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Corporate Sustainability Relationship Management

Practices: Perceptions of the Stakeholders -An Empirical
Analysis
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Prof. G. V. Chalam and Siddam Venkata Narayana Rao, International Journal of Research in Engineering, IT
and Social Sciences, ISSN 2250-0588, Impact Factor: 6.565, Volume 09 Issue 01, January 2019, Page 108-113

Corporate Sustainability Relationship

Management Practices: Perceptions of the
Stakeholders – An Empirical Analysis
1
Prof. G.V. Chalam1 and Siddam Venkata Narayana Rao2
(Department of Commerce & Business Administration, Acharya Nagarjuna University, Nagarjuna Nagar,
Andhra Pradesh, India)
2
(Research Scholar, Department of Commerce & Business Administration, Acharya Nagarjuna University,
Nagarjuna Nagar, Andhra Pradesh, India)
Abstract: The sustainability relationship management practices are increasingly prevalent during the recent
past in business corporations and their institutional landscape. Actually, these organizations have been waiting
for guidelines on sustainability since several years on economic, environmental and social perspective. In fact,
the corporate managements believe that sustainability is important for future success and growth and is
interested in blending it with its day-to-day business strategy.
This paper aims at to elicit the perceptions of the selected respondents on the corporate social
sustainability relationship management practices in the select companies. From the analysis it was found that
the practices of corporate social sustainability relationship management are ingrained in the company policies,
vision and mission. The stakeholders are identified through internal reviews, face to face meetings, activity
related peer groups, and other methods of interactions. The social sustainability is practiced as a life cycle
management starting with health and safety, housing, education, ethics, philanthropy through equity and
welfare without deviation the human rights principles. Most of the companies are concentrating on the
economic and environmental sustainability programs rather than on social sustainability initiatives. Though
some environmental and economic initiatives tend to look as social sustainability initiatives.
Keywords: Sustainability, Sustainability Relationship, Stakeholders, Corporate Social Responsibility,
Corporate Social Sustainability, Local Community, Social Equity

I. INTRODUCTION
The sustainability relationship management practices are increasingly prevalent during the recent past
in business corporations and their institutional landscape. Actually, these organizations have been waiting for
guidelines on sustainability since several years on economic, environmental and social perspective. In fact, the
corporate managements believe that sustainability is important for future success and growth and is interested in
blending it with its day-to-day business strategy.
As a fact, sustainability is the program and process in any organization woven into the social fabric of
the community through broad-based interest, involvement and investment in the fulfillment of the corporate

mission and
business vision.
partners The program
investing and
their time andprocess involve
resources for thea purpose.
complete network of individuals, stakeholders and
There are several tasks that must be accomplished to develop and implement a sustainability plan. But
fundamentally, sustainability is about developing, nurturing and managing various relationships. In
sustainability relationship, building a strong stakeholder network becomes a valued and mission-critical asset for
any organization. Sustainability is viewed as a continuous journey rather than a destination. This research argues
:
 any organization. Sustainability is viewed as a continuous journey rather than a destination. This research argues
in favor of recognition of corporate social sustainability as both a normative and analytical concept. Of late,
sustainability has been used more in the sense of human sustainability on planet earth. It has many situations and
contexts depending on many scales of space and time.
Corporate Sustainability Relationship Management
The social sustainability can be achieved through social mobilization. By doing business, the
companies have an effect on their neighbors, customers, suppliers and the economic vitality of the entire region.
There are many simple steps that a company can take to improve the lives of people in its community, including
volunteer projects and contributions to charitable organizations and interest groups. The stakeholders or
business partners for a corporate business houses are partner companies, investors, specialist organizations,
government, workers and employees’ groups and the general public associated di rectly or indirectly with the
business of the company.
The sustainability is a multidimensional approach and there are several key areas an organization has to
begin exploring stakeholders to develop relationships. Though the list is not an exhaustive, business and
industry, non-profit organizations, education, religious congregations, healthcare services, government, civic

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Prof. G. V. Chalam and Siddam Venkata Narayana Rao, International Journal of Research in Engineering, IT
and Social Sciences, ISSN 2250-0588, Impact Factor: 6.565, Volume 09 Issue 01, January 2019, Page 108-113
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relationships. The company reports to Package Translate
service, activist organizations, etc., can be considered as a starting point for developing corporate sustainability
and learns from its stakeholders to assess the company’s performance and
aspirations on the sustainability.
Thus, the social sustainability has become an issue for the public and private sector organizations
during the recent years. Many problems associated with social injustice, slavery, child labor, racial
discrimination, unsafe workplaces, etc., are covered under national, regional and local regulations. There are a
number of issues to consider regarding the implementation of these programs. A constant review and evaluation
of these strategies need a close monitoring. The shareholders, investors, employees, communities, etc., look
into the financial, environmental and social wellbeing of the company.
In this paper, an attempt is made to know the perceptions of the stakeholders on the corporate
sustainability practices in the sleeted organizations in India. For this, the data is collected from the stakeholders
through personal internal reviews, face to face meetings, activity related peer groups, and other methods of

interactions.
housing, The social
education, sustainability
ethics, is practiced
philanthropy throughasequity
a life cycle management
and welfare starting
without with health
deviation and safety,
the human rights
principles.
The data collection has been collected in two-fold, i.e., face to face interviews and the second one is the
online responses of the sample respondents. The face to face interviews are carried out and simultaneously
online data collection started. The same questionnaire format is used for face to face interviews, distributed for
questionnaire survey and online collection of data. For the purpose of data collection, an internet-based survey
was also conducted, with a website http://www.sustainquest.info created for the respondents to login and
complete the questionnaire. Users initially register their credentials to log on to the site and then complete the
questionnaire.
The data so collected is computerized primarily in MSSQL database. This data is transferred in a
structured format to IBM SPSS. The IBM SPSS is software that addresses the entire analytical process, from
planning to data collection to analysis, reporting and deployment. It provides tools that allow users to quickly
view data, formulate hypotheses for additional testing, and carry out procedures to clarify relationships between
variables, create clusters, identify trends and make predictions.
Section-I: Implementation of CSRM Practices – Companies Views
From 1st April of 2014 as per the Companies Act 2013, the larger companies in India are mandated to be
required to spend at least 2 per cent of the net profits of prior three years of business on CSR activities, on
projects or activities from the set list (as per Schedule VII of the Companies act 2013). Further, it is required to
comply or explain the expenditure and any shortfall below the 2 per cent threshold. It is mandatory to set-up a
CSR committee of the board of 3 or more directors, whose members will include at least one independent
director and to ensure that the board establishes a policy for CSR within the company, which will report
exclusively on the CSR activities.
In the following tables, percentage responded are the total number of respondents that opted for the
answer, while percentage response is the number of responses received to the question to the total responses
received for that question.
Table-1: Implementation of Sustainability Programs - Companies Objectives
Objectives No. of Responses % Responded % Response
Customers’ Demand 460 50.77 12.71
Reputation 408 45.03 11.27
Competition 399 44.04 11.02
Cost Savings 377 41.61 10.41
Executive Commitment 365 40.29 10.08
Shareholders’ Demand 360 39.74 9.94
Industry trend 325 35.87 8.98
Government Regulations 252 27.81 6.96
Social Community demand 222 24.50 6.13
Demand from NGOs 178 19.65 4.92
Public demand 166 18.32 4.59
Others 54 5.96 1.49
No response 54 5.96 1.49
Total 3620 100
Source: Collected from the Survey

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This work is licensed under a Creative Commons Attribution 4.0 International License

Prof. G. V. Chalam and Siddam Venkata Narayana Rao, International Journal of Research in Engineering, IT
and Social Sciences, ISSN 2250-0588, Impact Factor: 6.565, Volume 09 Issue 01, January 2019, Page 108-113

Identify your company’s top five reasons to implement sustainability programs?

The select companies are implementing sustainability programs on customers’ demand. Many times,
companies conduct sustainability programs to build up their reputation in the market. On the other hand, often
the sustainability programs are conducted for competition from the other companies. Cost Savings, Executive
Commitment, Shareholders Demand, Industry trend, Government Regulations are among the other important
reasons for implementing the sustainability programs in an organization.
HOME MENTIONS ANALYTICS TOOLS
Table-2: Obstacles Faced by the Companies in Promoting the Stakeholder Engagement
Obstacles No. of Responses % Responded % Response
Lack of time 429 47.35 19.86
Lack of leadership 387 42.72 17.92
Inadequate funding to support the cause 294 32.45 13.61
Weak regulations 258 28.48 11.94
Resistance to change 198 21.85 9.17
No training or education on the subject 187 20.64 8.66
Geographical distances 146 16.11 6.76
Motivational Factors 79 8.72 3.66
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 Language and cultural barriers 75 8.28 3.47
No response 59 6.51 2.73
Others 36 3.97 1.67
Lack business planning capabilities 12 1.32 0.56
Total 2160 100
Source: Collected from the Survey
What obstacles does your company face in the process of promoting the stakeholder engagement?
The sample companies do face lot of obstacles in the process of stakeholder engagement. Stakeholder
engagement is critical in implementing the corporate social sustainability initiatives and programs. The
companies most often understand the importance of sustainability programs but lack strategy on how to engage
the stakeholders at the right point of time to the right activity. Lack of time, lack of leadership, inadequate
funding to support the cause, weak regulations and resistance to change are a few major obstacles companies are
facing in the process of promoting the stakeholder engagement. There are both enablers and resistors in the
stakeholder’s engagement process. Inability or unwillingness to change, inability to see potential benefits of
getting involved, and lack of awareness, are a few traits of the resistors, while active involvement and show of
interest, and assuming roles and responsibilities, are a few of the traits of the enablers from among the
stakeholders.
Table-3: Environmental Aspects for the Implementation of the Sustainability Programs

Environmental Aspects No. of Responses % Responded % Response

Materials 366 40.40 13.47
Water 349 38.52 12.85
Products and Services 305 33.66 11.23
Energy 298 32.89 10.97
Biodiversity 291 32.12 10.71
Transport 236 26.05 8.69
Effluents and Waste 220 24.28 8.10
Emissions 215 23.73 7.91
Compliance 190 20.97 6.99
Overall 85 9.38 3.13
No response 65 7.17 2.39
Environmental Grievance Mechanisms 51 5.63 1.88
Supplier Environmental Assessment 46 5.08 1.69
Total 2717 100
Source: Collected from the Survey

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This work is licensed under a Creative Commons Attribution 4.0 International License

Prof. G. V. Chalam and Siddam Venkata Narayana Rao, International Journal of Research in Engineering, IT
and Social Sciences, ISSN 2250-0588, Impact Factor: 6.565, Volume 09 Issue 01, January 2019, Page 108-113

Which “Environmental” aspects of the following does your company organize in the sustainability
Programs?
On the environmental aspect the sample respondent companies are organizing the sustainability
programs on materials, water, product and services, energy, biodiversity, waste, emissions and compliance
during the period of study.
Section II: Satisfaction Levels of Stakeholders on Corporate Sustainability Initiatives
The sustainability initiatives are being implemented by both private and public enterprises. Is it because
of legal obligations and government mandates or merely for prestige and reputation? On the other hand, how
seriously are they implementing and do the employees often underutilize resource in the development and
implementation of sustainability programs are examined in the following paragraphs.
Table-4: Satisfaction Levels on Safety and Security in the Community
Satisfaction Level Number of responses % Response

Satisfied 460 50.77

Neither Satisfied nor Dissatisfied 139 15.34
Completely Satisfied 100 11.04
Dissatisfied 79 8.72
Very Dissatisfied 68 7.51
No response 61 6.62

Total
Source: Collected from the Survey 907 100
How satisfied are you with safety and security in your community?
The balance between the work and life is important for increase in productivity of the company.
Corporate companies encourage a healthy work-life balance for its employees. Around 42 per cent of the
stakeholders are satisfied with the balance between the work place and the community life while 13 per cent are
dissatisfied. On the other hand, there is double the number of stakeholders who are very dissatisfied over the
completely satisfied stakeholders with the balance of work place to community life.
Table-5: Satisfaction Levels with Relationships with the People, Institutions in Community
Satisfaction Level Number of responses % responsed

Satisfied 430 47.35

Neither Satisfied nor Dissatisfied 180 19.87
Dissatisfied 99 10.93
Very Dissatisfied 68 7.51
Completely Satisfied 65 7.17
No response 65 7.17
Total 907 100
Source: Collected from the Survey
How satisfied are your relationships with the people, institutions in your community?
The community relationship is strategic aspect of business for organization sustainability. These
relationships help retain the position in the market. Companies continue to integrate community relations into
their overall business strategy to maintain the corporate social sustainability relationship. On the relationships
aspect around 55 per cent are satisfied or completely satisfied and around 19 per cent are dissatisfied and very
dissatisfied.
Table-6: Satisfaction Levels Meeting Local Community Needs such as Energy/Water
Satisfaction Level No. of Responses % Responsed
Satisfied 416 45.92
Neither Satisfied nor Dissatisfied 169 18.65
Dissatisfied 115 12.69
Very Dissatisfied 89 9.82
No response 64 6.84
Completely Satisfied 55 6.07
Total 907 100
Source: Collected from the Survey

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