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5.4.2 Suggestions on enhancing non- governmental player role
The respondents recommended that Business and management schools should take a bigger part in creating awareness and promoting CR policies. The companies also suggested that the media can play a great role in promoting CR. It should not only highlight the failures, but play a constructive role and that NGOs and civil society organisation should put in better efforts to improve awareness.
5.5 Current and emerging drivers of CR
Analysis of what drives the CR activities in the organisations, showing involvement in such activities, revealed the following:
- Overall, the reasons that dominated the companies’ rationale for engagement in activities reflecting CR were management of brand reputation (66%), with workforce retention and realisation of company values coming to a close second at 63 percent.
- A little over half the companies (52%) surveyed cited competitive enhancement and market positioning as drivers for engagement. At 47 percent, improvement of investor relationships also figured fairly prominently.
- Other drivers that received non-significant mention were operational efficiency and risk management improvement, civil society pressure, management of stakeholder relations and protection of license to operate.
- The drivers for CR activities seem uniform across company categories. Notably, for MNCs, the significance of operating license protection was marginal at 18 percent.
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Main drivers of CR- 2003 versus 2006
Table 9. Main drivers of CR activities in the organisation
|
2003 |
2006 |
Base: All involved in CR activities |
404 |
552 |
Philanthropy |
64 |
63 |
Reputation reasons |
42 |
66 |
Building employee morale |
30 |
63 |
Ethical reasons |
30 |
- |
Realisation of company values |
- |
63 |
Enhancing competitiveness, market positioning |
- |
52 |
Improve investor relationships |
- |
47 |
Improve risk management |
- |
38 |
Improve operational efficiencies |
- |
41 |
Among all those affirming involvement in CR activities in 2003, philanthropy emerged as the key driver of practice at 64 percent whereas in 2006, the pre-eminent spot was claimed by goodwill and credibility building at 66 percent, marking a distinct shift in ethos. Broadly speaking, in 2003, there were limited motivating factors for CR engagement whereas in 2006, companies spanned the entire gamut from building employee morale to reputation, company value realisation, investor relationships to risk management and operational efficiency. Notably, ethical reasons that were drivers for 30 percent of the respondents in 2003 were conspicuous by their absence in 2006 where expediency and sundry factors aligned to the bottom line assumed ascendancy.
5.6 Deterrents in adoption of CR by companies
Table 10. Constraints within the company
|
ALL |
INDIAN |
MNC |
PSU |
Base: All |
552 |
428 |
39 |
85 |
KNOWLEDGE |
82 |
79 |
92 |
92 |
Lack of professional training on CR |
59 |
56 |
74 |
67 |
Lack of access to knowledge |
40 |
38 |
38 |
51 |
Lack of trained staff |
39 |
36 |
41 |
54 |
Huge variation of how CR is integrated within and outside the company |
36 |
34 |
38 |
44 |
MANAGEMENT SUPPORT |
72 |
71 |
79 |
76 |
Lack of financial resources |
43 |
41 |
38 |
54 |
Not part of corporate values , vision |
36 |
36 |
23 |
41 |
Not on the agenda of the board |
32 |
29 |
46 |
41 |
Short sightedness of management |
32 |
32 |
28 |
35 |
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