The Changing Organisational Practices of Third-Sector Organisations in Mandated CSR in India

Abstract

This paper presents the changes in organisational practices of third-sector organisations (TSOs), which are the immediate partners of corporations in implementing CSR projects. The paper employs the theoretical framework of institutional isomorphisms—coercive, mimetic, and normative. The data has been collected through in-depth interviews with eleven officials from six TSOs, five officials from three corporations, and two academicians from two universities located in Mumbai and Delhi, India. The findings are presented through five key themes: changes in planning and designing of CSR projects, implementation, monitoring, reporting and documentation, and funding. These changes have taken place in TSOs through coercion, mimicking the other organisations, or by following the dominated norm in their environment to gain legitimacy and secure funds. The newly institutionalised practices by corporations have helped TSOs achieve their vision, in turn leading to sustainable businesses. However, TSOs have faced challenges in imbibing these practices. The TSOs have been compelled by corporations to adopt business practices so that they can produce calculated results. There has been a continuous tussle between the corporations and the TSOs in implementing some of these new practices imposed by the corporations. The paper concludes that TSOs have to retain their autonomy and understanding of ground realities, without which they become an extension of the corporate funder. Further, corporate and TSOs require an understanding of each other’s work culture to develop mutual respect and work towards the goal of sustainable development of the communities.