From philanthropy to strategic corporate sustainability: a case study in India

Abstract

Purpose

This paper aims to explore the drivers and barriers in the transition of the social responsibility agenda of large, emerging economy (EE) firms from non-strategic philanthropy to strategic corporate sustainability. This study also suggests a strategy that such firms may adopt for obtaining the desired corporate social responsibility (CSR) manifestation.

Design/methodology/approach

The paper follows an in-depth case study approach of a large, family-managed Indian firm in a pollutant industry – Sudarshan Chemicals. The article is based on direct observation and in-depth interviews with key stakeholders, namely, senior management, employees and the local community members (villagers) in the company’s plant in Maharashtra.

Findings

The study exposes a lack of alignment between firm size (large) and firm CSR manifestation (small) as the key challenge that EE firms face in transforming their social responsibility agenda. Stuck in the mould of non-strategic corporate philanthropy, even large EE companies are not exposed to the three essential elements of the Western conceptualization of CSR, namely, stakeholder pressure, environmental concerns and integration into core business. Sudarshan’s small-firm CSR orientation can be seen as symptomatic of most Indian companies which are family-led, family-managed businesses.

Practical implications

Faced with strong drivers to incorporate CSR, EE firms can strategize to leap-frog from philanthropy to corporate sustainability through obtaining the desired CSR manifestation.

Originality/value

The significance of this paper lies in the “on the ground”, detailed and empirical study of the drivers and challenges faced by a large Indian company, as it proactively sought to transition from the philanthropy orientation towards strategic CSR/sustainability. The paper identifies the major challenge large, Indian corporates are likely to face going forward, as they respond to drivers in a globalized business environment.

Citation

Jayakumar, T. (2016), "From philanthropy to strategic corporate sustainability: a case study in India", Journal of Business Strategy, Vol. 37 No. 6, pp. 39-50. https://doi.org/10.1108/JBS-10-2015-0110