CSR in Government-Owned Enterprises in India: A Principal–Agent Perspective

Kansal, Monika; Subramaniam, Nava; Babu, Shekar; Mony, Suresh

doi:10.1007/978-3-030-34261-6_13

Cited by 2 publications

(3 citation statements)

References 20 publications

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“…Two years later, Modi proclaimed that India supports 'enterprise and wealth creators who were giving … and profit-sharing' as he presented the Tata Group with an Enterprise of the Century Award (NetIndian, 2020). Meanwhile, India's business leaders feared that by de facto mandating CSR, the government was setting firms up 'to be scapegoats for the failure of programs to reduce inequality in India' (Kansal et al, 2019), highlighting the acute sensitivity of populist governments to credit-taking and blame avoidance regarding CSR's impact on the regime's constituencies.…”

Section: Strategic Csr and The Populist Syndromementioning

confidence: 99%

Populist Syndrome and Nonmarket Strategy

Blake

Markus

Martinez‐Suarez

2022

J Management Studies

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Although recognized as a defining feature of the current political era, populism and its implications for non‐market strategy remain undertheorized. We offer a framework that (a) conceptualizes populism and its progression over time; (b) outlines the risks populism generates for firms; and (c) theorizes effective nonmarket strategies under populism. Our framework anchors the political risk profile of populism in three interdependent elements: anti‐establishment ideology, de‐institutionalization, and short‐term policy bias. These elements jointly shape the policymaking dynamics and institutional risks for firms under populism. Our analysis shows how firms can calibrate two nonmarket strategies – political ties and corporate social responsibility – to mitigate populism‐related risks. We specify how particular configurations of political ties and CSR activities, aimed at the populist leadership, bureaucrats, political opposition, and societal stakeholders, minimize risk under populism. Further, we theorize how the effectiveness of specific attributes of political ties and CSR – namely their relative covertness (more vs. less concealed) and their relative focus (narrowly vs. widely targeted) – varies as a function of firm type (insiders vs. outsiders) and the probability of populist regime collapse. Finally, we address how motivated reasoning may bias firms' assessments of regime fragility and resulting strategy choices.

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Section: Strategic Csr and The Populist Syndromementioning

confidence: 99%

Populist Syndrome and Nonmarket Strategy

Blake

Markus

Martinez‐Suarez

2022

J Management Studies

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“…These studies were primarily conducted on leading private sector companies. Only a few qualitative studies explored the perceptions of the firms about the CSR regulation in public sector enterprises; for example, Subramaniam et al (2017) analysed governance issues with CSR policies; Gatti et al (2018), explaining theoretical implications of CSR regulation; Jain et al (2021) providing insights into the potential impacts of the CSR regulation (Subramaniam et al , 2017) on outsourcing of mandatory CSR by Indian public sector enterprises; and Kansal et al (2020) analysing principal-agent perspectives on CSR regulation for the Indian CPSEs. These public sector studies primarily focussed on implementation issues but ignored reporting-related issues.…”

Section: Review Of the Literaturementioning

confidence: 99%

“…Unlike other state or local enterprises, they operate as public sector corporations and are listed on national stock exchanges. CPSEs are unique in terms of their multi-faceted accountability to the Parliament of India, multiple departments/ministries of the central government, which hold majority shares and regulate CPSEs through the Department of Public Enterprise (DPE); and to the public at large the majority stakeholder for demonstrating financial, environmental and social performance (Kansal et al , 2020).…”

Section: Introductionmentioning

confidence: 99%

Mandatory corporate social responsibility in India: reporting reality, issues and way forward

Taneja

Jain

Joshi

et al. 2021

MEDAR

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Purpose Since 2013, the Indian Companies Act Section 135 has mandated corporate social responsibility (CSR) reporting by Indian central public sector enterprises (CPSEs). CSR reporting is regulated by multiple Government of India ministerial agencies, each requiring different formats and often different data. This study aims to understand the impact of these multiple regulatory bodies on CSR reporting by Indian CPSEs; evaluate the expectation gap between regulators and the regulated; and investigate the compliance burden on CPSEs. Design/methodology/approach An interview-based approach was adopted to evaluate the perspectives of both regulators and regulated CPSEs on the impact of the new regulations on CSR reporting quality. The authors use the lens of institutional theory to analyse the findings. Findings Driven by coercive institutional pressures, CPSEs are overburdened with myriad reporting requirements, which significantly negatively impact CPSEs’ financial and human resources and the quality of CSR activity and reports. It is difficult for CPSEs to assess the actual impact of their CSR activities due to overlapping with activities of the government/other institutions. The perceptions of regulators and the regulated are divergent: the regulators expect CPSEs to select more impactful CSR projects to comply with mandatory reporting requirements. Originality/value The findings of this study emphasise the need for meaningful dialogue between regulators and the regulated to reduce the expectation gap and establish a single regulatory authority that will ensure that the letter and spirit of the law are followed in practice and not just according to a tick-box approach.

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CSR in Government-Owned Enterprises in India: A Principal–Agent Perspective

Cited by 2 publications

References 20 publications

Populist Syndrome and Nonmarket Strategy

Populist Syndrome and Nonmarket Strategy

Mandatory corporate social responsibility in India: reporting reality, issues and way forward

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