In various economies, Corporate Social Responsibility (CSR) is gaining increasing importance, with political acceptance playing a vital role in driving businesses to pursue concrete CSR efforts.
Governments in emerging and transitioning economies influence CSR through political liaisons, conveying expectations and pressures to corporations. Firms with political connections are more engaged in CSR initiatives, enhancing their reputation and legitimacy with stakeholders. However, the extent of CSR implementation varies, as companies strategically allocate resources to specific domains while reducing involvement in others to balance costs and perceived legitimacy.
The study highlights that political endorsement has more impact on corporate philanthropy than environmental practices, depending on the context. Policymakers should carefully consider the implications of political support for CSR, and corporations should prepare for the governments’ heightened expectations regarding CSR commitments.