, such as religious, cultural, and traditional norms in society (Arena et al. 2018). This institutional framework is best described as the national business system (NBS) which is shaped by historically grown institutional frameworks, which are composed of political, financial, educational, cultural, and labor systems (Arena et al. 2018).

Institutional pressure from the organizational field is important in this study because the recognition of the multitude of actors involved is essential to gain an in-depth understanding of the dynamics relating to the underlying contextual pressures affecting an organization (Charpin et al. 2021).

In the literature, it is evident that internal organizational responses and actor motivation in relation to institutional pressures vary depending on the nature and context of the pressures themselves (Oliver 1991). In 1991, Oliver adapted resource dependency

theory, and institutional theory created a typology of organizational responses to institutional pressures that range from passive conformity to active resistance. These responses are shown in Table A1 It is her contention that organizations are not blind followers of institutionalization and may take many routes in response to institutional pressures, some more active than others, depending on contextual factors and the self-interests internal to the business organization. These institutional factors and the predicted strategic responses are shown in Table A2.

The dual construct of CSR in this study is of prime importance primarily for two interrelated reasons. First, the variables and pressures affecting CSR practices can influence both implicit and explicit CSR activities. Second, including CSR duality in the study will ensure that implicit CSR is not 'lost in translation' across national contexts because implicit CSR in a developing country context may not fall into the explicit CSR framework and may be overlooked.
