The Socio-Economic Impact of Corporate Social Responsibility Practices in Sri Lankan Tea Manufacturing Companies (Special Reference to Kandy District)

Idc Wijerathna,Ridmi Gajanayaka

doi:10.4038/kjm.v2i1.6546

Abstract

Corporate Social Responsibility (CSR) is very important topic in the present competitive business environment. The aim of this exploratory study is to capture the current status of Corporate Social Responsibility (CSR) awareness, commitment and practices level of tea manufacturing companies in Sri Lanka and assessing the socioeconomic impact of company CSR on employees and smallholders. The study provides an overview of company CSR practices as well as of employee and smallholder experiences and perceptions of CSR practices of tea manufacturing companies. The research study is based on Kandy district and three perspectives factory owners, employees and smallholders were used in exploring the CSR level and its socioeconomic impact. To achieve the research objectives tea manufacturing company’s CSR practices are studied in three domains: CSR to employees, smallholders and environment. The researcher used mixed method comprising both quantitative and qualitative elements. There is a positive relationship between tea manufacturing company CSR level and the socioeconomic condition of employee and the smallholders. When it consider about the overall situation, current CSR practices of tea manufacturing companies have not made a positive impact on socioeconomic development of employees and smallholders. Tea manufacturing companies should consider CSR strategies that are in the interest of all stakeholders and relevant to the business.DOI: http://dx.doi.org/10.4038/kjm.v2i1.6546 Kelaniya Journal of Management Vol.2(1) 2013:113-142

Highlights

Corporate Social Responsibility (CSR) is a notable topic within the present-day competitive global business arena
The main objectives of this study is to scrutinize the socioeconomic impacts of CSR practices employed by the Sri Lankan tea manufacturing companies base on Kandy district
According to the tested hypotheses all the three hypotheses are supportive and it indicates that there is a positive relationship between tea manufacturing company CSR level and the socioeconomic condition of the employees and tea smallholders

Summary

Introduction

Corporate Social Responsibility (CSR) is a notable topic within the present-day competitive global business arena. They pay attention to what the companies do and what they have done This may be in terms of products or services, impact on the environment, the operations in the market or in local communities, or among employees. According to the European Commission, CSR is defined as the voluntarily contribution of companies for a better society and a cleaner environment (European Commission, 2001 cited in Mummullage, 2010). It addresses complex issues such as “environmental protection, human resources management, health and safety at work, relations with local communities, relations with suppliers and consumers” (Branco, 2007:5)

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