Corporate social responsibility (CSR)practices of construction industry in Sri Lanka

Abstract

Corporate Social Responsibility (CSR) is a broad, complex and constantly evolving concept that comprises a variety of ideas and practices. Its wider application in construction sector is of central importance, concerning their contribution to the economy and employment performance and to contribute to the economic development of the country. Concerning the growing importance of the construction sector in Sri Lanka, this study mainly focus on gaining an initial insight to the nature, perception and the extent of the application of the CSR concept in construction industry in Sri Lanka. This study made use of structured questionnaire and self-administrated to collect data. There were 105 responses and the research findings were analyzed using Index Value method Naoum (1998) and tables, graphs, pie charts and percentages were used. Chi- Square tests were used to establish the relationship between variables. The CSR activities were also found not to be explicitly known to all construction companies. The top management, employees and government initiatives have been ranked in the first, second and third places respectively as the parties to fulfill CSR ingenuity. The study further found that economic benefits expected through CSR are relied on enhancing reputation, brand value and profitability. The findings of this survey established “Lack of Knowledge”, “Lack of Human Resources”, “Lack of Specific Legislation for CSR” and “Lack of Institution Assistance” are the key obstacles to integrate CSR in to the construction business. Further, it can be observed from the results “Lack of Funds” is becoming a barrier for small organizations. The results indicate that the motivation factor for adapting CSR is to improve firm's reputation, and to improve economic performance while all other factors reserve the least importance as a motivating factor for CSR. The research confirmed that the construction sector is not efficiently and effectively adopt the CSR practices into their business strategies.