Comparative Analysis of Organizational Implications on Corporate Social Responsibility

Abstract

This research investigates the correlation between organizational processes and corporate social responsibility (herein after use as CSR) in Pakistan and developed countries. Organizational elements are often classified as either informal or formal. The espousal of CSR by businesses is influenced by a mix of official and informal organizations in a given jurisdiction, which determine the extent to which businesses adhere to appropriate governance practices. Corporate regulation in Pakistan is significantly affected by external sources, particularly the British common law. In contrast, the organizational realities lead to significantly divergent results in the two jurisdictions. This research investigates the impact of both formal and informal organizations on corporate social responsibility (CSR) disclosures. Specifically, it explores how firms disclose their CSR activities in response to regulatory requirements, cognitive demands that aid in correctly understanding and interpreting these practices, and cultural norms that reinforce adopting such policies. The annual reports of eight publicly traded corporations from each nation were analysed using quantitative content analysis. Both entities have reporting and disclosure processes. The relevant reporting business documented the underlying organizations as being recognised, acknowledged, or inferred. The findings indicated that Pakistani corporations provide greater disclosure about corporate social responsibility (CSR) than the companies analysed in New Zealand. This outcome is described by the newly formulated “Corporate governance norms” by the “Securities and Exchange Commission of Pakistan” (wherein after known as SECP). The informal national organizations significantly influence the inequality of disclosures in both nations. It should be noted that New Zealand-listed firms do not do, as well as those in Pakistan in terms of their involvement in CSR projects. However, the disclosure levels between the two countries are more favourable towards companies in Pakistan.