Corporate Social Responsibility Issues and Challenges Building a model for Indian firms

Abstract

This research involved theoretical cum descriptive and exploratory design. newlineThis involved both qualitative and quantitative approaches. The qualitative approach included literature review, study of the annual reports of companies, study of the CSR practices followed by companies in India and 5 major countries abroad (USA, China, Japan, Germany and UK) which led to the building of the new CSR Model. All those companies in the select countries who were part of the Dow Jones Sustainability Index released in September 2017 were considered for the study. The quantitative study uses information relating to the corporate reputation collected through a specially designed newlinequestionnaire by adopting heavily from the Corporate Reputation Quotient suggested newlineby Harris-Fombrun Reputation QuotientSM (RQ) 1999. The study also found out the newlineimpact of the CSR expenditure on the Profit After Tax of a company in the succeeding year and the impact of the CSR expenditure on the Corporate Reputation. newlineThe major outcome of this research is a CSR Model which re-classified the newlineSchedule VII activities into 5 major areas Income and Economic Growth, Environment newlineand Climate, Social Security, Safety and Health, Sports Culture and Art, Personality Development and Capacity Building. The study has brought out that manufacturing companies are currently focusing on Health and Education sectors but they have to focus more on the Environment. The study has also given direction to the corporates in India to newlinemove from CSR to Sustainability Reporting and adopt Global Reporting Initiative (GRI) guidelines. The research has also found that the CSR expenditure has a positive impact on the profits after tax of a company as well as corporate reputation. newline