CSR Initiatives and Practices: Empirical Evidence From Indian Metal and Mining Companies

Ajay K. Singal

doi:10.1177/21582440211032674

Abstract

This study investigates the corporate social responsibility (CSR) discourse on community and environment by Indian metal and mining (extractive) sector. Specifically, we examine the change in internal governance and external implementation mechanisms in response to affirmative CSR policy actions. Applying text network analysis technique on CSR related expenditures provided in the annual reports and CSR annexures (2014–2018), our study reveals that CSR discourse of extractive firms improved significantly and became more focused after the introduction of post-affirmative policy. CSR initiatives in the extractive sector are primarily focused toward local social development, with little emphasis on the environmental sustainability. Furthermore, companies have adopted two-tier governance structures for managing CSR. The top tier comprises board members who formulate the CSR programs, while the second tier has executives responsible for the implementation. Another tier of governance involving local domain experts is emerging. The three-tier implementation mechanisms give firms a tighter control on spending and enhance the effectiveness of initiatives. We present the results visually in the form of network graphs.

Highlights

This paper focuses on community and environmental discourse of metal and mining sector of India
We reveal that social development forms a significant part of the corporate social responsibility (CSR), while the environment sustainability sees little traction
As resources embedded in inter-firm networks facilitate exchange through social mechanisms (Gulati, 1999), we argue that inter-firm partnership networks bring resource and knowledge, besides, serving as a platform for administering the CSR initiatives (Valente et al, 2015)

Summary

Introduction

This paper focuses on community and environmental discourse of metal and mining sector (extractive sector) of India. Firms in the extractive industry use CSR (Corporate Social Responsibility) programs to engage with local communities and deal with environmental impacts (Porter & Kramer, 2011; Rodrigues & Mendes, 2018). Socially responsible investments enhance cohesion between corporate and communities (Ozuem et al, 2014). By using carefully crafted social strategies, firms take actions to maintain the complex relationships with shareholders, employees, clients and the community (Husted & Allen, 2007). Relationship with stakeholders is essential for social performance and gaining legitimacy in local contexts (Rodrigues & Mendes, 2018)

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Results

Conclusion