Article2021

Barriers to corporate social responsibility: an Indian SME perspective

25 citations0/0 files storedInternational Journal of Emerging Markets

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Corporate Social Responsibility Reporting Environmental Sustainability in Business Corporate Social Responsibility and Sustainability

Abstract

Purpose Small and medium enterprises (SMEs) across the world are generally found to have a limited interest in wider social issues. SMEs face many barriers in operating in a socially responsible and sustainable manner despite it making a good business sense. This paper explores the barriers and challenges faced by Indian SMEs for engaging in corporate social responsibility (CSR) practices. Design/methodology/approach The research uses interpretive structural modelling (ISM) to explore the structural relationship among barriers faced by Indian SMEs in their CSR engagement which were identified from the past literature and validated by the experts. Findings The study identified thirteen variables as important barriers resulting in a lower CSR engagement by Indian SMEs. The ISM model indicates that Indian SMEs focus on tactical rather on strategic needs along with their limited information and knowledge about CSR are the main driving forces which keep them away from an active and meaningful CSR engagement. Their limited CSR engagement capabilities, limited need to engage with their workforce and lower CSR perceived benefits also constrain their CSR engagement. The Indian SMEs also do not see a need for CSR engagement because of lower community and governmental pressure. Originality/value The study provides a comprehensive listing of CSR engagement barriers faced by Indian SMEs along with the structural relationships among them. The model developed provides CSR professionals and policymakers an understanding of the important impediments in CSR engagement of Indian SMEs based on their driving power and dependence. This insight will help them in designing initiatives to influence identified barriers to promote CSR engagement by Indian SMEs.

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2007The Social Responsibility of Business Is to Increase Its Profits 1999Corporate Social Responsibility 1995The Stakeholder Theory of the Corporation: Concepts, Evidence, and Implications 1991Corporate Social Performance Revisited 2010The Business Case for Corporate Social Responsibility: A Review of Concepts, Research and Practice 2006Corporate Social Responsibility, Customer Satisfaction, and Market Value 2003Consumer–Company Identification: A Framework for Understanding Consumers’ Relationships with Companies 2006Small Business Champions for Corporate Social Responsibility

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