This paper explains the external factors influencing manufacturing firms to engage in Corporate Social Responsibility (CSR) activities by using a case study approach. Both institutional and stakeholder theoretical frameworks were used for analysis. Along with internal factors, external factors also played a very important role in engaging corporates in socially responsible activities. The main external forces are governmental pressure through various policies and regulations, pressure from Non-Governmental Organizations (NGOs), pressure from civil society and others who are suffering from the negative externalities created by the firm. The findings suggest that HLL Lifecare Limited, a public sector enterprise, is an example of engaging in socially-responsible activities because of governmental policies and laws, which act as the main external factors pressurizing the firm. For a private sector company like Kitex Garments Limited, civil society groups, action council, NGOs and the government are the main external factors influencing the firm to participate in CSR activities. Among the factors, civil society plays a very crucial role, and the company realizes that without the support of the civil society they cannot survive in the long run