Skip to main content
Log in

Corporate Social Responsibility: Linking Bottom of the Pyramid to Market Development?

  • Published:
Journal of Business Ethics Aims and scope Submit manuscript

Abstract

In this article, we develop theoretical and empirical linkages between corporate social responsibility (CSR) initiatives of business organizations and their market development efforts at the bottom of the pyramid (BOP). We use qualitative in-depth interviews of 21 CSR heads of business organizations and its CSR partner organizations in India (an emerging market) to explore, develop, and explain plausible theoretical linkages between CSR initiatives of the organizations and its market development efforts at BOP using theory of market separations. Using theoretical frameworks from CSR literature and sub-theory of market separations from marketing literature, the study suggests that market development at BOP is enhanced using the CSR route in several ways. These are, (1) making the BOP market development less risky, (2) mask the CSR initiative as a BOP pilot project to generate internal traction within the organization, (3) integrating the BOP communities with the last mile of the supply chain of the organization, (4) bringing government intervention to accelerate scale-up, and (5) developing BOP as future markets for consumers and supply chain partners to make business more sustainable. Our study has several theoretical as well as managerial implications linking organizations’ market development efforts at BOP with its CSR initiatives.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Similar content being viewed by others

References

  • Aguilera, R. V., Rupp, D. E., Williams, C. A., & Ganapathi, J. (2007). Putting the S back in corporate social responsibility: A multilevel theory of social change in organizations. Academy of Management Review, 32(3), 836–863.

    Article  Google Scholar 

  • Ahlstrom, J., & Sjostrom, E. (2005). CSOs and business partnerships: Strategies for interaction. Business, Society and the Environment, 14, 230–240.

    Article  Google Scholar 

  • Aldrich, H. E., & Fiol, C. M. (1994). Fools rush in? The institutional context of industry creation. Academy of Management Review, 19(4), 645–670.

    Google Scholar 

  • Banerjee, A. V., & Duflo, E. (2011). Poor economics. New York: Public Affairs.

    Google Scholar 

  • Bartels, R. (1968). The General Theory of Marketing. Journal of Marketing, 32(1), 29–33.

  • Belou, S., Elkington, J., Hester, K. F., & Newell S. (2003). The 21st century NGO. In the market for change.

  • Bendell, J. (2000). Terms for endearment: Business, NGOs and sustainable development. Sheffield: Greenleaf.

    Google Scholar 

  • Bhattacharya, C. B., & Sen, S. (2004). When, why, and how consumers respond to social initiatives. California Management Review, 47(1), 9–24.

    Article  Google Scholar 

  • Blair, M. M. (1998). For whom should corporations be run? An economic rationale for stakeholder management. Long Range Planning, 32(2), 195–200.

    Article  Google Scholar 

  • Blocker, C., Ruth, J., Sridharan, S., Beckwith, C., Ekici, A., Goudie-Hutton, M., Rosa, J., Saatcioglu, B., Talukdar, D., Trujillo, C., & Varman, R. (2012). Understanding poverty and promoting poverty alleviation through transformative consumer research. Journal of Business Research, 66(8), 1195–1202.

  • Brown, B. (1998). Do stock market investors reward companies with reputations for social performance? Corporate Reputation Review, 1(3), 271–280.

    Article  Google Scholar 

  • Brugmann, J., & Prahalad, C. K. (2007). Co-creating business’s new social compact. Harvard Business Review, February, 80–90.

  • Burchell, J., & Cook, J. (2013). Sleeping with the enemy? Strategic transformations in business–NGO relationships through stakeholder dialogue. Journal of Business Ethics, 113, 505–518.

    Article  Google Scholar 

  • Carroll, A. B. (1991). The pyramid of corporate social responsibility: Toward the moral management of organizational stakeholders. Business Horizons, 34, 39–48.

    Article  Google Scholar 

  • Clarkson, M. (1995). A stakeholder framework for analyzing and evaluating corporate social responsibility. The Academy of Management Review, 20(1), 92–118.

    Google Scholar 

  • Clement-Jones, T. (2005). Bottom line issue or public relations exercise? In J. Hancock (Ed.), Investing in corporate social responsibility: A guide to best practice.

  • Collins, E., & Kearins, K. (2007). Exposing students to the potential and risks of stakeholder engagement when teaching sustainability: A classroom exercise. Journal of Management Education, 31(4), 521–540.

    Article  Google Scholar 

  • Daub, C. H., & Scherrer, Y. (2005). The growing importance of stakeholder dialogues in generating knowledge and realizing sustainable development. In L. Preuss (Ed.), Whose business what ethics? Proceedings of the Ninth Annual Conference of EBENUK. Royal Holloway, University of London.

  • de Bakker, F. G. A., & den Hond, F. (2008). Introducing the politics of stakeholder influence: A review essay. Business and Society, 47(1), 8–20.

    Article  Google Scholar 

  • De Soto, H. (2000). The mystery of capitalism: Why capitalism triumphs in the west and fails everywhere else. New York: Basic Books.

    Google Scholar 

  • Dean, M. (1999). Governmentality: Power and rule in modern society. London: Sage Publications.

    Google Scholar 

  • Donaldson, T., & Preston, L. E. (1995). The stakeholder of the corporation: Concepts, evidence and implications. Academy of Management Review, 20(1), 65–91.

    Google Scholar 

  • Du, S., Bhattacharya, C. B., & Sen, S. (2007). Reaping relational rewards from corporate social responsibility: The role of competitive positioning. International Journal of Research in Marketing, 24(3), 224–241.

    Article  Google Scholar 

  • Flew, A. (1973). Must morality pay or what Socrates should have said to Thrasymachus. In C. L. Carter (Ed.), Skepticism and moral principles (pp. 21–47). Evanston: New University Press.

    Google Scholar 

  • Friedman, A. L., & Miles, S. (2002). Developing stakeholder theory. Journal of Management Studies, 39(1), 1–21.

    Article  Google Scholar 

  • Frooman, J. (1999). Stakeholder influence strategies. Academy of Management Review, 24(2), 191–205.

    Google Scholar 

  • Garriga, E., & Melé, D. (2004). Corporate social responsibility theories: Mapping the territory. Journal of Business Ethics, 53(1–2), 51–71.

    Article  Google Scholar 

  • Gossling, T. (2003). The price of morality. An analysis of personality, moral behaviour, and social rules in economic terms. Journal of Business Ethics, 45(1/2), 121–131.

    Article  Google Scholar 

  • Hamilton, K. (2005). Low-income families: Coping with consumer disadvantage. Belfast: Queen’s University Belfast.

    Google Scholar 

  • Hammond, A. L., Kramer, W. J., Katz, R. S., Tran, J. T., & Walker, C. (2007). The next 4 billion. Market size and business strategy at the base of the pyramid. Washington DC: World Resources Institute and International Finance Corporation.

    Google Scholar 

  • Harrison, J. S., & Freeman, R. E. (1999). Stakeholders, social responsibility and performance: Empirical evidence and theoretical perspectives. Academy of Management Journal, 42(5), 479–485.

    Article  Google Scholar 

  • Harriss-White, B. (2002). India working: Essays on society and economy. Cambridge, UK: Cambridge University Press.

    Book  Google Scholar 

  • Hill, R. P. (2001). Surviving in a material world: The lived experience of people in poverty. South Bend, IN: University of Notre Dame Press.

    Google Scholar 

  • Hill, R. P., & Stephens, D. L. (1997). Impoverished consumers and consumer behavior: The case of AFDC mothers. Journal of Macromarketing, 17(2), 32–48.

    Article  Google Scholar 

  • Hult, G. T. M. (2011). Market-focused sustainability: Market orientation plus! Journal of the Academy of Marketing Science, 39(1), 1–6.

    Article  Google Scholar 

  • Jackson, I., & Nelson, J. (2004). Values-driven performance: Seven strategies for delivering profits with principles. Ivey Business Journal, 69(2), 1–8.

    Google Scholar 

  • Jonker, J., & Nijhof, A. (2006). Looking through the eyes of others: Assessing mutual expectations and experiences in order to shape dialogue and collaboration between business and NGOs with respect to CSR. Corporate Governance, 14(5), 456–466.

    Article  Google Scholar 

  • Juholin, E. (2004). For business or the good of all? A Finnish approach to corporate social responsibility. Corporate Governance, 4(3), 20–31.

    Article  Google Scholar 

  • Kaler, J. (2002). Morality and strategy in stakeholder identification. Journal of Business Ethics, 39(1–2), 91–99.

    Article  Google Scholar 

  • Kaptein, M., & Van Tulder, R. (2003). Towards effective stakeholder dialogue. Business and Society Review, 108(2), 203–224.

    Article  Google Scholar 

  • Karnani, A. (2007). The mirage of marketing to the bottom of the pyramid: How the private sector can help alleviate poverty. California Management Review, 49(4), 90–111.

  • Karnani, A. (2010). Failure of the libertarian approach to reducing poverty. Asian Business & Management, 9(March), 5–21.

    Article  Google Scholar 

  • Karnani, A. (2011). Reducing poverty through employment. Innovations, 6(2), 73–97.

  • King, B. (2008). A social movement perspective of stakeholder collective action and influence. Business and Society, 47(1), 21–49.

    Article  Google Scholar 

  • Lawrence, A. T. (2002). The drivers of stakeholder engagement: Reflections on the case of Royal Dutch/Shell. In J. Andriof, et al. (Eds.), Unfolding stakeholder thinking: Theory, responsibility and engagement (pp. 185–200). Sheffield: Greenleaf.

    Chapter  Google Scholar 

  • Legard, R., Keegan, J., & Ward, K. (2005). In-depth interviews. In J. Ritchie & J. Lewis (Eds.), Qualitative research practice: A guide for social science students and researchers. London: Sage Publications.

    Google Scholar 

  • Longo, M., Mura, M., & Bonoli, A. (2005). Corporate social responsibility and corporate performance: The case of Italian SMEs. Corporate Governance, 5(4), 28–42.

    Article  Google Scholar 

  • Margolis, J. D., Elfenbein, H. A., & Walsh, J. P. (2007). Does it pay to be good? A meta-analysis and redirection of research on the relationship between corporate social and financial performance. Working Paper, Harvard Business School.

  • Miller, J. G. (1994). Cultural diversity in the morality of caring: Individually oriented versus duty-based interpersonal moral codes. Cross-Cultural Research, 28(1), 3–39.

    Article  Google Scholar 

  • Mitchell, T. (2009). How Neoliberalism makes its world: The urban property rights project in Peru. In P. Mirowski and D. Plehwe (Eds.), The road from Mont Pelerin. The Making of the Neoliberal Thought Collective (pp. 386–416). Cambridge, MA: Harvard University Press.

  • Murray, A. (2005). The economy, business: Will social responsibility harm business? The Wall Street Journal, May 18, A2.

  • Narayan, D., Chambers, R., Shah, M. K., & Petesch, P. (2000). Voices of the poor: Crying out for change. New York: Oxford University Press, World Bank Report.

  • Nijhof, A., de Bruijn, T., & Honders, H. (2008). Partnerships for corporate social responsibility: A review of concepts and strategic options. Management Decision, 46(1), 152–167.

    Article  Google Scholar 

  • Owen, D., & O’Dwyer, B. (2008). Corporate social responsibility: The reporting and assurance dimension. In A. Crane, et al. (Eds.), The Oxford handbook of corporate social responsibility (pp. 384–409). Oxford: OUP.

    Google Scholar 

  • Payne, S. L., & Calton, J. M. (2002). Towards a managerial practice of stakeholder engagement: Developing multi-stakeholder learning dialogues. In J. Andriof, et al. (Eds.), Unfolding stakeholder thinking: Theory, responsibility, engagement (pp. 121–136). Sheffield: Greenleaf.

    Google Scholar 

  • Pitta, D. A., Guesalaga, R., & Marshall, P. (2008). The quest for the fortune at the bottom of the pyramid: Potential and challenges. Journal of Consumer Marketing, 25(7), 393–401.

    Article  Google Scholar 

  • Prahalad, C. K. (2006). The fortune at the bottom of the pyramid: Eradicating poverty through profits. Upper Saddle River, NJ: Wharton School Publishing.

    Google Scholar 

  • Prahalad, C. K. (2012). Bottom of the pyramid as a source of breakthrough innovations. Journal of Product Innovation Management, 29(1), 6–12.

  • Prahalad, C. K., & Hammond, A. (2002). Serving the World’s poor, profitably. Harvard Business Review, 80(9), 48–57.

    Google Scholar 

  • Prahalad, C. K., & Hart, S. L. (2002). The fortune at the bottom of the pyramid. strategy + business, 26(1), 54–67.

  • Rashid, A., & Rahman, M. (2009). Making profit to solve development problems: The case of Telenor AS and the Village Phone Programme in Bangladesh. Journal of Marketing Management, 25(9/10), 1049–1060.

    Article  Google Scholar 

  • Rose, N. (1999). Powers of freedom: Reframing political thought. Cambridge, UK: Cambridge University Press.

    Book  Google Scholar 

  • Rudolph, P. (2005). Letters to the editor: An Adam Smith look at green regulations. The Wall Street Journal , June 6.

  • Ruth, J. A., & Hsiung, R. A. (2007). A family systems interpretation of how subsistence consumers manage: The case of South Africa. In J. A. Rosa & M. Viswanathan (Eds.), Advances in International Management Series (Vol. 20, pp. 59–87). Oxford: Elsevier.

    Google Scholar 

  • Schiller, B. (2005). Ethical corporation report: Business–NGO partnerships. London: Ethical Corporation.

    Google Scholar 

  • Schwittay, A. (2011). The marketization of poverty. Current Anthropology, 52(S3), S71–S82.

    Article  Google Scholar 

  • Seitanidi, M. (2010). The politics of partnership: A critical examination of non profit-business partnerships. Amsterdam: Springer.

    Book  Google Scholar 

  • Sheth, J. (2011). Impact of emerging markets on marketing: Rethinking existing perspectives and practices. Journal of Marketing, 75(4), 166–182.

  • Sheth, J., & Sisodia, R. (1993). The information mall. Telecommunications Policy, 17(5), 376–389.

    Article  Google Scholar 

  • Skålén, P., Fougère, M., & Fellesson, M. (2008). Marketing discourse: A critical perspective. New York: Routledge.

    Google Scholar 

  • Steurer, R. (2006). Mapping stakeholder theory anew: From the stakeholder theory of the firm’ to three perspectives on business-society relations. Business Strategy and the Environment, 15, 55–69.

    Article  Google Scholar 

  • Tarafdar, M., Singh, R., & Anekal, P. (2013). Impact of ICT-enabled product and process innovations at the bottom of the pyramid: A market separations perspective. Journal of Information Technology (special issue on ICT Innovations in Emerging Economies), 28(4), 279–295.

    Google Scholar 

  • Uhlaner, L., van Goor-Balk, A., & Masurel, E. (2004). Family business and corporate social responsibility in a sample of Dutch firms. Journal of Small Business and Enterprise Development, 11(2), 186–194.

    Article  Google Scholar 

  • Vachani, S., & Smith, N. C. (2008). Socially responsible distribution strategies for reaching the bottom of the pyramid. California Management Review, 50, 52–84.

    Article  Google Scholar 

  • van Huijstee, M., & Glasbergen, P. (2010). Business–NGO interactions in a multi-stakeholder context. Business and Society Review, 115(3), 249–284.

    Article  Google Scholar 

  • Varman, R., Skålén, P., & Belk, R. W. (2012). Conflicts at the bottom of the pyramid: Profitability, poverty alleviation, and neoliberal governmentality. Journal of Public Policy & Marketing, 31(1), 19–35.

    Article  Google Scholar 

  • Viswanathan, M., Rosa, J., & Ruth, J. (2010). Exchanges in marketing systems: The case of subsistence consumer-merchants in Chennai, India. Journal of Marketing, 74, 1–17.

    Article  Google Scholar 

  • Waddock, S., Bodwell, C., & Graves, S. (2002). Responsibility: The new business imperative. The Academy of Management Executive, 16(2), 132–147.

    Article  Google Scholar 

  • Werhane, P. H., Hartman, L. P., Moberg, D., & Kelly, S. (2010). Profitable partnerships for poverty alleviation. New York: Taylor & Francis.

    Google Scholar 

  • Williams, G., & Zinkin, J. (2008). The effect of culture on consumers’ willingness to punish irresponsible corporate behaviour: Applying Hofstede’s typology to the punishment aspect of corporate social responsibility. Business Ethics: A European Review, 17(2), 210–226.

    Article  Google Scholar 

Download references

Acknowledgments

The authors are thankful to IIM Calcutta for funding the study that forms the basis of this research article. They are also thankful to Dinesh Kumar for his help as research assistant in the study.

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Ramendra Singh.

Rights and permissions

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

Singh, R., Bakshi, M. & Mishra, P. Corporate Social Responsibility: Linking Bottom of the Pyramid to Market Development?. J Bus Ethics 131, 361–373 (2015). https://doi.org/10.1007/s10551-014-2283-8

Download citation

  • Received:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s10551-014-2283-8

Keywords

Navigation