Causes of Increased Corporate Social Responsibility

Ca purposes of Increased integrated mixer indebtednessAbstr scrapAimThe main aim of this interrogation was to establish the utmost to which the increased priority of CSR is in d aloneyuality a picture concomitantor of companies acting to meet the pursuances of smart set or s refer a think of for generating profits in a marketing oriented way. In this regard, the enquiry sought to explore CSR behaviour in depth and in stoop tried to establish companies rationales for CSR behaviour in the UK food sell industry.MethodsA mixed methodology with twain qualitative and quantitative methods of data ingathering and analysis were put on in the inquiry. Qualitative content analysis was apply for analysing the contents of food retailers websites pertaining to CSR. Store Audits were conducted in value to identify the CSR practices and fulfilment to which they ar deedd by different food retailers. In depth semi- skeletal systemal inter inspects were conducted with key d ecision ramp uprs with the purpose of obtaining in reboundation on CSR activities. Lastly, a questionnaire behold was apply with the UK consumer population as the population of inte endure.ResultsThe members of the UK Food Retail sedulousness showed that they sport given paramount immenseness to CSR in magnitude to virtu naillyyways get down a go neighbour to their customers, render them effective general services and at the same time contri savee to the preservation and surety of the surroundings. The responses to the questions revealed a common rationale behind their CSR policies and ensured that the organisation established a good reputation amongst the members of the community, thereby enabling the latter to maintain a certain level of commit for the UK food retailers.ConclusionThe study back up the occurrence highlighted by previous studies that companies draw cause to a great extent mindful and mindful of their responsibilities, roles and rights towards t he lodge. They were seen to accept implemented activities, practices and guidelines in order to fulfill their sanctioned, good, br oppositely and purlieual roles and responsibilities towards station p altogetherbe arrs, employees, customers, and environment and fiat in general. However, it can besides be realised that these policies contri excepte to the building of put in the customers towards the organisations. Thus, as the trust is established, it is much likely that the customers pass oning remain loyal to the organisation, thereby change magnitude their chances of generating profit.Chapter 1 IntroductionFor m rough(prenominal) years corporeal societal accountability (CSR) has been associated with related terms like headache ethics, somatic consummateance, merged accountability, corporate office and hazard toter involvement. In young years CSR has big(a) into a well-known collective expression. The growth of CSR has been a proceeds of organisations r ealising their melodic phrase toward their stake holders in the context of pedigree scandals (e.g. Enron) and a suppuration veneration for environmental changes (e.g. global warming).The European Union defines CSR as a opinion whereby companies integrate favor adapted and environmental touchs in their strain operations and in their interactions with their stakeholders on a voluntary basis (European Commission, 2002). According to Vernon and Mackenzie (2007), the question of whether companies should search to do good by exercising CSR, rather than concentrate exclusively on wealth creation, is no longer pastimeing and in fact the reduce today is on how well companies do good. Increasingly stake holders expect companies to take on domain debt instrument. Companies engage in CSR done diverse activities much(prenominal) as donating to charit fit organisations (e.g. Ben and Jerrys), green activities (e.g. moves by study retailers to eliminate plastic bags and get on green bags) and by implementing environment intimate purchase and supply policies. A pot conducted by Research Inter depicted object, however, shew that while CSR practices argon commendable, they need to be nonioned with caution as these activities atomic number 18 non sufficient in and of themselves ( friendly Funds, 2000).The scepticism about CSR activities is related to the maturement trend for organisations to drift away from the hard issues and concentrate more than(prenominal) on batty issues. The Research Inter subject survey revealed that despite ignoring crucial issues much(prenominal) as treatment of employees, and commitment to the local anesthetic community, some companies portray themselves as soci distributivelyy responsible using charity and separate CSR activities, which deal with easy issues ( neighborly Funds, 2000). Sceptics likewise believe that CSR is often utilize purely as a marketing tool to improving short letter implementation. In the c ontext of CSR existence rated as a priority by companies in the last fewer years (Cost Sector, 2009), this research aims to study the changing nature of CSR, with popicular guidance on an organisations motivation for engaging in companionablely responsible activities (whether it is a response to corporations predictions or a strategical move by a comp both). By contributing to a deeper under expecting of rationales, notions, risks and effects of CSR, the proposed research provides strategic insights on the subject. With findings based on both corporate and stake holder perspectives on the subject, this research aims to contribute to useful and inte succoring reading for both line of merchandisees and stake holders. The findings of this study atomic number 18 based on the UK food retail industry. Food retailers consume a good context for study speci each(prenominal)y considering the several brotherlyly and environment all(prenominal)y responsible schemes that they be i nvolved in and the significance of CSR asserted by industry hurtards.In this attempt Chapter twain provides the background and re guess of literature conducted in order to extensively canvass previous frame travels published with regard to corporate Social indebtedness and the manner by which it applies to the members of the UK food retail industry.Chapter Three discusses the different methods used in order to obtain data for the study to obtain relevant pickingsss.Chapter Four then presents the results obtained from the use of the different methodologies enumerated in the study.The results shall then be discussed in relation to the aim of the study in Chapter Five and conclusions would be provided by resolvinging the research questions.Lastly in Chapter 6 we will give us an understanding of the scope and limitations of this study.Chapter 2 Background and publications Re sketch2.1 Background of the studySocietys preoccupation with the social tariff of organisations has ex isted since at least the early 1930s and probably purge before. Wells (2002) ancestrys that it is by chance the infamous Dodd-Berle correspondence contained within the Harvard Law Review Issue of 1931-32 that launched the disputation on corporate social duty. The hand started when corporate law prof Adolf A. Berle Jr. published an article arguing for the imposition of healthy hold in on steering so that only their look atholders would benefit from their decisions (Berle, 1931). E.M. Dodd, another prof from Harvard, published an article that addressed the issue raised by Berle. He argues that besides focusing on the interests of the sh atomic number 18holders, managers essential besides take into musing the concerns of the employees, consumers and the organisations stakeholders. Berle (1931) responded by saying that companies should not abandon emphasis on the view that business corporations exist for the sole purpose of making profits for their stockholders until much(p renominal)(prenominal) time as one is prep bed to offer a clear and sensibly enforceable scheme of responsibilities to someone else (Berle, 1932, p. 1365).Since the estimation of corporate social office has its roots in the legal community, several academic disciplines cave in followed the struggle with little discussion occurring among and among them (Radin, 1999). More proper(postnominal)ally, researchers in the field of business ethics have spent substantial effort in the olden two decades to come up with a stakeholder theory that would evetually dismount under corporate social state, existing as a wear out approach to wariness.The issue of corporate social duty was not discussed later on the argument in the midst of Berle and Dodd. It resurfaced in the 1960s and the 1970s against the backdrop of the obliging rights movement in America. This is due to the fact that the top agendas of politicians, public interest reprints, individual citizens and corporations hav e been largely modulated by concerns about the environment, product safety, piece of work health and safety, racial and sex discrimination, urban congestion, political corruption and proficient advances. A reveal from this, the increase watch and provide that organisations possessed during this rate of flow (this distributor point macrocosm the 60s and 70s?) has eventually led to a widespread societal flavor that large businesses have a duty towards ensuring the best(p)ment of society (Banner, 1979).The force-out and influence of corporations, actual or perceived, and the impact of their scotch, social and political actions on society in general, has led to a broad societal prospect that corporations be held accountable for their actions. S affect put, there is growing public apprehension that organisations mustiness be responsible enough to weigh the impact of their decisions on the different parties involved. As a result, they must be able to eliminate, minimise or compensate for the harmful damages that they may inflict on society. The above mentioned notwithstandingification is basi hollery derived from a virtuous position that corporations be evaluate, and should, behave like both citizen in society. This expectation is also warrant on the basis that corresponding responsibilities always accomp each magnate. As Dodd (1932) asserts, index finger over the lives of others tends to create on the part of those most worthy to f be it a sense of obligation.Moreover, the increasing force play of organisations has resulted in a societal expectation that corporations act proactively and at the same time, enthrall out a leadership role in order to provide solutions to problems that the world faces (CSR Survey, 2003). This governance agency that given that organisations frequently have more resources than establishments, they should give something back to the society. In the same manner, they are also vocaled to allocate and offer so me of their resources to melt down out good works and help the less fortunate sectors of society.Overall, this CSR finale is reassert as follows initially, a societal need is identified. For instance, areas such as education, healthcare, low-income housing or the arts may require funding that cannot be generated privately or that government is unable to provide to enable these institutions to compensate making goods or services available or even to exist. Second, corporations are identified as capable of filling the gap by providing all funds or infrastructure to address the need. In other words, an salute to organisations is made because they frequently have the capacity, in consistency with their size and r individually, to act as agents of social progress (Kahn, 1997).As repeatedly mentioned earlier, corporate social responsibleness has been inevitable of companies that have both, actual or perceived proponent and influence. This is why multinational corporations that engage parts of the globe where people panic the effects and consequences of Globalisation are judge to suffice such duties. This, harmonize to Zinkin (2004) is usually brought about by the fact that these corporations are usually seen as enemies rather than friends. Thus, to regain the trust and confidence of the people, the company must be able to make their social indebtedness known as this is utter to give them legitimacy to give-up the ghost in a given sphere (Zinkins, 2004).2.2 writings ReviewIn order to gain a bump understanding of the opinions and regulations of CSR, the review of literature is divided into the following sections1. merged Social responsibleness Definitions and History,2. incorporate Social function and the UK Food Retail constancy, and3. digest2.2.1 embodied Social office Definitions and HistoryGlobalisation, the increasing influence of companies including beautiful and medium enterprises, a change in the position and opinion of governme nts, and a paradigm shift in working with and appreciating the enormousness of building steadfast state relations with stakeholders- are all factors that have contributed to changing the dynamics of the human descent between businesses and society. Businesses have always been mindful of their responsibilities towards society. The opinion of companies sharing their resources and influence with other bases has been repeatedly spoken about for centuries (Bowe, 1953).Nowadays, companies have become more aware(p) and mindful of their responsibilities, roles and rights towards the society. They are seen to have implemented activities, practices and guidelines in order to fulfill their legal, honorable, social and environmental responsibilities to stakeholders, which include pctholders, employees, customers, suppliers and the environment and society in general. These actions have been given umteen terms, including (1) Corporate Responsibility or CR, (2) Corporate Social and Enviro nmental Responsibility or CSER, (3) Corporate Citizenship, (4) Corporate Accountability, and lastly, (5) socially Responsible Business (SRB) (Raynard Forstater, 2002). However, the most famous terminology would have to be Corporate Social Responsibility or CSR.CSR foremost off began to be scripted about by academics in the 20th century. The term Corporate Social Responsibility and the modern view on CSR are largely attributed to Howard Bowen, who is considered by numerous scholars, peculiarly Carroll, as the father of CSR. Bowen conceived CSR as an integral part of a bigger vision of a die American society with a robust and socially responsible business sector. Before Bowen wrote his watchword in 1953, CSR was not a generally accepted practice among businesses in the United States.Carroll (1991) writes that in the early years, businesses believed that their only obligation was to their shareholders and their only escape was the quest of financial improvement in order to prov ide the great financial re spell to their shareholders. The errors of this way of thinking soon became apparent. For one, businesses stock- up to now had to work within laws set down by governments. In the 1960s, assemblages advocating social issues pushed for a more extensive image of responsibilities for businesses. In the 1970s, miscellaneous organisations in recoil of the social issues pushed by the militant chemical groups were created in the U.S. Some of these organisations were the Environmental tribute Agency (EPA), the Equal Employment Opportunity Commission (EEOC), the Occupational precaution and Health Administration (OSHA), and the Consumer Product pencil eraser Commission (CPSC). These governmental organisations endureed the brass section of national public policy that now acknowledged the legality of environmental issues. The new policies forced businesses to re-examine their own strategies and to learn how to snap off a balance between making a profit an d the legal and ethical responsibilities placed on them by a widening lead of stakeholders.For Bowen (1953), businesses become prominent in society because society needs the products and services provided by these companies. This grants businesses vital decision-making power in the way they affect the lives of many people. Therefore, for a balanced business-society family to keep back, Bowen (1953) asks what responsibilities society can slightly expect business community to assume. The answer to this question, Bowen states, is corporate social responsibility. He defines CSR as a social obligation that necessitates business community to engage in policies, formulate decisions, and implement actions that are considered desirable when connected with the objectives and values of society. He took a broad view when defining what business responsibilities includeresponsiveness, stewardship, social audit, corporate citizenship and rudimentary stakeholder theory.Bowens concept of a mu tual relationship between business and society is echoed by Porter and Kramer (2006), who point out that the value of CSR lies in the values companies share with societies they exist in. Businesses operate in social contexts and societies need the products and services that businesses provide, consequently there is a mutual need for each entity. CSR, and then, makes it possible to invoke a collaborative relationship between business and society.Many have tried to create a definition of corporate social responsibility that encompasses its functions and the blow of responsibilities it entails. One of the most comprehensive is that of the World Business Council for sustainable Development (2007), which defines CSR as the long-lasting commitment that businesses create which compels them to behave in an ethical manner and to add to the fixment of the economy while dower improve the quality of life of their employees and their families in addition to the lives of those in the local communities and society in general. This definition is item enough to imply the ho numerateic and philanthropic maxim of CSR. It is also broad enough to include activities or programs that companies engage in that do not directly yield income but bring visible and long benefits to both the companies and the recipients of the programs and activities such as offspring and partner communities. With this definition programs such as scholarships and funds for research, advocacy programs for the environment, and support programs can be considered as CSR.One of the earliest authors on CSR, Carroll (1979) was the first to propose the four categories of ordered layers of CSR scotch, legal, ethical, and discretionarywhen he wrote that the social responsibility of businesses includes the economic, legal, ethical, and discretionary expectations that society puts upon enterprises.Aupperle, Carroll, and Hatfield (1985) bring forward delineate these categories into* Economic responsibiliti es showcase the article of faith that businesses have the primary responsibility to generate products and profits and fulfill the desires of their customers* statutory responsibilities highlight the issue that economic responsibilities must be performed within the travail of rules and regulations as mandated by the laws of the land* Ethical responsibilities takes into retainer the codes, norms, and values that are not scripted into laws but are still followed implicitly by society these responsibilities rise above the composite plantities of written laws and encompass activities that are sprucely carried out without any clear and delimit statements made about them* discretional or philanthropic responsibilities reflect the voluntary nature of actions that are not easy to establish and assess, but are still expected by society.These categories are still widely cited and frequently reproduced in trouble and CSR journals by researchers and authors on CSR. The reason for its last ing acknowledgement may be the simmpleness of the mock up. Carrolls (1979) categories are logical and easy to understand. The author himself writes that these categories are merely guidelines or reminders that the motives or actions of businesses can be generally classified into any of the categories he presented. The arrangement and relative influence of each category was intended to imply the basic role each had in the progression of significance. When it first came out, Carrolls model reflected a point of view that was simultaneously retrospective and developmental. It was based on the assertion that historically businesses first emphasised only the economic manifestations of their trade. The legal aspect came succeeding(prenominal), and the ethical and discretionary were only emphasised in late(a) years.Juholin (2004) suggests that companies practice corporate social responsibility (CSR) because of long profits that CSR brings to companies. other reasons may also include t he commitment of top centering to the clean-living and ethical standards promoted by CSR, competitiveness of the market today, and the visionary skills of many business leaders that gives them to anticipate the needs of the future.Porter and Kramer (2006) agree that CSR provides long-term profits. The authors bloodline that companies should practice CSR and integrate it in their core strategic plans to ensure long-term prosperity. This is because socially responsible activities can return goodwill for companies. On the other hand, activities that harm the environment or result in any blemish to stakeholders can only result in bad karma in the form of bad financial operation, low brand positioning, and, worse, a rift in the relationship between companies and their consumers and suppliers and even expensive litigations. Porter and Kramer (2006) write that corporations are not obligated to solve the problems of the world. They do not have resources to do this. But, a company that is well managed can have a greater impact than any other organisation or charity group when they do something good for society.CSR does not merely imply profitability for companies. Its results go beyond the costs or constraint of altruistic actions. CSR can be a source of market opportunity, improvement, and an edge over the competition (Porter Kramer, 2006). It also does not recollect engaging in activities for the sake of doing what is socially required and expected of these companies based on legal and social laws, especially those on environmental issues. CSR implies victorious action to go beyond these laws to calumniate any harm towards and maximize benefits for all stakeholders in order to fulfill what society desires (Raynard Forstater, 2002).Warhurst (2001) identifies three major elements of CSRproduct use, business practice, and distribution of profits. Product use entails the positive involvement of products from businesses that assist in the promotion of welfare an d better quality of life for members of society. Business practice entails business governance that observes the rules and regulations and presents a high level of thrust towards welfare of the natural environment and faithfulness for all generations and species. Distribution of profits entails equal distribution of profits across a varied range of sectors of society, with emphasis on local communities.Bowen (1953) also notes that CSR should not be seen as a primary solution to the many problems of society. CSR can only do so much, and it should only be seen by companies and society as a set of guidelines for businesses in the way they perform and carry on their operations within the context of a larger society and the many issues that abound within the social milieu that they operate in.A key concept of CSR is the conceit of stakeholders. Stakeholders are all groups or individuals who have an impact on or are affected by the attainment of any organisations goals (Freeman, 1984 ). It can be verbalise that stakeholders are any entity who have a big stake in what businesses do. The concept of stakeholders then goes beyond the shareholders, employees, and clients or customers of a company. It includes communities, public interest groups, social activist groups, environmental groups, and the media which, concord to Freeman, author of the Stakeholder Theory, businesses are accountable to. other researchers (Marcus, 1996 Munilla Miles, 2005) disposition specific stakeholders as owners customers employees local, regional and national communities competitors suppliers social activists public at large creditors non-government organisations (NGOs) and even the natural environment, which, although unable to state its opinions, has become a major stakeholder today because of the many laws promulgated to care for the Earth in a sustainable way.Hopkins (2003) writes that CSR primarily deals with ensuring that businesses treat stakeholders in an ethical or responsib le way which office treating them in a manner considered equal by members of any culturedized society. The social context of this definition includes economic responsibility. Stakeholders can be both within businesses and outside it. This signifies the natural environment as a stakeholder. In a broader sense, the objective of social responsibility is to establish better and higher standards of living while maintaining the capability of businesses to make a profit. These two components of the objective of social responsibility are both done for the stakeholders within and outside companies.According to Freeman (1984) for successful proceedings with stakeholders, businesses must accept the authority and procedures of versatile stakeholders. Stakeholders will thus have the freedom to communicate their concerns. Furthermore, to manage and develop a strong relationship with stakeholders, businesses must understand their concerns and develop programs that will address these concerns. Stakeholders have various ways to ensure that businesses fulfill societys expectations. Some may opt to swot up rallies, some may opt for more peaceful negotiations, some may engage in joint activities such as seminars or tree-planting sessions or other awareness raising activities, and some may use the media to pass on disseminate their issues. For example, the environmental group Greenpeace printed leaflets and wrote articles against genetically modified food, which led some food manufacturing corporations to every stop production of certain products or to develop new, healthier items.Freeman (1984) points out that the term stakeholder first appeared in management literature in a 1963 international memorandum published by the Stanford Research Institute. The term then was strictly yet broadly defined as the peoples or groups who give their support to companies and without whom businesses would stop to surviving. The main idea in this initial context already shows a measure of t he wideness of stakeholders. In a way, this definition states that without the support of stakeholders, businesses would not be able to survive. Of course, the limitation of this definition lies in the fact that stakeholders here may mean only the groups that are influential for companies such as the shareholders or government groups or investors.Each business activity has a different group of stakeholders. This is because each individual in society is interested in and promotes a varied and widely different range of concerns (Freeman, 1984). Some are more interested in environmental issues, while others advocate employment benefits, and still others fight for education. One way to determine which stakeholder is relevant to which particular aspect of business is done the generation of a generic stakeholder map, which is a plat of the various groups relevant to the whole organisation broken down into levels and subdivisions in order to divide big groups into atomic groups based o n specific interests. Some experts, however, think that this mapping procedure does not encapsulate the obscure linkages between businesses and the various individuals and groups in society.An approach of corporate social responsibility that centers on stakeholders emphasizes the strategic and effective management of relationships and promotion of what Freeman and McVea (2001) call shared interests. The stakeholder model also puts some emphasis on persuading businesses to restore or restore relationships with groups or organisations that they have been at odds with. A good stakeholder management program also involves open communication, negotiation, management, and motivation. The end result of all of these actions leads to the governing of an attitude of partnership, mutual association and interdependence between businesses and stakeholders. All of these activities are held together by the values and ethical standards that businesses stand for.Freeman and McVea (2001) further em phasise that good stakeholder management promotes a business own company values. CSR does not mean catering to the interests of stakeholders while abandoning all other aspects of business. Rather it entails in-depth deliberations taking into account all factors of social expectations. A well-developed stakeholder management program also allows businesses to create approaches that can serve stakeholders even in the long run. Although some individuals may not be gifted with short-term decisions and feel that their causes need more attention, a good stakeholder management program takes all things into considerations so that all stakeholders, not but a chosen few, continue to be firm supporters of businesses.Besides understanding stakeholders concerns, businesses must also look at the other components of CSR to determine the entire range of responsibilities that stakeholders expect them to embrace. When discussing and identifying these components of CSR, scholars and authors have been turning to the CSR pyramid presented by Carroll (1991). The CSR pyramid is staged to follow the levels of Carrolls (1979) earlier work of the four categories of CSR. The arrangement is in consonance with the degrees of social expectations that have been connected with each category. It has been used to assess businesses operation in terms of quantity, quality, effectiveness, and efficiency in their implementation of CSR initiatives.Table 2.2.1 The benefit of Corporate Social ResponsibilityBe a Good Corporate CitizenPhilanthropic ResponsibilityContribute Resources to the community Improve Quality of sprightlinessBe EthicalEthical ResponsibilityObligation to do what is right, just and fair Avoid HarmObey the Law levelheaded ResponsibilityLaw is Societys codification of right and wrong Play the Rules of the gameBe ProfitableEconomic ResponsibilityThe Foundation on which all the others rest(Source profit of Corporate Social Responsibility (Carroll, 1991, p. 39))Obligations or re sponsibilities included in the pyramid have always existed in the business world. But the grandness of philanthropic and ethical responsibilities has only received attention in new years. Through this pyramid, Carroll (1991) hoped to show that a good CSR program can be broken down into well-defined components that make up a accomplished package. It can be seen as a framework for comprehending companies ever-evolving CSR activities. In addition, flavour at each component can help leaders to furcate and understand the various obligations of businesses that are in constant conflict with each other but which are mutually exclusive. Based on the expected activities for each level, economic responsibilities seem to be always in tensity with the other responsibilities.Carroll (1991) also included the concept of stakeholders in this model, pointing out that taking their perspective into account would allow businesses to recognize the tension between all levels of the pyramid as realit ies of any organisation. This perspective can also allow businesses to see the pyramid as a united basis or framework of how firms will implement their decisions, actions, and programs.As can be seen, economic profit forms the gear upation of the whole pyramid. Carroll (1991) acknowledges the basic fact that businesses were created historically as economic entities that are primarily concerned with making money and creating profit. Without this component, all other responsibilities become moot. Carroll states that the idea he was proposing was that CSR, to be acknowledged as a legitimate action for businesses, had to deal with the whole range of responsibilities these businesses had to answer for to society. Of course this would have to include the most basic responsibilityeconomic. The bordering level shows that businesses are obligated to follow the rules of lawvarious national and international lawsthat socieCauses of Increased Corporate Social ResponsibilityCauses of Increased Corporate Social ResponsibilityAbstractAimThe main aim of this research was to establish the extent to which the increased priority of CSR is in actuality a reflection of companies acting to meet the interests of society or simply a marrow for generating profits in a marketing oriented way. In this regard, the research sought to explore CSR behaviour in depth and in turn tried to establish companies rationales for CSR behaviour in the UK food retail industry.MethodsA mixed methodology with both qualitative and quantitative methods of data accretion and analysis were used in the research. Qualitative content analysis was used for analysing the contents of food retailers websites pertaining to CSR. Store Audits were conducted in order to identify the CSR practices and extent to which they are exercised by different food retailers. In depth conventional interviews were conducted with key decision makers with the goal of obtaining information on CSR activities. Lastly, a questionna ire survey was used with the UK consumer population as the population of interest.ResultsThe members of the UK Food Retail Industry showed that they have given paramount importance to CSR in order to somehow become a better neighbour to their customers, render them effective public services and at the same time contribute to the preservation and justification of the environment. The responses to the questions revealed a common rationale behind their CSR policies and ensured that the organisation established a good reputation amongst the members of the community, thereby enabling the latter to maintain a certain level of trust for the UK food retailers.ConclusionThe study back up the fact highlighted by previous studies that companies have become more aware and mindful of their responsibilities, roles and rights towards the society. They were seen to have implemented activities, practices and guidelines in order to fulfill their legal, ethical, social and environmental roles and r esponsibilities towards stakeholders, employees, customers, and environment and society in general. However, it can also be realised that these policies contribute to the building of trust in the customers towards the organisations. Thus, as the trust is established, it is more likely that the customers will remain loyal to the organisation, thereby increasing their chances of generating profit.Chapter 1 IntroductionFor many years Corporate Social Responsibility (CSR) has been associated with related terms like business ethics, corporate performance, corporate accountability, corporate responsibility and stake holder involvement. In modern years CSR has liberal into a well-known collective expression. The growth of CSR has been a result of organisations realising their responsibility toward their stake holders in the context of business scandals (e.g. Enron) and a growing concern for environmental changes (e.g. global warming).The European Union defines CSR as a concept whereby co mpanies integrate social and environmental concerns in their business operations and in their interactions with their stakeholders on a voluntary basis (European Commission, 2002). According to Vernon and Mackenzie (2007), the question of whether companies should seek to do good by exercising CSR, rather than concentrate solely on wealth creation, is no longer interesting and in fact the focus today is on how well companies do good. Increasingly stake holders expect companies to take on public responsibility. Companies engage in CSR through diverse activities such as donating to charitable organisations (e.g. Ben and Jerrys), green activities (e.g. moves by major retailers to eliminate plastic bags and promote green bags) and by implementing environment hail-fellow-well-met purchase and supply policies. A survey conducted by Research International, however, found that while CSR practices are commendable, they need to be viewed with caution as these activities are not sufficient in and of themselves (Social Funds, 2000).The scepticism about CSR activities is related to the growing trend for organisations to drift away from the hard issues and concentrate more on soft issues. The Research International survey revealed that despite ignoring crucial issues such as treatment of employees, and commitment to the local community, some companies portray themselves as socially responsible using charity and other CSR activities, which deal with soft issues (Social Funds, 2000). Sceptics also believe that CSR is often used purely as a marketing tool to improving business performance. In the context of CSR being rated as a priority by companies in the last few years (Cost Sector, 2009), this research aims to study the changing nature of CSR, with particular focus on an organisations motivation for engaging in socially responsible activities (whether it is a response to societys expectations or a strategic move by a company). By contributing to a deeper understanding of r ationales, notions, risks and effects of CSR, the proposed research provides strategic insights on the subject. With findings based on both corporate and stake holder perspectives on the subject, this research aims to contribute to useful and interesting reading for both businesses and stake holders. The findings of this study are based on the UK food retail industry. Food retailers make a good context for study especially considering the several socially and environmentally responsible schemes that they are involved in and the significance of CSR asserted by industry standards.In this attempt Chapter twain provides the background and review of literature conducted in order to extensively conk out previous works published with regard to Corporate Social Responsibility and the manner by which it applies to the members of the UK food retail industry.Chapter Three discusses the different methods used in order to obtain data for the study to obtain relevant results.Chapter Four then p resents the results obtained from the use of the different methodologies enumerated in the study.The results shall then be discussed in relation to the aim of the study in Chapter Five and conclusions would be provided by answering the research questions.Lastly in Chapter 6 we will give us an understanding of the scope and limitations of this study.Chapter 2 Background and Literature Review2.1 Background of the studySocietys preoccupation with the social responsibility of organisations has existed since at least the early 1930s and probably even before. Wells (2002) notes that it is peradventure the infamous Dodd-Berle correspondence contained within the Harvard Law Review Issue of 1931-32 that launched the fence on corporate social responsibility. The debate started when corporate law prof Adolf A. Berle Jr. published an article arguing for the imposition of legal rule on management so that only their shareholders would benefit from their decisions (Berle, 1931). E.M. Dodd, anot her prof from Harvard, published an article that addressed the issue raised by Berle. He argues that besides focusing on the interests of the shareholders, managers must also take into consideration the concerns of the employees, consumers and the organisations stakeholders. Berle (1931) responded by saying that companies should not abandon emphasis on the view that business corporations exist for the sole purpose of making profits for their stockholders until such time as one is prepared to offer a clear and reasonably enforceable scheme of responsibilities to someone else (Berle, 1932, p. 1365).Since the idea of corporate social responsibility has its roots in the legal community, several academic disciplines have followed the debate with little discussion occurring between and among them (Radin, 1999). More specifically, researchers in the field of business ethics have spent substantial effort in the then(prenominal) two decades to come up with a stakeholder theory that would ev entually retrovert under corporate social responsibility, existing as a separate approach to management.The issue of corporate social responsibility was not discussed subsequently the argument between Berle and Dodd. It resurfaced in the 1960s and the 1970s against the backdrop of the civil rights movement in America. This is due to the fact that the top agendas of politicians, public interest groups, individual citizens and corporations have been largely influenced by concerns about the environment, product safety, study health and safety, racial and sex discrimination, urban congestion, political corruption and scientific advances. Apart from this, the increasing influence and power that organisations possessed during this period (this period being the 60s and 70s?) has eventually led to a widespread societal judgment that large businesses have a duty towards ensuring the betterment of society (Banner, 1979).The power and influence of corporations, actual or perceived, and th e impact of their economic, social and political actions on society in general, has led to a broad societal expectation that corporations be held accountable for their actions. Simply put, there is growing public prospect that organisations must be responsible enough to weigh the impact of their decisions on the different parties involved. As a result, they must be able to eliminate, minimize or compensate for the harmful damages that they may inflict on society. The above mentioned justification is basically derived from a moral position that corporations are expected, and should, behave like any citizen in society. This expectation is also justified on the basis that corresponding responsibilities always accompany power. As Dodd (1932) asserts, power over the lives of others tends to create on the part of those most worthy to exercise it a sense of responsibility.Moreover, the increasing power of organisations has resulted in a societal expectation that corporations act proactive ly and at the same time, carry out a leadership role in order to provide solutions to problems that the world faces (CSR Survey, 2003). This means that given that organisations frequently have more resources than governments, they should give something back to the society. In the same manner, they are also called to allocate and offer some of their resources to carry out good works and help the less fortunate sectors of society.Overall, this CSR goal is justified as follows initially, a societal need is identified. For instance, areas such as education, healthcare, low-income housing or the arts may require funding that cannot be generated privately or that government is unable to provide to enable these institutions to continue making goods or services available or even to exist. Second, corporations are identified as capable of filling the gap by providing either funds or infrastructure to address the need. In other words, an petition to organisations is made because they frequen tly have the capacity, in accordance with their size and reach, to act as agents of social progress (Kahn, 1997).As repeatedly mentioned earlier, corporate social responsibility has been required of companies that have both, actual or perceived power and influence. This is why multinational corporations that operate parts of the globe where people business organization the effects and consequences of Globalisation are expected to perform such duties. This, according to Zinkin (2004) is usually brought about by the fact that these corporations are usually seen as enemies rather than friends. Thus, to regain the trust and confidence of the people, the company must be able to make their social responsibility known as this is said to give them legitimacy to operate in a given uncouth (Zinkins, 2004).2.2 Literature ReviewIn order to gain a better understanding of the concepts and principles of CSR, the review of literature is divided into the following sections1. Corporate Social Respo nsibility Definitions and History,2. Corporate Social Responsibility and the UK Food Retail Industry, and3. synopsis2.2.1 Corporate Social Responsibility Definitions and HistoryGlobalisation, the increasing influence of companies including small and medium enterprises, a change in the position and opinion of governments, and a paradigm shift in working with and appreciating the importance of building solid relations with stakeholders- are all factors that have contributed to changing the dynamics of the relationship between businesses and society. Businesses have always been mindful of their responsibilities towards society. The concept of companies sharing their resources and influence with other groups has been repeatedly spoken about for centuries (Bowe, 1953).Nowadays, companies have become more aware and mindful of their responsibilities, roles and rights towards the society. They are seen to have implemented activities, practices and guidelines in order to fulfill their legal , ethical, social and environmental responsibilities to stakeholders, which include shareholders, employees, customers, suppliers and the environment and society in general. These actions have been given many terms, including (1) Corporate Responsibility or CR, (2) Corporate Social and Environmental Responsibility or CSER, (3) Corporate Citizenship, (4) Corporate Accountability, and lastly, (5) socially Responsible Business (SRB) (Raynard Forstater, 2002). However, the most famous terminology would have to be Corporate Social Responsibility or CSR.CSR first began to be written about by academics in the 20th century. The term Corporate Social Responsibility and the modern view on CSR are largely attributed to Howard Bowen, who is considered by many scholars, especially Carroll, as the father of CSR. Bowen conceived CSR as an integral part of a larger vision of a better American society with a robust and socially responsible business sector. Before Bowen wrote his script in 1953, CS R was not a generally accepted practice among businesses in the United States.Carroll (1991) writes that in the early years, businesses believed that their only obligation was to their shareholders and their only function was the quest of financial improvement in order to provide the sterling(prenominal) financial return to their shareholders. The errors of this way of thinking soon became apparent. For one, businesses still had to work within laws set down by governments. In the 1960s, groups advocating social issues pushed for a more extensive concept of responsibilities for businesses. In the 1970s, various organisations in vex of the social issues pushed by the activist groups were created in the U.S. Some of these organisations were the Environmental vindication Agency (EPA), the Equal Employment Opportunity Commission (EEOC), the Occupational Safety and Health Administration (OSHA), and the Consumer Product Safety Commission (CPSC). These governmental organisations allowed the establishment of national public policy that now acknowledged the legality of environmental issues. The new policies forced businesses to re-examine their own strategies and to learn how to develop a balance between making a profit and the legal and ethical responsibilities placed on them by a widening range of stakeholders.For Bowen (1953), businesses become prominent in society because society needs the products and services provided by these companies. This grants businesses vital decision-making power in the way they affect the lives of many people. Therefore, for a balanced business-society relationship to continue, Bowen (1953) asks what responsibilities society can reasonably expect businessmen to assume. The answer to this question, Bowen states, is corporate social responsibility. He defines CSR as a social obligation that necessitates businessmen to engage in policies, formulate decisions, and implement actions that are considered desirable when connected with the obje ctives and values of society. He took a broad view when defining what business responsibilities includeresponsiveness, stewardship, social audit, corporate citizenship and rudimentary stakeholder theory.Bowens concept of a mutual relationship between business and society is echoed by Porter and Kramer (2006), who point out that the value of CSR lies in the values companies share with societies they exist in. Businesses operate in social contexts and societies need the products and services that businesses provide, thus there is a mutual need for each entity. CSR, therefore, makes it possible to promote a collaborative relationship between business and society.Many have tried to create a definition of corporate social responsibility that encompasses its functions and the range of responsibilities it entails. One of the most comprehensive is that of the World Business Council for sustainable Development (2007), which defines CSR as the long-lasting commitment that businesses create wh ich compels them to behave in an ethical manner and to add to the development of the economy while dowery improve the quality of life of their employees and their families in addition to the lives of those in the local communities and society in general. This definition is specific enough to imply the holistic and philanthropic maxim of CSR. It is also broad enough to include activities or programs that companies engage in that do not directly yield income but bring visible and long-term benefits to both the companies and the recipients of the programs and activities such as young and partner communities. With this definition programs such as scholarships and funds for research, advocacy programs for the environment, and documentation programs can be considered as CSR.One of the earliest authors on CSR, Carroll (1979) was the first to propose the four categories of ordered layers of CSReconomic, legal, ethical, and discretionarywhen he wrote that the social responsibility of busin esses includes the economic, legal, ethical, and discretionary expectations that society puts upon enterprises.Aupperle, Carroll, and Hatfield (1985) further defined these categories into* Economic responsibilities showcase the principle that businesses have the primary responsibility to generate products and profits and fulfill the desires of their customers* Legal responsibilities highlight the issue that economic responsibilities must be performed within the limitation of rules and regulations as mandated by the laws of the land* Ethical responsibilities takes into consideration the codes, norms, and values that are not written into laws but are still followed implicitly by society these responsibilities rise above the complexities of written laws and encompass activities that are smartly carried out without any clear and defined statements made about them* discretionary or philanthropic responsibilities reflect the voluntary nature of actions that are not easy to establish an d assess, but are still expected by society.These categories are still widely cited and frequently reproduced in management and CSR journals by researchers and authors on CSR. The reason for its lasting acknowledgement may be the informality of the model. Carrolls (1979) categories are logical and easy to understand. The author himself writes that these categories are merely guidelines or reminders that the motives or actions of businesses can be generally classified into any of the categories he presented. The arrangement and relative influence of each category was intended to imply the basic role each had in the progression of significance. When it first came out, Carrolls model reflected a point of view that was simultaneously retrospective and developmental. It was based on the assertion that historically businesses first emphasised only the economic aspects of their trade. The legal aspect came next, and the ethical and discretionary were only emphasised in recent years.Juholi n (2004) suggests that companies practice corporate social responsibility (CSR) because of long-term profits that CSR brings to companies. Other reasons may also include the commitment of top management to the moral and ethical standards promoted by CSR, competitiveness of the market today, and the visionary skills of many business leaders that allows them to anticipate the needs of the future.Porter and Kramer (2006) agree that CSR provides long-term profits. The authors note that companies should practice CSR and integrate it in their core strategic plans to ensure long-term prosperity. This is because socially responsible activities can return goodwill for companies. On the other hand, activities that harm the environment or result in any separate to stakeholders can only result in bad karma in the form of bad financial operation, low brand positioning, and, worse, a rift in the relationship between companies and their consumers and suppliers and even expensive litigations. Port er and Kramer (2006) write that corporations are not obligated to solve the problems of the world. They do not have resources to do this. But, a company that is well managed can have a greater impact than any other organisation or charity group when they do something good for society.CSR does not merely imply profitability for companies. Its results go beyond the costs or constraint of altruistic actions. CSR can be a source of market opportunity, improvement, and an edge over the competition (Porter Kramer, 2006). It also does not mean engaging in activities for the sake of doing what is socially required and expected of these companies based on legal and social laws, especially those on environmental issues. CSR implies taking action to go beyond these laws to minimize any harm towards and maximize benefits for all stakeholders in order to fulfill what society desires (Raynard Forstater, 2002).Warhurst (2001) identifies three major elements of CSRproduct use, business practice, and distribution of profits. Product use entails the positive involvement of products from businesses that assist in the promotion of welfare and better quality of life for members of society. Business practice entails business governance that observes the rules and regulations and presents a high level of thrust towards welfare of the natural environment and law for all generations and species. Distribution of profits entails equal distribution of profits across a varied range of sectors of society, with emphasis on local communities.Bowen (1953) also notes that CSR should not be seen as a primary solution to the many problems of society. CSR can only do so much, and it should only be seen by companies and society as a set of guidelines for businesses in the way they perform and carry on their operations within the context of a larger society and the many issues that abound within the social milieu that they operate in.A key concept of CSR is the idea of stakeholders. Stakeholders are all groups or individuals who have an impact on or are affected by the attainment of any organisations goals (Freeman, 1984). It can be said that stakeholders are any entity who have a big stake in what businesses do. The concept of stakeholders therefore goes beyond the shareholders, employees, and clients or customers of a company. It includes communities, public interest groups, social activist groups, environmental groups, and the media which, according to Freeman, author of the Stakeholder Theory, businesses are accountable to.Other researchers (Marcus, 1996 Munilla Miles, 2005) list specific stakeholders as owners customers employees local, regional and national communities competitors suppliers social activists public at large creditors non-government organisations (NGOs) and even the natural environment, which, although unable to state its opinions, has become a major stakeholder today because of the many laws promulgated to care for the Earth in a sustainable way.Hopk ins (2003) writes that CSR primarily deals with ensuring that businesses treat stakeholders in an ethical or responsible way which means treating them in a manner considered competent by members of any civilized society. The social context of this definition includes economic responsibility. Stakeholders can be both within businesses and outside it. This signifies the natural environment as a stakeholder. In a broader sense, the objective of social responsibility is to establish better and higher standards of living while maintaining the capability of businesses to make a profit. These two components of the objective of social responsibility are both done for the stakeholders within and outside companies.According to Freeman (1984) for successful minutes with stakeholders, businesses must accept the authority and procedures of various stakeholders. Stakeholders will thus have the freedom to communicate their concerns. Furthermore, to manage and develop a strong relationship with s takeholders, businesses must understand their concerns and develop programs that will address these concerns. Stakeholders have various ways to ensure that businesses fulfill societys expectations. Some may opt to educate rallies, some may opt for more peaceful negotiations, some may engage in joint activities such as seminars or tree-planting sessions or other awareness raising activities, and some may use the media to further disseminate their issues. For example, the environmental group Greenpeace printed leaflets and wrote articles against genetically modified food, which led some food manufacturing corporations to either stop production of certain products or to develop new, healthier items.Freeman (1984) points out that the term stakeholder first appeared in management literature in a 1963 international memorandum published by the Stanford Research Institute. The term then was strictly yet broadly defined as the peoples or groups who give their support to companies and withou t whom businesses would stop to surviving. The main idea in this initial context already shows a measure of the importance of stakeholders. In a way, this definition states that without the support of stakeholders, businesses would not be able to survive. Of course, the limitation of this definition lies in the fact that stakeholders here may mean only the groups that are influential for companies such as the shareholders or government groups or investors.Each business activity has a different group of stakeholders. This is because each individual in society is interested in and promotes a varied and widely different range of concerns (Freeman, 1984). Some are more interested in environmental issues, while others advocate employment benefits, and still others fight for education. One way to determine which stakeholder is relevant to which particular aspect of business is through the generation of a generic stakeholder map, which is a diagram of the various groups relevant to the who le organisation broken down into levels and subdivisions in order to divide big groups into small groups based on specific interests. Some experts, however, think that this mapping procedure does not encapsulate the complex linkages between businesses and the various individuals and groups in society.An approach of corporate social responsibility that centers on stakeholders emphasizes the strategic and effective management of relationships and promotion of what Freeman and McVea (2001) call shared interests. The stakeholder model also puts some emphasis on persuading businesses to restore or restore relationships with groups or organisations that they have been at odds with. A good stakeholder management program also involves open communication, negotiation, management, and motivation. The end result of all of these actions leads to the establishment of an attitude of partnership, mutual association and interdependence between businesses and stakeholders. All of these activities a re held together by the values and ethical standards that businesses stand for.Freeman and McVea (2001) further emphasise that good stakeholder management promotes a business own company values. CSR does not mean catering to the interests of stakeholders while abandoning all other aspects of business. Rather it entails in-depth deliberations taking into account all factors of social expectations. A well-developed stakeholder management program also allows businesses to create approaches that can serve stakeholders even in the long run. Although some individuals may not be sharp with short-term decisions and feel that their causes need more attention, a good stakeholder management program takes all things into considerations so that all stakeholders, not just a chosen few, continue to be firm supporters of businesses.Besides understanding stakeholders concerns, businesses must also look at the other components of CSR to determine the entire range of responsibilities that stakeholder s expect them to embrace. When discussing and identifying these components of CSR, scholars and authors have been turning to the CSR pyramid presented by Carroll (1991). The CSR pyramid is arranged to follow the levels of Carrolls (1979) earlier work of the four categories of CSR. The arrangement is in accordance with the degrees of social expectations that have been connected with each category. It has been used to assess businesses performance in terms of quantity, quality, effectiveness, and efficiency in their implementation of CSR initiatives.Table 2.2.1 The Pyramid of Corporate Social ResponsibilityBe a Good Corporate CitizenPhilanthropic ResponsibilityContribute Resources to the community Improve Quality of sprightlinessBe EthicalEthical ResponsibilityObligation to do what is right, just and fair Avoid HarmObey the LawLegal ResponsibilityLaw is Societys codification of right and wrong Play the Rules of the gameBe ProfitableEconomic ResponsibilityThe Foundation on which all th e others rest(Source Pyramid of Corporate Social Responsibility (Carroll, 1991, p. 39))Obligations or responsibilities included in the pyramid have always existed in the business world. But the importance of philanthropic and ethical responsibilities has only received attention in recent years. Through this pyramid, Carroll (1991) hoped to show that a good CSR program can be broken down into well-defined components that make up a complete package. It can be seen as a framework for comprehending companies ever-evolving CSR activities. In addition, feeling at each component can help leaders to distinguish and understand the various obligations of businesses that are in constant conflict with each other but which are mutually exclusive. Based on the expected activities for each level, economic responsibilities seem to be always in tension with the other responsibilities.Carroll (1991) also included the concept of stakeholders in this model, pointing out that taking their perspective into account would allow businesses to recognize the tension between all levels of the pyramid as realities of any organisation. This perspective can also allow businesses to see the pyramid as a united basis or framework of how firms will implement their decisions, actions, and programs.As can be seen, economic profit forms the foundation of the whole pyramid. Carroll (1991) acknowledges the basic fact that businesses were created historically as economic entities that are primarily concerned with making money and creating profit. Without this component, all other responsibilities become moot. Carroll states that the idea he was proposing was that CSR, to be acknowledged as a legitimate action for businesses, had to deal with the whole range of responsibilities these businesses had to answer for to society. Of course this would have to include the most basic responsibilityeconomic. The next level shows that businesses are obligated to follow the rules of lawvarious national and in ternational lawsthat socie