This study aims to investigate the impact of institutional diversity on Corporate Social Responsibility (CSR) performance by comparing developed or advanced economies (AEs) with emerging and developing markets (EDEs), using the Varieties of Institutional Systems (VIS) framework (Fainshmidt et al., 2018).
This study combines exploratory analysis and multiple regression to examine the relationship between VIS dimensions and national-level CSR outcomes, based on data from 132 countries for the year 2023, and emphasizes CSR performance as conceptually distinct from national-level ESG metrics.
The results show that in AEs, all institutional dimensions influence CSR performance, though their effects vary. In EDEs, the combination of state institutions and financial system quality emerges as the primary driver. Within AEs, CSR is shaped by financial market mechanisms in liberal market systems and by state institutions and social capital in coordinated market systems. In EDEs, the state remains a critical CSR driver. Political institutions tied to accountability and participation are increasingly decisive across settings, suggesting an evolution in the Varieties of Capitalism framework (VoC). The findings also show that the effectiveness of state-led CSR initiatives depends on state capacity, underscoring the importance of stable, credible governance.
This study advances institutional theory by applying the VIS framework in cross-country CSR analysis, correcting AE bias and extending VoC. It identifies context-specific institutional drivers and a shared foundation, highlighting democratic governance as a global CSR force. Furthermore, strong state capacity enables effective translation of CSR frameworks into corporate action.
