Ethical decision-making and organisational evaluation of in-kind versus funding-based corporate social responsibility initiatives; COVID-19 context study of organizational egoism

Abstract

Purpose

The purpose of this study is to comprehend how individuals analysed organisational initiatives while responding to the COVID-19 crisis through corporate social responsibility (CSR) initiatives through both in-kind and in cash (funding-based) forms. CSR actions manifested finally towards the achievement of organisational reputational and economic egoism.

Design/methodology/approach

The study was conducted on 331 respondents during the period of the COVID-19 pandemic and the lockdown in India. Moderated mediation analysis was conducted for data analysis and hypothesis testing. Two models were tested. The research models were tested using a statistical package for the social sciences (SPSS) and AMOS.

Findings

This study considered the evaluation of the in cash (funding-based) and in-kind CSR types of CSR initiatives by individuals with personal cultural characteristics of independence, interdependence and altruism. The results of the first model indicated a significant positive relationship between independence, utilitarian thinking (UT) and organisational economic egoism (OEE). The mediating effect of UT between the independence-OEE relationship was significant. The results of the second model also found a significant relationship between interdependence, deontological thinking (DT) and organisational reputational egoism (ORE). Similarly, there was a significant positive relationship between altruism, DT and ORE. The mediation effect of DT was significant for both the relationships. The moderated mediation relationship of both the first and second model has been found to be significant.

Research limitations/implications

In the research integrated models were developed associating individual personal cultural characteristics of independence, interdependence and altruism with UT and DT and subsequently to organisational economic and reputational egoism.

Practical implications

Managers undertaking CSR initiatives through both in-kind and in cash (funding-based) would be better able to understand based upon these study insights what nature of CSR initiatives (in-kind or in cash) are more appropriate for what kind of individual context (independence, interdependence and altruism) in decision-making (UT and DT) with organisational context (organisational economic and reputational egoism).

Social implications

In the trying realities of the COVID-19 context, firms were contributing to society through CSR initiatives which were both in-kind and in cash (funding-based) in nature. This study emphasised what kind of CSR initiative was more appropriate for what kind of context for both enhanced social good and increased organisational gains.

Originality/value

This was one of the first studies in the context of CSR initiatives during COVID-19 times that analysed evaluation of in cash (funding-based) and in-kind CSR actions. CSR initiatives by individuals with personal cultural characteristics of independence, interdependence and altruism were related to UT and DT and finally manifested towards organisational economic and reputational egoism.

Citation

Bhattacharyya, S.S., Mehta, N.K. and Jha, S. (2021), "Ethical decision-making and organisational evaluation of in-kind versus funding-based corporate social responsibility initiatives; COVID-19 context study of organizational egoism", International Journal of Ethics and Systems, Vol. 37 No. 4, pp. 599-617. https://doi.org/10.1108/IJOES-05-2021-0095