Corporate Social Responsibility: An Innovation to a Strategic Business Success- An Empirical Study

1. Corporate Social Responsibility: An Innovation to a Strategic Business Success- An Empirical Study 1Dr. Bernadette D’Silva, Director, Smt K. G. Mittal Institute of Management, Mumbai, 2Dr. Stephen D’Silva, Director, (JBIMS) Jamnalal Bajaj Institute of Management Studies- Mumbai. 3Miss Roshni Bhuptani, Faculty at Smt K. G. Mittal Institute of Management, Mumbai

2. CSR: An Introduction • CSR has been defined much more in terms of a philanthropic model • Continuing commitment by business to behave ethically and contribute to economic development

3. Literature Review • Sebastian &, Malte(2010)have examined the effects of corporate social responsibility (CSR) on corporate identity, image and firm performance in a multi-industry setting. • Lai, Chiu, Yang and Pai (2010) have investigated theeffects of CSR and corporate reputation on industrial brand equity and corporate reputation • Surroca, Tribó, and Waddock (2010) have studied the effects of a firm's intangible resources in mediating the relationship between corporate responsibility and financial performance

4. Research Methodology Objective of the study: • Understand why an organisation contributes to a social cause and what it expects to gain in the process. Data Collection • The research consists both primary and secondary data. • Primary data was collected by administering questionnaire. • The secondary data was collected from various journals and magazines.

5. Research design • The questionnaire was administered to various companies. • While it was sent to about 70 companies, only 50 companies responded. • The questionnaire was analysed through the SPSS package. • Frequency and cross tabulations were used for most of the data analysis, factor analysis was used to group attributes,

6. Findings & Analysis Views towards business • 82.4% of the companies agree that business making money , while • 17.6 agree that it is not only making money but also about social responsibility.

7. Place for ethics in business: • 88.3% believe that there is place for ethics in business and • 11.8% strongly feel that there is no place for ethics in business Business & Economic attitude: • 82.3% believe that business needs only an economic attitude while • 17.7% respondents felt that business does not need an economic attitude, balance feel it is needed.

8. Social policies: • 70.6% of the corporate connect to the community through social activities, and 23.5 % through specific NGO. • Only half (52.9%) have a clear-cut policy on social development. The participation of the company in various activities is mixed, with no clear-cut trend emerging. Donations: • 70.6% feel that giving a donation will not increase the image of the company. • However, 29.4% give donation to benefit from tax and improves image building

9. Findings & Analysis • Factor analysis was used to group attributes, which were important reasons for contributing to a social cause • The resultant rotated component matrix was analysed and four factors were derived. • The following table shows that four factors explain 83.03% of the variance.

11. The four factors were identified as follows: • Factor 1: Customer oriented • Factor 2: Ethical oriented • Factor 3: Community oriented • Factor 4: Profit Maximization

12. Conclusion • Factors that influence the company to contribute are Customer oriented, Ethical oriented, Community oriented and Financial benefits to the company • Generate awareness to the various stakeholders regarding its contribution to corporate social responsibility • India has a large potential for any marketer & at the same time it can support quiet a good number of causes which benefits the society at large.

13. Recommendations • Companies are required to adopt a highly integrated approach towards fulfillment of their social obligations. • It is highly recommended for the corporate to understand the importance of fair governance while achieving their organizational objectives so as to sustain in the competitive environment, • A company which should give emphasis on CSR activities would always attract more investments and gets fair opportunity to build a status quo at global level.

14. References • Arendt, Sebastian; Brettel, Malte (2010), “Understanding the influence of corporate social responsibility on corporate identity, image, and firm performance”, Management Decision, 2010, Vol. 48 Issue 10, p1469-1492, 24p; DOI: 10.1108/00251741011090289 • Barnea, Amir; Rubin, Amir (2010), “Corporate Social Responsibility as a Conflict Between Shareholders”, Journal of Business Ethics, Nov2010, Vol. 97 Issue 1, p71-86, 16p, 7 Charts; DOI: 10.1007/s10551-010-0496-z • Lai, Chi-Shiun; Chiu, Chih-Jen; Yang, Chin-Fang; Pai, Da-Chang (2010), “The Effects of Corporate Social Responsibility on Brand Performance: The Mediating Effect of Industrial Brand Equity and Corporate Reputation” , Journal of Business Ethics, Sep2010, Vol. 95 Issue 3, p457-469, 13p, 3 Diagrams, 2 Charts; DOI: 10.1007/s10551-010-0433-1 • Surroca, Jordi; Tribó, Josep A.; Waddock, Sandra (2010), “Corporate responsibility and financial performance: the role of intangible resources”, Strategic Management Journal, May2010, Vol. 31 Issue 5, p463-490, 28p,

15. Thank You