Institutional Pressures of CSR: Evidence from India

Aruna Jha, VIJITA AGGARWAL

Abstract


The aim of the present study is to identify the important pressures driving corporate social responsibility practices of companies in India. To achieve the objectives of the study, we conceptualise institutional pressures as a second order hierarchical components model (reflective formative type) and its multiple dimensions as first order reflective constructs forming second-order components. An exploratory study was conducted among top level and middle level CSR professionals of companies in BSE 500 index to empirically validate our constructs.  The model has its roots in Scott’s institutional theory as applied to CSR - linking regulative (government and industry association), normative (NGOs and media) and cognitive pressures (local communities and peers) to overall institutional pressure. The responses were collected through a structured questionnaire, and PLS-SEM was used for the purpose of analysis. We found support for measuring institutional pressures of CSR in a reflective-formative type hierarchical component model.

Keywords: Institutional theory, Corporate social responsibility, Institutional pressures, PLS-SEM, Hierarchical Component Model.


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ISSN : 2251-1547