The Relationship between Society and Business - Essay Example

Organizational Research Table of Contents Research Gap and Research Question 3 Hypotheses 3 CSR Literature: Previous Focus 4 CSR Literature: A sense making approach 5 Research Design 5 Inductive Research Approach 5 Multiple Case Studies 5 PharmaTechnics 6 FutureTechnics 6 BetterWorld 7 Data Collection 7 References 8 Appendix 9 Research Gap and Research Question The relationship between society and business is still a contentious issue in the global business market. Scholarly research examining and analyzing the theories and concepts of responsibilities of businesses on the society dates back to the mid-1950s (Banerjee, 2007). These responsibilities of businesses are referred to as corporate social responsibility (CSR). Despite the overwhelming abundance of literature on the topic, there are still strong critiques on the concept of CSR. Hypotheses Many scholars regard the concept of CSR as a failure. Interestingly, there is n clear consensus even after decades of literature on the topic. This is evident from a number of factors. H (1): First, there are a number of organizations adopting the concept of CSR resulting to overlap and chaos, providing no significant improvement on the clarity of the concept. H (2): Second, the specificity of CSR strategies on the concept and the industry makes the practicality of the concept significantly difficult. H (3): Third, most scholars strongly criticized the rational approach of the CSR concept, arguing that it did not consistently succeed. The fact that Ahold and Enron were the source of empirical evidence may have incorporated some form of bias, as the two organizations were high-ranking CSR organization prior to the induction of the concept. H (4): Four, the uniqueness of the CSR strategies determine its success. This follows Smith’s concept that if a firms’ strategies are conceived carefully and genuinely, then they must be unique despite the similarities of corporate reports even from the closest rivals. This research focuses on a new perspective on CSR: A sense-making approach that will enhance our understanding on CSR strategies and the impacts of specific sense-making processes in an organization. The assumption is that a thorough investigation and understanding of how people speak, talk, and tend to behave towards CSR strategies will provide a rich context of exploration on the nature of CSR in organizations (Banerjee, 2007). Essentially, the research combines the theories of sense making by Weick and other scholars (including Palazzo and Bazu, and Wheaterbee and Mills). The research uses a qualitative case study approach for collection of data, as this generally enables consideration of specific elements of industry and context, as well as respecting the unique nature of CSR (Leedy and Ormrod, 2010). CSR Literature: Previous Focus The concept of CSR is has been constantly expanding and evolving over time, presenting difficulties in analyzing theories on CSR. Moreover, different scholars combined different approaches using similar terminologies but came up with diverse definitions. Examples include corporate social performance, corporate social responsibility, stakeholder management, corporate governance, sustainable development, and corporate citizenship, among others (Banerjee, 2007). There literature review identifies six foci of CSR in a chronological order. The first focus of CSR was a pro-CSR attitude, fostered by the legitimacy and social contract theory. The second focus was the contra-CSR position, essentially opposing the CSR concept by scholars such as Friedman. The third focus was on the conceptualization of CSR, mainly on what CSR meant. The fourth focus was the importance of CSR to a business from an economic point of view. The fifth focus was the entities that should hold the business socially responsible. The last focus was on whose expense and whose benefit to manage the business (Banerjee, 2007). CSR Literature: A sense making approach The research focuses on the contextual and institutional organizational elements that promote the understanding of organizational sense making of CSR. Research Design Inductive Research Approach For the purpose of this research, a qualitative inductive research is the most appropriate choice. This is because a sense making CSR approach assumes social constructivism, which perceives reality through societal and social embedment. The application of an explorative approach seeks to develop inductively the theory of CSR. As recommended by Graebner and Eisnhardt on the ability of qualitative data to enhance understanding of complex social processes, the research question has a broad scope, giving the research a degree of flexibility in exploring the sense making approach on CSR. Non-inductive quantitative approach may present biased and irrelevant data with emphasis on the nature of CSR (Leedy and Ormrod, 2010). Multiple Case Studies The basic mode of study for this research is multiple case studies, which enables the development of the theory of CSR by recognition of patterns of relationship among constructs across and within cases and their logical arguments. In this context, case study research approach is more appropriate as it allows the investigation and analysis to maintain an important and holistic uniqueness of events. Moreover, the results of multiple case studies are more persuasive and robust compared to other methods (West, 2012). The research bases its case selection on theoretical sampling, and particularly on nature and maturity of CSR policies in each organization. The first case has a long history of CSR behavior, the second case switched from irresponsible to responsible behavior, and the last case is a non-governmental organization. PharmaTechnics PharmaTechnics was founded in the 1880s and currently one of the Fortune 500 American organizations. It has over two hundred subsidiaries all over the world. The company’s organizational structure is decentralized, incorporating a CSR department that focuses on the education and sustainment of indirect and direct stakeholders on pharmaceutical and medical matters. They also publish a CSR report annually, GRO compliant (PharmaTechnics). FutureTechnics FutureTechnics was established in the 1980s in Belgium, concentrating on international materials technology. Recently, the company focuses on technology-based business rather than smelting and mining industry, emphasizing on recycling of metals and special products. The company’s organization is decentralized, with a group dedicated to environmental and social responsibilities. They publish a sustainability report annually, GRI compliant (Futech). BetterWorld BetterWorld is a Belgian NGO established in 1950s. Their core objective is creation of a sustainable system of food security. They do not have a CSR department, but observe a central policy. They publish a sustainability report annually, GRI compliant (FundsForNGOs). Data Collection The research triangulates data from various sources to achieve a balanced understanding. There will be an analysis and evaluation of data from in-depth observation, documentation, and semi-structure interviews. There will be around 10 to 15 in-depth interviews. The sample will include top managements, CSR managers, relevant internal agents such as HR managers, communication managers, brand managers, and other employees. The documentation data will include CSR reports, organizations’ brochures, corporate websites, and external and internal reports. Secondary data will be necessary for understanding CSR organizational strategies. Sources of observational data will be practical observation from nearest subsidiaries, such as CSR training sessions. References Banerjee, S. (2007). Corporate Social Responsibility: The Good, the Bad, and the Ugly. Cheltenham: Edward Elgar Publishing Company. FundsForNGOs. Grants and Resources for Sustainability. Retrieved on March 3, 2012, from http://www.fundsforngos.org/category/foundation-funds-for-ngos/ Futech. Future Technics: Aluminum Door, Window, and Curtainwall. Retrieved on March 3, 2012, from http://www.futuretechnics.ir/Home.aspx Leedy, P.D. and Ormrod, J.E. (2010). Practical research: Planning and design, 9th ed. Upper Saddle River, NJ: Pearson. PharmaTechnics. Specialist consultants in Clinical Pharmacy and Electronics Design. Retrieved on March 3, 2012, from http://pharma-technics.co.uk/1.html West, M. (2012). Effective Teamwork: Practical Lessons from Organizational Research. New Jersey: John Wiley and Sons. Appendix Corporate Social Responsibility Questionnaire Man Read More