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Linking Corporate Social Responsibility ( CSR ) And Corporate Reputation ( CR )
| Content Provider | Semantic Scholar |
|---|---|
| Author | Baruah, Loopamudra |
| Copyright Year | 2018 |
| Abstract | Against the backdrop of growing economic globalization, searching for key success factors, fostering core competency, maximum use of resources, controlling cost and improving efficiencies are high-priority tasks for companies. Corporate Social Responsibility (hereafter CSR) has gained prominence in business community and in academic literature in recent years; because businesses are becoming increasingly aware of the role they should perform in the society, in addition to pursuing profits. Although CSR is multifaceted, we consider definition from the stakeholders‟ perspective “as a discretionary allocation of corporate resources towards improving social welfare that serves as a means of enhancing relationships with key stakeholders” (Barnett, 2007). The concept of CSR is not new to India; historically speaking, social responsibility of companies is a well-established phenomenon in India, and the country has one of the world's richest traditions of CSR. In its oldest forms, CSR in India included the concept of corporate philanthropy and the Gandhian Trusteeship model. But the liberalization of the Indian economy in the 1990s led to a fundamental shift from the philanthropy-based model to a multistakeholder approach whereby companies are deemed responsible for all stakeholders. The liberalization of the economy also led to the increased presence of large global corporations on Indian soil, which thereby exposed India to a highly developed regime of CSR initiatives. Additionally, a strong desire to compete and succeed in the global economy drove Indian business enterprises to integrate CSR into a coherent and sustainable business strategy. These enterprises, both public and private, have realized that their long-term success depends on the satisfaction of their stakeholders, and that ignoring them could jeopardize the company's future prospects in the community (Sharma et al., 2009). Many studies have manifested the benefits generated by fulfilling social responsibilities. CSR represents an integral part for adopting differentiation strategy (Gardberg NA, Fombrun CJ, 2006; McWilliams A, Siegel DS, Wright PM., 2006). Firms are encouraged to perform socially responsible activities to ward off negative attention from NGOs (Baron 2009), consumers are becoming increasingly aware of the wider social role of business in the society (Mishra and Suar 2010) and therefore companies have started focusing on CSR activities to build trust amongst their significant stakeholders (Mishra and Suar 2010; Carroll and Shabana 2010). Similar studies also advocated that positive brand image and reputation can be created through corporate social activities (Hsu K-T., 2012). Reputation has been defined by Fombrun as „a perceptual representation of a company‟s past actions and future prospects that describe the firm‟s overall appeal to all its key constituents when compared to other leading rivals‟ (Fombrun, 1996). As has been highlighted, definitions such as Abstract: The world has become a competitive place, firms have become stakeholder satisfaction conscious in order to maintain a better reputational status. CR plays major role because it is reputation that affects decisions made by the multiple stakeholders about the firm. Given the importance of reputation as an intangible asset CSR is a strategic move towards achievement of the same. This paper contributes to the existing literature by concluding that there exist a strong link between CR and CSR and companies should carefully manage and practice its CSR for a better reputational position. |
| File Format | PDF HTM / HTML |
| Alternate Webpage(s) | http://www.ijiras.com/2018/Vol_5-Issue_3/paper_35.pdf |
| Language | English |
| Access Restriction | Open |
| Content Type | Text |
| Resource Type | Article |
