CSR Orientation of Indian Banks and Stakeholder Relationship Marketing Orientation: An Empirical Investigation

Abstract

We address the research questions, (1) Are business metrics of Indian banks associated with its CSR orientation? and (2) Is the CSR orientation of banks focused on areas which is driven by nature of its target markets, such that there is an alignment between CSR orientation and benefits accrued to its stakeholder segments, directly or indirectly? We analyze 49 Indian banks (25 public sector, 15 private sector and 9 foreign banks) operating in India based on data available from the bank websites, its annual reports, and sustainability /CSR reports (if available). From content analysis, we coded the data into seven categories - Education, Health, Community Welfare, Entrepreneurship Development, Environment, Market Place, and Rural Development. Our results indicate that CSR orientation of Indian Banks differ only based on ownership, number of employees, and date of its incorporation in the areas of Environment & Rural development (for ownership), Community Welfare, Environment, and Rural development (for number of employees), and Environment, and market place (for date of its incorporation). The findings of this study should be confirmed in future studies since our study is based on qualitative analysis of information shared by banks on its CSR activities and programs. Bank managers need to identify and focus on areas on which CSR orientation can give them more strategic advantage in building relationship with its stakeholders. Doing so would help in meeting the expectations of the stakeholder expectations successfully. Our paper contributes to literature in many ways. We add to the nascent body of knowledge on CSR orientation as an alternate relationship marketing strategy, which merits more attention from researchers.