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India's Consumer's Perception Of Corporate Social Responsibility

849 words - 4 pages

“An Empirical Study of Indian Consumer’s Perception of Corporate Social Responsibility (CSR)”
Introduction
In the area of consumer perception and response towards corporate social responsibility (CSR) increasingly received attention from the managers and researchers. Most of the research was conducted in context of developed countries that means research on consumer perception towards CSR in developing countries like India needs to be developed. This research will examine consumer perception of CSR in India. This research will be produced mixed results suggesting that CSR is still the concept waiting to be applied in India. Indian Consumers are often unaware and unsupportive towards CSR. This is an opposite finding of consumer perception in the developed countries where most of the consumers are willing to support CSR launched by corporations. This research will also address the issue when consumers have to buy similar products with the same price and quality, CSR could be the determining factor.
Review of Literature
Research on corporate social responsibility (CSR) is started in 1930s. Berle and Means (1948); Carroll (1991) advocated to incorporate voting rights for greater accountability and transparency for all shareholders. Nowadays, CSR receives attention from researchers and managers in the area of consumer perception and the response of CSR Smith (2003); Bhattacharya and Sen (2004); Beckmann (2007).
Beckmann (2007) mentioned in his research on consumer perception and response towards CSR and suggested that there is a positive relationships between a company’s CSR activity and consumers’ reactions to that company and its product. Most of this research was conducted in developed countries e.g. Brown and Dacin (1997); Creyer and Ross (1997); Maignan and Ferrell (2000); Maignan (2001); Uusitalo and Oksanen (2004); Sankar et al. (2006) not in developing country like India. So the findings show that research on consumer perception of corporate social responsibility in developing countries needs to be conducted.
Visser (2007) suggested four rationales for focusing on CSR in a developing country:
1. Developing countries represent the rapidly expanding economies for lucrative growth markets for business.
2. Developing countries have social and environmental crises.
3. Developing countries have the most dramatic positive and negative social and environmental impacts.
4. Developing countries present a distinctive set of CSR challenges which are collectively quite different in comparison to the developed world.
Thus, this research will examine the consumer perception of CSR in India.
Objectives of the research
According to the Carroll’s (1979) model that consisted of economic, legal, ethical and philanthropic components, and the previous literature review I am going...

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