Modeling the CSR barriers in manufacturing industries

Corporate social responsibility: a cluster analysis of manufacturing firms in India

Purpose

This paper aims to identify the corporate social responsibility (CSR) patterns of Indian manufacturing firms using a CSR index based on ISO26000 and India’s National Voluntary CSR Guidelines.

Design/methodology/approach

A total of 121 manufacturing enterprises in the national capital region (NCR) were surveyed. The questions related to the involvement of CSR in business strategy, involvement in CSR planning, involvement in environmental activities, involvement in social activities, monitoring, evaluation and involvement in CSR, reporting and policy and deployment of CSR. A two-step cluster analysis using log-likelihood measures was used to identify groupings in the data set based on their performance across the seven issues.

Findings

The two distinctive segments identified adopted intermediate CSR activities, and one undertook advanced CSR activities.

Research limitations/implications

This study has several limitations. First, the survey data were drawn exclusively from medium-sized enterprises in the NCR. Second, all the indicators in the CSR index were equally weighted.

Originality/value

This paper contributes to the literature by grouping manufacturers’ CSR activities based on seven dimensions suggested in ISO26000 and India’s National Voluntary Guidelines. The results of this study can help managers, boards and regulators better understand CSR and identify ways to improve it further.

Influence of HRM on CSR and performance of upscale hotels in developed and developing countries

The researchers showed their increased interest in linking human resource management (HRM) and corporate social responsibility (CSR) practices in recent studies. HRM is a critical factor in how CSR should be enacted, developed, and understood at a broader level to achieve organizational benefits. Hence, it is evident that current studies are asking for more studies on HRM-CSR nexus, and we argue that such a relationship is necessary and relevant. Probing more in this research stream, the current research investigates the impact of HRM and CSR on sustainable performance. More specifically, this study explores how 3-star, 4-star, and 5-star hotels achieve sustainable performance through HRM and CSR in the hospitality industry of the UK, Italy, and Pakistan. A stratified random sampling technique was used to select the hotels by collecting hotel details from Chambers of the Commerce United Kingdom, Italian Government Statistics, and Pakistan Hotel Associations for the UK, Italy, and Pakistan. Through a highly structured survey questionnaire, the data were collected from 438 UK, 520 Italian, and 354 Pakistani hotels. The results confirm the HRM-CSR-sustainable performance nexus in the hospitality industries of three countries. They show that HRM impact on CSR and sustainable performance is relatively stronger in five-star hotels followed by three-star and then four-star hotels. These results supported the resource-based view theory by providing strong evidence that HRM and CSR are essential resources for achieving sustainable performance and competitive advantage.

Sustainability practices in manufacturing companies: analysis of an emerging economy

Purpose

Considering the high impacts caused by manufacturers on sustainability, this research aims to analyse how Brazilian manufacturing companies deal with sustainability issues. To do this, sustainability parameters are analysed to verify possible improvement opportunities.

Design/methodology/approach

This research uses Technique for Order of Preference by Similarity to Ideal Solution (TOPSIS) and grey relational analysis (GRA) to analyse data from a survey with Brazilian professionals regarding aspects of sustainability in Brazilian manufacturers. The average score levels and the ranking of these aspects are evaluated.

Findings

Through the analysis performed, it was possible to verify that manufacturers in Brazil still have a long path to travel in the search for sustainability. Comparatively, it was observed that practices related to local communities received the lowest scores, on average. In contrast, on average, practices related to productivity and efficiency, occupational accidents and diseases, and compliance with environmental legislation received the highest scores.

Practical implications

The results presented in this paper show that there are several improvement opportunities to be sought by Brazilian manufacturing companies regarding sustainability aspects. Particular attention should be given to local community practices. Besides companies, policymakers can also use this analysis to guide their future actions, encouraging manufacturing companies to better support the local community. Researchers can use the instrument of analysis (TOPSIS and GRA) to analyse other realities and compare them with the findings presented.

Originality/value

The analysis of Brazilian manufacturing companies’ reality regarding sustainability practices and considering a model based on Global Reporting Initiative (GRI) and Brazilian Institute of Corporate Governance (IBGC) is novel in the literature. The use of TOPSIS and GRA, as well as comparing their findings, generated interesting insights for companies, policymakers and researchers. The analysis presented shows the need for more significant concern for local communities and can be used to support further debates and action plans to minimise this gap.

Energy Saving in Transition Economies: Environmental Activities in Manufacturing Firms

This study seeks to explore the relationship between active environmental activities and energy saving in firms operating in a set of Transition countries. For this purpose, we exploit the enterprise survey data collected by the European Bank for Reconstruction and Development (EBRD), the European Investment Bank (EIB) and the World Bank Group (WBG). Employing a probit regression model, the main finding shows a positive relation between environmental practices and energy saving, controlling several firms’ characteristics such as size, affiliation, credit line, ownership status and age. The results are also confirmed when we perform the robustness check. Interestingly, medium and small firms appear to save more energy than large ones.

Unleashing the Barriers to CSR Implementation in the SME Sector of a Developing Economy: A Thematic Analysis Approach

The notion of corporate social responsibility (CSR) from the perspective of sustainability has been a part of the academic discussion in recent years. Different studies have also highlighted the inability of the SME sector to implement a CSR plan to achieve sustainability objectives. However, why this sector is unable to adopt CSR is something that has not been properly attended by contemporary scholars. Against this backdrop, the current study aims to explore the major barriers that inhibit SMEs from implementing CSR and sustainability measures. The current study data were collected from the senior management of different SMEs in Pakistan and were analyzed using thematic analysis to extract different patterns of themes. The results unveil that the “lack of finances” is the most critical barrier for CSR, followed by the “lack of CSR knowledge.” The implications for theory and practice are also discussed in detail.

What Prompts Small and Medium Enterprises to Implement CSR? A Qualitative Insight from an Emerging Economy

The topic of corporate social responsibility (henceforth referred to as CSR) has been a central topic during the last decade, but the majority of the existing literature discusses CSR relationship with large organizations. Whereas, its contribution in small and medium enterprises (henceforth referred to as SME) sector has received little attention. There have been some studies that focused on CSR activities in SME sector quantitatively in the context of developing economies like Pakistan, but the fact is, to date, SME sector of Pakistan is not participating actively in CSR-related activities due to some constraints. The present study is a pioneer attempt, to explore CSR barriers that restrict SME sector of Pakistan from practicing CSR initiatives. For this reason, the present study explores these barriers qualitatively in order to gain in-depth knowledge of different CSR barriers. In doing so, we conducted semi-structured in-depth interviews from 9 SMEs in Lahore city of Pakistan. We performed thematic analysis, which produced five relevant themes of CSR barriers, including: Lack of resources, lack of regulations, lack of top management commitment, lack of CSR knowledge, and passive customer behavior. Our analysis further showed that lack of resources is the most related barrier that hinder SMEs to be engaged in CSR activities. This paper contributes to CSR literature in emerging economies’ context. Through an increased awareness of barriers, policy makers and practitioners may take necessary steps to improve CSR practices in SMEs.

The effect of total quality management-enabling factors on corporate social responsibility and business performance: evidence from Vietnamese coffee firms

Purpose

This article aims to evaluate total quality management (TQM)-enabling factors' impact on corporate social responsibility (CSR) activities and business performance through evidence from Vietnamese coffee firms.

Design/methodology/approach

Based on collecting data via in-depth face-to-face interviews with employees, who are working in the Vietnamese coffee companies. The partial least squares structural equation modeling (PLS-SEM) approach has been employed to investigate the relationship among the TQM-enabling factors, corporate social performance (CSP) and business performance.

Findings

A total of 13 TQM-enabling factors have been identified and divided into two categories, namely human and functional. The statistical results revealed a positive signal to remarkably enhance CSP and business performance by adopting those TQM-enabling factors into Vietnamese coffee firms.

Research limitations/implications

The framework model of this research should be evaluated in different contexts worldwide or in another sector that can further identify the TQM-enabling factor and the correlation among these constructs.

Practical implications

This article provides top managers of Vietnamese coffee firms with knowledge of TQM-enabling factors that may enable them to meet superior performance, including CSP, finance and reputation.

Originality/value

This is a unique study to employ the approach into the Vietnamese coffee industry context up-to-date, which is one of the essential sectors affecting Vietnam's sustainable development.

Exploring predictors of working capital management efficiency and their influence on firm performance: an integrated DEA-SEM approach

Purpose

This study develops an integrated approach combining data envelopment analysis (DEA) and structural equation modeling (SEM) for estimating the working capital management (WCM) efficiency and evaluating the effects of diverse exogenous variables on the WCM efficiency and firms' performance.

Design/methodology/approach

DEA is applied for deriving WCM efficiency for 212 Indian manufacturing firms over a period from 2008 to 2019. Also, the effect of human capital (HC), structural capital (SC), cost of external financing (CEF), interest coverage (IC), leverage (LEV), net fixed asset ratio (NFA), asset turnover ratio (ATR) and productivity (PRD) on the WCM efficiency and firms' performance is examined using SEM.

Findings

The average mean efficiency scores ranging from 0.623 to 0.654 highlight the firms operating at around 60% of WCM efficiency only, which is a major concern for Indian manufacturing firms. Further, IC, LEV, NFA, ATR revealed direct effect on the WCM efficiency as well as indirect effect on firms' performance, whereas CEF had only a direct effect on WCM efficiency. HC, SC and PRD had no effects on WCM efficiency and firms' performance.

Practical implications

The findings offer vital insights in guiding policy decisions for Indian manufacturing firms.

Originality/value

This study is the first to identify the endogenous nature of the relationship of HC, SC, CEF, IC altogether with firms' performance, compounded by the WCM efficiency, by applying a comprehensive methodology of DEA and SEM and provides an efficiency performance model for better decision-making.

Critical Success Factors for Corporate Social Responsibility Adoption in the Construction Industry in Malaysia

In the construction industry, corporate social responsibility (CSR) is increasingly valued as a strategic tool for business sustainable development and for addressing ethical issues. However, understanding the concept of CSR in the construction industry, and how to practice it, is limited. This study aims to explore and assess the factors critical to the successful adoption of CSR in the construction industry through the lens of critical success factors (CSFs) theory. Through a literature review, a list of potential factors that may theoretically have a major impact on CSR adoption in the construction industry was compiled as a proxy. Then, the potential factors were refined and validated by employing a Delphi technique. An expert panel of sixteen qualified Malaysian industry practitioners and academia was assembled. Results from three iteration rounds of the Delphi process depicted that successful adoption of CSR in practices depends upon eight CSFs including financial resources, top management support, managerial or internal skills on CSR, national economic growth, employees’ education and training on CSR, participation of key stakeholders in the CSR process, effective CSR communication, and organizational structure. This study contributes to the field by addressing a theme that has been covered less in literature. Knowing the CSFs for CSR adoption in advance could help the construction firms to successfully integrate CSR into business strategies and minimize the risk of failure. Policy-makers could also consider the findings when promoting the CSR agenda or development programs that adhere to the construction industry’s way forward. Although this study is particularly suited for the Malaysian context, nevertheless, the outcomes could shed some light upon the CSR initiative in other countries, since CSR adoption status in the construction industry overall does not significantly differ between countries.

Investigating green supply chain management practices and performance

Purpose

Sustainable supply chain management has become an increasingly important driver of business performance. Understanding the contingent nature of how performance is improved in this context is therefore a critical task for management. The purpose of this paper is to explore the moderating effects of two practices unique to sustainable supply chain – ecocentricity and supply chain traceability – on a firm’s environmental and operating cost performance.

Design/methodology/approach

Survey data were collected from 248 UK manufacturing firms and analyzed using moderated hierarchical regression.

Findings

The results suggest that green supply chain management (GSCM) practices are associated with improvements in both environmental and cost-based performance. Further, higher levels of ecocentricity and supply chain traceability are associated with stronger relationships between GSCM practices and cost performance. Contrary to expectations, high levels of supply chain traceability were found to negatively moderate the relationship between GSCM practices and environmental performance.

Research limitations/implications

The research design was survey-based and cross-sectional. Future studies would benefit from longitudinal research designs that capture the effects of GSCM practices on performance over an extended period. The survey data is also perceptual; using secondary data to capture environmental performance outcomes, for example, would be another opportunity for future research.

Practical implications

The authors provide additional support to findings that GSCM practices benefit both environmental and cost performance dimensions. In this context, the authors show that investments by firms in working with a broader set of eco-system partners (ecocentricity) and building supply chain traceability and leads to improved environmental sustainability outcomes. The authors encourage managers to carefully consider how they conceptualize and monitor their supply chains.

Originality/value

This paper offers several contributions to the research in this area. First, the authors develop and validate a measurement scale for ecocentricity and supply chain traceability. Second, the authors show how these two variables – unique to sustainable supply chains – can positively influence firm and environmental performance.

Industry 4.0 − challenges to implement circular economy

Purpose

The purpose of this paper is to identify the Industry 4.0 barriers to achieve circular economy (CE). The study focuses on exploring the link between Industry 4.0 and CE. This leads to the implementation of integrated Industry 4.0-CE and attainment of sustainable production and consumption through analyzing the technological benefits of Industry 4.0.

Design/methodology/approach

Industry 4.0 barriers are identified from literature review and discussions with industry experts. Here, the interpretive structural modeling (ISM) technique is applied to develop the contextual relationship among the barriers and to identify the prominent barriers hindering the CE implementation.

Findings

The ISM hierarchical model and Matriced’ impacts croised-multiplication applique’ and classment analysis illustrate that the digitalization process and the semantic interoperability possess high driving power and low dependence. These barriers require keen attention to play a significant role in improving resource efficiency and sustainability, and absence of these barriers may not drive other barriers for CE. Apart from these barriers, cyber-physical systems standards and specifications, sensor technology and design challenges are also the most influential Industry 4.0 barriers for achieving CE.

Practical implications

The findings provide an opportunity for industry practitioners to explore the most driving Industry 4.0 barriers. The study confirms that integrated Industry 4.0-CE will maintain sustainable operations management by optimizing the production and consumption patterns. It will also provide an opportunity of customization where customers and products interact and can monitor the performance of the operations through the Internet of Things sensors.

Originality/value

The study provides integration of Industry 4.0 challenges to implement CE. However, the integration of the two burgeoning fields is still very scarce and lacks in adopting the technological benefits of the integrated Industry 4.0-CE.

Modeling and classification of enablers of CSR in Indian firms

Purpose

The purpose of this paper is to study corporate social responsibility (CSR) enablers, with special reference to Indian firms. Further, the CSR enablers have been identified and their ranking obtained, and interactions and interrelationships among the different enablers have also been studied.

Design/methodology/approach

The interpretive structural modeling (ISM) approach was used to evaluate the interactions among the various enablers of CSR implementation, from the perspective of Indian companies.

Findings

In the course of this paper, based on a detailed literature review, nine enablers were identified and after seeking expert opinion, eight CSR implementation enablers were shortlisted. The present study has identified that top management commitment, organizational culture and formal strategic planning are the main enablers of CSR implementation in Indian companies, whereas corporate reputation, better financial performance and customer satisfaction are the dependent enablers that have high dependence power but weak driving power.

Originality/value

The ISM-based model of CSR enablers presented in this paper will prove to be of interest to academicians and practitioners alike. While academicians will gain a better understanding of enablers of CSR implementation from the perspective of one of the fastest growing economies of the world, practitioners will gain a better understanding of CSR enablers, and their enhanced knowledge will help them to effectively implement CSR in their organizations.

Critical Barriers to Social Responsibility Implementation within Mega-Construction Projects: The Case of the Kingdom of Saudi Arabia

Even though social responsibility (SR) has been widely discussed as a business concept, it is still not being effectively implemented within mega-construction projects due to a range of barriers. Overcoming these barriers requires detailed information, however, there is a lack of research on the barriers to SR implementation within mega-construction projects, particularly in developing countries like the Kingdom of Saudi Arabia (KSA). This study thus aims to investigate the critical barriers to SR implementation with reference to mega-construction projects in the KSA. Eleven barriers were identified from a comprehensive literature review and interviews with experts. These barriers were examined in more detail using a questionnaire survey on two current mega-construction projects in the KSA. There were no differences in the ranking of barriers between the two projects with the 136 respondents identifying the top seven SR barriers as being: (i) additional costs; (ii) lack of awareness and knowledge; (iii) lack of guidelines and coherent strategy; (iv) lack of stakeholder communication; (v) lack of law enforcement; (vi) lack of training; and (vii) unclear project requirements. The findings of this study not only contribute to deeper understanding of the critical SR implementation barriers, but could also encourage industry practitioners and stakeholders to improve SR activities for more effective SR implementation. Moreover, identification and ranking of the critical barriers allows decision-makers to prioritize and develop effective strategies to tackle them at both project and sector scale. Future studies should investigate the interrelationship between the critical barriers and their impact on SR implementation

Does Corporate Social Responsibility Affect the Financial Performance of the Manufacturing Sector? Evidence from an Emerging Economy

The present study analyzed the impact of corporate social responsibility (CSR) reporting on the financial performance of Indian companies. It used secondary data from 50 manufacturing companies over the period of fiscal years 2011 to 2017. The results suggested that there exists a significant relationship between the performance of Indian companies and their CSR. The CSR not only improves the firm’s social value and reputation but also improves profitability and performance. According to the results, return on assets is significantly determined by corporate governance, customers, products, number of employees, and board size. The customer has a negative impact on return on assets (ROA). The relationship between return on equity and independent variables is the same as the relationship between ROA and independent variables. Corporate governance and product positively impact ROE, but the relationship between customers, number of employees, and board size are negative. Corporate governance and product positively impact return on capital employed (ROCE), but the relationship between customer and the number of employees is negative. Education has positive impact on profit after tax (PAT) and profit before tax (PBT), but the PAT relationship between environments is negative. Corporate governance and product positively impact PBT. In general, we concluded that in India, socially responsible corporations perform better and vice versa.

Modelling the barriers to online banking in the Indian scenario: an ISM approach

Purpose

Online banking, a phenomenon widely adopted and appreciated in developing and developed countries, is becoming an essential part of the lives of people from all walks of life, but there exist a good fraction of customers resisting these services. Therefore, the purpose of this paper is to identify the barriers generating resistance to online banking. The special focus of the paper is to explore resistance among bank customers who already have valid contracts for online banking but still prefer to approach the traditional branches for transactions.

Design/methodology/approach

To achieve the objective, interpretive structural modelling (ISM) with cross-impact matrix multiplication applied to classification (MICMAC) approach is used to investigate the interrelationships among the barriers to online banking.

Findings

Online banking, although proven to be a glorious innovation, has still not been adopted by all, and hence, has not met all the expectations of banks and banking sector. The outcome shows that the online illiteracy and online unawareness are the most important barriers and these two are working as the root cause and demand strong attention on part of the banking sector which is working towards the inclusion of customers to online banking. These findings may help the Indian banking sector in identifying the crucial points that affect online banking system in India the most.

Originality/value

This research explored the interactions among the barriers to online banking in the Indian scenario and revealed significant results through the ISM-based technique.