Corporate social reporting by MNCs’ subsidiaries in Sri Lanka

This study examines the pressures, barriers and enablers which subsidiaries of multinational companies encounter when engaging in corporate social reporting within a developing country context. The researchers conducted in-depth interviews with eighteen managers across ten subsidiaries in Sri Lanka. The findings show that the subsidiaries are overwhelmingly driven by their need to attain internal legitimacy and conform to formal institutionalised processes for reporting on CSR which act as a barrier against publishing separate social reports in Sri Lanka. The study uncovers a tension between head office reporting requirements and demonstrating accountability for the needs of local stakeholders.

► We study the social reporting practices of MNCs’ subsidiaries in Sri Lanka through the lenses of institutional isomorphism and institutional duality. ► We examine pressures for, barriers to and enablers for social reporting in Sri Lanka. ► We find that subsidiaries’ concern about gaining ‘internal legitimacy’ acts against the publishing of separate social reports. ► We uncover a tension between using reporting guidelines and following MNC reporting requirements as a legitimising exercise and demonstrating accountability for the views and needs of local stakeholders.