Under pressure: exploring pressures for corporate social responsibility in mutual funds

Abstract

Purpose

This empirical study seeks to understand how mutual fund firms interpret conflicting pressures to conform or differentiate in the context of corporate social responsibility (CSR). Research suggests that organizations engage in practices that conform to industry standards in order to be seen as legitimate members of their industry. Other studies suggest that organizations differentiate themselves in order to compete and outperform their rivals. Pressures for organizational conformity and differentiation are explored in two types of organizations in the mutual fund industry: socially responsible investment (SRI) and non-SRI firms.

Design/methodology/approach

The research is based on qualitative in-depth interviews with twenty-six mutual funds.

Findings

The analysis revealed that pressures for conformity and differentiation were salient among mutual fund executives but emphasized differently for the two types of mutual funds.

Originality/value

The study concluded by suggesting SRI firms use both strategies of conformity and differentiation to amplify the message that they adhere to the values of CSR.

Citation

Putnam Rankin, C. (2021), "Under pressure: exploring pressures for corporate social responsibility in mutual funds", Qualitative Research in Organizations and Management, Vol. 16 No. 3/4, pp. 594-613. https://doi.org/10.1108/QROM-07-2020-2000