This study provides evidence on the governance of CSR policies and activities by Indian central government-owned companies [i.e. Central Public Sector Enterprises ] within a unique mandatory regulatory setting. We utilise the multi-level ‘Logic of governance’ conceptual framework and draw upon interview data collected from 25 senior managers in 21 CPSEs to assess the dynamics of CSR implementation within CPSEs. Our findings indicate most managers believe that a mandatory policy has enhanced the accountability and commitment of governing boards and senior (...) management to CSR. However, CSR policy implementation within Indian CPSEs is still nascent, fraught with bureaucratic hurdles, insufficient human and knowledge resources, limited stakeholder analysis and over-emphasis on CSR budget utilisation as an outcome. Several key areas for improvements include the need for better translation of national CSR policy goals to firm-level strategies, more formal assessment of stakeholder needs, clearer communication lines with external service providers, such as NGOs and local government agencies, and the better evaluation of CSR outcomes. The findings of this study have implications for both theory and policy development. (shrink)

Although the literature on corporate social responsibility has discussed the scope and meaning of CSR extensively, confusion still exists regarding how to define the concept. One controversial issue deals with the changing legal status of CSR. Based on a review of CSR definitions and meta-studies on CSR definitions, we find that the majority of definitions leans toward voluntary CSR. However, some recent regulatory amendments toward mandatory CSR have called into question the established idea of CSR as merely a managerial tool (...) of self-regulation. In this paper, we juxtapose the evolution of CSR in India against the scholarly literature discussing voluntary-versus-mandatory CSR to understand the recent shift toward a new conceptualization of CSR as a form of co-regulation that includes elements of both voluntary and mandatory regulation. The Indian Companies Act 2013 is a remarkable example in that it replaced an older version from 1956, taking a bold step toward the integration of voluntary and mandatory aspects in the application of CSR. We present practical implications of the Indian case for businesses and discuss implications for CSR theory development; we particularly consider the evolution of the business and society relationship from a voluntary soft law approach to CSR to an increasingly hard law approach and transitory hybrid forms in-between like soft–hard law and hard–soft law. (shrink)

This article examines how corporate social responsibility (CSR) can serve as an external source of rents for governments that depend on foreign financing for state-building and development. The strategic, instrumental use of CSR has been overlooked in previous research on governments and CSR, especially in the Global South. To understand how CSR can serve as a lever for rents, the concept of “extraversion” is introduced to describe the way in which rent-seeking African governments instrumentalize their asymmetric external relations for political (...) and private benefit. The connection between CSR and rent-seeking is analyzed through a case study of large gas investments in Tanzania. The article finds that the government has set up regulation that enables local and central government authorities to appropriate, mediate, reclaim, or possibly trick CSR practices to gain rents. Based on the study, two contributions are made to the literature on CSR and governments. First, the instrumental use of CSR in the Global South is added to the variety of perspectives that can be taken when studying government agency. Second, CSR is conceptualized as a potential stream of rents for governments to exploit. The article ends with discussing that the outcome of CSR in a rent-seeking environment depends on whether the leveraged resources are managed well to support peaceful and locally beneficial economic development or whether they serve private accumulation through corruption. (shrink)

Business and Society Review, Volume 127, Issue 1, Page 49-68, Spring 2022.

The state is a key driver of corporate social responsibility across developed and developing countries. But the existing research provides comparatively little knowledge about: (1) how companies strategically manage the relationship with the state through corporate social responsibility (CSR); (2) how this strategy takes shape under the influence of political institutions. Understanding these questions captures a realistic picture of how a company applies CSR to interacting with the state, particularly in countries where the state relationship is critical to the business (...) operation. This article draws on political legitimacy as a useful concept to directly address both strategic and politically embedded natures of CSR. This work extends the currently under-specified political implication of the strategic view of CSR and provides fresh insights to the political legitimacy research by specifying a typology of CSR-based legitimacy strategies and its contextual variation. China and Russia are the focal settings. A qualitative analysis of business—state interaction cases is done using a database that contains the majority of CSR reports published in Chinese and Russian as the end of 2009. As a result, this paper identifies four qualitatively different types of CSR-based political legitimacy strategies and reveals how the adoption of these strategies differs across Chinese companies, Russian companies, and multinational corporations. (shrink)

This study examines factors impacting ethical behavior of 208 employees of a Chinese state-owned steel company. Only rules climate had a significant impact on ethical behavior of respondents. Other ethical climate types such as professional, caring, instrumental, independence, and efficiency did not impact ethical behavior of respondents. Ethical behavior of peers, ethical behavior of successful managers, and overclaiming had a significant impact on ethical behavior of subjects.

Employing Porter and Kramer’s corporate social responsibility framework, we explored the strategic CSR programs of two Korean and two Japanese electronics multinational enterprises in Indonesia. We observed that the sample MNEs engage in strategic CSR either through investment in competitive context or the transformation of value chain activities. In addition, these firms strongly favor strategic CSR over responsive CSR, not just because of the economic benefits offered by the former, but also its advantages in managing the programs and communicating with (...) stakeholders. Furthermore, they have developed varied organizational methods and tend to manage their key CSR programs centrally to effectively link them to the competitive strategy. Lastly, the results of our analysis suggest that Korean MNEs have customized their strategic CSR programs for emerging countries more actively than Japanese MNEs. In sum, our analysis elucidates several important features of strategic CSR employed by the MNEs in emerging countries. (shrink)

Cause-related marketing has risen to become a popular strategy to increase business value through profit-motivated giving. Despite the growing number of articles published in the last decade, no comprehensive analysis of the most discussed constructs of cause-related marketing is available. This paper uses an advanced Text Mining methodology to conduct a comprehensive analysis of 246 articles published in 40 different journals between 1988 and 2013 on the subject of cause-related marketing. Text Mining also allows quantitative analyses to be performed on (...) the literature. For instance, it is shown that the most prominent long-term topics discussed since 1988 on the subject are “brand-cause fit”, “law and Ethics”, and “corporate and social identification”, while the most actively discussed topic presently is “sectors raising social taboos and moral debates”. The paper has two goals: first, it introduces the technique of CTM to the Marketing area, illustrating how Text Mining may guide, simplify, and enhance review processes while providing objective building blocks to be used in a review; second, it applies CTM to the C-RM field, uncovering and summarizing the most discussed topics. Mining text, however, is not aimed at replacing all subjective decisions that must be taken as part of literature review methodologies. (shrink)

This paper explores the level of corporate social responsibility contributions disclosed by central public sector enterprises in India. This paper analyses the nature and quality of CSR disclosures made by CPSEs listed in India following the issue of CSR guidelines by the Department of Public Enterprises for CPSEs in March 2010. The purpose of the study is to investigate the impact of CSR guidelines on the reporting practices of the CPSEs. A content analysis of annual reports across seven themes shows (...) that Human Resources and Community Development are the prime focus areas of CSR disclosures, whereas Carbon and Greenhouse Gas emissions are the least reported activity. The disclosures across all CSR themes are primarily narrative rather than quantitative or in monetary terms. The findings of the study may help policy makers in India to assess practices and devise detailed and specific CSRD requirements, rather than the current general mandatory requirements, to enhance the performance and quality of CSRDs by the CPSEs. (shrink)