Communication intensity of CSR practices to stakeholders in the global value chains: A comparative study of labor-intensive textile industries

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Abstract

The global value chain (GVC) phenomenon has allowed labor intensive firms to spread their activities across developing and emerging markets with different degrees of institutional voids. The emergence of GVCs has encouraged labor-intensive firms to operate in diverse institutional contexts, heightening the importance of transparent corporate social responsibility (CSR) practices. This paper investigates the intensity and scope of CSR communication among textile companies in two major emerging markets, Pakistan and China, to understand how local institutional environments shape CSR strategies. A content analysis of corporate websites from 14 publicly listed firms (seven from each country) reveals that Pakistani textile companies disclose more CSR information and place greater emphasis on third-party validation of their Chinese counterparts. Conversely, Chinese companies demonstrate a stronger focus on social issues than environmental ones, but communicate such initiatives less thoroughly. These findings suggest that stakeholder pressures, institutional voids, and varying cultural norms can significantly influence both the content and verification of CSR activities. By highlighting how differences in external referents and stakeholder engagement inform CSR communication, this study contributes to the literature on CSR in emerging economies and offers practical implications for managers seeking to bolster global competitiveness. Policymakers and international organizations could further support environment-friendly production ecosystems by promoting standardized CSR reporting frameworks, particularly in labor-intensive sectors exposed to reputational risks and ethical concerns.

Keywords: Corporate Social Responsibility, Communication Intensity, Pakistani and Chinese Textile Industry

Authors’ individual contribution: Conceptualization — S.-ur-R.S., M.M., and Z.S.; Methodology — S.-ur-R.S.; Software — S.-ur-R.S.; Validation — S.-ur-R.S., M.M., and Z.S.; Formal Analysis — S.-ur-R.S., M.M., and Z.S.; Investigation — S.-ur-R.S., M.M., and Z.S.; Writing — Original Draft — S.-ur-R.S.; Writing — Review & Editing — S.-ur-R.S., M.M., and Z.S.; Supervision — S.-ur-R.S. and Z.S.; Funding Acquisition — Z.S.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: F13, F14, F18

Received: 07.08.2024
Revised: 14.02.2025; 12.03.2025; 22.04.2025
Accepted: 02.05.2025
Published online: 14.05.2025

How to cite this paper: Sheikh, S.-ur-R., Mohiuddin, M., & Su, Z. (2025). Communication intensity of CSR practices to stakeholders in the global value chains: A comparative study of labor-intensive textile industries. Corporate Ownership & Control, 22(2), 53–62. https://doi.org/10.22495/cocv22i2art5