Institutionalizing corporate social irresponsibility within the framework of corporate social responsibility: lessons of corporate advocacy

The research proposition that CSR counteracts CSIR is examined through multiple case studies. The study identifies the functional areas of corporate irresponsible actions that deter multi-stakeholder value. The coexistence of CSIR within the CSR framework evidences the presence of the paradox theory. Organizations’ simultaneous engagement in socially responsible and irresponsible conduct impends business sustainability and communal interest, raising conflict between the company’s mission and behavior. Three distinctive cases of business organizations: manufacturing, hospitality, and the service sector, have been selected to study the existence of CSIR and its interplay with paradox and stakeholder theory. The study findings establish short-term profit maximization strategy significantly stimulates CSIR, distorting the firm’s legitimacy and leading to multi-stakeholder discontent. Governance breaches and lack of business ethics are additional factors that drive CSIR; thus, the benchmarks for accountability standards require attention. The study provides grounds for exploring the motivational factors of CSIR behavior and categorizes incidents across industries that mandate the need for a governance mechanism. The study presents a new perspective on stakeholder theory in the background of CSIR practices and sets the direction of future research.