Institutional Theory & Corporate Social Responsibility: A comparative case study on ESG integration, Ethical disclosure and ESG Risk of Unilever and Boohoo

Abstract

Amid the growing demand for transparency in corporate reporting globally, companies started using Corporate Social Responsibility as a strategic mechanism for fostering stakeholder trust and achieving long-term sustainability. This study adopts a comparative case study approach to critically examine how companies are leveraging their CSR narratives to win trust and secure institutional investment. Focusing on Unilever and Boohoo, the research examines the CSR integration and its authenticity with the company’s actual practices. A genuine alignment of CSR with operational conduct exemplifies the creation of social value. Whereas questions posed on the credibility of a company’s ethical claims, public commitments, and social responsibility act as a destroyer of the company’s value. Drawing on Institutional Theory, the research applies normative, coercive, and mimetic pressures to assess the influence of institutional expectations on corporate behaviour. The study employs qualitative methods, analysing secondary data, to explore the relationship between CSR communication, Corporate Governance policies, and actual practices. The study offers critical insights into a transparent integration of CSR into a company’s strategy and operational practices for investors, scholars and regulators interested in CSR accountability. The study followed a case study approach which revealed that Unilever demonstrated substantive CSR engagement whereas Boohoo exhibits symbolic CSR practices. This resulted in higher ESG score and lower ESG risk metrices of Unilever with a positive correlation between their CSR practices and improved corporate financial performance. In Boohoo, despite their policies and efforts to improve ESG rankings, the financial performance has declined over the period of last five years demonstrating the nature of their CSR practices and lack of alignment of the same with operational practices and corporate strategy. The research contributes to the discourse on institutional legitimacy and CSR authenticity offering critical insights for corporations, investors, regulators, and academics interested in transparent CSR practices and integration of the same into corporate strategy and governance.