IDEAS home Printed from https://ideas.repec.org/a/sae/millen/v14y2023i4p535-559.html
   My bibliography  Save this article

Can One Size Fit All: A Multi-group Analysis of Indian Corporates

Author

Listed:
  • Aruna Jha
  • Madhavi Kapoor
  • Nidhi

Abstract

This study aims to investigate the relationship among the various institutional pressures, corporate social responsibility, legitimacy, and reputation in the context of Indian corporates. It also provides an in-depth industry-wise analysis for the said relationship. BSE 500 listed companies form the population for this pan-India primary research. PLS-SEM is the statistical technique adopted to examine the relationship between research constructs. The overall industry analysis established a positive association between all six institutional pressures and CSR activities, but the comprehensive multigroup industrial analysis revealed that kind of institutional pressures that are important to corporates vary across industries. Multi-group analysis points out that—local communities, peers, and media are statistically significant for high as well as low impact industries. But government and NGOs are not statistically significant pressure groups for low impact industries. However, industry associations are not important as a pressure group for both high impact as well as low impact industries. Furthermore, legitimacy is seen to fully mediate the relationship between CSR and reputation for the national level survey.

Suggested Citation

  • Aruna Jha & Madhavi Kapoor & Nidhi, 2023. "Can One Size Fit All: A Multi-group Analysis of Indian Corporates," Millennial Asia, , vol. 14(4), pages 535-559, December.
    • Handle: RePEc:sae:millen:v:14:y:2023:i:4:p:535-559
    DOI: 10.1177/09763996211073949
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/09763996211073949
    Download Restriction: no
    File URL: https://libkey.io/10.1177/09763996211073949?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Frances Chua & Asheq Rahman, 2011. "Institutional Pressures and Ethical Reckoning by Business Corporations," Journal of Business Ethics, Springer, vol. 98(2), pages 307-329, January.
    2. Barry Ackers & Neil Stuart Eccles, 2015. "Mandatory corporate social responsibility assurance practices," Accounting, Auditing & Accountability Journal, Emerald Group Publishing Limited, vol. 28(4), pages 515-550, May.
    3. Mahfuja Malik & Md Al Mamun & Abu Amin, 2019. "Peer pressure, CSR spending, and long-term financial performance," Asia-Pacific Journal of Accounting & Economics, Taylor & Francis Journals, vol. 26(3), pages 241-260, May.
    4. Zulhamri Abdullah & Yuhanis Abdul Aziz, 2013. "Institutionalizing corporate social responsibility: effects on corporate reputation, culture, and legitimacy in Malaysia," Social Responsibility Journal, Emerald Group Publishing Limited, vol. 9(3), pages 344-361, July.
    5. Hair, Joe F. & Howard, Matt C. & Nitzl, Christian, 2020. "Assessing measurement model quality in PLS-SEM using confirmatory composite analysis," Journal of Business Research, Elsevier, vol. 109(C), pages 101-110.
    6. Esben Rahbek Gjerdrum Pedersen & Peter Neergaard & Janni Thusgaard Pedersen & Wencke Gwozdz, 2013. "Conformance and Deviance: Company Responses to Institutional Pressures for Corporate Social Responsibility Reporting," Business Strategy and the Environment, Wiley Blackwell, vol. 22(6), pages 357-373, September.
    7. Margaret Lindorff & Elizabeth Prior Jonson & Linda McGuire, 2012. "Strategic Corporate Social Responsibility in Controversial Industry Sectors: The Social Value of Harm Minimisation," Journal of Business Ethics, Springer, vol. 110(4), pages 457-467, November.
    8. Stephen J. Brammer & Stephen Pavelin, 2006. "Corporate Reputation and Social Performance: The Importance of Fit," Journal of Management Studies, Wiley Blackwell, vol. 43(3), pages 435-455, May.
    9. Ralph Hamann & Nicola Acutt, 2003. "How should civil society (and the government) respond to 'corporate social responsibility'? A critique of business motivations and the potential for partnerships," Development Southern Africa, Taylor & Francis Journals, vol. 20(2), pages 255-270.
    10. Durand , Rodolphe & Jacqueminet , Anne, 2015. "Peer Conformity, Attention, and Heterogeneous Implementation of Practices in MNEs," HEC Research Papers Series 1098, HEC Paris.
    11. Gregory Jackson & Androniki Apostolakou, 2010. "Corporate Social Responsibility in Western Europe: An Institutional Mirror or Substitute?," Journal of Business Ethics, Springer, vol. 94(3), pages 371-394, July.
    12. Aswani, Jitendra & Chidambaran, N.K. & Hasan, Iftekhar, 2021. "Who benefits from mandatory CSR? Evidence from the Indian Companies Act 2013," Emerging Markets Review, Elsevier, vol. 46(C).
    13. Zyglidopoulos, Stelios C. & Georgiadis, Andreas P. & Carroll, Craig E. & Siegel, Donald S., 2012. "Does media attention drive corporate social responsibility?," Journal of Business Research, Elsevier, vol. 65(11), pages 1622-1627.
    14. Wendy Mason Burdon & Mohamed Karim Sorour, 2020. "Institutional Theory and Evolution of ‘A Legitimate’ Compliance Culture: The Case of the UK Financial Service Sector," Journal of Business Ethics, Springer, vol. 162(1), pages 47-80, February.
    15. Duygu Turker, 2009. "Measuring Corporate Social Responsibility: A Scale Development Study," Journal of Business Ethics, Springer, vol. 85(4), pages 411-427, April.
    16. Aruna Jha & Vijita Singh Aggrawal, 2019. "Institutional pressures for corporate social responsibility implementation: a study of Indian executives," Social Responsibility Journal, Emerald Group Publishing Limited, vol. 16(4), pages 555-577, June.
    17. Sinha Aseema, 2005. "Understanding the Rise and Transformation of Business Collective Action in India," Business and Politics, De Gruyter, vol. 7(2), pages 1-37, August.
    18. Sinha, Aseema, 2005. "Understanding the Rise and Transformation of Business Collective Action in India," Business and Politics, Cambridge University Press, vol. 7(2), pages 1-35, August.
    19. Ralph Hamann, 2004. "Corporate social responsibility, partnerships, and institutional change: The case of mining companies in South Africa," Natural Resources Forum, Blackwell Publishing, vol. 28(4), pages 278-290, November.
    20. Kolk, Ans, 2010. "Trajectories of sustainability reporting by MNCs," Journal of World Business, Elsevier, vol. 45(4), pages 367-374, October.
    21. Carmelo Reverte, 2009. "Determinants of Corporate Social Responsibility Disclosure Ratings by Spanish Listed Firms," Journal of Business Ethics, Springer, vol. 88(2), pages 351-366, August.
    22. Dima Jamali & Ben Neville, 2011. "Convergence Versus Divergence of CSR in Developing Countries: An Embedded Multi-Layered Institutional Lens," Journal of Business Ethics, Springer, vol. 102(4), pages 599-621, September.
    23. Abhishek Mukherjee & Ron Bird, 2016. "Analysis of mandatory CSR expenditure in India: a survey," International Journal of Corporate Governance, Inderscience Enterprises Ltd, vol. 7(1), pages 32-59.
    24. Bindu Arya & Gaiyan Zhang, 2009. "Institutional Reforms and Investor Reactions to CSR Announcements: Evidence from an Emerging Economy," Journal of Management Studies, Wiley Blackwell, vol. 46(7), pages 1089-1112, November.
    25. Marylyn Carrigan & Morven McEachern & Caroline Moraes & Carmela Bosangit, 2017. "The Fine Jewellery Industry: Corporate Responsibility Challenges and Institutional Forces Facing SMEs," Journal of Business Ethics, Springer, vol. 143(4), pages 681-699, July.
    26. Rodolphe Durand & Anne Jacqueminet, 2015. "Peer conformity, attention, and heterogeneous implementation of practices in MNEs," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 46(8), pages 917-937, October.
    27. Marsha Dickson & Molly Eckman, 2008. "Media Portrayal of Voluntary Public Reporting About Corporate Social Responsibility Performance: Does Coverage Encourage or Discourage Ethical Management?," Journal of Business Ethics, Springer, vol. 83(4), pages 725-743, December.
    28. Kavitha Shanmugam & P. Lakshmi & S. Visalakshmi, 2015. "Employing multi-criteria decision making in examining CSR initiatives," International Journal of Business Innovation and Research, Inderscience Enterprises Ltd, vol. 9(1), pages 115-132.
    29. Marina Dabic & Ana Colovic & Olivier Lamotte & Mollie Painter-Morland & Silvana Brozovic, 2016. "Industry-specific CSR: analysis of 20 years of research," Post-Print hal-02907079, HAL.
    30. Tanusree Jain & Ruth V. Aguilera & Dima Jamali, 2017. "Corporate Stakeholder Orientation in an Emerging Country Context: A Longitudinal Cross Industry Analysis," Journal of Business Ethics, Springer, vol. 143(4), pages 701-719, July.
    31. Eshani Beddewela & Jenny Fairbrass, 2016. "Seeking Legitimacy Through CSR: Institutional Pressures and Corporate Responses of Multinationals in Sri Lanka," Journal of Business Ethics, Springer, vol. 136(3), pages 503-522, July.
    32. Ashlee Humphreys & Kathryn A. Latour, 2013. "Framing the Game: Assessing the Impact of Cultural Representations on Consumer Perceptions of Legitimacy," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 40(4), pages 773-795.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Aruna Jha & Vijita Singh Aggrawal, 2019. "Institutional pressures for corporate social responsibility implementation: a study of Indian executives," Social Responsibility Journal, Emerald Group Publishing Limited, vol. 16(4), pages 555-577, June.
    2. Sreevas Sahasranamam & Bindu Arya & Mukesh Sud, 2020. "Ownership structure and corporate social responsibility in an emerging market," Asia Pacific Journal of Management, Springer, vol. 37(4), pages 1165-1192, December.
    3. Kalpana Tokas & Kartik Yadav, 2023. "Foreign Ownership and Corporate Social Responsibility: The Case of an Emerging Market," Global Business Review, International Management Institute, vol. 24(6), pages 1302-1325, December.
    4. Pisani, Niccolò & Kourula, Arno & Kolk, Ans & Meijer, Renske, 2017. "How global is international CSR research? Insights and recommendations from a systematic review," Journal of World Business, Elsevier, vol. 52(5), pages 591-614.
    5. José María Agudo-Valiente & Concepción Garcés-Ayerbe & Manuel Salvador-Figueras, 2017. "Corporate Social Responsibility Drivers and Barriers According to Managers’ Perception; Evidence from Spanish Firms," Sustainability, MDPI, vol. 9(10), pages 1-24, October.
    6. Kais Bouslah & Abdelmajid Hmaittane & Lawrence Kryzanowski & Bouchra M’Zali, 2023. "CSR Structures: Evidence, Drivers, and Firm Value Implications," Journal of Business Ethics, Springer, vol. 185(1), pages 115-145, June.
    7. Kamini Gupta & Donal Crilly & Thomas Greckhamer, 2020. "Stakeholder engagement strategies, national institutions, and firm performance: A configurational perspective," Strategic Management Journal, Wiley Blackwell, vol. 41(10), pages 1869-1900, October.
    8. Pei Sun & Jonathan P. Doh & Tazeeb Rajwani & Donald Siegel, 2021. "Navigating cross-border institutional complexity: A review and assessment of multinational nonmarket strategy research," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 52(9), pages 1818-1853, December.
    9. Vigneau, Laurence, 2020. "A micro-level perspective on the implementation of corporate social responsibility practices in multinational corporations," Journal of International Management, Elsevier, vol. 26(4).
    10. Figueira, Sandra & Gauthier, Caroline & Torres de Oliveira, Rui, 2023. "CSR and stakeholder salience in MNE subsidiaries in emerging markets," International Business Review, Elsevier, vol. 32(5).
    11. Francisco Javier Forcadell & Antonio Lorena & Elisa Aracil, 2023. "The firm under the spotlight: How stakeholder scrutiny shapes corporate social responsibility and its influence on performance," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(3), pages 1258-1272, May.
    12. Chen, Huimin (Amy) & Karim, Khondkar & Tao, Anqi, 2021. "The effect of suppliers' corporate social responsibility concerns on customers' stock price crash risk," Advances in accounting, Elsevier, vol. 52(C).
    13. Valentina Marano & Peter Tashman & Tatiana Kostova, 2017. "Escaping the iron cage: Liabilities of origin and CSR reporting of emerging market multinational enterprises," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 48(3), pages 386-408, April.
    14. Ji Li & Ying Zhang & Yanghong Hu & Xiaolong Tao & Wanxing Jiang & Lei Qi, 2018. "Developed market or developing market?: A perspective of institutional theory on multinational enterprises’ diversification and sustainable development with environmental protection," Business Strategy and the Environment, Wiley Blackwell, vol. 27(7), pages 858-871, November.
    15. Jamali, Dima & Jain, Tanusree & Samara, Georges & Zoghbi, Edwina, 2020. "How institutions affect CSR practices in the Middle East and North Africa: A critical review," Journal of World Business, Elsevier, vol. 55(5).
    16. Wenbin Long & Sihai Li & Huiying Wu & Xianzhong Song, 2020. "Corporate social responsibility and financial performance: The roles of government intervention and market competition," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(2), pages 525-541, March.
    17. Kavadis, Nikolaos & Hermes, Niels & Oehmichen, Jana & Zattoni, Alessandro & Fainshmidt, Stav, 2024. "Sustainable value creation in multinational enterprises: The role of corporate governance actors," Journal of World Business, Elsevier, vol. 59(1).
    18. C. Rudeloff & P. Michalski, 2024. "How Corporate Brands Communicate their Higher Purpose on Social Media: Evidence from Top Global Brands on Twitter," Corporate Reputation Review, Palgrave Macmillan, vol. 27(3), pages 202-215, August.
    19. Antonio Martos-Pedrero & Francisco Joaquín Cortés-García & David Jiménez-Castillo, 2019. "The Relationship between Social Responsibility and Business Performance: An Analysis of the Agri-Food Sector of Southeast Spain," Sustainability, MDPI, vol. 11(22), pages 1-23, November.
    20. Leonidou, Leonidas C. & Eteokleous, Pantelitsa P. & Christodoulides, Paul & Strømfeldt Eduardsen, Jonas, 2023. "A dynamic capabilities perspective to socially responsible family business: Implications on social-based advantage and market performance," Journal of Business Research, Elsevier, vol. 155(PA).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:millen:v:14:y:2023:i:4:p:535-559. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.