An Analysis of Corporate Social Responsibility in UK Firms - Report Example

? An Analysis of Corporate Social Responsibility in UK Firms METHODOLOGY CHAPTER Introduction There is no doubt tat Halabi, et. al (2006); Samy, Odemilin, and Bampton (2010); and Hazlett, McAdam, and Murray (2007) were right in stating that in the contemporary environment the reporting of CSR, although voluntary, is very vital for the performance of the business organization or corporation. Briggs and Verma (2006) add that there are numerous ways of measuring the CSR standards, which continue to pose great challenges to many organizations. In other studies, various researchers such as O’Rourke (2004); Dentchev (2005); and Curran (2005) have confirmed the fact that even though there are various measurements towards CSR standards, Global Reporting Initiative (GRI) provide a better guideline towards understanding how organizations need to conduct themselves especially in achieving objectives of CSR. The guidelines provided by GRI include AA 1000, ISO 14001, OHSAS 18001, Dow Jones Sustainability Index, as well as the Domini Social Index 400. These measurements have been very useful in providing adequate guideline towards engagement in CSR as strategic moves by organizations so far as attracting and retention of customers are concerned amidst high competition levels. As a result, there is need to have an adequate understanding of CSR policies and performances in relation to the various standards and their measurements. Such studies require in-depth overview of the processes and procedures that would be involved in the collection of data for the purposes of analysis, conclusions, as well as recommendations. Therefore, this chapter aims at providing the methodology employed in meeting the objectives of the study. Methodology is an important aspect of dissertation since it provides an overview of the various processes and procedures that are involved in collecting data and information, which is used in accomplishing the objectives or aims of a given study. It is important to understand that analyzing corporate social responsibility with reference to the UK firms require specific information and data. In this study, a mixed research design approach was employed in order to obtain the relevant information and data towards accomplishing the research objectives. Other than the research design, studies need to provide an understanding of the research rationale, sample and sampling procedure, data and collection methods, as well as the data analysis process. The following chapter provides a deeper analysis of the methodology employed in conducting this study. Research Design Approach Research studies take the form of qualitative, quantitative, or both. Whereas quantitative designs use numerical data, qualitative designs use non-numerical data and information to make analysis towards achieving the aim of the study. In order to realise the objectives of this research, a combination of both qualitative and quantitative research approaches was employed. On the one hand, the study utilized available research data on the subject of CSR policy and performance among major corporations in the UK. In order to identify a sample space to draw information from, a recent research by Highflier’s Research (2011) on the Top 100 Graduate Employers in the UK for the year 2011 and 2012 was used. Secondary data and information regarding CSR in respect to UK firms provided a good foundation and basis for conducting a detailed analysis hence conclusions and recommendations. Apart from the use of secondary data especially the research study conducted by Highflier’s Research (2011), the study also collected additional information and data from the available literature that addresses the concepts and aspects of CSR with respect to UK firms. Such literatures formed the bigger part of the literature review section. Specific information obtained from the various literatures included the CSR policy frameworks as well as performance of UK firms in respect to the same strategic move. The literatures were used in identifying specific cases studies with exemplary examples and understanding of the CSR and the activities related to the same. In order to have a deeper understanding of the aims of this study, three selected companies were used. The case studies of these companies provided a good foundation and basis on understanding concepts of CSR especially those related to financial performance, the role of strategic analysis and planning in enhancing the success of the CSR, and challenges that organizations meet in implementing CSR policies. Population, Sample, and Sampling Procedure The study aimed at creating an understanding of CSR policies and performances across various institutions in the UK. The understanding of such policies and performances was in relation to the effectiveness of the same on financial performance, impact of strategic analysis, and the challenges involved in successful implementation. The population of the study was the UK firms and by-extension all the firms within the global arena. However, conducting a study on all the firms in the UK was not only going to be cumbersome but would also require additional resources such as time and money, which to a large extent formed the main limitations in the study. Consequently, three selected firms, Tesco, Asda and Sainsbury were used to represent the entire population. These firms are UK-based and of late have been seen as very successful in respect to CSR policies and performances. The sampling method that was used was the stratified sampling, which involves selecting specific firms that have heard significant impact, whether positive or negative, on the business environment on the basis of the topic under discussions (Aupperle, Carroll, and Hatfield, 1985). The three firms formed the case studies that needed to be analyzed in order to arrive at the conclusion. However, there were information and data required regarding the client’s perception on the firms’ CSR policies and performances. Again, it was difficult to conduct interviews on all the clients of the three firms. Consequently, 150 clients were selected randomly and a semi-structured interview was performed on them identifying firstly the firm of choice and then their views on the CSR policies as well as performances. Data and Data Collection Process A mixed research design methodology approach was identified as the most suitable and effective in obtaining the data and information required for analysis. The mixed research design approach was of great benefit in quantifying the various factors compromising the successful implementation of CSR in most of our modern corporations. The plan involved the examination of some of the CSR policy blueprints of major UK corporations and compare and analysing of businesses operating in the same field, namely; Tesco, Asda and Sainsbury’s. Besides, the mixed research design methodology offered valuable information on the underlying rationale behind the adoption of such CSR policies as well as an opportunity to qualify the measures laid by individual companies in assessing the performance of their CSR policies (Crowther and Lancaster, 2008). By comparing this information with praised CSR standard approaches, especially those developed by the GRI, the author provided a better assertion on their practical reliability as a source of competitive advantage to the corporations. On the other hand, primary data on the subject was gathered by conducting semi-structured interviews with loyal clients to these UK-based corporations. Through this approach, in-depth information on how such companies have succeeded or failed in adopting their CSR adoption. Given the nature of this research problem, utilising interviews in gathering data served in offering not only less complicated but also express information for analysis (Saunders et al., 2009). Another benefit of using interviews is that it allows for more accurate information as the researcher can elaborate on the actual information required (Cooper and Schindler, 2010). The choice for clients rather than senior company managers as the main target for the interview is grounded on the fact that; access for the research was more viable approaching clients as there were difficulties in gaining access to the senior managers; staff that were willing to participate in this research, had to obtain permission from the senior managers; and last but most important reason is clients are the main victims and beneficiaries of CSR practices in the society. Thus, this explains reasons as to why the research opted in interviewing the clients rather than the senior managers within the organization. In addition, as much as we praise the importance of CSR practices to the organisation, the ultimate effectiveness of such practices is best felt by the public. It is true that interviewing senior corporate managers can serve good in understanding the environment underpinning their CSR policies. Nevertheless, this option is both resource consuming and might be subject to faked information as managers strive to safeguard their business secrets. On the other hand however, company clients are more open in airing their views on businesses and their practices (Crowther and Lancaster, 2008). Moreover, consumer loyalty is defined by how best an organisation meets the demands and expectations of the public. Therefore, interviewing loyal clients will provide reliable information for evaluating the effectiveness of CSR practices in these major corporations. Data Presentation Notably, the collections of the findings from the study was evaluated and presented in qualitative format to clearly spell out the analyses and the outcome of this study. In summary, this research will adopt a replica of a linear sequence of the academic research model as its research methodology. In other words, an area of concern is selected, research is undertaken, a thesis is formulated, and the study and analysis conducted as depicted in figure 1. Fig. 1: Research Design Research Rationale The fact that numerous corporations in the UK have reported little or no financial benefits owing to their continued embracement of CSR practices while other find it a competitive source of financial advantage is the rationale of this research. True to the letter, information is the most important resource in securing the success of any organisation. This is due the fact that it guarantees informed and thus reliable decision making practices in the organisation; a crucial prerequisite to corporate success (Louche, et al., 2010; Burke, l., Logsdon, 1996; and Balabanis, Philips, and Lyall, 1998). Interest in this area of research was adapted after conducting some informal interviews with various clients for these companies. The interviews revealed the fact that different companies have varied CSR policies and the effectiveness of such policies remained a key determinant to the reputation and market share pool of the organisation. List of References Aupperle, W.F., Carroll, A.B. Hatfield, J.D. (1985), “An empirical examination of the relationship between corporate social responsibility and profitability”, Academy of Management Journal, Vol. 289, No. 2, pp. 446-463. Balabanis, G., Philips, H.C., Lyall, J. 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Samy, M., Odemilin, G., Bampton, R. (2010) Corporate social responsibility: a strategy for sustainable business success. An analysis of 20 selected British companies. Corporate Governance, 10 (2), pp.203-217. Saunders, M., Lewis, P. & Thornhill, A. (2009) Research Methods for Business Students, 5th ed., England: Pearson Education. Read More