Barriers to corporate social responsibility: an Indian SME perspective

Abstract

PurposeSmall and medium enterprises (SMEs) across the world are generally found to have a limited interest in wider social issues. SMEs face many barriers in operating in a socially responsible and sustainable manner despite it making a good business sense. This paper explores the barriers and challenges faced by Indian SMEs for engaging in corporate social responsibility (CSR) practices.Design/methodology/approachThe research uses interpretive structural modelling (ISM) to explore the structural relationship among barriers faced by Indian SMEs in their CSR engagement which were identified from the past literature and validated by the experts.FindingsThe study identified thirteen variables as important barriers resulting in a lower CSR engagement by Indian SMEs. The ISM model indicates that Indian SMEs focus on tactical rather on strategic needs along with their limited information and knowledge about CSR are the main driving forces which keep them away from an active and meaningful CSR engagement. Their limited CSR engagement capabilities, limited need to engage with their workforce and lower CSR perceived benefits also constrain their CSR engagement. The Indian SMEs also do not see a need for CSR engagement because of lower community and governmental pressure.Originality/valueThe study provides a comprehensive listing of CSR engagement barriers faced by Indian SMEs along with the structural relationships among them. The model developed provides CSR professionals and policymakers an understanding of the important impediments in CSR engagement of Indian SMEs based on their driving power and dependence. This insight will help them in designing initiatives to influence identified barriers to promote CSR engagement by Indian SMEs.

Barriers to corporate social responsibility implementation in the medium size manufacturing sector: an interpretive structure modelling approach

“…Also, top management believing enterprises do not have sufficient financial resources are less likely to favourably engage in CSR activities. These results support those of Dixit and Priya (2021). If the CSR activities support the competitive advantage of firms, it becomes the strategic decision to increase the competitive advantage and higher return on investment (Faisal, 2010;Husted, 2003).…”

Modelling the factors in the adoption of artificial intelligence in Indian management institutes

“…Using reachability and antecedent sets, the levels are established in an iterative process. These levels are used to develop an ISM model for factors in the adoption of AI technologies (Dixit and Priya, 2021; Priya et al , 2021a; Priya et al , 2021b; Dixit et al , 2021).…”

Challenges to corporate social responsibility adoption for sustainability: A picture fuzzy approach

“…Little knowledge of current sustainability issues is another of the main challenges to CSR (Dixit & Priya, 2021; Khatter et al, 2021; Yuen & Lim, 2016). It is important to mention that management support and management systems lack information about current issues and the potential of CSR for coping with them (Fathalizadeh et al, 2021; Ghardallou, 2022).…”

“…The top countries reporting sustainability are Denmark, Luxembourg, Switzerland, the United Kingdom, France, Austria, and so forth (Environmental Performance Index [EPI], 2021). Even though the top reporting countries are all from Europe, many companies still think that CSR is not about a primary concern of consumers; they believe that a sustainable supply chain and partnerships are not what suppliers are looking for (Yuen & Lim, 2016), (Dixit & Priya, 2021). Therefore, a lack of communication between stakeholders and a lack of understanding regarding their goals is another massive challenge to CSR.…”