¶ … Paradox of Power in CSR (Bundy, 2008)
Existing literature indicates that power increases associated with CSR yield positive benefits to stakeholders, particularly shareholders. The findings from the MNC case study analyzed in Bundy (2008) are in partial agreement with this argument; however, they go further to indicate that this is only so if the 'power' issue is effectively taken care of so that power does not become an impediment to CSR development. CSR-associated power can pose as an impediment if it causes individuals to fight for control, such that they are more interested in increasing their own influence than in furthering CSR strategy for the overall benefit of the organization. When people begin to view CSR as a feasible prospect for increasing their own power and influence within an organization, they are deemed to engage in a power struggle with anyone who appears to be a threat to their quest for CSR power; and when this happens, departments are likely to suffer, and so are the development and implementation efforts of the organization as a whole. Development is undermined as the attention and focus of the managers or parties in dispute is turned away from CSR activity.
This 'power' problem has been found to be more common with CSR compared to other areas of management such as marketing, profit maximization, and quality control, particularly because there is a very strong link between personal ethics and organizational ethics in the case of CSR. Existing CSR literature tends to portray CSR as a reflection of connected and ethical leadership, and to most people, therefore, any manager who strives to engage in CSR has the interest of stakeholders at heart. Towards this end, it becomes increasingly difficult to tell exactly when a CSR manager is acting out of their honest concern for stakeholders' interests, and when they are being opportunistic and acting for their own personal gain. This lack of awareness among stakeholders as a result of limited literature on CSR opportunism, and the high degree of uncertainty surrounding the implementation of CSR have made CSR more vulnerable to opportunism than all other areas of management.
The findings of the Bundy case study, therefore, deviate from existing literature in regard to the claim that CSR always yields positive benefits to stakeholders - there may be no such benefits at all if CSR managers are driven by opportunism and are out to increase their own influence and power over the direction of CSR as opposed to furthering CSR strategy. However, the said findings agree with existing literature that for CSR strategy to be successful, all players within the area of CSWR need to work together in unity, driven by the need to achieve organizational success as opposed to personal power.
Stakeholders can be able to assess whether a CSR manager is acting out of his concern for their own interest or that of stakeholders by examining the influence that they to persuade their targets. Nine influence tactics have been put forth in this regard:
i) Coalition -- where the actor obtain help from other concerned parties to persuade a target
ii) Consultation -- the actor seeks the participation, views, and opinion of the target, and uses this as a basis for persuasion
iii) Exchange -- the actor offers benefits or implied promises as a strategy to influence the target
iv) Ingratiation -- the actor attempts to influence the target by building a good image of themselves or by getting the target in a good mood
v) Inspirational appeal -- the actor appeals to the target's aspirations, ideals, and values to arouse enthusiasm and get them to comply
vi) Legitimating -- the actor legitimizes their proposal by for instance, verifying that it is in line with the traditions, policies or rules of the organization
vii) Rational persuasion -- the actor appeals to logic in persuading the target
viii) Personal appeal -- the actor bases their arguments on the target's feelings of friendship or loyalty towards him
ix) Pressure -- the actor uses pressure, often in the form of persistent reminders or threats to influence the target
Part Three: When Doing Good Results in Good Employees
Based on their study, which involved 781 professionals working at a university-based health science center, Valentine and Godkin (2009) emphasize the need for organizations to engage in CSR, demonstrating that employees are likely to be more sensitive to ethical dilemmas if they perceive their leaders and their organizations as being socially responsible. This finding is in line with Quinn and D'Amato's (2006) argument that "leadership practices that display leaders...
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