Structural Equation Modelling to Understand the Impact of Various Components of CSR and the Benefits to Stakeholders

• Published in: Vision (New Delhi, India) India), 2024-08, Vol.28 (4), p.511-522
• Main Authors: Jain, Rinku, Bhatia, Asha Deepak, Arekar, Kirti
• Format: Article
• Language: English
• ISSN: 0972-2629; 2249-5304
• DOI: 10.1177/09722629211050317

In the last many years academicians and business practitioners have shown their interest in the study of the activities of Corporate Social Responsibility (CSR). This study describes a deeper understanding of the CSR parameters on the benefits to the stakeholders. It explains the direct effect of the various independent variables like ‘Encourage Employee Volunteer - kinds of incentives’, ‘Improve Employee Welfare and Labour Relations’, ‘Companies/Organizations communicate the Policy to the stakeholders’ and ‘Adoption of CSR practices by Companies/Organizations’ on the dependent variable benefits of CSR to the stakeholders. We had also studied the impact of the variables, that is, ‘Encourage “Employee Volunteers”, kinds of incentives’, ‘Companies/Organizations communicate the Policy to the stakeholders’ and ‘Adoption of CSR practices by Companies/Organizations’ on Employee Welfare and Labour Relations. The outcomes of the research model depend on the data collected from 349 employees across local and international organizations in India. The respondents are employees of various organizations working at different levels of management. This study focuses on middle-level managers. The major findings suggest the positive impact of all the activities of CSR on benefits to the stakeholders. Out of the four CSR activities, Adoption of CSR practices by Companies/Organizations is the strongest predictor followed by Employee Welfare and Labour Relations, whereas the CSR activity Encourage ‘Employee Volunteers’, kinds of incentives has no significant impact on benefits to the stakeholders.