Corporate Social Responsibility (CSR) Nudge: A SAP-LAP-IRP Inquiry into the Discretion to Mandate

The purpose of this study is to analyze the current practices in corporate social responsibility (CSR) in India, identify the gaps, explore possibilities to posit CSR as a strategic differentiator, highlight how CSR can act as a win–win nudge for society and firms in particular and all the stakeholder in general by Sustainable Development Goals (SDGs). Nine years after introducing mandatory CSR norms in India, we attempt to explore its hindrances, opportunities, and outcomes. The current research employed a Situation, Actors, Process, Learning, Action, and Performance (SAP-LAP) paradigm using a case-based approach and interpretive ranking process (IRP). The SAP-LAP analytical framework was applied to examine two distinct levels. The first pertains to the comprehensive implementation of CSR nationwide, while the second focuses on a specific organizational context to dive deep into the subject matter. Lastly, the IRP method ranks the influence of actions over performance and learning. The study employs two emerging theoretical standpoints, i.e., the nudge theory and the triple bottom line theory, where the former attempts to comprehend the transition from voluntary to mandatory CSR, and the latter encourages the consequences of corporate reforms on long-term sustainability for both individual enterprises and the broader global sustainability context. Establishing the association between CSR practices and the SDGs, the findings revealed that successful CSR implementation results in sustainable business development in long-run, playing a pivotal role in the upliftment of society, preservation of the environment, economic growth of the company and the economy, enabling the attainment of SDGs. The findings of SAP-LAP analysis dig out several essential variables related to successful CSR implementations in the Indian context. Moreover, the IRP method reveals that ‘Strategic CSR’ is the most crucial variable for successful CSR implementation, followed by ‘Intent to do good for society’ and the provision of a ‘CSR Ombudsman.’ This research is the first to offer a methodological framework for examining the transition from discretionary to mandated CSR in India, applying the SAP-LAP paradigm. This study has several theoretical and practical implications for companies, non-governmental organizations/implementing agencies, and policymakers.