Value of Corporate Social Responsibility in the Emerging Global Market in India

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CHAPTER 2: LITERATURE REVIEW

Introduction

This literature review focuses on Corporate Social Responsibility (CSR) in India's emerging consumer market. The focus of the literature review is on the middle class consumer market of India; the prevalent and emerging trends of CSR in the identified market; the examination of what is known to date about the impact that CSR and how it impacts purchase decision making in the middle class consumer market. The literature review examines consumer's perceptions of CSR and how those perceptions can be influenced when they are exposed to novel values like globalization and as the perceptions intersect with people relating it to their own cultural values and norms. Utting (2003) examined CSR in the business sector and found that there is no dispute that the business sector, which is currently generating more change in society, is also as a natural consequence of change is assuming its responsibility in the kind of future that is developing. In this context, the concept of CSR is associated with more movement in the process, a concept in search of definition, as a means of social transformation. Some think it is necessary to incorporate CSR on the business of image, demands of the markets outside for ethical reasons or because it improves the management and profitability. What is not in dispute is that companies are quickly realizing that CSR is a new challenge of globalization (Utting, 2003).

Indeed, CSR is criticized as being the vehicle used by companies to encroach on the prerogatives of the State, namely to regulate the social actors in order to preserve the collective interest. In other words, under the guise of noble concerns, large companies are trying to replace the state, sole owner of democratic legitimacy, and "privatize" the protection of the public interest to continue their quest for greater freedom profits (Stainer A, 2002).CSR is based on what companies can do, not what they want to do. These are opportunities, not obligations or new rules. In short, this is the way to add value to a company by analyzing in more depth some of the social and environmental entrepreneurship relationships. CSR is not a new concept to incorporate into corporate strategy but rather involves how it is a commitment to the corporate enterprises, through the systematic application of resources, to respect and promote the rights of individuals, the growth of society and care for the environment. This commitment translates into action seeking specific benefit of all stakeholders in the activities of the company (shareholders, employees, suppliers, distributors, and the community as a whole), achieving better performance and achieving their sustainability and their environment. In or der to understand the concept of CSR in the context of the Indian middle class consumer market, an examination of the current literature will be undertaken. The theory of corporate social responsibility encourages businesses to get maximum profits and sustainability by obeying moral minimum by considering the well being of social and environmental factors ...