CSR-Instruments as a conceptual Inspiration for Public Administration

1FÖV/SPEA Workshop 2011: Robert Piehler & Linda Mory

1

FÖV/SPEA Workshop 2011

Robert Piehler & Linda MorySpeyer, July 16th 2011

CSR-Instruments as a conceptual Inspiration for Public Administration


1. Introduction1. Introduction

2. Basic Terminological Principles2. Basic Terminological Principles

3. Research Question3. Research Question

4. Methodological Approach4. Methodological Approach

Outline

5. Conclusion5. Conclusion


• “Too often, executives have viewed corporate social responsibility (CSR) as just another source of pressure or passing fad. But as customers, employees, and suppliers—and, indeed, society more broadly—place increasing importance on CSR, some leaders have started to look at it as a creative opportunity to fundamentally strengthen their businesses while contributing to society at the same time. They view CSR as central to their overall strategies, helping them to creatively address key business issues.” [McKinsey (2009)]

• “CSR knowledge remains in a continuing state of emergence with considerable heterogeneity in research foci.“ [Lockett et al. (2006)]

• “The CSR definitions are describing a phenomenon, but fail to present any guidance on how to manage the challenges within this phenomenon. Therefore, the challenge [..]is to understand how CSR is socially constructed in a specific context and how to take this into account when business strategies are developed.“ [Dahlsrud (2006), S. 6]

Scientific Relevance

There is a need to deepen and to

expand the knowledge of the impact of social

responsibility – a task for which companies, public administration and universities work

together in joint research projects

[European Commission (2001);

(2010)]

1. Introduction

Practical Relevance

Relevance of CSR


1. Introduction

SR PA ASR=+

≠Corporate Administration

Social Responsibility

Public Administration

Administrative Social Responsibility

CSR in Public Administration I


1. Introduction

Initial Question: Is CSR in Public Administration a relevant research subject at all?

Here is why not:

Simple example:

• Public Administration is not profit-oriented and it should be doing work that is socially responsible by definition.

• The common opinion is, that only companies need to be engaging in CSR, because a) they earn money from (parts of) the society b) they access/make demands on natural resources c) they employ people and need to treat them responsibly.

• In a car production company we have a separation between the production of the cars and the way the company is being run, ethically, sustainably, etc. - The company does not “only” produce cars. It produces cars that are safe, that minimize pollution, that are efficient etc. and it treats its employees in a ethically responsible way etc.

• In the case of a public authority there is a product as well - the service carried out in the name of society done by civil servants. But is this really comparable?

CSR in Public Administration II


1. Introduction

1. Enterprises increasingly succeed to incorporate public goals by implementing CSR-based strategies or programs. This applies to public enterprises as well.

2. Legislation shows first signs to regulate CSR, so there have to be interactions between (former) voluntary CSR measures and perceived responsibility among different stakeholders.

3. By assuming public functions via CSR enterprises have developed (potentially) different instruments than public administration. Maybe it is possible to share best practices with organizations of public administration.

Luckily, we found three points of departure for CSR-related research in the context of public administration nevertheless:

CSR in Public Administration III


1. Introduction

1. Enterprises increasingly succeed to incorporate public goals by implementing CSR-based strategies or programs. This applies to public enterprises as well.

2. Legislation is trying to regulate CSR, so there have to be interactions between legislation in other sectors like environmental legislation, (former) voluntary CSR measures and perceived responsibility among different stakeholders.

3. By assuming public functions via CSR enterprises have developed (potentially) different instruments than public administration. Maybe it is possible to share best practices with organizations of public administration.

Luckily, we found three starting points for CSR-related research in the context of public administration nevertheless:

CSR in Public Administration IV


1. Introduction

Focusing on the third perspective of best practice sharing between enterprises and organizations of public administration concepts and instruments concerning CSR will be briefly discussed.

CSR in Public Administration V





Outline




DefinitionAuthor

In general, corporate sustainability and CSR refer to company activities – voluntary by definition demonstrating the inclusion of social and environmental concerns in business operations and in interactions with stakeholders.

Van Marrewijk (2003)

A concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis.

Commission of the European Communities

(2001), p. 8

Corporate social responsibility is the continuingcommitment by business to behave ethically andcontribute to economic development while improving the quality of life of the workforce and their families as well as the local community and society at large.

World Business Council for Sustainable

Development (2000)

Business decision making linked to ethical values,compliance with legal requirements and respect for people, communities and environment.

Business for Social

Responsibility (2000)

• „in both the corporate and the academic world there is uncertainty as to how CSR should be defined“

[Dahlsrud (2006), p. 1]

• Scientific studies on the definition of CSR: Carroll, A.B. (1999) & Dahlsrud, A. (2006)

First Definition of CSR:

“It refers to the obligations of

businessmen to pursue those

policies, to make those

decisions, or to follow those

lines of action which are

desirable in terms of the

objectives and values of our

society” [Bowen (1953), p. 6]

2. Basic Terminological Principles

Basic Terminological Principles


Dimension Explana-tion

Examples Phrases of the Dimension

Environmental Dimension

Natural environment

„a cleaner environment“; „environmental stewardship“;„environmental concerns in business operations“

Social Dimension

Relationship between business and society

„contribute to a better society“; „integrate social concerns in their business operations“

Economic Dimension

Socio-economic or financial aspects

„contribute to economic development“; „preserving the profitability“; „business operations“

Stakeholder Dimension

Stakeholder or stakeholder groups

„interaction with their stakeholders“; „how organizations interact with their employees, suppliers, customers and communities“

Voluntariness Dimension

Actions not prescribed by law

„based on ethical values“; „beyond legal obligations“;„voluntary“




Social Dimension

Economic Dimension

Internal Dimension


CSR Dimensions I





Social Dimension

Internal Dimension


CSR Dimensions II

e.g. using enviromentally friendly paper etc.

e.g. support local projects etc.

e.g. support employee sports programs; child care programs etc.




Outline





3. Research Question

• Which projects, programs and strategies of CSR bear best practice potential to be used in public administration?

• Which effects may an adoption of CSR measures have on public administration?

• Which barriers inhibit the potential implementation of CSR-based measures in public administration?

• Which differences exist between SR in public administration in the United States and in Germany?

Main Research Questions


Outline







4. Methodological Approach

„Case study research excels at bringing us to an understanding of a complex issue or object and can extend experience or add strength to what is already known through previous research.“ [Soy (1997)]

6 steps for employing this method

• Determine and define the research questions

• Select the cases and determine data gatheringand analysis techniques

• Prepare to collect the data

• Collect data in the field

• Evaluate and analyze the data

• Prepare the report

→ Almost finished

→ Preferrably oral qualitative interviews

→ To be done

→ To be done

→ To be done

→ To be done

Case Study Approach


Outline







5. Conclusion

• Corporate social responsibility has gained a lot of research interest in the context of private enterprises in the past few years

• However, research on the concept for public enterprises/public administration is limited

• With our research we want to focus on decreasing this gap by finding CSR-related influencing factors and examples of best practice in the public sector in the United States and Germany

• It would be interesting to see if there are major differences in dealing with CSR in the public administration sphere in these two countries (since the United States have a longer history of CSR-implementation in the business context)

• Due to the novelty of the subject qualitative research methods are preferred

• Using a comparative case study approach differences and commonalities concerning scope and effect of CSR measures in public administration shall be analysed

Conclusion


Thank You