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Corporate Social Responsibility In India Management Essay
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Again, the United Nations Industrial Development Organisation (UNIDO) defines Corporate Social Responsibility (CSR) as “a management concept whereby companies integrate social and environmental concerns in their business operations
and interactions with their stakeholders”.
In India, the term corporate social responsibility might be relatively new but the concept is not. It has been there since the earliest times, going back to an age when society itself was in its formative stages.
In this essay we will discuss about Corporate Social Responsibility. After reading this essay you will learn about: 1. Concept of Corporate Social Responsibility 2. Introducing Mandatory CSR under Companies Act, 2013 3. Activities to be Incorporated.
It has been incorporated in various religious laws wherein a part of one's earnings are donated for the benefit of the poor and community welfare. The Hindus call it 'dharmardha', the Muslims 'zakath', the Christians 'tithing', the Sikhs 'dashannt'; call it by whatever name you will, the concept has been imbibed in the society from the very beginning.
Social responsibility of business indicates norms and obligations of decision making authority to take appropriate actions which can protect and improve the welfare of society as a whole along with protecting the interest of business concern
As individuals joined hands to form organizations, the same concept became embedded in the organizations  .
In modern business world, in India, Gandhiji was one of the first persons who had foreseen the problem of social responsibility and spelt out his own philosophy to meet the challenge.
Corporate social-Responsibility (CSR) has been made mandatory under Companies Act, 2013 passed in August 2013 which replaced the 57 years old Companies Act, 1956.
He was a strong advocate of the ideal of Sarvodaya which meant moral as well as material well-being of all sections of the community  . Gandhi's philosophy of trusteeship is similar to the CSR of the modern business world; the Gandhian notion of trusteeship has been followed by the Tatas and Birlas ever since their inception.
The second confusion arises in respect of tax implications of the CSR activities. Whether the CSR spending of certain company will be eligible for tax exemptions or not will be depending on the discretions of related tax authorities
. Similarly, arguments are also made against those companies involved in
CSR activities on our hand but flouting the norms related to environment, labour welfare etc. on the other.
There has been a growing acceptance of the plea that corporations should be responsible to the society. The business enterprise which makes use of the resources of the society and depends on it for its functioning, should contribute to enhance the welfare of the society.
The Companies Bill 2011 provide that Every company having net worth of rupees five hundred crore or more, or turnover of rupees one thousand crore or more or a net profit of rupees five crore or more during any financial year shall constitute a Corporate Social Responsibility Committee of the Borad consisting of three or more directors, out of which at least one director shall be an independent director
Business, being one of the dominant institutions of the present day market-led-economy, wields considerable influence on the resources of the society and plays an important role in the process of socioeconomic and cultural modernization.
The WBCSD is a Geneva-based business association with a membership of some180 international companies from 35 countries, covering more than 20 industrial sectors. Its mission is to promote sustainable development through economic growth
, ecological balance and social progress. WBCSD's free "Corporate Social Responsibility: Making good business sense"
publication provides a process for addressing CSR, including a self-assessment questionnaire. The WBCSD Chronos e-learning tool (mentioned above) is also relevant.
Being organically linked to the wider socioeconomic and cultural system, it cannot distance itself from its commitment to the society, particularly in a developing country like India  .
While talking about corporate social responsibility, socially responsible behaviour comes into play that an individual or a firm has to drive that CSR agenda in that firm.
To contribute to sustainable power development by functioning as a responsible corporate citizen and discharge social responsibilities in the areas of environment protection and rehabilitation.
Socially responsible behaviour has been described as "action that goes beyond the legal or regulatory minimum standard with the end of some perceived social good rather than the maximization of profits." 
The issue of corporate social responsibility become commonplace in the business press and among business and political leaders  and a body of academic literature has also emerged around it  . Indeed, much of the literature on corporate social responsibility has been more descriptive or normative than positivist in tone (eg., Harvard Business School Press, 2003).
For achieving its mission and objective, NTPC formulated specific policies, as delineated in subsequent paras of this note. The policies were formulated to address the issue of corporate social responsibility in a comprehensive and systematic manner
. The Corporate Human Resources Department also formulated the policies on "Facilities to be given to land oustees" whose land is expropriated for setting up the power project; policy on educational facilities for the children of employees
as early as 1980. Further, institutional mechanism like participative forums for employees and environment group were established as early as 1980 itself. Specific guidelines were formulated on Engagement of Contractors workers and staff.
Margolis and Walsh (2003) reviewed this literature from 1972 to 2002 and found that socially responsible corporate behavior was treated as the dependent variable only 15 percent of the time (twenty-two studies).
The Shiksha initiative by Procter and Gamble (P&G) and CRY partnership for educating children in India is a perfect example of such a partnership between a corporate and an NGO. CRY's goal and P&G's altruism to reach out to illiterate children in India and
provide them with the basic right to education resulted in the launch of Shiksha. Shiksha is a part of P&G's global philanthropy
programme 'Live, Learn and Thrive' that focuses on the development of children in need across the globe, specifically in terms of education. Strategically
, P&G has incorporated a part of their contribution to this initiative in the selling price of its products. In 2008, through this initiative, P&G was able to contribute Rs 3.2 crores to CRY and other social partners and influence the lives of
almost 87,000 children across India.
While interest in the causes and consequences of socially responsible corporate actions continues to grow, several issues central to understanding of this phenomenon remain largely unaddressed in the prior literature.
Several major CSR initiatives have been launched in India since the mid-1990s. Among these is the first voluntary code of corporate governance, "Desirable Corporate Governance: A Code", established in April 1998. This was an initiative by the
Confederation of Indian Industry (CII), India's largest industry and business association.
Among these are the role that executives play in formulating and implementing socially responsible policies for their firms. It seems reasonable to expect that the executives who have a positive attitude towards socially responsible activities are more likely to champion the activities in the firms they manage.
Though India is one of the fastest growing economies, socio-economic problems like poverty, illiteracy, lack of healthcare etc. are still ever-present and the government has limited resources to tackle these challenges. This situation has opened
up several areas for businesses to contribute towards
social development. CSR in India has gone beyond merely charity and donations, and has been approached in a more
organized fashion. It has become an integral part of the corporate strategy
. Companies have CSR teams that formulate specific policies, strategies and goals for their CSR programs and set aside budgets to support them.
Having these kinds of executives would always lead a firm to implement socially responsible activities.
More specifically, there is a surprising dearth of research on perceptions or attitudes of executives in the academic literature (Narwal and Sharma 2008).
At community leavel some benefits to society and the General Public are Charitable contributions; Employee volunteer programs; Corporate involvement in community education, employment and homelessness programs
; Product safety and quality
. While at company level itself
it enjoys the benefits of Improved financial performance; Lower operating costs; Enhanced brand image and reputation; Increased sales and customer loyalty
; Greater productivity and quality; More ability to attract and retain employees; Reduced regulatory oversight; Access to capital; Workforce diversity; Product safety and decreased liability.
Literature shows that only a few empirical studies have been made to assess the perception of executives towards CSR both in global and Indian scenario.
An examination of the attitudes of Malaysian managers and executives towards social responsibility and also the extent of socially responsible activities involved, corporate disclosure, and the factors determining the attitude towards social responsibility has been done by Abdul and Ibrahim (2002).
The Ministry of Corporate Affairs has established a National Foundation for Corporate Governance (NFCG). This is a partnership with the Confederation of Indian Industry (CII), the Institute of Company Secretaries of India (ICSI) and the Institute of Chartered Accountants of India (ICAI). The purpose of the National Foundation
for Corporate Governanceis to promote better corporate
governance practices and raise the standard of corporate governance in India towards achieving stability
The results showed that involvement by a business in improving its community's quality of life will also improve long run profitability and that there were significant differences in the attitudes of managers working in banking, telecommunication, manufacturing and construction towards social responsibility.
Global Environmental Management Initiative (GEMI): www.gemi.org GEMI is a U.S.-based organization of companies dedicated to fostering global environmental, health and safety (EHS) excellence through the sharing of tools and information to help
business achieve EHS excellence. Since 1990, GEMI has created tools and provided a forum to help business foster global environmental
, healthy and safety excellence and economic success. GEMI's SD Plannerâ„¢ is a free self-assessment and planning tool that can be customized to suit the
needs of individual companies.
The results also showed that the most influential factor determining the attitude towards social responsibility was family upbringing. The other important factors were traditional beliefs and customs, and common practices in the industry.
The corporation will strive to utilize the ash produced at its stations to the maximum extent possible.
In case of Australian corporate managers, Quazi (2003) studied the relationship between the level of education, training status and religiosity and their perception of corporate social responsibility.
With increasing and widespread commitment of corporate resources to CSR, attention is now shifting to the strategic formulation, implementation, and measurement of the market returns to CSR initiatives. But still a concern to companies is whether
their focus on "doing good," will provide positive returns to their CSR actions. This emphasize the need for better measurement models of CSR that capture and estimate clearly the effects of a company's CSR actions on its stakeholders as well as the nations in which they
It was indicated that managerial commitment to CSR is linked with the acquired qualities of education and training rather than their inherent physical maturity (age). Furthermore, modernity reflected in achievement via hard work, rather than mere belief in luck, determines the pattern of managerial perception of CSR. Religious metaphors seem to influence managers' perception of social commitment suggesting that theology is also an important determinant of the ethical perceptions of Australian corporate managers.
This CSR Committee will formulate the CSR policy and recommend to the Board for undertaking activities to be undertaken by the company. It will also earmark the amount of expenditure to be incurred on CSR activities and will
also monitor the CSR policy of the company and its
These findings have important implications for personnel policies of socially responsive corporations.
The formal adoption of CSR by corporations could be associated with the changing personal values of managers and that there may be an association between different industries, the personal values of the managers who work in them and their commitment to CSR (Hemingway, 2004).
However, there are some gray areas within CSR activities. The first confusion is related to whether an activity comes under CSR or not. Sometimes it is found that the boundary between normal business activities and CSR activities is hazy
Broadly, religious individuals do tend to hold broader conceptions of the social responsibilities of businesses than non-religious individuals. However, this is neither true for all religious groups, nor for all areas of corporate social responsibility (Brammer et al, 2005).
In environmental field, somr benefits such as greater material recyclability; Better product durability and functionality; Greater use of renewable resources; Integration of environmental management tools into business plans
, including life-cycle assessment and costing, environmental management standards, and eco-labeling.
Brammer (2007) further examined the impact of employee perceptions of corporate social responsibility in the community, the importance of gender variation is emphasized and suggested that external CSR is positively related to organizational commitment and that the contribution of CSR to organizational commitment is at least as great as job satisfaction.
Moreover the modalities suggest that the companies identified for mandatory CSR spending will have to constitute a CSR Committee of the Board which will include three or more directors along with at least one independent director
Literature shows that in India, only a few empirical studies, Singh et al. (1980); Krishna (1992); and Reddy (2006) have been made to assess the state of CSR. The corporate community in India has been under severe criticism for its indifferent attitude towards the problems of the common man.
INDIAN PAINT INDUSTRY: Making green more environment friendly.
Its actions, by and large, have proved to be inappropriate to the solution of social problems. Singh et al. (1980) examined these criticisms and found that corporate actions are perceived to be predominantly pure profit maximizing followed by calculative behaviour. While studying the attitudes of managers towards corporate social responsibilities, Krishna (1992) concluded that managers in Indian industry are very much favourable to corporate social responsibility.
The corporate sector has responsibility towards its own business entity, shareholders as well as towards society. Thus every corporate unit must have a responsibility for the upliftment of society which is broadly considered as Corporate Social Responsibility (CSR).
There has been no significant difference in the perception of top and middle level managers on corporate social responsibility. Also, no significant difference is observed in the perception of public and private sector managers on corporate social responsibility.
Government is playing a very significant role in facilitating the formulation and implementation of CSR policies and practices, but when it comes to monitor the activities of CSR by government the companies are against it. They think that the role of government in regulating their CSR activities should be
limited. Proper observing and assessment of such practices can give better results as it will help in finding out the loopholes where the companies are
deficient. CSR holds a very important place in the development scenario of the world today and can pose as an alternative tool for sustainable development.
Reddy (2006) further studied the perception of corporate managers on CSR which revealed that the major drive of CSR in Indian industry is the drive to become good corporate citizen, maintaining social commitment, and improvement in employee relations, etc.
In the FMCG industry, Hindustan Unilever's Limited's (HUL) Project Shakti is a classic case of CSR beyond philanthropy. Project Shakti was initiated by HUL in 2001 to empower and create sustainable livelihoods for the marginalised women in rural India by providing them income-generating opportunities. By collaborating with NGOs and Self Help Groups, these women have not only been able to increase the sales of products and outreach in the economically poor
regions of India, which otherwise is a mundane task, but also generate income and
empowerment for the underprivileged women. Today, HUL's rural sales contribute towards a major chunk of their total sales, making this a highly successful business model, which is in tune with the triple bottom line approach
. Such has been the success that the global arm of HUL now plans to replicate this successful business model at an international level.
The main components of CSR were found to be healthy and safe working environment, value for stakeholders, good environmental concerns, support for community projects and charity. The key stakeholders influencing CSR initiatives were the board members, customers and shareholders.
In the mean time, a number of companies have welcomed the new mandatory CSR Act and they are of the view that this Act will strengthen their CSR initiative and will permit them to continue with such activities genuinely for a longer period.
Most of the managers were of the opinion that CSR is important means for the profitability.
Taking all the previous related research into purview, the researcher decided to analyse the interrelation among the attitude towards CSR, socially responsible behaviour, and their overall effectiveness of implementation keeping in mind that a positive attitude of the executive may definitely tend to a good socially responsible behaviour and the both result in achievement of the firm's success effectively.
Caux Round Table Self Assessment and Improvement Tool (CRTSAIT) www.cauxroundtable.org Founded in 1986, the Caux Round Table is a network of senior business leaders from industrialized and developing nations who recognize that business must take a
leadership role in developing a more fair, free and transparent society. In addition to its Principles for Business, the group has developed the Self Assessment and Improvement Tool to help senior executives and boards of directors address growing expectations for responsible business conduct
. Modelled after the Malcolm Baldrige National Quality Program
, it translates seven general principles for
business into seven assessment categories, and considers company performance within each from seven perspectives.
This study examines how CSR is defined from Indian corporate perspective by looking at the actual notions of CSR that large companies publish on their websites. The study also seeks to analyze the attitude towards CSR among business community across Indian companies as these are the leading factors in development of the country.
Thus CSR is a way through which a company usually attains a balance between economic, social and environmental activities. Thus, spending on CSR by a company is a simple process of giving back to the society in which it is doing its business activity and making
profits for its shareholders sincerely.
The study will first review the literature on corporate perspectives on CSR and socially responsible behaviour and then describe the methodology that underpinned this analysis. The findings and results will then be presented and discussed and finally the implications and conclusions of this study will be addressed.
1.2 The Statement of the Problem
A plethora of research studies, independent commission reports, corporate documentation and global reporting on CSR activities across the world exist. Perhaps the volume of such reports far exceeds the volume of work carried out on any of the organizationally relevant subjects.
Here the term ‘net profit’ shall indicate net profit before tax as per book of accounts and shall never include profits earned from branches outside India. Here CSR reporting will have to be done on an annual basis and that too commencing from the financial year 2014-15.
Despite such phenomenon, there is a lack of uniform consensus among academicians, researchers, practitioners and the Government in general on what constitutes CSR activities, what motivates firms for CSR activities and what are the standard models on CSR practices.
These questions have been answered in scant by few research studies which are being discussed in the succeeding chapters of this study. As such, there is a wider gap existing in understanding CSR programmes of business organizations across the world.
Encouraged by such challenge of addressing the wider gap in researching models of CSR, the present research study is undertaken. A detailed understanding of such gaps can be found in chapter III on review of literature.
Thus, the present study has a five-fold purpose in understanding the new answers of CSR across the world in general and in India in particular. The first purpose of the study is to understand what constitutes the attitude towards CSR held by executives who are directly or indirectly responsible for initiation of CSR activities in their respective companies.
As per section 135 of the Act every company having net worth of Rs 500 crore or more or turnover of Rs 1,000 crore or more or a net profit of Rs 5 crore or more during any financial year will have to spend, in every financial year regularly, at least 2 per cent of the average net profits of the company made during
the three immediately preceding years.
At present, studies are sparse on measuring the attitude of managers towards CSR. It is understood in general that attitude is effective on orientation of the executives which reflects their likes and dislikes they have for CSR activities. Second, it is a well established fact that attitude is very fundamental in determining or influencing behaviours in general and actions in specific. CSR initiatives by the firms are influenced by certain attitudes. One such behaviour is called socially responsible behaviour. It is not sufficient to have a good attitude towards CSR by the executives, on the other hand such a good attitude should transcend into certain actions and behaviours by which society in general and certain stakeholders in specific are benefited. Surprisingly, research directions have not sufficiently pointed at such issues. Finally, evidences also show that there is no standard instrument developed so far to measure executives' attitude towards CSR. On the other hand, there are countless documents exist on accountability issues of CSR. Such documents include Return on Investment reports, Impact Assessment Reports, and Reports to the Government Authorities. However, there seems to be lack of scientific assessment of effectiveness based on the evaluating judgment by the implementers of the CSR and the beneficiaries of the CSR. At both spectra, there exist vast and unexplored gaps.
Thus, this study first addresses adapting a scale on the basis of previous studies for measuring attitude towards CSR held by the executives. This attempt helps further in not only measuring the attitude but aids in exploring the influence of the attitude on various CSR initiatives and quite likely other variables.
Second, the study also attempts to explore to what extent executives are socially responsible in their behaviour. This is done by using a scale to measure such behaviour with the help of the concepts culled from the review of literature. Third, the types of CSR activities being carried out by Indian companies are studied to understand the trends and patterns of such activities. Fourth, the perceived effectiveness of CSR implementation in Indian companies is assessed. Lastly, a model is proposed in this research study. This model includes a set of independent variables (organizational characteristics and personal characteristics of executives influencing their attitude towards CSR) and a set of dependent variables called perceived effectiveness of CSR efforts and the mediating variable called socially responsible behaviour. Fig 1.1 presents the model being proposed and tested.
1.3 The Scope of the Present Study
This study is aimed at an exploration into the attitude of executives towards basic aspects of corporate social responsibility with a view to discovering answers to questions such as:
To what extent executives in Indian industry are having favourable or unfavourable attitude towards corporate social responsibility?
What factors are responsible for acceptance of social responsibility by industry?
What are the areas of priority of social effort?
What are the factors that have influence on the choice of priorities?
Under what conditions will industry be able to undertake and successfully perform social responsibility programs?
Further, the research makes a comparative study of the attitude and responsible behaviour of executives with a view to investigate the influence of the business sector and certain demographic variables on the perceptions of executives. By doing so, it seeks to elicit answers to questions such as:
Is there any significant difference between the attitude towards CSR and responsible behaviour of manufacturing sector executives and service sector executives?
Is there any significant difference between the attitude towards CSR and responsible behaviour among the executives according to their demographic profile?
Do the executives' attitude and responsible behaviour lead to the overall effectiveness of CSR implementation?
1.4 The Objectives of the Present Study
The overall objective of the study is to present a better understanding concerning the attitude of the executives towards CSR in Indian industry. Further, the socially responsible behaviour and its influence on the overall effectiveness are also to be studied. The specific objectives for this study are,
To examine the effect of business sector on the attitudes of executives towards corporate social responsibility.
To assess the effect of demographic profile of executives on the attitude of executives towards corporate social responsibility.
To examine the effect of business sector on socially responsible behaviour of the executives.
To explore the effect of demographic profile on socially responsible behaviour of the executives.
To examine the association of CSR focus areas and type of business sector.
To study the effect of business sector on effectiveness of CSR programmes.
To examine the effect of demographic profile of executives on effectiveness of CSR initiatives.
To explore the relationships among attitude towards corporate social responsibility, socially responsible behaviour and effectiveness of CSR initiatives.
Hypotheses have been formulated from the proposed model. Since the study is exploratory in prime, the hypotheses have been formulated in null form.
H10: Type of business sector does not have significant effect on executives' attitude towards corporate social responsibility.
H20: Executive demographic profile will not have significant effect on attitude towards corporate social responsibility in relation to:
H20a: Gender; H20b: Education level; H20c: Level of management; H20d: Designation; H20e: Work experience.
H30: Type of business sector does not have significant effect on executives' socially responsible behavior.
H40: Executive demographic profile will not have significant effect on their socially responsible behavior in relation to:
H40a: Gender; H40b: Education level; H40c: Level of management; H40d: Designation; H40e: Work experience.
H50: Type of business sector will not have association with CSR focus areas and activities in relation to:
H50a: Health; H50b: Environment; H50c: Agriculture/Microfinance; H50d: HIV/AIDS; H50e: Child Care/Disabled/Women Empowerment; H50f: Education; H50g: Rehabilitation & Resettlement; H50h: Community Development; H50i: Disaster Management.
H60: Type of business sector will not have significant effect on effectiveness of corporate social responsibility initiatives.
H70: Executive demographic profile will not have significant effect on effectiveness of corporate social responsibility initiatives in relation to:
H70a: Gender; H70b: Education level; H70c: Level of management; H70d: Designation; H70e: Work experience.
H80: Relationship between attitude towards corporate social responsibility and effectiveness of corporate social responsibility initiatives will not be moderated by socially responsible behaviour.
1.6 Glossary of Basic CSR-Oriented Terms
CSR is an area that has its own specific terminology that can confuse people who are not initiated. Given that so far no widely accepted "guide to terminology" exists, an attempt is made here to present meanings of certain terms used in this study.
An attitude is a state of mental readiness, organized through experience, exerting a directive or dynamic influence upon the individual's response to all objects and situations with which it is related.
The term charity is used to express the delivery of basic social aid to people in material need (eg. offering food, clothing, accommodation).
It is the ability and willingness of an organization or its representatives to demonstrate the manner in which they handle resources, and the effectiveness of their activities.
The nature of relations between the management of a company, the supervisory board, shareholders and other players. The administration of a company creates a structure through which the goals of the company are set along with the means to reach them and means of evaluating performance..
Support by companies for non-profit organizations or projects through their own philanthropy or corporate foundations. This support can take the form of offering finances, products, material gifts, equipment, information, know-how or even the time of company employees.
The contribution a company can make through responsible business practices to sustainable development.
Corporate social responsibility
This is the overall relationship between a company and all of the other actors concerned-customers, owner-investors, employees, public administration officers, suppliers, competitors, communities, etc. It includes the company's commitment to pursue its economic activities effectively and responsibly towards society and the environment while taking into account the interests of all actors concerned.
Corporate sustainability is a business approach that creates long-term consumer and employee value by not only creating a "green" strategy aimed towards the natural environment, but taking into consideration every dimension of how a business operates in the social, cultural, and economic environment.
This term covers various forms of cooperation between companies and non-profit organizations, which use the interest, time, talent and/or money of employees to the benefit of non-profit activities. This may include employee voluntarism, workplace campaigns, employee donations, matching donations from the company, etc.
Lower level management
The managers at the lowest few levels of the organizational pyramid are classified as lower level management. Typical designation of lower management persons sound like supervisor and junior manager.
Middle level management
It is defined as the group stretching from below division level management down to but not including what may be called in most companies first level supervisory personnel.
Quality of life
Quality of life is the characteristic that makes life desirable. It is a concept related to happiness and suggests that there are objective, widely shared criteria for life quality: freedom amid diverse choices, monopsony in consumption, high preference returns on investment, privacy, role and mobility in harmony with one's own preferences, security, opportunities for self-development, balanced maintenance of diverse life forms, clean environment etc.
It is a means to social accountability. It is a commitment to systematic assessment of and reporting on some meaningful, definable domain of the company's activities that have social impact.
Social benefits represent an addition to the wealth and gain to the society.
They represent a debit or diminution of wealth and terms and attributed directly to the firm and thus are left to be borne by the society as a whole.
These are concerned with the development of human life and resources in the organization of the economy. The achievement of these goals mean broadening the base of human authority and leadership within the corporate system and increasing the level of imagination, sensitivity, strength and responsibility among people who work in the economic order.
It is the direct or indirect effect of any specific corporate action on society or its individual members.
It implies rising corporate behavior up to a level where it is at least in congruence with currently prevailing social norms, values and expectation of performance.
Socially responsible behavior
It is the proactive behaviour of a company or individual in a public setting regardless of the behaviour's legality.
Any individual, group or entity that directly or indirectly influences or is influenced by the activities of a firm or organization. This includes internally concerned actors (such as employees and their families, unions, volunteers) or external actors (clients, customers, suppliers, owners, donors, financial groups, the local community, politicians, professional and academic organizations, environmental groups, the biosphere, the overall population, etc).
Sustainability is defined as a goal for society as a whole where economic development, environmental impact and quality of life are balanced.
Sustainable development is a pattern of resource use that aims to meet human needs while preserving the environment so that these needs can be met not only in the present, but also for future generations.
It is defined as including only corporate level executives and division top management where divisions have relative autonomy.
This doctrine as evolved by Mahatma Gandhi is based on the principle that all people having money or property hold it in trust for society. Society is to be regarded as a donor to the individual and accordingly the latter is required to share part of acquired wealth with the society for mutual benefit. According to this doctrine, business organizations have to be viewed as socioeconomic institutions to be run and owned by trust cooperation with considerably diluted shareholdings.
They are culturally derived normative standards which act as a guide in stating objectives or in the pursuit of goals.
1.7 Proposed Model
There are various models of CSR developed since the last thirty years, and most of them are specifically developed for certain organizations. In this study, a new model of CSR is proposed.
Fig 1.1: Model of CSR
Attitude towards CSR
Socially responsible behaviour
Effectiveness of CSR
This model envisages that attitude is influenced by the organizational and personal characteristics of members of that organization. Organizational characteristics include structure, climate, leadership, power, decision making, interpersonal relations, etc. Personal characteristics include age, gender, education, experience, income, religion, caste, etc. Such attitude towards CSR induces socially responsible behaviour in form of planning and implementing various types of CSR activities. Such activities could eventually be judged effective or ineffective.
Attitudes are the affective and cognitive mindset of the executives with reference to the corporate social responsibility. The affective concerns are to what extent the executives have developed likes and dislikes for the concept of CSR over the years. Whereas the cognitive concerns emphasise the knowledge, understanding, reasoning that the executives have developed about CSR during a period of time. Attitudes produce behavioural manifestations. Such manifestations will reveal whether attitudes are positive or negative. Similarly vice versa, the attitudes determine favourable or unfavourable behaviour (Fazio 1986).
Thus, in this study, the proposed model partially studies the relationship between attitude and behaviour. To be more specific, the attitude towards CSR and socially responsible behaviour of the executives are examined for the nature and extent of relationship. Further, the ongoing CSR activities and the effectiveness of CSR implementation are also assessed. Results in this regard are presented in chapter V.
While the table of contents is a guide to what the thesis contains, some explanation is necessary to guide the reader through the seven chapters and enable him/her to quickly identify areas of particular interest. Following is a summary of the disposition used in this thesis.
Chapter 1: The introduction shall lead to main purpose of the study. It begins with explaining the study's background in order to state the rationale and incentive behind this thesis followed by statement of the problem, scope of the present study, objectives, hypotheses, glossary of CSR terminology, and the proposed model.
Chapter II: In the second chapter, the theoretical framework covers concepts of CSR, socially responsible behaviour and their relationship. First CSR will be defined and its importance will be discussed. The second section will be SRB, its definition and relation with CSR.
Chapter III: A detailed review of research studies on CSR and SRB, synthesis, and summary.
Chapter IV: The methodology and methods used are examined in this section. The data collection and issues such as sample selection, validity, reliability and generalisability are discussed.
Chapter V: The fifth chapter includes data analysis and results consisting of demographic profiles, attitude towards CSR, socially responsible behaviour, CSR programmes, relationship among study variables, and summary.
Chapter VI: In the sixth chapter, discussion and answers to the research questions are provided.
Chapter VII: The final chapter includes conclusions, implications, and suggestions.
In this chapter, an attempt had been made to present the importance of the study explaining the study's background in order to state the rationale and incentive behind this thesis highlighting the attitudes and behaviour of executives towards social responsibility. Further, it also brought to light that the perceptions of executives as an important concept in academic literature have been grossly under-represented either in theory development efforts or in empirical investigations.
The objectives and hypotheses formulated were presented in order to enumerate the directions to the study. A model was also proposed in this research study including a set of independent variables (organizational characteristics, personal characteristics of executives influencing their attitude towards CSR) and a set of dependent variables called perceived effectiveness of CSR and the mediating variable called socially responsible behaviour. A glossary of basic CSR-oriented terms had been presented in order to let people become acquainted with the specific terminology. Finally, the disposition presented gives the readers an opportunity to more easily orientate themselves.
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