The Role of Organizational Drivers and Communication on the Adoption of CSR Activities
Abstract
Today, corporate social responsibility (CSR) practices are becoming increasingly commonplace, and a majority of Fortune 500 corporations as well as small- to medium-sized enterprises are implementing these activities to promote their public image and improve their corporate reputations. Despite these trends, there remains a dearth of timely and relevant studies concerning what types of CSR practices are most effective in achieving organizational goals and how best to communicate information concerning investments in different CSR activities .The purpose of this final component of a three-part study is identify potential internal and external drivers for CSR initiatives as well as the level of communication for CSR initiatives in Qatari companies. In addition, a special section concerning corporate citizenship has also been included as a valuable supplement to the study.
Keywords: Corporate social responsibility, corporate citizenship, CSR, greenwashing, Qatar
Introduction
Significance of study
Despite the increased importance given to CSR activities in organizations across the globe, little is known about the effectiveness of CSR initiatives employed by organizations. In particular, different stakeholders need to receive information about company`s spending on different CSR activities and the effectiveness of the CSR activities employed. This requires proper communication for CSR reporting.
Objective of study
This study comes as part of a series of studies conducted on the Qatari context, particularly companies that operate in Qatar and that consider sustainability issues as part of its strategic aims (CSR Report, 2016). In particular, the first phase focuses on providing proper operationalization for corporate social responsibility (CSR) activities that are implemented by Qatari companies. In the second phase, the strategic integration of CSR in Qatari companies was examined. The current study, the third phase of this research project, concentrates on identifying possible drivers for CSR initiatives as well as focusing on describing the level of communication for CSR initiatives in Qatari companies. Furthermore, a special section related to corporate citizenship has been added as an important supplement to the study.
Review of the Literature
There are number of definitions of Corporate Social Responsibility (CSR) available that typically focus on different factors that should be included in these initiatives (Verschoor, 2009). A concise definition provided by The Financial Times states that CSR “is a business approach that contributes to sustainable development by delivering economic, social and environmental benefits for all stakeholders” (Definition of corporate social responsibility, 2017, para. 1). This definition is congruent with the consumers’ perspective of CSR as well, with the most important factors driving adoption of these practices including: (a) corporations need to be committed to their employees; (b) corporations need to be committed to the public and communities and overall society; (c) corporations have a responsibility to provide quality products; and (d) corporations have a responsibility to the environment (Verschoor, 2009). The respective internal and external drivers and obstacles of CSR are discussed below followed by a discussion of the role of CSR communication in achieving organizational goals.
Drivers of CSR
Internal Organizational Drivers
One of the overarching obstacles to successful CSR initiatives is the mindset of some corporate’s leaders concerning the utility of these efforts. Until fairly recently, many corporate leaders viewed CSR initiatives as so much greenwashing intended only to minimally satisfy the expectations of shareholders and other stakeholders. Increasingly, however, many corporate leaders are recognizing that CSR initiatives that are aligned with organizational goals can provide significant returns on these investments. For instance, Ballou, Casey, Grenier and Heitgerp (2012) emphasized that, “If organizations think about sustainability initiatives in the same manner as their core business decisions, such initiatives cannot only be a source of competitive advantage and long-term value for shareholders, but also be highly valued by an organization’s multiple stakeholders” (p. 268). Beyond these intangibles, though, other drivers of CSR initiatives include their ability to directly contribute to a corporation’s profitability (Carrasco &Buendía-Martínez, 2016). To facilitate the process, some corporations have created CSR teams to identify opportunities and implement appropriate initiatives; others, however, have implemented CSR strategies organization-wide in less obvious but still significant ways. For example, Brooks (2010) reports that, “Some [corporations] have set up a substantial CSR teamwhile others have embraced CSR in a more subtle and pervasive way. The latter have changed their values as a result and require all activities to...
References
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· Brooks, M. (2010, June). Incorporated social responsibility: Authentic CSR is an attitude that pervades every business decision. Financial Management, 12.
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Corporate social responsibility is a set of business practices, which involve initiatives that benefit society. A firm's corporate social responsibility (CSR), may include a comprehensive array of tactics such as charity donations, implementation of 'greener', environmentally friendly business operations, and community participation. CSR is a way for companies to give back to society that can benefit not just the public, but also the brand and image of the company.
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