Social and financial aid for disaster relief operations using CSR and crowdfunding

Abstract

Purpose The purpose of this paper is to understand the interlinkages between corporate social responsibility (CSR) and crowdfunding in the context of disaster relief operations (DRO). It intends to explore how information quality moderates the relationship of CSR and crowdfunding to achieve financial and social stability. The study also controls variables such as type of disaster, size of the firm and sector to which the firms belong while drawing implications. Design/methodology/approach The study collects empirical data in an Indian context through a structured questionnaire. The respondents belong to organizations which made a financial contribution toward DRO during the past decade (2008–2018). The sample size for data analysis is 232 responses belonging to different industries like plastic, chemical, textile and apparel, automotive parts and electronics, and construction. The study employs partial least squares structural equation modeling for testing the hypothesis. Findings Results indicate a positive effect of CSR activities on donation-based crowdfunding to achieve financial and social normalcy in a DRO. CSR can thus be used as an alternate way to support DRO. Results also reveal that quality of information positively impacts the relationship between crowdfunding and social aid as well as financial aid offered to the victims of the disasters. It is further observed that the type of disaster accounts for the inflow and frequency of funds made by companies as a part of their CSR activities. Research limitations/implications The study restricts its analysis to CSR contributions made by Indian firms for DRO in an Indian context. While the study is centered in an Indian context, it holds strong implications by offering guidelines and framework for integrating funds of the government, CSR contributions of companies and donations made by citizens. The outcome also provokes thoughts on testing the results with multiple disasters across the globe in order to validate the findings and possibly extend them. Originality/value The approach of the study holds a unique slot in understanding concepts relating to CSR, crowdfunding and information science literature in the context of DRO. The study offers unique contribution in making the readers aware how CSR funds, when guided through a donation-based crowdfunding platform can help achieve social and financial aid for the victims of natural disaster.