Corporate Social Responsibility In India

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Corporate Social Responsibility

Corporate Social Responsibility (CSR) is an activity that has gained momentum among companies, to improve their social image, especially in recent years. Corporate social responsibility has been defined by multiple studies. In this section, we provide a short summary and comparison of the most widely presented versions, followed by an overview of the situation of CSR in India. As defined by the United Nations Industrial Development Organization (UNIDO), CSR is a management concept whereby companies integrate social and environmental concerns in their business operations and interactions with their stakeholders. The World Business Council for Sustainable Development (WBCSD) defines Corporate Social Responsibility
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Corporate social responsibility is 'corporate social actions whose purpose is to satisfy social needs’ (Angelidis and Ibrahim, 1993). The European Commission (2011) has defined CSR as the responsibility of enterprises for their impact on society, which should be company led and supported by public authorities. According to Dahlsrud (2008), there are many available definitions of CSR and they consistently refer to five dimensions. These five dimensions help to provide a social construct to the concept of social responsibility, and mitigate the uncertainty of CSR not having a universally accepted definition. The dimensions are voluntariness, stakeholder, social, environmental and economic. From all the above definitions, certain conclusions can be drawn regarding the elements that define corporate social responsibility. It is inferred that while a company’s direct stakeholders are the major target for their CSR activities, the definition is not only limited to these stakeholders but has now also evolved to involve the local communities, as well as society at large. For the purpose of this study, we will take CSR to be those activities of an organization that are specifically intended to have a positive social, economic and environmental impact on…show more content…
BrØnn and Vrioni (2015) state that it is commonly accepted that cause-related marketing is a communications tool for increasing customer loyalty and building reputation. Along with abiding by policies, if CSR improves the social value of a brand which may further push customers towards purchase, to study the effect of social value on the customer buying decision becomes very vital to its operations. By understanding consumer reactions to CSR, firms can develop CSR strategies that are optimal from not only a normative perspective, but also a business one (Sen and Bhattacharya,
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