Corporate Social Responsibility: Linking Bottom of the Pyramid to Market Development?

Abstract

In this article, we develop theoretical and empirical linkages between corporate social responsibility (CSR) initiatives of business organizations and their market development efforts at the bottom of the pyramid (BOP). We use qualitative in-depth interviews of 21 CSR heads of business organizations and its CSR partner organizations in India (an emerging market) to explore, develop, and explain plausible theoretical linkages between CSR initiatives of the organizations and its market development efforts at BOP using theory of market separations. Using theoretical frameworks from CSR literature and sub-theory of market separations from marketing literature, the study suggests that market development at BOP is enhanced using the CSR route in several ways. These are, (1) making the BOP market development less risky, (2) mask the CSR initiative as a BOP pilot project to generate internal traction within the organization, (3) integrating the BOP communities with the last mile of the supply chain of the organization, (4) bringing government intervention to accelerate scale-up, and (5) developing BOP as future markets for consumers and supply chain partners to make business more sustainable. Our study has several theoretical as well as managerial implications linking organizations' market development efforts at BOP with its CSR initiatives.

Cross‐functional Management and Base‐of‐Pyramid Issues in Logistics and Supply Chain Management

“…; Singh et al. ). The BoP includes the majority of the world's population, predominately residing in the least developed countries, who make up the bottom of the world's economic pyramid.…”

Private sector electrification in Base of the Pyramid marketplaces in India: opportunities for energy and business to create Shared Value

“…Initial BoP concepts focused on the idea that firms would initiate market responses to unmet demand of consumers whilst also enabling some social benefit to occur as a result (Prahalad, 2010). Along the way, a range of CSR approaches were frequently discussed as explanations, and included the consideration of, and obligations to, other stakeholders (Singh, Bakshi & Mishra, 2015). The more recent, emergent Creating Shared Value (CSV) concept is grounded on the simultaneous addressing of corporate and societal values, and is claimed as a cornerstone of the next wave of economic development (Porter & Kramer, 2011).…”

“…In answering these questions, the thesis synthesises overlapping concepts in the literature, including BoP market responses (Prahalad, 2010), the board spectrum of CSR (Singh, Bakshi & Mishra, 2015) and the emergent Creating Shared Value (CSV) concept (Porter & Kramer, 2011). To better understand the dominant rationale(s) for a particular BoP activity, the thesis develops a taxonomical model incorporating all three concepts (McKercher, 2016;Rich, 1992).…”

“…Singh et al (2015) discuss some considerations about the fundamental nature of CSR. One perspective is that CSR results from a moral obligation to wider society.…”

“…For example, BoP activities labelled as CSR can provide advantages of reduced risk perception and thus greater traction internally (Singh et al, 2015). This is because employees would perceive a CSR-labelled activity as primarily social value generating, and thus have lower expectations that it would return commercial benefits.…”