Institutionalisation of sustainability reporting in Pakistan: The role of field-configuring events and situational context

Purpose: This paper investigates the role of field-configuring events (FCEs) and situational context in the institutionalisation of sustainability reporting (SR) in Pakistan. Method: This paper uses insights from the institutional logics’ perspective and qualitative research design to analyse the interplay of the institutional logics, field-configuring events, situational context, and social actors’ agency for the institutionalisation of sustainability reporting among leading corporations in Pakistan. A total of 28 semi-structured interviews were carried out and were supplemented by analysis of secondary data including reports, newspaper articles, and books. Findings: The emerging field of SR in Pakistan is shaped by societal institutions, where key social actors (regulators, enablers, reporters) were involved in institutionalisation of SR through FCEs. FCEs provided space for agency and were intentionally designed by key social actors to promote SR in Pakistan. The situational context connected the case organisations with FCEs and field-level institutional logics that shaped their decision to initiate SR. Overall, intricate interplay of institutional logics, FCEs, situational context and social actors’ agency has contributed to the institutionalisation of SR in Pakistan. Corporate managers navigated institutional logics based on situational context and initiated SR that is aligned with corporate goals and stakeholder expectations. Originality: This paper focuses on the role of field-configuring events and situational context as key social mechanisms for explaining the institutionalisation of sustainability reporting. Practical implications: For corporate managers this paper highlights the role of active agency in navigating and integrating institutional logics and stakeholders’ expectations in their decision-making process. For practitioners and policy makers this paper highlights the importance of FCEs and situational context in the emergence and institutionalisation of SR in developing countries. From societal point of view dominance of business actors in FCEs highlights the need for non-business actors to participate in FCEs to shape logics and practice of SR for wider societal benefits.