Field Research - Nicolae Teodorescunicolaeteodorescu.ase.ro/wp-content/uploads/CSR.pdf · Nicolae...

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MARKETING™©Dr. Nicolae Teodorescu

profesor universitar

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ACADEMIA DE STUDII ECONOMICE

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MARKETING

Case StudyThe Modelling of

Corporate Social

Responsibility

Research

Sursa:

Nicolae TEODORESCU

Felicia STĂNCIOIU

Iustina MACOVEI

The Bucharest University of Economic Studies, Romania

THE MODDELING OF CORPORATE SOCIAL

RESPONSIBILITY RESEARCH

International Conference on Business

Excellence, ICBE - 2010, Proceedings of

the 5th International Conference on

Business Excellence, 15-16 October

2010, Braşov, Romania, Vol. 2, ISBN

978-973-1747-24-8 (Vol. 2)

Field Research

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Corporate Social

Responsibility

Research

1. Introduction

The market economy brings, at present, new

and important aspects related to corporate

behaviour, compared to other historical

periods. Regardless of their profile –

manufacturing, distribution, services -,

companies are very preoccupied with the

image they have among consumers, state

institutions and some important categories of

opinion formers (journalists, academics,

politicians etc).

In this context, companies have assumed

important tasks and social roles, trying to

differentiate themselves on the market through

such practices, or even to win competitive

advantages.

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Corporate Social

Responsibility

Research

1. Introduction

CSR is based on different practices, that go from

initiating and developing some adequate social

programs – tree planting, talent finding in sport /

arts / sciences etc. – to the sponsorship of some

activities and competitions with impact on the

public (all kinds of festivals, national/ European/

world championship, Olympic Games, Formula 1

etc). In context, by focusing on more or less

dissimulated economic aspects, companies make

use also to activities that come under mecenat.

By extending their area of social responsibility

to their own activity, many companies suggest to

consumers technologies or products according to

the demands and the restrictions claimed by

ecological organisations.

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Case Study

The Modelling of

Corporate Social

Responsibility

Research

2. The Concept and the Research of

Corporate Social Responsibility

Used for the first time in the 1950s

and entered into common language in

the early 1970s, the concept of

Corporate Social Responsibility (CSR)

does not have an unanimously accepted

definition. It has been defined both by

scholars and by practitioners, but also

by institutions and organizations, such

as: the European Commission, the OECD

and the UN.

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Case Study

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Corporate Social

Responsibility

Research



While OECD defines CSR as “the actions

taken by businesses to nurture their

relationships with the societies in which

they operate” (the official site of the

OECD – www.oecd.org), for the European

Commission CSR is “a concept whereby

companies integrate social and

environmental concerns in their business

operations and in their interaction with

their stakeholders on a voluntary basis”

(the official site of the Commission –

http://europa.eu).

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Research



Due to its high importance, CSR has

become a part of the recently

adopted Europe 2020 strategy for smart, sustainable and inclusive growth.

In this paper, the accepted definition is

the one given by the European

Commission.

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Research



Although there are many definitions of

the CSR, what they all have in common

is the fact that they “attempt to

explain and define the relationship

between a corporation and its

stakeholders, including its relationship

with society as a whole” (Aras,

Crowther, 2009). CSR is about

companies taking actions beyond their

legal obligations and their economic

purpose (McWilliams, Siegel, 2001).

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Responsibility

Research



Moreover, A. Dahlrsud has identified

five dimensions based on which

definitions could be included in

categories. These dimensions are: the

environmental, the social, the

economic, the stakeholder and the

voluntariness one (Dahlrsud, 2006).

In the same time, a consensus has not

been reached yet about the practice of

CSR either.

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Research



Actually, there is a lot of debate and

even criticism on this subject.

Some of this comes from the negative

perception of many global businesses,

e.g. Enron (O’Riordan, Fairbrass, 2008)

and the responsibilities that those

companies have towards their main

stakeholders or towards society.

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Research



Some people consider CSR just a

superficial window-dressing and

critique it since they believe that

"there is one and only one social

responsibility of business – to use its

resources and engage in activities

designed to increase its profits so long

as it stays within the rules of the game,

which is to say, engages in open and

free competition without deception or

fraud" (Friedman, 1970).

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There is a different perspective on

CSR in US and in Europe. In US, unlike in Europe, the emphasis is

placed on a philanthropic model, the

companies donating a quota of their

profits to charitable purposes.

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Research



From an organizational point of view,

inside a company, CSR may be a separate

department reporting directly to the CEO

or it may be included in another

department (e.g. public relations, human

resources, business development). Some

multinational companies even elaborate

an annual report on CSR, but it is often

suspected of not presenting entirely

objective information (McWilliams,

Siegel, Wright, 2005).

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The specialised literature describes three

models of CSR (Redman, 2005), each of them being characteristic to a specific type of ideology.

The first model is the traditional one and it is

focused on the fact that compromises between social

and environmental goals of companies, on one part,

and their profits, on the other part, are inevitable.

The second model emphasises the fact that

companies become socially responsible due to

different profit-oriented reasons (e.g. increased

sales etc).

The third model is specific to companies that are

socially responsible without gaining any financial

benefits from it. This is the model that should be

promoted and adopted by companies worldwide.

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At country level, there are different development stages of CSR. It

is highly developed in countries like UK,

for example, while in Romania it has

become a subject of interest in the

recent period.

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In conclusion, the literature analysis

indicates the need for a continuous and

more thorough research in the field of

CSR. There are still many aspects that have to be defined or clarified. Managers need

more useful tools they can use in their work

and, at the moment, it can be said, without a

doubt, that the existing CSR theoretical

models are underdeveloped. This is the

reason why we considered useful to come

with an alternative model that, partially, fills

the existing gap from the specialised

literature.

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3. Suggested Methodology to approach

the Modelling of CSR Research

The modelling of CSR research is

necessary both on a conceptual level

and by the experimental applications.

About the conceptual level, CSR comes

under image, in marketing terms,

respectively the simultaneous approach

of

the way of image formation,

its dynamic,

its intensity

and specificity.

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By analyzing more possibilities of

modelling of the CSR research, the

authors stopped on the model

schematically presented in Fig. 3.1. A /

B. This model suggests a unitary

approach of the modelling of CSR

research, mixing theoretical aspects

relevant to the knowledge of the

corporate image with practical

elements for the operationalization of

the utilised concepts and notions.

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The morphology of the suggested model

includes four references blocks, in a

systemically approach, as well as the

functional relations between these blocks.

The model we are referring to is conceived

in order to be applied by using statistical

research both among individual consumers

and among companies.

The content of the four consecutive

blocks of the model allows the approach of

CSR knowledge from general to particular.

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Block C. General Image Aspects

Applied on the company for which there is the widest

experience and on its main competitor

1. Company you can trust

2. It adapts well to client needs

3. It has prices according to the offer

4. It keeps its promises and engagements

5. The company’s personnel wishes to help

clients

Block A. The Importance of the Criteria1. Company notoriety

2. The range of offered products / services

3. Applied prices

4. Easiness in accessing the company / the goods

5. The quality of the promotional activity

6. The experience of past cooperation

7. The level of professionalism

Block B. Companies Awareness

1. Spontaneous

2. The company with which there is

the widest experience

3. This company’s main competitor

Fig. 3.1. A. The Authors’ Model of Corporate Social Responsibility Research




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Block D. CSR Fields of Performance Applied on the company with which there is the widest experience and its main competitor

Fig. 3.1. B. The Authors’ Model of Corporate Social Responsibility Research

D1. The quality of

the products

D2. Preoccupation

for the innovation

D3. Preoccupation

for clients

D4. Social Projects

Development

D2. Specific

elements

a) It is permanently

preoccupied with the

improvement of

product quality

b) It adapts the

products to the

realities of the

Romanian economy

c) It modernizes

continuously its

logistical bases

D1. Specific elements

a) It offers products

others don’t have

b) All the products are

of the highest quality

c) Only some products

are of the highest

quality

d) Prices are

according to the offer

e) It offers payment

facilities

D3. Specific

elements

a) Employees are

competent enough

b) Employees can

rapidly solve the

problems of clients.

c) Employees

understand client

needs and help in

their satisfaction

D4. Specific elements

a) It takes part with

money and logistics

in local communities

projects

b) It sponsors cultural

events

c) It sponsors scientific

events

d) It sponsors sport events




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Block A. The Importance of the

Criteria aims to emphasize the

reference framework for any

evaluations related to CSR. The

nominated criteria are to be evaluated

on scales from 1 to 10, similar to the

evaluations in the scholar system from

Romania, the averages relevant for

each criterion representing significant

elements for the other components of

the model.

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Block B. Knowledge of the Companies

is meant to supply „the raw material”

necessary for the evaluation processes

from the other constitutive blocks of

this model. The functioning of this block is based on the spontaneous

evocation of companies for which the CSR evaluation is desired. In

this context, it is considered that a possible suggested evocation

would not allow the pertinent approach (with full knowledge of

the case) of the detail elements from blocks C and D of the

elaborated model because the evaluators (regular consumers or

adequate representatives of some companies) would make formal

evaluations, perfunctory, without relying on the personal

experiences related to companies for which CSR study is realised.

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Block C. Aspects of General Image outline

the relevant aspects for the characterization

of CSR, according to the criteria evaluated in

Block A, both for the company with which

there is the widest experience, and for its

main competitor (even more competitors

may be taken into consideration, from one

case to another, depending on the specific

features of the reference market). The

evaluations to which we refer will be based

also on scales from 1 to 10, similar to the

ones already mentioned for Block A.

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Block D. CSR Fields of Performance is the detail

component of the elaborated model because each

performance field established on the basis of the

criteria from Block A and the general image aspects

from Block C is evaluated on a multi-criteria basis by

taking into consideration the specific elements for

each performance field. The proper evaluation is

also made by using some scales from 1 to 10.

Obviously, in a similar manner to those specified for

Block C, evaluations of these specific elements

associated both to the company with which the

respondent has the widest experience and to its

main competitor – possibly more competitors,

according to the reference market taken into

consideration - can be obtained.

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The morphology of the model

elaborated by the authors is based on a

systemic approach and suggests taking

into consideration some criteria and

aspects recognised by specialists as

being significant for the CSR concept.

Also, the suggested model has an

increased operational character, in an

attempt to harmonize different

approaches and conceptual

developments.

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Concerning the functional relations of the

elaborated model, these describe the

existing connections between the blocks of

the model.

Thus, Block A – The Importance of the

Criteria – induces the idea of taking these

into consideration both in the process of the

Knowledge of the Companies (Block B) and

Aspects of General Image (Block C). The

detail significations of those connections

resides in the differentiation of the level of

consideration given to the content of each

block, for CSR characterization.

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Thus, for example, the criteria or aspects

that obtain scores below a certain pre-

established level (e.g. the average 5 on a

scale from 1 to 10) will be considered for the

aggregation of the evaluations, but they will

be investigated separately in order to obtain

a clear image about CSR evaluation. For such

low scores the respondents are required the

main reasons, in order to have, in the

analysis, a veridical base for a possible

improvement of the performances of some

companies about the pertinent aspects of

CSR.

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This approach of functional relations

between the constituent blocks of the

elaborated model allows, also, not only the

proper evaluation of the companies included

in the research, but pertinent comparisons

between companies, fields of activity or

markets too. Such differentiations are

emphases both by the individual scores on

different criteria and aspects, but also if we

take into consideration their aggregation at

different levels, respectively the setting of

some cumulative indicators of index type.

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4. Main Conclusions and limits

The necessity of CSR study is, still,

obvious, because it emphasises the

efforts of companies in this direction, it

allows their monitoring and making

comparisons and generalizations. In this

context, the authors suggest a model of

CSR research with the aim of bringing

into the attention of specialists the

level which has currently been reached

in studying CSR and possible future

modalities of developing CSR theory and

practice.

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4. Main Conclusions and limits

Unavoidably, CSR research is also affected

by some limits, of conceptual or applicative

– experimental nature.

On a methodological level, the concept

itself is, still, a subject of dispute between

specialists, and in practice there are some

inconsistencies in the approach, in the

sense that the actual studies do not have a

unitary basis of approach. In order to

improve some of such limits, the model

suggested by the authors implies a

systemically approach, with obvious

generalization valences.

Field Research

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