Understanding causal links among the dimensions of corporate social responsibility: a framework developed using interpretive structural modelling

Abstract

PurposeThe purpose of this paper is to identify and develop a hierarchy of corporate social responsibility (CSR) dimensions and their interrelationships using interpretive structural modelling (ISM) methodology.Design/methodology/approachThis research used ISM for framework development. ISM is, however, a sound method for developing insight into the collective understanding of the relationships between dimensions of corporate social responsibility (CSR) identified from the literature review. The steps involved in the ISM technique are structural self-interaction matrix, reachability matrix, level partitions, developing the canonical matrix, classification of dimensions for CSR and formation of ISM.FindingsThe findings indicate that company size is the only key driver for the other dimensions of CSR and is hence placed at the very bottom of the ISM model. Above this, at Level II, the key dimensions are corporate governance, diversity and corporate profile. These act as mediating dimensions between company size and the topmost level (i.e. Level III), which comprises 15 dimensions including CSR.Research limitations/implicationsSome limitations of this research indicate the need for further research. First, the proposed ISM model has only been conceptualised and has not been empirically tested using primary data. Future research is needed to validate the model in whole or part, to understand the perceived CSR of a company. Second, the methodology was limited to the use of ISM to model the CSR dimensions; it was not extended to fuzzy MICMAC analysis or to interpretive ranking.Practical implicationsThe proposed ISM-based model for the identification and ranking of CSR dimensions and their interrelationships offers decision makers and practitioners a more convincing representation of the problems affecting the exploration of CSR dimensions. The utility of the proposed ISM method lies in imposing order and direction on the complexity of relationships among these dimensions, which will help top management and decision makers to better use their available resources in optimising their CSR practices. The framework allows policymakers to effectively incorporate these dimensions into their practising of CSR.Originality/valueThis is the first research on CSR to conceptualise a framework of causal interactions among its key dimensions using ISM methodology.