Corporate social responsibility : Effective tools to solve the social problem of society

Abstract

Corporate Social Responsibility (CSR) is very known concept in India. Ever since their inception, corporates like the Tata Group, the Aditya Birla Group, and Indian Oil Corporation, to name a few, have been involved in serving the community. Through donations and charity events, many other organizations have been doing their part for the society. The basic objective of CSR in these days is to maximize the company's overall impact on the society and stakeholders. CSR policies, practices and programs are being comprehensively integrated by an increasing number of companies throughout their business operations and processes. Many corporates feel that CSR is not just another form of indirect expense but is important for protecting the goodwill and reputation, defending attacks and increasing business competitiveness. The present study contributes to the CSR research by exploring how consumer perception on CSR influences consumers' attitude and purchase behaviour. Considering that the past CSR research tends to focus mostly on Indian perspectives, this study extends the scope of CSR research on Eastern culture. This research produced mixed results, suggesting that CSR is still a concept waiting to be applied in the developing country. Consumers are often unaware and unsupportive towards corporate social responsibility. This is the opposite finding of consumer perception in developed countries, where most consumers are willing to support CSR launched by corporations. Nevertheless, there is an interesting finding; when consumers have to buy similar products with the same price and quality, CSR could be the determining factor. The main aim of this research paper is to analyze and understand the role of corporate social responsibility in the overall consumer's perceptions and reactions towards CSR activities.