The institution-based view concerning the effectiveness of the CSR approach focuses on the strategic responses of the firms.

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The institution-based view emphasizes the strategic responses of firms towards social and environmental issues, including the adoption of CSR practices. It suggests that firms should align their CSR strategies with the expectations of local institutions and stakeholder groups, in order to enhance their legitimacy and improve their operational performance. The institution-based view analyzes how firms respond to external institutional pressures, and how their actions align with societal norms and expectations. It looks at how firms strategically adopt CSR practices to gain legitimacy, reputation, and access to resources, and argues that firms that align their CSR practices with institutional norms in the host country are more effective in achieving their goals. Therefore, the effectiveness of the CSR approach is viewed through a strategic lens in the institution-based view.

The Institution-Based View Concerning the Effectiveness of the CSR Approach