Corporate Social Responsibility

A Research Handbook

Kathryn Haynes, Alan Murray, Jesse Dillard

• Publisher: Routledge
• Year: 2012
• ISBN:
  9781136256486
• Edition: 1
• Topic: Business
• Subtopic: Business General
• Index: Business

Concepts of corporate social responsibility (CSR) are widely used by businesses, professional bodies and academics, but are also widely contested. CSR is usually described as comprising three elements: environmental, economic and social, though there is no serious consensus on how to go about translating ideas into practice. This research handbook addresses some key areas of contention, theory and practice within CSR in order to address, challenge and inform debate in academia and practice.

The collaborative text extends understanding of CSR through articulating current thinking on each facet of a vital subject. Each theme is represented by inter-disciplinary discussion of key questions on CSR by researchers and practitioners in the field. In doing so, the book:

• Explores and critiques CSR goals, and national, organizational and managerial strategies Reviews the distinctive role and importance of CSR to academics, professionals and practitioners and identifies appropriate bridging strategies
• Evaluates the nature, direction and applicability of selected theoretical dimensions which inform the understanding of CSR
• Assesses the opportunities for theory building, to support further understanding of the complexities of CSR and the sustainability and long term value of CSR practice to corporations and civil society

This timely and significant contribution to the theory and practice of CSR will prove to be vital reading for students, researchers and practitioners involved with the field. It will also become a key reference for anyone with an interest in business and society.

1 Introduction

Corporate social responsibility – a research agenda

Kathryn Haynes, Alan Murray and Jesse Dillard

DOI: 10.4324/9780203106082-1

Concepts of corporate social responsibility (CSR) are widely used by businesses, professional bodies and academics, but are also widely contested. While it is often said that CSR comprises three elements – environmental, economic and social – little consensus exists even among experts on how to go about translating CSR concepts into practice. This book sets the agenda for a developing field of research in CSR from a variety of theoretical and practice perspectives.

As a research handbook, its aim is to address some key areas of contention, theory and practice within CSR, in order to address, challenge and inform academic debates. The book takes a decidedly interdisciplinary social science focus as it:

• extends understanding of CSR by posing a series of challenging questions within the field.
• explores and critiques CSR goals, and national, organizational and managerial strategies, from selected theoretical and empirical perspectives.
• reviews the distinctive role and importance of CSR to academics, professionals and practitioners and identifies appropriate bridging strategies.
• compares and contrasts selected aspects of CSR practice with international developments.
• reviews the nature, direction and applicability of selected theoretical dimensions which inform the understanding of CSR.
• assesses the opportunities for theory building, to support further understanding of the complexities of CSR and the sustainability and long term value of CSR practice to corporations and civil society.

In doing so it makes a timely and significant contribution to the theory and practice of CSR related activities.

The book is structured in six parts to address key themes within CSR:

Part 1 Defining CSR – addresses the definitions and constructs of CSR, particularly the nature of accountability which underpins its theoretical construct.

Part 2 Taxation and social justice – considers significant issues regarding corporate engagement with social responsibility in relation to tax regimes across continents and corporate taxation practice.

Part 3 The environment and sustainability – considers important societal questions on the relationship between business and the environment, and whether it is possible for business to be environmentally sustainable, that sit at the heart of the CSR debate.

Part 4 Human rights and CSR – addresses the role of human rights in the CSR debate, an area which has not been so widely taken up by either academics or business, but which articulates the need to consider the equity, rights and responsibilities of human beings towards each other.

Part 5 Corporate philanthropy and CSR – addresses the question of to what extent corporate philanthropy has informed CSR, or is indeed a form of CSR, with some particular reference to the relationship between non-profit organizations, governments and business.

Part 6 CSR, sustainability, governance and civil society – where next? – is the final part of the book. This looks to the future, drawing together a number of themes arising from earlier parts on governance, the impact of CSR on developing countries, sustainability and social justice.

Chapters in the book are based on papers presented at a series of six seminars funded by the Economic and Social Research Council (ESRC) and the Institute of Chartered Accountants in England and Wales (ICAEW) during the period 2008– 2010. The aim of this seminar series was to cut through the rhetoric of CSR, by engaging academics, professions and practitioners to deliver positions of clarity from which future debates can emanate. The series provided a forum for engagement between academics, policy makers, professional bodies and practitioners to develop increased insights into the theory and practice of CSR.

The series grew from concerns over the nature of corporate engagement with responsible management, and proved to be highly prescient and topical, as the first seminar took place two weeks after the collapse of Lehman Brothers at the beginning of what has emerged as a serious and deep economic recession, in which the actions of business has been called into question. The seminar series addressed some serious questions about the behaviour of corporations and their responsibilities: (1) How do we decipher the domain of CSR? (2) Is corporate taxation practice a CSR issue? (3) How, in a world of depleting resources, can we ensure sustainability and equity between business and society? (4) Can CSR make poverty history and promote human rights? (5) Can Corporate Philanthropy contribute to social justice? (6) Where do the responsibilities of corporations, government and civil society begin and end?

Many of these questions, while pressing at the time, have become increasingly relevant to the national and international context, as citizens, especially at times of economic crisis and austerity, question the role and behaviour of business in society. The debate on the payment of taxes by large corporates remains topical, as does the role of business in promoting sustainability or unsustainability.

As noted at the outset, corporate responsibility is a contested concept. We cannot even agree upon a common definition of the term much less the practical application of the ideas. One of the issues that we address is whether this is the result of a muddled theory informing practice or whether it is a muddled practice in search of a theory. Or, whether we must move toward a different metaphor as we attempt to makes sense of and guide the emergence of a different place for corporations in society. Our purpose in this book is to create a context from which a facilitating and ennobling new, though indeterminate, order emerges.

The book outlines what we consider to be the domain of corporate responsibility. It then extends and refines this outline through the consideration of associated issues such as: corporate tax practices; equitable resource allocations; poverty; social justice and corporate philanthropy; and the delineation of responsibilities among corporations, government, and civil society.

As we move into the future, it might be useful to keep in mind the current criticisms of CSR and the basis from which they arise. We should be careful not to let these constrain our thinking. Blowfield and Murray (2011) discuss four main areas of criticism and the grounds upon which each is based. First, CSR can be seen as an anti-business agenda, imposed on business by civil society, in that corporate responsibility restricts the corporation’s ability to generate societal wealth. A second alternative position purports that the dominance of corporations in setting the corporate responsibility agenda ensures that it predominately serves narrow corporate interests and hence is too pro-business. An extension of this position holds that even if corporate influence does not dominate, the current concerns of corporate responsibility do not include key issues and are too narrow. Fourth, some argue that corporate responsibility to date has failed to meet its goals and needs to be more rigorous and innovative. Obviously, the manifestation of failure follows the position upon which one defines the goals.

One’s initial perspective is informed by the position taken as to the purpose of business in society and the nature of the social issues perceived as capable of being addressed within the context of corporate self-interest, self-regulation, and public pressure. Ultimately, the question is how society’s best interests can be attained? Is it through market-based self-regulation? Is it through government involvement and regulation? Or some combination of the two? And if the latter, what are the appropriate and necessary processes for the evolution and revision of the requisite infrastructure?

If, following neoclassical economic theory, one thinks business’s primary purpose is to make a profit through the prevision of goods and services to society within a free and open market, then corporate responsibility will be criticized if it does not support that end. Relatedly, those who see legislation as a barrier to competitiveness within a market context will look at corporate responsibility in terms of its capacity to remove the regulatory burden. On the other hand, those suspicious of market-based self-regulation see corporate responsibility encompassing effective government intervention.

Hopefully, in this book, the authors of the chapters have provided a vehicle for thought and discussion wherein the following objectives can be articulated and constructively pursued:

• the factors explaining the gap between academic research and corporate responsibility activity in the UK and abroad;
• existing and new policy-oriented research paths addressing climate change and sustainable development;
• development of a more comprehensive and intelligible theoretical understanding of the field by drawing from work engaging a wider range of constituents, NGOs, governments, non-profit organizations, business, as well as academia;
• development of a conceptual framework providing the basis for establishing corporate responsibility as a distinct research area with a coherent research agenda within business, management, and accounting.

We hope that this book will be of use to academics and practitioners alike, whether experienced in CSR or newly embarking on a CSR project or agenda. It can be read as a whole or dipped into thematically, with each of the chapters providing many references to enhance further study.

References

• Blowfield, M. and Murray, A. (2011), Corporate Responsibility. Oxford: Oxford University Press.

Part I Defining CSR

DOI: 10.4324/9780203106082-2

Introduction

DOI: 10.4324/9780203106082-3

Although in recent decades the practice of Corporate Social Responsibility (CSR) has become mainstream, with virtually every FTSE 100 company including it on their agenda in some form, the conceptualisation of CSR remains contested and even confused. CSR lacks a definitive definition and is readily redefined by its constituent actors, most notably companies, to suit their own viewpoints and purposes. Some would suggest that the CSR agenda seems increasingly to be directed and dictated by corporate interest.

Moreover, the term CSR is often conflated with other notions, such as sustainability, business ethics or company values. Faced with global economic crises, climate change and constrained resources, there is a mounting imperative to engage industry, the professions, policymakers, and academia in a sustained debate surrounding the role of corporations in society, and the true representation of social responsibility, and sustainable development.

Presently, such evidence as there is suggests that research is failing to lead practice. Notions of what passes for CSR vary from company to company. UK Government policy seems inconsistent between departments and fails to connect seamlessly with UN and EU initiatives. In essence, there seems to be an absence of any coherent conceptual framework underpinning the plethora of initiatives that fall under the CSR banner.

The aim of this first part of the book is to set the intellectual context for the remaining chapters by posing the fundamental questions: How do we define CSR? and How do we decipher the domain of CSR? In addressing these issues, this part will establish the key contextual factors and supporting issues to be examined in later parts, and will also assess the conceptual frameworks of the emerging comparative literature on CSR (also see suggested further reading on this topic). It will address the following questions: How have we arrived at the present position and is this where we want to be? How does research in CSR relate to practice? Is there an “expectations gap” between public expectation and corporate strategy? Is there a case for CSR that goes beyond the “business case”?

The chapters in this part are from three key presentations originally held during the first seminar of the ESRC series on which this book is based. The seminar was deliberately designed to provide a point and a counterpoint, with the addition of reflections from a policy/practice perspective.

Hence the book begins with Jesse Dillard and Alan Murray’s chapter on deciphering the domain of CSR. Their primary focus is to provide background and a general framework for initiating a dialogue concerning the domain of corporate responsibility. First, they address how one might define corporate responsibility, consider its myriad dimensions and attempt to differentiate it from sustainability. They propose a general theory of accountability wherein alternative corporate responsibility perspectives can be considered. The theory recognizes the corporation as a member of an ongoing community within the context of an ethic of accountability. They argue that a reciprocal relationship arises as society grants corporate management the right to use its economic assets (natural, human, financial, and technical) in providing goods, services, and employment and investment opportunities for the citizens of the society. In return, the corporation accepts a fiduciary responsibility with respect to these assets, which includes an obligation to provide an account of, and to be held accountable for, its actions. Dillard and Murray relate this concept to corporate social responsibility, giving a brief history of CSR and its evolution. They consider the current theoretical bases for the predominant schools of thought and briefly review the primary models, discussing the current state of corporate responsibility and providing suggestions as to future developments.

Steven Toms’ chapter provides a counterpoint to Dillard and Murray, thus extending the debate on conceptualisation of CSR. He argues that the reform of the corporation to promote greater social responsibility is an unlikely solution to the crisis of climate change, suggesting that the managers of business organisations are relatively powerless in the face of the powerful market forces that drive increasing consumption of the world’s resources. In particular, he notes the strong association between the development of oil resources, the world’s markets and productive capacity as the key determinants of climate change. Toms suggests that responses to the challenges of climate change are best formulated through predictive analysis of its key determinants, along the lines of the 2007 Stern Report and the debate it has subsequently engendered. In view of the correlation between oil consumption, world and sustainable population, he suggests peak oil poses as strong a challenge to economic growth as does significant climate change.

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Table of contents

• Cover Page
• Corporate Social Responsibility
• Corporate Social Responsibility
• Copyright Page
• Table of Contents
• List of illustrations
• Notes on contributors
• Acknowledgements
• 1 Introduction
• PART I Defining CSR
• PART II Taxation and social justice
• PART III The environment and sustainability
• PART IV Human rights and CSR
• PART V Corporate philanthropy and CSR
• Introduction
• PART VI CSR, sustainability, governance and civil society – where next?
• Introduction