Corporate social responsibility: evidence from Nepalese financial service and manufacturing sectors

Abstract

This study, first, aims to trace the evolutionary path of definitions and perspectives on corporate social responsibility (CSR) particularly during the last fifty years or soand then examine the Nepalese financial service and manufacturing sector managers’ strategic and moral views on CSR. Besides, it also seeks to measure the CSR performanceof companies and examine the relationship between management views on CSR and actual CSR performance. The study finds that the trend on CSR thinking has movedfrom philanthropy to better stakeholder relations and competitive/strategic advantage of organizations and even nations. In Nepalese context, however, the moral view onCSR is stronger than strategic view on CSR. Likewise, the actual CSR efforts are not as greener as the views are. Responsibility towards government seems to be highest and the responsibility towards society is the lowest in both the sectors. Analysis also reveals that overall CSR performance of companies is much more correlated to the moral view on CSR than to the strategic view on CSR. In this context, the government, pressure groups and other stakeholders are also required to further encourage socially responsible corporate behaviour for more equitable and just society.Key words: Corporate social responsibility;strategic view; Moral view; CSR performance; Financial service sector; Manufacturing sector; NepalEconomic Journal of Development IssuesVol. 11 & 12 No. 1-2 (2010) Combined IssuePage:9-20Uploaded date: 10 April, 2012