Strange bedfellows: The interaction between corporate and NGOs after mandatory CSR regulation in India

Abstract

This study examines how mandatory CSR, implemented since 2014 in India, has triggered changes in the interorganizational field and has affected the interaction between corporates and NGOs. Collecting qualitative data from key informants from corporates and NGOs, this study identified four approaches that corporates take to meet their CSR obligations: i) direct social project delivery; ii) engagement through the CSR department (headed by internal executives); iii) engagement through the CSR department (headed by an ex-NGO executive); and, iv) engagement through foundations. This study explained how these four approaches affect intra- and inter-organizational tensions, project implementation time, and social impact. We found that partnership, co-optation and learning are the key processes through which corporates can minimize organizational tensions and enhance social impact. Our findings contribute to institutional change and organizational tension literature by enhancing the understanding of the implications of mandatory CSR on corporate-NGO interaction and how such interaction affects organizational tension.