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Employing multi-criteria decision making in examining CSR initiatives

Author

Listed:
  • Kavitha Shanmugam
  • P. Lakshmi
  • S. Visalakshmi

Abstract

The study provides a framework of the CSR initiatives through a survey of 50 companies in automobile, cement, chemical, pharmaceutical and textile industries in the Indian manufacturing sector. The stakeholders are identified as customers, employees, environment and community. Structural equation model (SEM) is used to test the hypothesised model and compare the overall CSR activities. The findings of second order SEM reveal the emergence of environment CSR as corporate focus. A variety of fit indices confirmed the overall model fit and all the paths in the model were statistically significant. In addition, the analytic hierarchy process (AHP) which is a multi-criteria decision making technique is used to rank each decision alternative of the proposed evaluation model. The results of AHP indicate that the Indian automobile industry leads in CSR initiatives. The scores of the constructs in the model could be used by the companies to ascertain the CSR initiatives taken by them and the relative importance given to various stakeholders in arriving at the overall CSR. From such an understanding, industries could adjust the CSR activities and be more socially responsible.

Suggested Citation

  • 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.
    • Handle: RePEc:ids:ijbire:v:9:y:2015:i:1:p:115-132
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    Citations

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    Cited by:

    1. Anna Dos, 2017. "Multi-criteria decision methods for CSR management – literature review," Managerial Economics, AGH University of Science and Technology, Faculty of Management, vol. 18(1), pages 63-86.
    2. N. Aktaş & N. Demirel, 2021. "A hybrid framework for evaluating corporate sustainability using multi-criteria decision making," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(10), pages 15591-15618, October.
    3. 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.

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