Who Decides on What to Spend in CSR? Moving from Compulsion to Consensus
International Journal of Economic Behavior and Organization
Volume 2, Issue 2, April 2014, Pages: 13-19
Received: Apr. 4, 2014; Accepted: May 4, 2014; Published: May 30, 2014
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Author
Jagannath Mohanty, Institute of Management Technology, Nagpur, India
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Abstract
With CSR spending becoming mandatory in some prominent economies, quantum of spend is increasingly becoming a non issue. Instead spending right has acquired prominence. Ever since policy makers mulled the idea of making CSR spending compulsory, there appears to be rush and panic in the business world to spend on CSR activities that gives them the best return on their social investment. The debate is on for decades now, as to who should decide on what to spend and how much? For long in the name of CSR activities businesses have been spending on initiatives that were either a part of owner’s choice or were easy to identify and implement, mostly avoiding the views of stakeholders inside as well as outside. This paper attempts to address broadly the issue of stakeholder confidence and preference in a CSR initiative. The paper suggests a model of engagement of stakeholders both within and outside of a business for the roll out of a CSR initiative.
Keywords
Corporate Social Responsibility, Stakeholder Theory of Firm
To cite this article
Jagannath Mohanty, Who Decides on What to Spend in CSR? Moving from Compulsion to Consensus, International Journal of Economic Behavior and Organization. Vol. 2, No. 2, 2014, pp. 13-19. doi: 10.11648/j.ijebo.20140202.11
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