Governance of Mandated Corporate Social Responsibility: Evidence from Indian Government-owned Firms

Nava Subramaniam (), Monika Kansal () and Shekar Babu ()
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Nava Subramaniam: RMIT University
Monika Kansal: Central Queensland University
Shekar Babu: Amrita Vishwa Vidyapeetham

Journal of Business Ethics, 2017, vol. 143, issue 3, No 7, 543-563

Abstract: Abstract This study provides evidence on the governance of CSR policies and activities by Indian central government-owned companies [i.e. Central Public Sector Enterprises (CPSEs)] within a unique mandatory regulatory setting. We utilise the multi-level ‘Logic of governance’ conceptual framework (Lynn et al. Improving governance: A new logic for empirical research, 2001; Lynn and Robichau, J Publ Policy 33:201–228, 2013) 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 (i.e. the social impact of CSR activities). The findings of this study have implications for both theory and policy development.

Keywords: CSR; Qualitative research; Corporate social responsibility implementation; Logic of governance (LOG); Central Public Sector Enterprises (CPSEs); India (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (24)

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DOI: 10.1007/s10551-015-2804-0

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