One of the reasons for a company's long-term success and continued success is the ability with which it engages and invests in society. While others are more inclusive partnerships where the companies play an active role in managing the relationship and share the risks, costs and benefits involved (Seitandi and Crane, 2008).
Problem statement
The problem can be defined, at least in part, as a social issue; its solution will benefit all partners. The researcher deliberately selected companies from similar industries to provide a basis for an analytical comparison between the cases.
Purpose of research
The purpose of this research is to address the strengths and weaknesses that exist in multi-sector partnerships and how such partnerships can be made more effective, resulting in win-win situations for all actors involved. Further, it aims to address the importance of private sector involvement in social development and how companies can incorporate CSR programs into their business in a more strategic and proactive manner than simply handing out money to various charitable causes.
Structure
OVERVIEW OF CORPORATE SOCIAL RESPONSIBILITY RESPONSIBILITY
Introduction
Background and evolution of Corporate Social Responsibility
- Corporate Social Responsibility pre-1950
- Corporate Social Responsibility post -1950
- A shift of focus from responsibility to responsiveness
- What factors has affected the way of thinking about CSR?
One of the earliest views of CSR in modern terms was developed in the early 1950s by economist Professor Howard R. The idea of corporate social responsiveness and social performance can be seen as the evolution of the concept of CSR rather than its replacement.
Defining Corporate Social Responsibility: Moving towards a common understanding
Regarding externalities, it is debated whether CSR as a purely voluntary act is sufficient to preserve the best interests of the environment and the people affected by corporate operations. This question raises another question, namely that of practices and values, which is one of the reasons why the subject is as contentious as it is.
Theoretical frameworks
For the purposes of this study, this latter description appears to be the most appropriate working definition. Therefore, as we shall see as follows, a number of frameworks for the purpose of this paper will be used as guiding and analytical tools when discussing the role of the firm and the relationship between business and society.
Management theories
- Corporate Social Performance
- Stakeholder theory
For these reasons, stakeholder theory, rather than the CSP model, has become the more commonly used theory in the field of CSR. Based on empirical research, Clarkson (1995) made some improvements to the stakeholder model to make it more applicable to CSR.
Political theory
- Corporate Citizenship
Moreover, there are also disagreements about the roots of the two discourses, as some consider corporate citizenship to be a more practitioner-based approach, while the CSR discourse initially emerged as a more academic discourse (Davenport, 2000). Matten et al (2003) distinguished three views of corporate citizenship; the limited view, the CSR-equivalent view, and the extended view of corporate citizenship. The expanded view, however, sees corporations entering the arena of citizenship at the point when government fails to protect citizenship.
Despite these many disagreements about the meaning of corporate citizenship, most authors generally agree that this term includes a strong sense of business responsibility towards the local community and environment, and that companies must commit to acting responsibly by establishing new partnerships with other stakeholders operating in the community ( Crane et al 2007).
Instrumental theories
- Cause-related marketing
- Strategies for achieving competitive advantage
In a way, it seeks product differentiation by creating socially responsible products that affect the company's reputation by making them appear more trustworthy and honest. However, consumers are becoming increasingly critical of companies' operations, and they often find it difficult to determine whether a company's operations actually meet their moral and political standards for social responsibility, or if they are just fancy words. As a result, many companies seek to be more strategic by using CSR as a form of public relations or advertising, where the company's image or brand is promoted through cause-related marketing.
Porter and Kramer (2003) argue that such cause-related marketing only accentuates publicity rather than social impact, and does not contribute to improving a company's competitiveness.
Ethical theories
- Sustainable development and corporate sustainability
While making a profit is a key part of business, many believe that furthering corporate sustainability requires a shift away from solely focusing on economic outcomes to include environmental, social and ethical outcomes. In addition, we find those who support a more holistic view of corporate sustainability, such as Gladwin et al (1995), who say that sustainable management should encompass "a complete conceptualization of political, civil, social, economic and cultural human rights" ( Benn and Dunphy, 2007:51). Proponents of this understanding emphasize a systems-thinking approach to corporate sustainability that sees corporations as part of a larger system where the interests of various other stakeholders cannot be ignored (Benn and Dunphy, 2007).
CSR in a Global Context
- The Global Reporting Initiative (GRI)
- The International Organization for Standardization (ISO)
- United Nation’s Global Compact (UNGP)
The GRI network is made up of people and organizations from around the world, all of whom play key roles in the work towards sustainability reporting (GRI, 2010). More and more companies are incorporating sustainability reporting as part of their practices, and research shows that nearly 80 percent of the largest 250 companies worldwide issued such reports in 2008, up from 50 percent in 2005. The UN Global Compact is a strategic initiative for businesses to commit to acting responsibly by aligning their operations and strategies with ten universally accepted principles in the areas of human rights, labor practices, environment and anti-corruption.
The Global Compact consists of a practical framework for developing, implementing and disseminating sustainability policies and practices, providing participants with various management tools and resources developed to help business become more sustainable (UNGP 2012).
CSR in South Africa
The King Report explicitly requires companies to implement the practice of sustainability reporting as a core aspect of corporate governance, through initiatives such as the Johannesburg Stock Exchange (JSE) Socially Responsible Investment (SRI) index, which was the first of its kind to use SRI. as a requirement for companies to be listed on the stock exchange. Although Integrated Reporting (IR) has been practiced in some international companies for several years, it gained greater recognition with the creation of the International Integrated Reporting Committee (IIRC), which represents the world's leading accounting and sustainability standard-setting bodies. brings together. developing and promoting guidelines for integrated reporting. In 2010, South Africa established its own Integrated Reporting Committee (IRC), with the aim of providing guidance and ensuring good practice in integrated reporting (Trialogue, 2011).
Perhaps one of the biggest incentives for South African-based companies to introduce CSR into their business has been the Load-Based Black Economic Empowerment (BBBEE) legislation, which aims to redress racial imbalances and promote economic empowerment of historically disadvantaged people.
Conclusion
Similarly, their proposed theories are divided into four main categories; instrumental, political, managerial and ethical. Therefore, a number of different frameworks have been suggested as guiding and analytical tools in discussing the role of business in society. However, South Africa has taken a more progressive approach as the first country in the world to introduce sustainability reporting as a criterion for companies wanting to list on the stock exchange.
However, the BEE policies have also forced many companies to be more socially responsible, as will be discussed in more detail in chapter five; the motivations for why companies adopt CSR programs are quite controversial.
Methodology
- Research Methodologies
- Table of participants and key functions
- The selection of case studies
- Process of data analysis
- Research limitations
Similarly, Yin (2003) argues that case studies are used for analytical generalizations, where the goal of the researcher is to generalize a particular set of results to some broader theoretical propositions. The senior CSI practitioner of the company was the only representative the researcher could get hold of, after several failed attempts. In the Hub, this process was easier, possibly reflecting the smaller size of the company.
Regarding the beneficiary organizations, the researcher was able to speak to key stakeholders responsible for one or more CSR programs.
Presentation of the research and findings
Overview and background of the case studies
- The cases
- Questionnaires
The questions addressed to the organizations were not only exploratory but also intended as a follow-up and verification of the information provided by the companies.
The Companies
- Game
- Mr Price
- The Hub
This limitation severely limited the depth of study of this particular case. The main focus of the projects is to create social change by focusing on young people up to the age of 25 by providing them with educational and employment opportunities. The Hub's main competitors are other fashion and brand retailers such as Mr Price, Jet, Ackerman's, Edgars, Woolworths and Thruworths.
The annual Winter-Warmth campaign, in association with East Coast Radio and the Rotary Club, is the largest and best known project in which the Hub is involved.
Findings
- Reputation
- Strategy
- Dysfunctional government
- The sustainability of CSR programmes and their targeted beneficiary organisations
- Challenges
- Opportunities posed by CSR
- Conclusion
Reputation was also highlighted as one of the main factors why companies adopt CSR programs. Some of the respondents from the beneficiary organizations expressed this point and tried to get the companies to show more interest and follow the projects. Some of the respondents mentioned that the only way to get more business involved was for the government to regulate more.
Some of the beneficiary organizations also wanted more proactive involvement by the companies in the projects.
Discussion and Analysis
Discussion
- What is understood by the concept of Corporate Social Responsibility and why is it important?
- Which factors motivate corporations to involve themselves within social development?
- How do the companies incorporate CSR into their business?
- Are the stakeholder relationships sustainable?
- What are the main challenges facing CSR programmes and stakeholder relationships? relationships?
- What are the opportunities posed by CSR in the future?
Most of the respondents in this study saw BEE and PR as the main motivation for business to undertake CSR programs. This was expressed by one of the participants who was the managing director of a leading bank in South Africa, but now works in the NGO sector. However, within the companies studied, top management was very difficult to contact, especially in the case of the two largest companies, Mr Price and Game.
Some of the representatives of the companies in this research admit that this is a weakness and that they want to become more involved in the follow-up and evaluation process, but this requires more time dedicated to CSR.
Conclusion
Interview Schedule
Questionnaires
- General information about the company
- Respondents Perspectives on CSR
- Perspectives on support and CSR
- Relationship with company x
If it is positive, how can it be seen in the company and what factors do you think have led to this positive result. Do you believe that the company would be better off financially without having a CSR department. How has this changed over time - in terms of types of businesses and types of support.
