Stakeholder salience and CSR in Indian context

Abstract

We examine stakeholder management by studying the relationship between antecedents and outcomes of stakeholder salience in Indian IT industry. A mixed methodology integrating qualitative and quantitative approaches was adopted. Two potential antecedents of stakeholder salience were identified, namely, stakeholder integration and top management support. The consequent outcome was Corporate Social Responsibility (CSR) toward stakeholders. Data were collected from 67 organizations through a survey questionnaire. The conceptual framework was tested across six prominent primary stakeholders: investors, customers, employees, suppliers, environment and community. Data were analyzed using partial least squares technique. The influence of stakeholder integration on salience of stakeholders was found to be significant in the case of investors, customers, employees and suppliers. However, the influence of top management support toward determining stakeholder salience was only evident in regard to key stakeholder groups. Further, salience of all the stakeholder groups was found to considerably enhance the potential CSR activities toward them. Top management support was identified as a potential antecedent of sa