Equity Integration in Corporate Social Responsibility: Analyzing Stakeholder, Legitimacy, and Social Activism Dynamics

Background: Today’s rapidly evolving business environment compels the integration of equity into corporate social responsibility (CSR) practices. Considering equitable outcomes and diverse stakeholder interests has surged to the forefront of sustainable and responsible business operations. Despite strides in understanding stakeholder theory, legitimacy theory, and social activism—three foundational CSR theories—a substantial knowledge gap persists regarding their interplay with equity. Methods: This chapter adopts a conceptual methodology to explore the intersection between equity and these crucial CSR theories. We conducted a multidimensional analysis to evaluate these frameworks’ central principles and concepts critically. Drawing from seminal literature and theoretical underpinnings of CSR and equity, we scrutinize the inherent assumptions, key ideas, and implications of stakeholder theory, legitimacy theory, and social activism for fostering equity in business operations. Results: Stakeholder theory underscores the necessity to consider a plurality of stakeholder interests and promotes equity through fostering inclusivity, fairness, and social justice within organizational practices. Legitimacy theory underlines the critical role of conforming to societal norms and values to bolster legitimacy and contribute to equity. Businesses can engender fairness and ethical conduct by aligning their activities with societal expectations. On the other hand, social activism embodies a proactive approach wherein companies voluntarily partake in initiatives that champion equity and social justice, thus effectuating positive societal and community transformations. Conclusions: Integrating equity with stakeholder theory, legitimacy theory, and social activism provides invaluable insights for organizations striving to enhance CSR and propagate equity. By recognizing stakeholder interests, conforming to societal norms, and proactively participating in social change endeavors, businesses can contribute toward crafting a more equitable and sustainable future. This chapter offers an extensive comprehension of these theories’ theoretical underpinnings and practical ramifications, offering a roadmap for organizations navigating the complex terrain of CSR while advocating for equity in their practices. By acknowledging the symbiotic relationship between these theories and equity, businesses can engender meaningful social impact, encourage inclusive and fair practices, and contribute significantly toward societal well-being.