Search results

The purpose of this study is to examine how formal and informal institutions play a role in the Iranian context in shaping corporate social responsibility (CSR) policies and practices.

Using a multiple case-study approach combining comparative and cross-sectional methods with semi-structured interviews, primary data was collected from eight corporations that actively participated in CSR activities in Iran. A microanalysis approach was used to examine the meanings and dynamics in the data. Through thematic analysis and pattern-matching techniques, the authors separately examined the roles of formal and informal institutions. Cross-case analysis was used to highlight the cases’ similarities and differences.

This study demonstrates that both formal and informal institutional structures exist in Iran and that both types influence CSR. This study also shows that informal institutions (such as personal values, culture, religion, traditions, charity and philanthropy) play a more explicit role than formal institutions (such as legal regulations and laws) in shaping CSR adoption policies and practices. The results indicate that, among institutions linked to CSR, formal and informal institutions are complementary and potentiate each other in Iran. Nevertheless, compared to formal ones, informal institutions play a more prominent role in shaping CSR policies and practices.

The authors recognize that, although the eight corporations are large, and although they interviewed their key personnel, they do not claim that these findings are generalizable, owing to the qualitative nature of the study and the small number of selected corporations.

This study makes relevant theoretical and empirical contributions. First, it contributes to the growing body of CSR literature that highlights the necessity of linking informal and formal institutions. Although the CSR literature lacks research on informal institutions in developing economies, researchers have yet to push forward and explore how the CSR adoption process works in developing economies that have influential informal institutions.

After working on the assignment questions, the learners can achieve the following learning outcomes: understand the buying behavior towards sustainable products in the context of mindful consumption and product characteristics, appraise the market segmentation and positioning strategy of a sustainable business, understand the application of 5C’s framework for a sustainable business and critically evaluate a new sustainable business’s challenges in the emerging business environment.

Dr Joe Fenn, founder and director of PFoods, with extensive experience in the pharma industry overseas, observed a decline in the consumption of traditional dairy foods. Alternative plant foods come as a savior to people who are lactose intolerant and offer a host of health benefits with low environmental impact. Riding on the waves of veganism and sustainable foods, he saw an opportunity in India. PFoods developed and launched two products, namely, Just Plants (plant-based milk alternative) and Plotein (plant-based protein alternative), in collaboration with scientists at the Indian Institute of Science, a premier scientific institution in India, and PMEDS (PreEmptive Meds), a US-based nutraceutical Company. PFoods launched and pilot-tested Just Plant, a dairy alternative substitute for milk in select reputed organizations in Bangalore. The upcoming challenges for Fenn would be to select the right segment, educate the market and position the product that would resonate well with the target customers.

The case study suits undergraduate and graduate courses such as marketing management, sustainable marketing and sustainable business. The case study can also be used in entrepreneurship management and entrepreneurial marketing courses to introduce the challenges of a sustainable startup. The case study highlights the marketing challenges faced by the disruptive and growing plant-based foods or alternative dairy industry in emerging markets.

Teaching notes are available for educators only.

CSS 8: Marketing.