Corporate Social Responsibility of UK Media and Entertainment Companies - Essay Example

?Corporate Social Responsibility of UK Media and Entertainment Companies: How Media Companies Handle the Pressures of Communication, Enhancing Reputation, and Financial Performance? 1. Introduction The growing awareness of the society to corporate social responsibility (CSR) is compelling companies to engage in ethical business practice. CSR became the basis to benchmarking the commitment of companies to helping the community more than their intention to earning and becoming market leaders. Firms in the media and entertainment industry played a significant role in disseminating information about companies that are socially responsible. Thus, they are instruments to sharing news of this positive happening to the society acting as mediators that channel information from the company to their main audience. Indubitably, media companies have an edge in information dissemination because that is their business, but this strength may become their weakness as they become exposed to controversies that predominantly affect their integrity and reputation. Although several studies about CSR are now in existence, there are only a few that focus on the media and entertainment industry, in particular, the media companies. Thus, a study on this matter is proposed to uncover the reality that is taking place in this industry. The objectives of the study are given as follows. To investigate the relationship between CSR, business reputation, and profit To examine CSR in the context of UK media companies To assess the impact of CSR to the reputation and profitability of media companies To determine whether media companies are socially responsible and on how their being socially responsible helped in enhancing their reputation and profitability The proposed research targets to contribute factual and reliable information in regard to the issue on CSR that may as well become a reference for future CSR studies. In addition, it seeks to increase society’s knowledge about CSR by means of utilising media companies as the focus of the study. 2. Literature Review Since the 90s up to present, the concept of corporate social responsibility (CSR) has been receiving overwhelming attention from academic researchers (Crane, et al., 2008, p.3). The arguments in performing CSR research are often in connection with the business itself as a part of society that is obliged to contribute something for it to progress (Crane, et al., 2008, p.3). There is a never-ending issue concerning the responsibility of businesses to the society apart from earning a profit for its owners and shareholders (Benn & Bolton, 2011, p.ix). In the end, the point at issue is the benefit that a business will reap out of doing well (Benn & Bolton, 2011, p.ix). This concern again raises another issue in respect to how CSR is used for profit maximisation instead of using it as a tool to recognising the business’ societal, moral obligations (Benn & Bolton, 2011, p.ix). The real motive of a business into incorporating CSR initiatives is, therefore, altercated by the academes and business practitioners (Benn & Bolton, 2011, p.ix). The concept of CSR has gone a long way of acceptance and rejection prior to becoming a fundamental area of concern for business practitioners (Crane, et al., 2008, p.3). Studies have been conducted through the years, which have attempted to explain CSR in the context of different types of business. In the study of Knox and Maklan (2006), the increasing impact of CSR to leading multinational firms was examined. Knox and Maklan (2006, p. 4) argue that the notion of a business being socially responsible is already acknowledged by a majority of people. Still, they believe that the problem lies in the fact that no systematic framework is there to guide firms in understanding the connection between business investments and on how this can be used to perform social responsibilities (Knox & Maklan, 2006, p.34). Knox and Maklan (2006) have contended that different companies must apply a varying approach to CSR that is standard to their business type in order to integrate CSR with their business practices. According to Blowfield (2005) firms have a vast responsibility, not only to the community, but to the country where they establish their business. Hence, social responsibility must not be used as an instrument to achieving that coveted reputation or to earning profit. Firms must view CSR as a catalyst of change for a better future especially in nations that are struggling to survive the challenges of the present times. In the study of Vitezic (2011), large Croatian companies investigated corporate reputation in relation to CSR. Vitezic (2011) argues that oftentimes, the efficacy of a CSR initiative is gauged based on its economic, environmental, and social aspects. CSR is usually measured using financial variables that are also correlated to the firm’s reputation. That is to say that the positive, negative, or neutral impact of CSR is perceived to be reflected in corporate reputation, and financial performance (Vitezic, 2011). Vitezic (2011) infers that there is an affirmative connection “between financial performance and corporate reputation.” This connection, therefore, began the moment the firm engages in CSR as it is known to influence the opinion and perception of society with regard to their willingness to become socially responsible without expecting any monetary gains from their effort. Lee (2008) has stated that there has been a growing rationalisation of CSR, which led the society to believe that expending effort for a CSR initiative is driven by the financial goals of the firm. This rationalisation paved the way to the formation of “two broad shifts in the conceptualisation of CSR” (Lee, 2008). The first shift refers to the move of researchers in taking into consideration the organisational-level impact of CSR aside from its macro-social impact (Lee, 2008). The second shift pertains to the change in the theoretical orientation of researchers in analysing the concept since they now look into “normative and performance oriented managerial studies,” other than ethics oriented arguments (Lee, 2008). Thus, studies on CSR need not be confined to the concept of ethicality, for it has to consider the performance of the organisation, and its people before one may conclude that it is practicing the social responsibility that it is preaching. Morsing (2009, p.145) argues the essentiality of communicating responsibility in her study regarding corporate responsibility. Morsing (2009) has discussed how CSR is linked with the communication strategies of a firm. The budget that a firm allocates for CSR activities is already subject for debate, but apart from this issue, critics of CSR have another argument. The money that a firm allocates to communicate its CSR turns out to be another debatable issue in the management discipline (Morsing, 2009, p.145). Eventually, Morsing (2009, p.145) has emphasised that more than the impact of communicating CSR to a firm’s reputation is the truth that CSR is not just a strategy but a commitment that has to be fulfilled not to ruin corporate image. Kotchen and Moon (2011) have chosen a unique approach to studying CSR. Since they have observed the widespread focus on the relationship of CSR to financial performance, they might as well consider an uncommon view of CSR, not only as a tool to communicating the goodness of a firm, but also to hiding its irresponsibility (Kotchen & Moon, 2011, p.1). Firms oftentimes publicise how they “do well by doing good,” through CSR (Kotchen & Moon, 2011, p.1). Society only sees the good side of every company because this is what firms want to portray in their involvement with CSR. Surely, in the eyes of the public a socially active company should be thanked by patronising its products; this then enhances financial profitability. However, corporate social irresponsibility (CSI) also has to be examined to know whether CSR is only being used to compensate for CSI (Kotchen & Moon, 2011, p.16). Media visibility influences the perception of society with respect to the active participation of companies in social activities (Deephouse 1997, 20004; Fombrun & Shanley, 1990; Fombrun & Van Riel, 2004 as cited in Capriotti, 2009, p.229). Significantly, media companies have a responsibility to synthesising CSR and sustainable development as an agenda that firms must accomplish (Sustainability et al., 2002). This places the media companies in a situation, where they have to fulfill their responsibility, not only to the company, but also to its external stakeholders (Sustainability et al., 2002). Thus, media companies must overcome the challenges of governance, accountability, and transparency to earn trust, which gives media companies the integrity (Sustainability et al., 2002). Ingenhoff and Koelling (2012) have recognised the limited availability of studies on media companies and their engagement in CSR. Although media companies claim to be reliable corporate citizens, only a few studies attempt to reckon the factualness of this claim (Ingenhoff & Koelling, 2012). Ingenhoff and Koelling (2012) have stated that media companies apply society-oriented measures in communicating CSR. Hence, these companies are aware that communication allows them to build the reputation, which is crucial to their success. When scrutinising social and environmental impacts, society seldom blames media companies in the media and entertainment sector (Sustainability Ltd. & WWF-UK, 2004, p.3). Media companies are named only as sources of information, but not as the focus of the information being communicated. Simply put media companies from public opinion, they are not particularly often the subject of these public opinions (Sustainability Ltd. & WWF-UK, 2004). According to Sustainability Ltd. and the WWF-UK (2004), media companies are capacitated to proclaiming themselves as responsible corporate citizens given the resources that they have to disseminate information. The key is to engage audiences in the CSR initiatives, communicate with the internal stakeholders in implementing changes, take notice of what is necessarily needed, and be open to fixing things if something wrong has been done (Sustainability Ltd. & WWF-UK, 2004, p.23). 3. Research Design 3.1 Research Strategy The research design outlines the process that the researcher will undergo to complete the study. Careful selection of the research design is crucial to begin the study with proper aim and purpose. The research will be of a descriptive type. Descriptive research allows the researcher to illustrate the characteristic of a given situation (Johnson & Christensen, 2012, p.366). In the case of media companies, descriptive research will lead to finding the present status of the situation by means of integrating the qualitative approach. The qualitative research method centers on the natural setting of an event, where the researcher interprets information by means of observation (Johnson & Christensen, 2012, p.366). 3.2 Sampling Strategy The sampling strategy chosen for the study is the non-probability sampling. Non-probability sampling is commonly used in qualitative research. Samples obtained out of non-probability sampling “are descriptive and are utilised when a researcher” is unable to determine the actual population size or does not have the capacity to initiate contact with the whole population (Csiernik, et al., 2010, p.75). There are types of non-probability sampling that one may use to gather sufficient data for research, but this research will make use of theoretical sampling in searching for reliable respondents. Grounded theorists use Theoretical sampling to gather, organise, and interpret data to formulate a theory (Schreiber & Stern, 2001, p.64). Theoretical sampling is different from the other types of sampling because sampling decisions are only made upon the initial stage. The object or situation to be researched is determined, and the initial population is identified, but what follows next is the continuous process of exploring new ideas that may bring the researcher to a new group of people and events that help in investigating further the phenomenon being studied (Daymon, & Holloway, 2011, p.136). 3.3 Data Collection Methods 3.3.1 Primary Data a. Questionnaire A way to gather data in applying the descriptive approach is through means of a survey (Jackson, 2009, p.87). The survey will have to be composed of relevant questions in a straightforward manner that is comprehensible enough for the respondents to understand (Jackson, 2009, p.88). Poor wording can lead to confusion resulting to the collection of unreliable data (Jackson, 2009, p.88). The inclusion of technical jargons, which are familiar only to respondents with specialized expertise, must be prevented as this may as well confuse respondents who are unfamiliar to the technical terms (Iarossi, 2006, p.37). The most significant reminder in constructing the questionnaire is to be specific. Questions have to be precised to avoid making vague questions that produce vague answers (Iarossi, 2006, p.37). b. Face to Face Interview The face to face interview is set to be conducted for data gathering aside from the survey questionnaire. The interviewee has to be someone working for a media company in the UK. The interview will focus on the CSR programs of the firm, and the participation of the stakeholders in this societal obligation. The face to face interview is the typical Paper and Pencil Interview (PAPI) where the answer of the interviewee to the questions is recorded by the interviewer in paper questionnaire (De Vaus, 2002, p.122). 3.3.2 Secondary Data The research will make use of information from empirical studies, and textbooks that tackle the same issue. These secondary issues will become the source of background information for future arguments. Secondary information is also important in justifying the validity of arguments. 3.4 Data Analysis Methods The analysis of qualitative data will be done by applying the inductive approach. The researcher starts by gathering data and utilising initial findings to serve as a lead during the entire research process (National Intramural-Recreational Sports Association, 2012, p.116). The pattern of the stakeholders’ responses to the CSR initiative of the media companies will be recognized, thus, creating a theory for the research project. 3.5 Presenting Research Findings Qualitative data has to be presented based on the “qualitative strategy of inquiry used” (Heppner, et al., 2008, p.291). The findings of this research are to be presented through themes and relationships. Themes refer to the repetitive data, which embodies a concept while relationships refer to the correlation of these themes (Heppner, et al., 2008, p.291). Themes and relationships expose the significance of the phenomenon. In essence, the interconnectivity of these themes complements the framework of a phenomenon that is inductively shaped by the qualitative data (Heppner, et al., 2008, p.291). Presenting the research findings has to be done in a manner that does not include a mere discussion of the findings. This part will have to demonstrate the understanding of the researcher about the findings, and on how it will substantiate the theory that was developed prior to obtaining the findings. In addition, the findings may display information that may or may not agree with the theory; in this instance there will be plenty of room for arguments that will make the research interesting for the readers if supported by credible justifications. 4. Practical and Ethical Issues The researcher has to take notice of ethical considerations to avoid difficulties in conducting the study. Firstly, the purpose of the study has to be explained to the respondent through proper communication. It has to be detailed briefly in the survey questionnaire. The researcher shall ask for the permission of the potential respondents of the survey. It is at the discretion of the respondent to proceed or not with the survey as they are not forced to finish it if it is against their will. The survey questionnaires are kept in a secured place for the sake of protecting the confidentiality of data. For verification purposes, the researcher will require the names of the respondents, but will not be disclosed to protect their privacy. All expenses incurred all throughout the duration of the study will be declared. Finally, findings of the study will be presented that is evidenced by the primary and secondary data collected. 5. Plan and Timetable of Activities The following plan and timetable of activities consist of the tasks and number of days it will take to complete the study. The number of days is only an estimate of the possible duration of the project. Tasks are divided based on the actual process of completing a research project. In addition, the costs incurred in completing data collection, communication, processing, and printing are approximated to reach more or less than $ 1, 000. Tasks / Activities Number of Days Approval and finalisation of research topic 5 days Sketch the research design 5 days Outline the research questions 3 days Acquire information for literature review 5 days Construct literature review 3 days Design the research questionnaire 3 days Collect primary data 20 days Collect secondary data 10 days Analyse and Interpret research data 10 days Examine Findings 5 days Complete first draft 7 days Revise draft 5 days Finalise the paper for submission 3 days References Benn, S. & Bolton, D., 2011. Key concepts in corporate social responsibility. Thousands Oaks, CA: Sage Publications Ltd. Blowfield, M., 2005. Corporate social responsibility: reinventing the meaning of development? International Affairs, 81 (2), pp. 515-524. Capriotti, P., 2009. Economic and social roles of companies in the mass media: the impact media visibility has on businesses' being recognized as economic and social actors. Business Society, 48 (2), 225-242. Csiernik, R. Birnbaum, R. & Pierce, B. D., 2010. Practising social work research: case studies for learning. Canada: University of Toronto Press Incorporated. Crane, A. et al., 2008. The Oxford handbook of corporate social responsibility. Oxford: Oxford University Press. Daymon, C. & Holloway, I., 2011. Qualitative research methods in public relations and marketing communications. 2nd ed. Oxon, OX: Routledge. De Vaus, D. 2002. Surveys in social research. Crows Nest, NSW: Routledge. Heppner, P. P. Kivlighan, D. M. Wampold, B. E., 2008. Research design in counselling. 2nd ed. Belmont, CA: Thomson Higher Education. Iarossi, G., 2006. The power of survey design: a user's guide for managing surveys, interpreting results, and influencing respondents. 8th ed. Washington, DC: World Bank. Ingenhoff, D. & Koelling, A. M., 2012. Media governance and corporate social responsibility of media organizations: an international comparison. Business Ethics; A European Review, 21 (2), pp. 154-167. Jackson, S. L., 2009. Research methods and statistics: a critical thinking approach. 2nd ed. Belmont, CA: Wadsworth. Johnson, B. & Christensen, L., 2012. Educational research: quantitative, qualitative, and mixed approaches. Thousands Oaks, CA: SAGE Publications, Inc. Knox, S. & Maklan, S., 2006. Corporate social responsibility: moving towards measuring outcomes. European Management Journal, 22 (5), 508-516. Kotchen, M. J. & Moon, J. J., 2011. Corporate social responsibility for irresponsibility. [Online] National Bureau of Economic Research. Available at: http://www.kysq.org/docs/Kotchen.pdf [Accessed 8 November 2012]. Lee, M. D. P., 2008. A review of the theories of corporate social responsibility: Its evolutionary path and the road ahead. International Journal of Management Reviews, 10 (1), pp. 53-73. Morsing, M., 2009. Conspicuous responsibility: communicating responsibility - to whom? Corporate Values, 14 (27), pp. 145-154. National Intramural-Recreational Sports Association, 2012. Human recreational sport. Champaign, IL: Human Kinetics. Schreiber, R. S. & Stern, P. N., 2001. Using grounded theory in nursing. New York, NY: Springer Publishing Company, Inc. Sustainability / United Nations Environment Programme / Ketchum., 2002. Good news & bad the media, corporate social responsibility and sustainable development. [Online] SustainAbility United Nations Environment Programme Ketchum. Available at: http://www.grainesdechangement.com/docs/medias/Good-News-and-Bad.pdf [Accessed 9 November 2012]. Sustainability Ltd. & WWF-UK., 2004. Through the looking glass corporate responsibility in the media and entertainment sector. [Online] Sustainability Ltd. & WWF-UK. Available at: http://www.grainesdechangement.com/docs/medias/ Through%20the%20Looking%20Glass.pdf [Accessed 9 November 2012]. Vitezic, N., 2011. Corporate reputation and social responsibility: an analysis of large companies in Croatia. International Business and Economics Research Journal, 10 (8), pp. 85-95. Appendix Open Ended Question- Survey Questionnaire Name: (First name only) Gender: Position: Answers to this questionnaire are for the sole purpose of completing this study. The researcher assures the confidentiality of the personal information listed herein. What are the strengths of the company? How would know if the company is socially responsible? If there are any, do you think that the company is successful in implementing its CSR initiatives? What do you think is the contribution of the company to the society? If you were part of the top management, would you implement CSR programs to improve the company’s reputation? How do you think CSR will help in improving reputation and profitability? In general, do you think that media companies are socially responsible? In general, do you think that media companies are well-respected and profitable because they are socially responsible? Read More