The Impact of the Global Crisis on CSR Development: A Study of Small and Family-owned Garment Businesses in Bangladesh

Abstract

Abstract
Corporate Social Responsibility (CSR) has increasingly become a strategic concern for businesses, including small and family-owned businesses in the Ready-Made Garment (RMG) sector of Bangladesh. This study examines how CSR practices in the small and family-owned firms changed during the COVID-19 pandemic, applying Institutional Theory as the primary theoretical lens while incorporating Stakeholder perspectives to enrich the analysis. Building primarily on Institutional Theory, and drawing on Stakeholder perspectives, this study analyses how coercive (regulatory/buyer mandates), normative (societal/cultural expectations), and mimetic (peer imitation) pressures interacted with stakeholder influences to drive CSR adaptation. A qualitative, interpretivist methodology was adopted, utilising semi-structured interviews with 25 owners/managers of Bangladeshi RMG small and family-owned businesses, with data analysed through thematic analysis. Findings reveal that the pandemic significantly intensified institutional pressures, compelling small and family-owned businesses to adapt their CSR practices substantially. Coercive forces drove heightened compliance and formalisation of safety and labour standards. Normative pressures elevated the importance of worker welfare, community support, and transparency, pushing firms beyond minimal requirements. Mimetic pressures led to the adoption of visible CSR initiatives and operational strategies observed in industry peers, particularly under conditions of uncertainty. Overall, the crisis catalysed a notable institutionalisation of CSR, shifting it from an often peripheral or voluntary activity towards a more embedded, strategic function necessary for legitimacy and resilience within these firms. This research contributes by advancing the application of Institutional Theory in crisis/SME contexts, empirically demonstrating the interplay of Institutional and Stakeholder perspectives, and offering needed insights into CSR dynamics within small and family-owned businesses in a developing economy. The findings offer practical implications for small and family-owned businesses managers, policymakers, buyers, and other stakeholders seeking to foster responsible and resilient business practices in global supply chains. Key limitations of this study include its qualitative scope and its focus on a specific sector and crisis event.

Date of Award	27 Mar 2026
Original language	English
Awarding Institution	University of Portsmouth
Supervisor	Rui Yang (Supervisor), Le Bo (Supervisor) & Peter John Scott (Supervisor)