Corporate social responsibility: charity or strategy? Comparison of small, medium and large industries

Corporate social responsibility (CSR) is not new to the business world. It has been in existence since centuries but in different form, as philanthropy, as a charity, and as a humanitarian act. Since few years, there has been paradigm shift in thinking as CSR is considered as a strategy than a charity.

This study was conducted to ascertain the approach of large and small and medium enterprises (SMEs) towards CSR and to know the strategic orientation given by these companies.

A descriptive study was conducted in Mangalore, Karnataka. Proprietors and managers of sample enterprises from thirty two small and medium enterprises and large industries were interviewed.

The results support the literature that SMEs consider CSR as a charity than as a strategy and they invest lesser amount of resources in CSR activities. Large companies show more prudence and consider CSR as strategy than philanthropy. Cost is a major obstacle facing SMEs to engage in CSR.

Greater awareness and understanding of the concept of CSR is needed among SMEs for the inclusive development in India. Corporate organizations cannot pay lip service to CSR as they did in the past as CSR is becoming a process from a concept and creates value for businesses which can be used as a competitive tool.