Culture of Sustainability and Marketing Orientation of Indian Agribusiness in implementing CSR Programs—Insights from Emerging Market

Anup Raj,Thankom Gopinath Arun,Andrei Kuznetsov

doi:10.3390/jrfm13110269

Abstract

The debate regarding the suitability of market orientation or culture of sustainability for corporate social responsibility (CSR) implementation and economic sustainability deserve much more scholarly attention as globalization and competition in emerging markets increases. Using qualitative content analysis of interviews with 28 senior managers of large agribusiness firms in India, this empirical article explores how market orientation or culture of sustainability affects CSR implementation, or vice versa? The findings of the study identify factors such as the nature of a firm’s business, sensitivity, commitment towards sustainable development, and pressure on profitability that prompt firms to adopt sustainability dominant, market dominant, and sustainability–market mixed corporate culture. Culture of sustainability dominant firms are likely to implement CSR more smoothly and effectively compared to firms that are driven by market orientation. Moreover, firms committed to substantial and consistent CSR are likely to induce culture of sustainability in firms. Finally, the study offers a framework that provides insights into how CSR program implementation and a culture of sustainability are complementary and could strengthen the economic sustainability of firms in emerging markets.

Highlights

The public attention has increased on agribusiness-related aspects of corporate social responsibility (CSR) due to growing concern over the potential detrimental effect of agribusiness on society (Luhmann and Theuvsen 2016; Heyder and Ludwig 2008)
Our result revealed that such firms take help of either small NGOs or industry associations for CSR implementation where the cost is shared among other sponsoring firms
This study explores how market orientation or a culture of sustainability in emerging markets affects CSR implementation or vice versa

Summary

Introduction

The public attention has increased on agribusiness-related aspects of CSR due to growing concern over the potential detrimental effect of agribusiness on society (Luhmann and Theuvsen 2016; Heyder and Ludwig 2008). Agribusiness is the backbone of many emerging markets, but it is facing many conflicts with society. The entire agribusiness industry faces increasing pressure from environment, health, and animal rights advocates (Edwards and Shultz 2005). The concept of corporate social responsibility (CSR) is often considered a potential tool for meeting societal demands and criticism as a company voluntarily takes responsibility for society (Luhmann and Theuvsen 2016). CSR in agribusiness is of such paramount importance that some authors consider CSR as a ‘license to operate’ in an agribusiness context. The ‘license to operate’ notion is derived from the fact that every company needs either tacit or explicit permission from the government, communities, and numerous other stakeholders to do business (Hiss 2009; Porter and Kramer 2011)

Methods

Results

Conclusion