Impact of India's New CSR Policy on Corporate Decision-Makers

Decision making in CSR and especially funding is fuzzy, with organizations averse to risk taking and influenced by the corporate leaders' interests to focus on initiatives that matter to them. Taking objective decisions based on insights and aligned with the organization's CSR priorities c...

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Bibliographic Details
Published in:South Asian journal of management 2022-10, Vol.29 (4), p.59-80
Main Authors: Khan, Sabith, Verghese, Aniisu K
Format: Article
Language:English
Subjects:
Decision making
Funding
Qualitative research
Social responsibility
Society
Online Access:Get full text
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Summary:Decision making in CSR and especially funding is fuzzy, with organizations averse to risk taking and influenced by the corporate leaders' interests to focus on initiatives that matter to them. Taking objective decisions based on insights and aligned with the organization's CSR priorities can lead to more meaningful impact for the community. Even the best intentions of organizations to abide by governmental guidelines on CSR spending can be ignored due to risk aversion and pressures to complete funding by the stipulated timelines, leading to less than optimal impact. The qualitative research with in-depth interviews among 9 CSR practitioners identifies the challenges and outlines the approaches to influence decision making within organizations, specifically related to the 2% CSR policy. A typology of organizations at various stages of their decision-making process is proposed and the practical implications are discussed to support managers better direct CSR funding and improve organizational impact on society. Findings suggest that companies typically fall within three categories related to the policy: doing what's expected, doing what's good and doing what's right. Decision making is inconsistent with organizations weighing internal and external factors to ensure they are on the right side of the law.
ISSN:0971-5428