In business organizations particularly operating in clusters (Porter, 1998), a symbiotic relationship exists between the performance of clusters and the development of the region. This paper investigates the orientation of constituent cluster firms of Morbi Ceramic Cluster, towards Corporate Social Responsibility (CSR) and the potential that a cluster has in delivering sustainable development in the region. A case study is developed to gauge the role of clusters in creating sustainable development in the region with focus on the existing orientation towards CSR activities and areas of improvement for sustaining the cluster and the region. Findings reveal that companies in Morbi ceramic cluster are predominantly small-scale units, ‘governed’ unprofessionally with economic maximization as the predominant drive. One of the ways through which sustainable development can be brought to the region is through the entry of professionally managed larger organizations, which may usher in higher sensitivity to aspects like CSR and sustainability.
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Keywords: Sustainable Regional Development, Cluster, CSR, Competitiveness and Cooperation, Ceramics Industry