The Challenge of Organizing and Implementing Corporate Social Responsibility

The Challenge of Organizing and Implementing Corporate Social Responsibility

Edited by

Jan Jonker

and

Marco de Witte

* Selection and editorial matter © Jan Jonker and Marco de Witte 2006 Individual chapters © contributors 2006

Softcover reprint of the hardcover 1st edition 2006 978-1-4039-4238-8

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First published 2006 by PALGRAVE MACMILLAN Houndmills. Basingstoke, Hampshire RG21 6XS and 175 Fifth Avenue. New York, N.Y. 10010 Companies and representatives throughout the world

PALGRAVE MACMILLAN is the global academic imprint of the Palgrave Macmillan division of st. Martin's Press, llC and of Palgrave Macmillan ltd. Macmillan® is a registered trademark in the United States, United Kingdom and other countries. Palgrave is a registered trademark in the European Union and other countries.

ISBN 978-1-349-52127-2 ISBN 978-0-230-62635-5 (eBook) DOI 10.1057/9780230626355

This book is printed on paper suitable for recycling and made from fully managed and sustained forest sources.

A catalogue record for this book is available from the British library.

library of Congress Cataloging-in-Publication Data The challenge of organizing and implementing corporate social

responsibility I edited by Jan Jonker and Marco de Witte. p.cm.

Includes bibliographical references and index.

1. Social responsibility of business. 2. Industrial management - Moral and ethical aspects. I. Jonker, J. Uan) II. Witte, Marinus Comelis de, 1959-

HD60.C442 2006 658.4'08-dc22 2005056615

10 9 8 7 6 5 4 3 2 1 15 14 13 12 11 10 09 08 07 06

Transferred to digital printing 2006

Contents

List of Figures and Tables

Notes on the Contributors

1 Introduction Jan Jonker and Marco de Witte

Part I CSR in its Context

2 The CSR Landscape: An Overview of Key Theoretical

vii

viii

1

Issues and Concepts 13 David Birch and Jan Jonker

3 Corporate Citizenship, Social Responsibility and Sustainability: Corporate Colonialism for the New Millennium? 31 Subhabrata Bobby Banerjee

4 In Good Company: Reflections on the Changing Nature of the Contemporary Business Enterprise and its Embedded Value Systems 51 Michiel Schoemaker and Jan Jonker

5 Social Capital and Corporate Social Responsibility 63 Andre Habisch and Jeremy Moon

6 An Anatomy of Corporate Social Responsibility: Causal Factors in CSR as a Social Movement and Business Practice 78 Nigel Roome, Robert-Paul Doove and Marcel Postema

Part II Organizing CSR

7 Reinventing Social Dialogue Robert Beckett and Jan Jonker

8 Stakeholder Engagement in and Beyond the Organization David Foster and Jan Jonker

9 A New Direction for CSR: Engaging Networks for Whole System Change Ann Svendsen and Myriam Laberge

v

95

115

131

vi Contents

10 Learning to be Responsible: Developing Competences for Organization-Wide CSR 148 Andre Nijhof, Thea de Bruijn, Olaf Fisscher, Jan Jonker, Edgar Karssing and Michie/ Schoemaker

11 Standards for Corporate Social Responsibility 173 Math Gobbels

Part Ill Change and CSR

12 Implementing CSR: The Challenge of Change 193 Malcolm Higgs

13 Corporate Social Responsibility as a Tailor-Made Search Process 211 Jacqueline Cramer and Angela van der Heijden

14 The Enterprise Strategies of European Leaders in Corporate Social Responsibility 223 Nigel Roome and Jan Jonker

15 Conclusion: The Real Challenges of Organizing and Implementing CSR 237 Jan Jonker and Marco de Witte

Index 248

List of Figures and Tables

Figures

6.1 Causal factors in CSR as a business practice 7.1 Example of a QUAD 7.2 PMOGI heuristic 7.3 PMOGI model of communicative relations

85 108 108 110

7.4 Binary paradox in social dialogue 111 9.1 The shift to a systems view 13 7 9.2 The cocreative engagement model 140

10.1 The strategic process of learning to be responsible 159 12.1 Map of the approaches to change in the literature 195 12.2 The RFLC change quadrant 196 12.3 Participants' stories mapped on to the change quadrant 201 12.4 The relationship between leadership factors and

change approaches 203 14.1 Innovational structure of the case study companies 232 15.1 The BP-COI model 238 15.2 The CSR business model 242

Tables

5.1 Social capital: sources, substance and effects 70 8.1 Five levels of theorization 119 8.2 Ladder of stakeholder involvement 123

10.1 Preconditions for responsible actions 157 10.2 Competences associated with CSR processes and strategies 168 11.1 The quantitative results of the study 180 15.1 Organizing corporate social responsibility 246

vii

Notes on the Contributors

Subhabrata Bobby Banerjee is Professor of Strategic Management and Director of Research at the International Graduate School of Business, University of South Australia, Adelaide. He has taught at the University of Massachusetts, where he received his PhD, at the University of Wollongong, where he headed the doctoral programme, and at RMIT University, where he was Director of the Doctor of Business Administration programme. His research interests are sustainable development, corporate environmental­ism, globalization, postcolonial theories and indigenous ecology. His work has appeared in numerous international journals.

Robert Beckett is a researcher specializing in the communication of ethics and the ethics of communication. He was awarded an MBA by the University of Portsmouth Business School in 1997. Since 2000 he has been a director of the commercial partner to the Institute of Communication Ethics, and in 2001 he became a member of the Institute. Prior to that he worked in the field of UK corporate social responsibility and the international advertising, marketing and design industries.

David Birch has been Professor of Communication and Director of the Corporate Citizenship Research Unit, Deakin University, Melbourne, since 1997. He is General Editor of The Journal of Corporate Citizenship and is on the editorial boards of several International journals. He has been involved in research partnerships with leading organizations in Australia. He is a member of the board of the Australian Corporate Citizenship Alliance and Ability Australia Foundation, and a founding member of the Australian Corporate Citizenship Alliance and the newly reformed Social and Ethical Auditing Institute. He has published widely in the fields of communication, media, cultural studies, corporate citizenship, corporate social responsibility, governance and accountability.

Theo de Bruijn holds a Master's degree in technology and society from the Technical University Eindhoven and a PhD in public administration from the University of Twente. He joined the Center for Clean Technology and Environmental Policy (CSTM) in 1989 and specialized in the governance of industrial transformation. He currently coordinates research in this field, as well as publishing and teaching on the interaction between public authori­ties and industry in environmental affairs, and teaching environmental management in undergraduate and postgraduate courses. He is also the European coordinator of the Greening of Industry Network, a global network for the transition towards sustainable industry.

viii

Notes on the Contributors ix

Jacqueline Cramer worked as an associate professor at the University of Amsterdam in 1976-89 and as a senior researcher at the Centre 'Strategy, Technology and Policy' of TNO in 1989-99. She is currently Director of Cramer Environmental Consultancy and works as a part-time professor of environmental management at the University of Utrecht. She is a member of various national and international advisory boards of governmental, industrial and non-profit organizations.

Robert-Paul Doove has worked as a junior researcher at the Nijmegen School of Management, Radboud University of Nijmegen, and since July 2003 he has been on the team of the 'Silent Leaders' project, which forms part of the Dutch national research programme on CSR. His Master's thesis was on strate­gic corporate responsibility at multinational business enterprises and in the near future he hopes to start a PhD research project on strategic CSR.

Olaf Fisscher has been at the University of Twente since 1989 and is cur­rently Professor of Organization Studies and Business Ethics and Chair of the Department of Technology and Organization at the School of Business, Public Administration and Technology. He holds a Master's degree in indus­trial engineering management and obtained his PhD in social sciences at the University of Groningen in 1986. His research focuses on organizing for innovation and organizing for corporate social responsibility. He teaches innovation management, business ethics and quality management and is the coordinator of the Master's innovation management programme.

David Foster works in the Faculty of Business at the University of the Sunshine Coast. Over the last few years he has developed a strong research interest in the nature of management quality in general and stakeholder relationships in particular. He has recently completed his PhD, which focused on the involvement of stakeholders in protected area management in Victoria, Australia. He has held the position of Head of Department of Hospitality, Tourism and Leisure at RMIT University and of Leisure Studies at Phillip Institute.

Math Gobbels is a quality manager and consultant at Biblioservice Gelderland in the Netherlands, a non-profit organization that provides library services to public libraries. He is currently preparing his doctoral dis­sertation at the School of Management, Radboud University, Nijmegen. His research focuses on the hidden and neglected assumptions that underlie the debate on CSR standards. He has worked as a researcher at Nyenrode University and as a senior consultant in the field of quality management, business excellence and auditing.

Andre Habisch is Professor of Social Ethics at the Catholic University of Eichstaett-Ingolstadt and Director of the Center for Corporate Citizenship. He is also Visiting Professor at the International Centre for Corporate Social

x Notes on the Contributors

Responsibility, Nottingham University Business School, and a member of the editorial board of the Journal for Corporate Citizenship. He was a member of the German parliamentary commission on the 'Future of Voluntary Engagement' in 1999-2002. He has published widely on social capital, cor­porate social responsibility, network of civic engagement, local family policy initiatives and cross-sectoral cooperation between business and non-profit organizations.

Angela van der Heijden works as a junior researcher at the University of Utrecht. Her Master's thesis was on the institutional and social context in which corporate foundations donate to charitable causes in Europe and the United States. After her graduation she worked at the Netherlands Architecture Institute. Her current research focuses on the implementation of corporate social responsibility in companies and business chains.

Malcolm Higgs is Director of the School of Leadership, Change and HR and Director of Research at Henley Management College in the UK. Prior to moving to Henley to take up the position of Academic Dean he was a prin­cipal partner in Towers Perrin's human resource management practice. This followed eight years' consulting experience with the Hay Group and Arthur Young. He has published widely on the topic of emotional intelligence. He is a member of the British Psychological Society, a Chartered Occupational Psychologist and Chairman of the consulting firm RFLC.

Jan Jonker works at the School of Management, Radboud University, Nijmegen, and has run his own consultancy practice for more than 15 years. His research interest is management and corporate social responsibility, par­ticularly in relation to the development of business strategies. He holds an MSc from Leiden University and a PhD from Nijmegen University. He is the author and coauthor of eight books and has published over a hundred arti­cles. He gives public lectures and presentations in various countries and is a visiting professor in England and France.

Edgar Karssing is a senior trainer and researcher at the Institute for Responsible Business, University of Nyenrode, where he has worked since January 1995. He has participated in several research projects and published extensively on integrity, the management of integrity, moral competence and philosophy. He is currently preparing his PhD thesis on integrity in theory and practice.

Myriam Laberge is a Director of the Collaborative Learning and Innovation Group at Simon Fraser University, Vancouver. As a principal at CoreRelation Consulting Inc. she brings her experience of whole system transformation to the design of multistakeholder conferences and engage­ment processes. Over the past decade she has helped various private and public sector organizations to build effective networks.

Notes on the Contributors xi

Jeremy Moon is Professor and Director of the International Centre for Corporate Social Responsibility and a Deputy Director of Nottingham University Business School. He has held visiting positions at the European University Institute in Florence, Churchill College at Cambridge University, the Institute for Advanced Studies in Princeton, and the University of Manchester. His research includes the relationship between CSR and public policy and government regulation, CSR in business education and compara­tive CSR. He is currently cowriting a book on corporations and citizenship and has published many articles in journals.

Andre Nijhof is an Assistant Professor at the faculty of Business, Public Administration and Technology, University of Twente. The central topic of his research is the interconnectedness between the moral reasoning of indi­viduals and group dynamics and structural conditions in the institutional context. He is involved in several research projects on the development of strategies for corporate social responsibility, especially in the construction, insurance and health care sectors. He has published extensively in both Dutch and international journals.

Marcel Postema has worked as a junior researcher at the Nijmegen School of Management, University of Nijmegen, and as a researcher on the 'Silent Leaders' project, which is part of the Dutch national research programme on CSR. His MA thesis was on strategic corporate responsibility in multinational business enterprises and he is now planning to start a PhD research project on strategic CSR.

Nigel Roome holds the chair in sustainable enterprise and transformation at Erasmus University, Rotterdam and is head of the Erasmus Centre for Studies in Sustainable Development and Management. He previously held academic positions in the UK and chairs in the Netherlands and Canada, and has acted as an academic supervisor. He is coinitiator of the project 'Dutch corporate social responsibility and its European context'.

Michie! Schoemaker is a researcher and consultant. His consulting activities focus on talent management, organizational change and organizational identity. He obtained his PhD in business administration from the University of Nijmegen in 1998. Since 2003 he has been a Professor at the Nijmegen School of Management. His main research interests are new forms of contractual (labour) relations and organizational reanewal. He also teaches organizational theory, organizational behaviour, organizational change and human resource management.

Ann Svendsen is Executive Director of the Collaborative Learning and Innovation Group and an Adjunct Professor at the Centre for Sustainable Community Development, Simon Fraser University, Vancouver. She is also a principal of CoreRelation Consulting Inc., a firm specializing in stakeholder

xii Notes on the Contributors

engagement. She is the author of The Stakeholder Strategy (1998) and advises companies and government agencies worldwide on stakeholder engagement.

Marco de Witte (1959) is an Associate Professor at the Faculty of Management and Organisation, University of Groningen, The Netherlands and a partner at HGRV Consultants and Managers. In lectures, research and consultancy projects he focuses on the alignment of strategic business positioning, organizational development and the implementation of change.