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A STUDY OF CORPORATE SOCIAL RESPONSIBILITY AS A STRATEGIC TOOL BY MULTI-NATIONAL COMPANIES IN DEVELOPING COUNTRIES
I hereby declare that the dissertation submitted is wholly the work of Jamsheer Rangath. Any other contributors or sources have either been referenced or acknowledged.
ACKNOWLEDGEMENT
I thank God almighty for being with me and given me the strength and guidance to perform to the best of my abilities. I extend my sincere gratitude to my supervisor Dr. Stevphen Shukaitis for the support and guidance provided for this dissertation. I would like to thank my parents for their unconditional love and prayers. I would also like to thank all my friends for their help.
A STUDY OF CORPORATE SOCIAL RESPONSIBILITY AS A STRATEGIC TOOL BY MULTI-NATIONAL COMPANIES IN DEVELOPING COUNTRIES
ABSTRACT
Corporate social responsibility has been a subject of interest for many researchers for past few decades. The article studies the role of CSR and how it is been used as a strategic tool by multi-national companies in developing countries perspective. The article then analyse the
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relationship between corporate social responsibility and competitiveness The article follows case study method to analyse the case studies of two multi-national companies in India Tata Steel Ltd & Coca-Cola India Ltd. Then the article concludes by comparing both cases with respect to the competitiveness, performance, CSR and also their extent of organizational success despite their initiatives in terms of corporate social responsibility.
CONTENTS
1. INTRODUCTION.........................................................................................................7 2. LITERATURE REVIEW............................................................................................9
2.1 MULTI-NATIONAL COMPANIES AND CSR IN DEVELOPING COUNTRIES..10 2.2 CSR AND DIMENSIONS......................................................................................13 2.3 CSR AND COMPETITIVENESS...........................................................................15 2.4 STRATEGIC CSR.................................................................................................18 2.5 STAKEHOLDER PERSPECTIVE.........................................................................19 2.6 INSTITUTIONAL PERSPECTIVE........................................................................21
3. RESEARCH METHODOLOGY................................................................................23
3.1 RESEARCH PHILOSOPHIES...............................................................................23 3.1.1 POSITIVISM.................................................................................................24 3.1.2 CRITICAL INQUIRY....................................................................................26 3.1.3 INTERPRETIVISM.......................................................................................27 3.2 RESEARCH APPROACHES.......................................................................................28 3.2.1 DEDUCTIVE APPROACH...............................................................................28 MSc International Management
5 3.2.2 INDUCTIVE APPROACH..........................................................................29 3.3 RESEARCH DESIGN: QUANTITATIVE & QUALITATIVE METHODS.............30 3.3.1 QUANTITATIVE RESEARCH METHOD...................................................31 3.3.1.1 CRITICISMS OF QUANTITATIVE METHOD.............................32 3.3.2 QUALITATIVE RESEARCH METHOD.....................................................32 3.4 CASE STUDY: THE RESEARCH METHOD..........................................................33 3.4.1 DOCUMENT ANALYSIS...........................................................................37
5. CONCLUSION.............................................................................................................51 6. REFERENCES.............................................................................................................54
RESEARCH OBJECTIVES
1. TO STUDY THE USE OF CORPORATE SOCIAL RESPONSIBILITY AS A STRATEGIC TOOL IN MULTI-NATIONAL COMPANIES IN INDIA.
3. TO EXPLORE THE ROLE OF CORPORATE SOCIAL RESPONSIBILITY IN PUBLIC RELATION EFFORTS OF COMPANIES.
1. INTRODUCTION
Corporate social responsibility has been distinguished as a subject more by itself in past few decades. It determines the way in which companies act in ethical, environmental and societal circumstances (Asongu, 2007). In other words, CSR is a way of examining mutual relationship that exists within the business, communities in which they establish or operate (Asongu, 2007). CSR is a means o f discussing the extent of any obligations a business has to its immediate society; a way of proposing policy ideas on how those obligations can be met; as well as a tool by which the benefits to a business for meeting those obligations can be identified (Asongu, 2007: 20). The name of corporate social responsibility was shaped in 1953 by the publication and issue of Bowens social responsibility of businessmen, which put up the question what responsibilities to society can business people be reasonably expected to assume?, and it was widely practiced in 1960s (as cited in Mullerat, 2010: 64). Bowens (1953) work continued
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from the impression or notion that many number of large businesses were vital centers of power and decision making and that the actions of these firms touched the lives of citizens at many points (as cited in Carroll, 1999: 269). He defined corporate social responsibilities of businessmen it refers to the obligation 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 (Carroll, 1999: 270). Jenkins put forwarded that, this present wave of corporate social responsibility dates back to early 1990s and it is only the expression of arguments over the relationship among business and society (Henderson, 2001 as cited in Jenkins, 2005). Later on by the rise of corporation towards the end of the nineteenth century, this argument has extended through periods, when the power of corporations in the ascendancy and periods in which society attempts to regulate the growth of corporate power (Mullerat, 2010: 64). Over this period of time, when corporations turned a theme to public criticism and tries at regulation, they attempted to re-establish their legitimacy by adopting CSR-style strategies (Mullerat, 2010: 64).
literatures available concerning corporate social responsibility together with various related theoretical perspectives. This is followed by the research methodology section where I explained the research methods followed for this study and justify the chosen approach. This also covers the justification of the data collection tools adopted for carrying out this study. I then analyse the case studies with reference to the various literature reviewed and discuss my findings. I then conclude this article based on my analysis and findings.
2. LITERATURE REVIEW
Corporate social responsibility is a field that has attracted much attention from those who indicate that the entire effect and emergence of CSR is not relevant to business (Freeman & Liedtka, 1991, as in Asongu, 2007), though there are those who consider the significance and relevance of CSR, they think that it is a tough theme for business organization (Friedman, 1962 as in Asongu, 2007). There are also groups of authors who believe that corporate social responsibility is of strategic importance to business (Asongu, 2007: 27). According to Carroll, the social responsibility of business encompasses the economic, legal, ethical and discretionary expectations that society has of organizations at a given point in time (1979:500 as cited in Crane et al, 2008: 33). Although this resolution admits an economic responsibility, many nowadays even conceive the economic constituent or factors as what the business organization acts for itself, and the legal, ethical and discretionary components as what business does for others (Crane et al, 2008:33). Carrolls contention is
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that economic practicality is something business organization exercises for society too, in preserving the business organization (Crane et al, 2008). Recently constructed on Carrolls field of study, Lee (2008) draws the conceptual evolutionary path of theories on CSR, which indicates that the construct of CSR sounded through a progressive rationalization, which implicates two extensive changes in the conceptualization of CSR (Zu, 2009: 19). The first change is pertained with the degree of analysis the researchers have displaced from the macro-social effects to organizational-level analysis of CSRs impressions on organizational performance (Zu, 2009: 19). Secondly, it stresses on theoretical orientation the researchers have displaced from denotative perspective and ethics tailored studies to inexplicit perspectives and performance oriented fields of studies (Zu, 2009: 19). By the end of 1990s, corporate social responsibility had also been linked with strategy literature and its relationship with market outcome and had been made more explicit (Hart, 1997; Kotler & Lee, 2005; Porter & Kramer, 2002, 2006 as cited in Zu, 2009: 19), and the construct has been increasingly justified and got linked with more extensive organizational goals like reputation and stakeholder management (Zu, 2009: 19). CSR is a term depicting an organizations obligation and responsibility to be accountable to its stakeholders in its entire operations and processes (Iyengar, n.d). It has various strategic significances and can be an inbuilt or inherent component of an organizations business and corporate-level differentiation strategies (McWilliams et al, 2005: 7). Hence it should be regarded as a figure of strategic investment; even if it is not flatly tied to a product characteristics or output processes, CSR is also perceived as a reputation building up element as well (McWilliams et al, 2005).
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extreme nascent stage and suitable mechanisms do not exist to ensure that companies practice CSR with anything other than a charitable outlook (Krishnan & Balachandran, 2004: 5). Kemp Proposes that there are numerous obstacles to achieving corporate responsibility, particularly in many developing countries where the institutions, standards and appeals system, which give life to CSR in North America and Europe, are relatively weak (2001:1). Chambers et al (2003) evaluated the extent of corporate social responsibility insight in several Asian companies and indicates that the mean value for the seven countries even including industrially advanced Japan is just 41% compared to say a score of 98% for a developed nation like the United Kingdom (as cited in Krishnan & Balachandran, 2004: 5). Even though there are certain exceptions to the mean value figures, India for example had an average CSR penetration of 72% compared to Indonesias 24% (Krishnan & Balachandran, 2004: 5). In India corporate social responsibility is developed to encompass workers, consumers, stakeholders and also sustainable development, where as in Europe, for instance, the notions of corporate social responsibility is just evolved out of the church and a sense of ethics (Quigley, 2006: 23). Especially, corporate social responsibility in developing countries has some typical features that CSR leans to be less formalized in terms of CSR benchmarks normally practiced in developed countries which includes various corporate social responsibility codes, standards and management systems (Visser et al, 2010). Another characteristic is that where formal CSR is practiced, this is usually by large, high profile national and multinational companies, especially those with recognised international brands or those aspiring to global status (Visser et al, 2010: 132).
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The advance of CSR among the companies or firms contributes new chances to operate them in developmental aid (Huniche & Pedersen, 2006). Moreover, it refers to the activities of the companies to enhance environmental and societal standards in the company, underlings or in the surrounding community (Huniche & Pedersen, 2006). MNCs have progressively tacked resolution of principles to their CSR platforms and presented these platforms as binding tools that cut down the need for different forms of ordinances in corporate activities (Levis, 2006). Public Scrutiny on multi-national companies has nowadays sharpened increasingly, deforming corporate social responsibility into corporate strategy in order to avoid disaffecting the community (Levis, 2006). It also targets at incorporating social demands as long as it stays to welfare and profit to the companies (Frederick, 1994 as cited in Levis, 2006). This theory is compatible with the theory of the firm approach that aims at finding how much CSR in beneficial rather than whether CSR is, in itself, beneficial (McWilliams & Siegel, 2001 as cited in Levis, 2006: 50-55).
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(2) Community relations collaborating and partnering with different stakeholders, corporate philanthropy and community action (Freeman, 1999; Frooman, 1999; Grey, 1996; Hess et al., 2002; Jones, 1995; Jones and Wicks, 1999 as cited in Vilanova et al, 2009). (3) Workplace including labour practices and human rights issues(European Commission, 2002; United Nations Global Compact, 2000; OECD, 2000; International Labor
Organization, 2007; Sum and Ngai, 2005 as cited in Vilanova et al, 2009: 58-59). (4) Accountability, including corporate transparency, reporting and communication (Elkington, 1998; Global Reporting Initiative, 2002 as cited in Vilanova et al, 2009: 59). (5) Marketplace, including CSR practices directly related to core business activities such as research and development, pricing, fair competition, marketing or investment (Consumers International, 2003; Fan, 2005; Schnietz and Epstein, 2005; Whetten et al., 2001 as cited in Vilanova et al, 2009: 59).
Proponents like Jones and Wicks (1999) suggest that companies should include and interpret the five dimensions of CSR proposed by Vilanova et al in their respective organisational contexts (as cited in Vilanova et al, 2009). There are authors like Porter and Kramer write that CSR used by many of the companies is neither strategic nor operational but a cosmetic effort through publications like public relations, media campaigns, the centrepieces of which are often glossy CSR reports that showcase companys social and environmental good deeds (2006: 80-81). These publications not often offer a coherent framework for CSR activities (Porter and Kramer, 2006: 81). They identified this as the key issue in the present CSR programme is the debate among cosmetic and strategic approaches to CSR, where many enterprises appeared to approach CSR alone from a reputation position,
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while CSR is presented in theory as a central business issue that has profound and widespread impact on most business operations (Ayuso et al., 2006; Carlisle and Faulkner, 2005; Porter and Kramer, 2006; Whetten et al., 2001 as cited in Vilanova et al, 2009: 59). Many of the global organizations are devoted to a greater extent for assuring the external world that they contribute their portion for the development in the society through various well-tried approaches (Olukayode, 2008). Such organizations have formulated tactics to elude their various responsibilities to the society, whereas, some of them invent designs to cover beneath the media spotlight to get away from remarking the social responsibilities that efficaciously represent their gain or profit (Olukayode, 2008). Melody Kemp indicated that corporate social responsibility stays an ideal, when he considered in terms of economic, political developments and cultural settings in the developing economies (Kemp, 2001). He also indicated that CSR brings in a positive contribution to rights of those engaged in the MNCs, and he further adds that it only brings in much difference to certain organizations that are aimed by the consumers or who are ethical and responsible in their thinking (Kemp, 2001). According to him, voluntary initiatives and corporate social responsibility are possible deviations from real matters and issues of law, multilevel societal and political developments; though corporate social responsibility may welfare or gain a small percent of those who in the local community related to the MNCs, institutional regeneration and adhesion to and development of the law system would welfare all (Kemp, 2001). And corporate social responsibility is probable to stay cosmetic without those shifts (Kemp, 2001). A key question that arise from the debate is that the implementation and execution of corporate social responsibility affects the competitiveness of the firm (Chand and Fraser, 2006; Draper, 2006; Haigh and Jones, 2006; Handy, 2002; Porterand Kramer, 2006 as cited in Vilanova et al, 2009: 59). Many writers have indicated that competitiveness is surely a
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significant driver for adopting a corporate social responsibility approach, but the relationship among corporate social responsibility and competitiveness is still remained as unclear (Bansal and Roth,2000; Haigh and Jones, 2006; Hess et al., 2002; Juholin, 2004; Porter and Van Der Linde, 1995; Porter and Kramer, 2006; Harrison and Freeman, 1999; Smith, 2003;McWilliams and Siegel, 2001 as cited in Vilanova et al, 2009: 59).
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conveying information to consumers (Kay, 1993: 87). Fourth is strategic assets (Kay, 1993). In that context, the competitiveness model has widened to account for central tangible and intangible resources that put up an advantage of competitiveness to the organization or firm (Hamel and Prahalad, 1989 as cited in Vilanova et al, 2009: 59). That means, competitiveness must better describe for dynamic firm capacities like flexibleness, ability, marketing etc to a greater extent, and realizing competitiveness is not strictly productiveness, rather it is the capacity of a firm or an enterprise to design, produce or market products superior to those offered by competitors, considering the price and non-price qualities (DCruz and Rugman, 1992; Hamel and Prahalad, 1989; Barney, 1991 as cited in Vilanova et al, 2009: 59). A very well known work on associating both corporate social responsibility and competitiveness is Michael Porters The Competitive Advantage of Corporate
Philanthropy, in which Porter draws the way in which the firms can rectify and improve in terms of long run business potential by linking up the firms various goals (Gugler & Shi, 2009: 4). Porter and Kramer proposed that by using a strategic approach to corporate philanthropy brings social and economic goals into alignment and improves a companys long-term business prospects (2002: 58). The term strategic philanthropy is used to extend almost all sort of charitable activity that has some defined theme, goal, approach, or focus (Porter and Kramer, 2002: 58). According to Porter, the determinants of competitiveness have two dimensions, firstly, the macroeconomics, political, legal, and social context and secondly, the microeconomics (2006: 53 as cited in Gugler & Shi, 2009: 4-5). The macroeconomic dimension is essential, rather not adequate enough to yield prosperity (Gugler & Shi, 2009: 4-5). Wealth is actually created in an economy at the microeconomic level, understandably, in the capability of the companies to produce worth full products and services applying effective method (Gugler & Shi, 2009: 4-5). The microeconomic bases of productivity remain on two interconnected fields: the sophistication and capabilities with
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which the firms contend, and the role and quality of the microeconomic business circumstances where they functions (Porter, 1990, 1998 as cited in Gugler & Shi, 2009: 4). The creation of value in an economy relies on these two microeconomic dimensions: firms sophistication and strategies, and business environments (Gugler & Shi, 2009: 5). The Global Competitiveness Report confirms that CSR issues are an important component of firms sophistications and strategies (World Economic Forum, 2006, pp. 5180 as cited in Gugler & Shi, 2009: 5). Exactly emphasized by Robert Davies that Corporate responsibility is a pact for the mutual benefit between society that needs business for economic and social development, and business that needs a supportive business environment (Davies, 2003: 304). Competition has also been wide spread in many other managerial circles, commercial activities purposed at encouraging social welfare and environmental sustainability are urging their path into prominent and even traditional corporations (Mirvis, 2008). Chief executive officer of Seventh Generation, Jeffery Hollander drew this statement in his 2003 book what matters most: how a small group of pioneers is teaching social responsibility to big business, and why big business is listening (Mirvis, 2008: 109). One stating indicator has been that the acquisitions of CSR oriented companies (Mirvis, 2008: 109). When companies seeking to take advantage in growing economies or environments, they look to acquire other companies which had strategic foresight in establishing their business models (Mirvis, 2008: 109). In order to attain good market growth, companies could formulate new propositions, but it is less risky and more inexpensive in the long term to acquire market share through acquisitions (Mirvis, 2008). It can be viewed as a strategic move to be competitive in the business environment.
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perspective is the institutional theory which stresses the adjustment of the companies to the institutions in a particular setting (Frynas, 2009). This perspective shows the reason why companies from various countries or sector react to societal and environmental forces differently and also the reason for which various country subsidiaries of same multinational company have dissimilar corporate social responsibility strategies, as an outcome of the persisting national notions and norms (Frynas, 2009). The focus of the current literature on external stimuli fails to explain, among other things, why particular firms may use CSR as a weapon against competing firms or why specific firms may invest billions of dollars into renewable energy (Frynas, 2009: 14).
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operations in their interaction with their stakeholder on a voluntary basis (CEC, 2006 as cited in Russo & Perrini, 2010: 2008). Companies are more advocated to conceive their responsibilities for various stakeholders with the aim of incorporating economic, societal and environmental interests in to their strategies, tools and actions proceeding beyond mere abidance (Russo & Perrini, 2010). It is due to such scepticism that companies and researchers still stress that the main objective of corporations is to generate profits and, in this process, prioritise their cash flows (Russo & Perrini, 2010: 208). But today everything has changed to a greater extent, profit cannot be a companys primary aim, moreover, the success is determined concerning their relationship between the stakeholders, which in fact covers various matters, primary amongst them societal and environmental aspects (Russo & Perrini, 2010). Out of many arguments preferring CSR, the dominant one is the long-run self interest of business (Davis, 1973: 313). This concept rationalizes that society expects business to accomplish a variety of social goods if it expects to profit in the long-run (Davis, 1973: 313). The company which is most sensitive to its community needs will as a result have a better community in which to conduct its business (Davis, 1973: 313). The relationship among business and society which turned as an important aspect had to be long-run; before long, the relationship developed into a kind of necessary integration of business in society in which society interacts with business at large, lending its legitimacy and prestige, and business becomes responsible for its activities within society in its long term economic operations and creation of value (Ackerman, 1975; Preston and Post, 1975; Garriga and Mele, 2004 as cited in Russo & Perrini, 2010: 208). So, corporate social responsibility have to be conceived as a strategic preference of companies, in fact which are capable of implementing socially responsible behaviours while pursuing their activity; in addition to moral values and ethical codes, nonfinancial reports are the means
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through which corporations become accountable for their strategy toward relevant stakeholders (Russo & Perrini, 2010: 209).
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(Eden and Miller, 2004; Kostova and Zaheer, 1999 as cited in Yang & Rivers, 2009: 158). The culture also influences corporate social activities across the border (Tan, 2009). This distance forms a liability of foreignness for companies operating abroad (Zaheer & Masakowski, 1997: 439). This liability is often reflected on the part of the host country by its use of stereotypes and different standards in judging foreign firms, and by its use of foreign firms as targets for attack by host country interest group (Kostova & Zaheer, 1999 as cited in Yang & Rivers, 2009: 158). Thus, Yang & Rivers indicated that the greater the institutional distance between the home country and the host country, the more likely the MNCs subsidiaries will adapt to local CSR practices (2009: 158). Although there are lots of differences among the stakeholder and institutional perspectives, they also share significant similarities (Frynas, 2009). Both stakeholder and institutional perspectives are responsive and emphasize the role of outside players in carrying ideas and notions concerning managerial activities in the company (Frynas, 2009). There can also be an intersection in that the same outside player may be sorted out as a common part of both the stakeholders and the institutions; for example, the government body can become a stakeholder in the form of collaboration in the business, and part of the institutional surrounding as a law maker (Frynas, 2009).
3. RESEARCH METHODOLOGY
Research is an intensive and purposeful search for knowledge and understanding of social and physical phenomena (Kumar, 2008: 1). Research is a scientific action set about to prove and demonstrate something, a concept, a theory or an application (Kumar, 2008). Research is an academic process, and in common parlance refers to search for knowledge (Kumar, 2008: 1). According to Rajender Kumar, research is a voyage or navigation of discovery (2008). Moreover, research is not only an activity of collecting information,
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instead, it is about answering or resolving unanswered questions, or developing that which does not presently subsist (Goddard & Melville, 2001). The selection of research methodology is decided by a combination of various elements or components- for instance, in case if the researcher conceives that there is certain kind of external truth that necessarily requires discovering, or whether the undertaking of the research is to dig into and unpick someones dual views in natural, field settings (Gray, 2009: 27).
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In this research the adopted research philosophy is interpretivism. It is also significant to explore the other research philosophies which are often used for management researches, namely, positivism and critical inquiry. Moreover, it is equally crucial to substantiate the reason why I chose interpretivism as my research philosophy together with highlighting the disadvantages of the other two research philosophies.
3.1.1 POSITIVISM
The view that supports the relevance and importance of following the natural sciences is always liked up towards the epistemological position called positivism (Bryman & Bell, 2007: 16). But the term extends apart from this principle together with the factor or component that deviates within the authors (Bryman & Bell, 2007: 16). The crucial argument is that the social reality exists outwardly to the investigator, together with this it also points out that the real world includes the senses, that is what can be seen, smelt, touched, etc (Gray, 2009: 18-19). Positivism is an epistemological position that advocates the application of the methods of the natural sciences to the study of social reality and beyond (Bryman & Bell, 2007:16). Positivism predicts that the reality is non-subjective, therefore, positivist researches in particular normally anticipate in terms of affinity within variables (Swanson & Holton, 2005: 19). Positivism is an epistemological position that advocates the application of the methods of the natural sciences to the study of social reality and beyond (Bryman & Bell, 2007:16). According to Weber (1949), this is a philosophic arrangement which is formally joined and linked with scientific subject area together with the view concerning the general policies of someones conduct, and also notion that the individuals must be indifferent and objective to perceive the real world (Schutt, 2006). There have been many
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different versions of positivism which overlap, and which rarely agreed precisely on its essential components (Bryman, 2007a as cited in Gray, 2009: 19).
Williams & May indicates (1996) positivism as a heroic failure of modern philosophical system (27p, as cited in Gray, 2009). According to Huges and Sharrock (1997) a fundamental shift or error in positivism is that specific claims it made affecting scientific inquiry (Gray, 2009). The central issue in the positivistic approach to modern science concerns the relationship between the part of the world which is the object of a particular study and theoretical framework which is constructed in order to explain the observations that are made on the world (Remenyi et al, 1998: 88). Positivism describes certain penetrations or even explanations which are really practicable and helpful to a greater extent, but instead contend with the problems of someone or even the organization, it will be crucial to extend beyond the positivism thereby utilizing a philosophical approach to researches (Remenyi et al, 1998).
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construct new methods of understanding as a take to efficient action (Gray, 2009). Critical inquiry also tries to provide historic understanding by a proper follow-up of important and primary issues and outcomes to expose unknown classes of domination and growth (Swanson & Holton, 2005).
The point of using or practicing particularly critical management studies are utterly beyond just being classifiable, evidently undergoing a particular position of perceiving the reality (Johnson & Duberley, 2000). This regards an action or procedure through which members and groups get released from repressive social and ideological conditions that restrict the development and expression of human consciousness (Johnson & Duberley, 2000: 124). Critical theory has got many implications especially in business and management research, and it also depicts a doubting eye towards the motives and affects of powerful people and individuals, has various significances in management and organizational inquiry and it draws a disbelieving optical figure on the needs and encroachment of potent radicals and people, which in fact emancipate way that displays concern for the involvement of group of less powerful members (Easterby-Smith et al, 2008). Hambermas indicates (1970) that the theme that knowledge is ascertained by concerns and interests and too frequently it is the powerful individuals to a greater extent in the society who resolve actually what is been viewed as true(as cited in Easterby-Smith et al, 2008: 74). Consequently, truth should be reached through discussion and rational consensus, rather than being imposed by one group or another (Easterby-Smith et al, 2008: 74).
3.1.3 INTERPRETIVISM
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Interpretivism is adopted to denote a substitute option to the positivist orthodoxy that has declared sway for past few decades (Bryman & Bell, 2007: 19). Interpretivism insists natural reality and social reality are different and therefore require different kinds of method (Gray, 2009: 21). It is predicted up on the view that a strategy is required that respects the differences between people and the objects of the natural sciences and therefore requires the social scientist to grasp the subjective meaning of social action (Bryman & Bell, 2007: 19). Interpretivist field of studies can be supposed as of containing two different but mutually dependent divisions; investigative theory, which describes innovation selections together with their explanation in terms of principles set aside concerning the paradigm (Hallebone & Priest, 2009: 105-106). The interpretivist paradigm on which the qualitative approach to research is based reflects a much lower degree of control over the research context and subjects involved (Burns & Burns, 2008: 18). The other one is investigative practice, which describes much more practically oriented theories together with its restraints (Hallebone & Priest, 2009). A significant point to the interpretivist epistemology is that an empathetic attitude should be chosen by the investigator hwo carry on with the research (Saunders et al, 2007: 107). But the dispute here is to get onto the social world of the particular research fields and to be in their own stand to interpret the reality (Saunders et al, 2007). Interpretivism is not relied on the entire concentration in a circumstance, hence can extremely support an investigation which employs interview methods, for instance, the primary aim is to dig into peoples particular and real understanding (Mason, 2002).Therefore, interpretive approach not just examines individuals as primary source of data, instead seek their views to a greater level (Mason, 2002).
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rigour, deduction depicts that the researcher should be self-directed respective of what is been observed by the researcher (Saunders et al, 2009: 125). Another important plus point of deductive approach is that the construct is to be essentially operationalised in a particular manner what modifies realities to be quantitatively monitored (Saunders et al, 2009: 125). The terminal feature of deductive approach is generalisation; In order to be able to generalise statistically about regularities in human social behaviour it is necessary to select samples of sufficient numerical size (Saunders et al, 2009: 125).
DESIGN:
QUANTITATIVE
&
QUALITATIVE
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"A research design is the overarching plan for the collection, measurement and analysis of data" (Gray, 2009: 131). Generally, a research design will depict the intention of the research and the sorts of questions being dealt, the proficiencies to be applied for data collection, approaches for sampling and also way in which the data are to be examined (Gray, 2009). It will have justified and clear objectives, gained from the research question, define the origins from which one aim to gather data, and consider the limits that one will necessarily have and also for discoursing the ethical issues as well (Saunders et al, 2007). In research design it is significant to bring in perfect distinction among both the design and tactics (Saunders et al, 2007). The former is implicated with the overall design for the research; the latter is concerning particularly the finer detail of collecting data and analysis (Saunders et al, 2007). Decision about tactics will involve your being clear about the different quantitative and qualitative data collection techniques and subsequent quantitative and qualitative data analysis procedures (Saunders et al, 2007:131-132). Before exploring the qualitative research method and its importance or role in this research and why I adopted this research method, it is also relevant to discuss the quantitative research method together with its disadvantages and the reason why quantitative research method has been left out.
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from the researchers participation with an applicable body of literature (Gray, 2009). Most of the quantitative research approaches, irrespective of their theoretical disputes, incline to stress and underline that there is a usual realness on which individuals can agree (Benz & Newman, 1998). Quantitative researchers have tried to establish quantifiable, standardized observation schedules; observation is not generally seen as a very important method of data collection in quantitative research (Silverman, 2010:122). It is because it is very hard to carry on data-based studies on big sampling (Silverman, 2010). According to Glesne & Peshkin (1992), in quantitative method the researchers function is to observe and assess, and also attention is acquires to keep the researchers from contaminating the data through personal involvement with the research subjects (as cited in Thomas, 2003:2). Quantitative researches indicates that the observation is an undependable and non reliable method of collecting data because of the reason that different observers may notice and make note of dissimilar observations (Silverman, 2010). Quantitative researchers look for previsions and explanations that will infer to other individuals and places (Thomas, 2003). Deliberate strategies or techniques of sampling and experimental patterns are prospects of quantitative research method directed to develop inferred results (Thomas, 2003).
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are conducting research (Gray, 2009). When the quantitative researchers would consider this more positively, the qualitative researchers view this as going wrong to find accession to individuals social and cultural constructions of their reality (Guba and Lincolin, 1994; Silverman, 2000 as cited in Gray, 2009). According to Cicourel, belief of measurement by fiat (1969 as cited in Bryman & Bell, 2007:174). This is an another criticism that the measurement procedures owns an unreal and unauthentic sense of truth and preciseness (Bryman & Bell, 2007).There are a lot of faces to this criticism; it has also been debated that the link among the measure formulated by social individuals and the conceptions that they are imagined to be exposed is presumed instead of real (Bryman & Bell, 2007).
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Qualitative method is a multimethod procedure, comprising of an interpretive, natural approach to its field of study (Thomas, 2003: 1). This means that qualitative researchers study things in their natural settings, attempting to make sense of, or interpret phenomena on terms of the meanings people bring to them (Thomas, 2003: 1). According to Miles and Huberman, most qualitative methods consists of a lot of features and significances, it is conducted through intense contact with in a field or real life setting, the researchers role is to gain a holistic or integrated overview of the study, including the perceptions of participants, the themes that emerge from the data are often viewed with informants for verification (1994 as cited in Gray, 2009: 166-167). Qualitative research is highly shaped by the sort of research paradigm followed for the research, hence, it needs to be emphasized that in qualitative research the acceptance or option of methods of data collection inclines to be flexible to a greater extent (Gray, 2009).
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But, case studies are frequently employed qualitatively to a greater extent (Grey, 2009). Most of the qualitative inquiry considered as case study research, in fact, case studies differs from various other qualitative approaches just because of their particular examination and concentration on case-by-case studies (Holloway, 1997). Inside qualitative research, the purpose of the researcher is to acquire a cryptic, intense and in-depth overview of the setting under study (Gray, 2009). A case study in research is an entity which is studied as a single unit and has clear boundaries; it is an investigation of an organization, an event, a process or programme (Merriam, 1988 as cited in Holloway, 1997: 30). Smith indicates that a case study is a bounded system, there constituting a particular development as the centre of the investigation, such as, a specific event, process or an institution (1978 as cited in Edwards & Skinner, 2009: 205). Stakes put forwarded that case study researchers are implicated with the complication and the specific nature of the question (1995 as cited in Bryman & Bell, 2007). Most of the well known studies in management and business research are grounded on this sort of design; a case can be a single organization, a single location, a person or a single event (Bryman & Bell, 2009: 62). For formulating a theoretical stance, a tentative hypothesis or a group of questions are designed- tentative in the sense that they are subjected to further advance or change during the course of the research (Gray, 2009). In the designing process, it is significant to assure that every tool match the original theory and the objectives of the study (Gray, 2009). Another fundamental design aim in the case study method is the resolution of the unit of analysis, and then assuring that the unit of analysis conforms to or matches with the research objective of the study (Gray, 2009). Due to the variability in the types of cases that may be studied, there are a number of case study designs that may be used (Edwards & Skinner, 2009). Whatever the exact and accurate case study design is selected, it is crucial that the case study directs the reader into the case situation (Gray, 2009). This means that the descriptions should be holistic and
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comprehensive and should include myriad dimensions, factors, variables, and categories woven together into an ideographic framework (Patton, 1990:387 as cited in Gray, 2009: 255). According to Yin (1994), a significant distinction must have to be constructed among holistic and embedded case studies (as cited in Scholz & Tietje, 2002: 9). A holistic case study is influenced by an extremely qualitative approach that relies on narrative, phenomenological and descriptions (Scholz & Tietje, 2002: 9). Subject and theory may be significant but should persist dependent on the understanding of the case (Stake, 1976 as cited in Scholz & Tietje, 2002: 9). And for embedded cases studies, there might be various number of units of analysis (Gray, 2009). According to Raf Jan and Koen Dittrich demonstrate a literature review of recently released case studies in business study or research (Dul & Hak, 2008). A differentiation is built among practice-oriented and theory-oriented case studies (Dul & Hak, 2008: 8). The review shows that most studies are practice-oriented and describe the design, implementation or evaluation of some interventions, or illustrate the usefulness of a theory or approach to a specific company or situation (Dul & Hak, 2008: 8). Though, such researches might make use of the theories, the main purpose is to add to the growth of those theories but instead to apply them in practice (Dul & Hak, 2008). Out of the group of theory-oriented case studies, researches are developed as explorative to a greater extent : constructing theory by digging into cases and examples of the object of the study (Dul & Hak, 2008). From the channel of case study research across many decades, it is significant to run over its main strengths and also to mention about the issues and limitations individuals perceive and went through in real practice (Simons, 2009). The limitations of the case studies are that the results are generalizable except where other readers or researchers see their application (Nisbet & Watt, 1984 as cited in Cohen et al, 2000: 184). Case studies are also not that comfortable and easy for assuring and checking, there they might be exclusive,
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indifferent and subjective (Nisbet & Watt, 1984 as cited in Cohen et al, 2000: 184). They are also prone to issues and defects of the observer, in spite of the efforts to handle reflexivity (Nisbet & Watt, 1984 as cited in Cohen et al, 2000: 184). Though the approach has some limitations, it also had a lot of significances which helped me in opting case study method. Case studies especially making use of qualitative methods alters the experience and complication of plans and policies to be examined in depth and understood in the exact socio-political contexts in which programmes and policies are enacted (Simons, 2009: 23). Case study can also document multiple perspectives, search contended prospects, clarify the influence of central actors and interactions among them in evidencing a story of the programme in action (Simons, 2009: 23). A significant feature of the case study is that it facilitates the reader to have a proper interpreting and understanding of the case to a greater extent (Edwards & Skinner, 2009). This may include new meaning or confirm what the reader already knows, it may explains the reasons for a problem, why something worked or not and it may provide further generalization or applicability (Merriam, 1998 as cited in Edwards & Skinner, 2009: 205206). The reason why I selected both the case studies of Tata Steel India and Coca-Cola India is that because they are one of the largest companies operating in their sectors, which are steel manufacturing and soft- drink market respectively in a developing economy. The various information that are required for this case study research are also obtained from several other sources which are linked up with both the cases, for example, company web site, company financial reports, annual reports, and also by analysing various other documents which are associated with the cases selected.
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other methods of data collection like observation and interviewing (Walker, 1985). Records save both the time and money that the data collecting method actually requires (Walker, 1985).
Tata steel, more than a century old company, started its operations in the year 1907, is undoubtedly the best steel company in India today (Singh, 2007). This enterprise was started by Jamshetji Nusserwanji Tata, an entrepreneur in the pre-independent India who is known
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for his contributions to the Indian industry (Tata Steel, 2009a). He was described as a a true Visionary-more of a nation builder than a wealth-seeking industrialist-he stood apart from his peers (Singh, 2007: 119). His successors expanded the Tata Empire to the current state of more than 85 companies which includes businesses in various sectors like metals, automobiles, engineering, aviation, IT, telecommunication, chemicals, finance, tea, and hotels (Singh, 2007). Tata steel is the first and the chief company of the Tata group. Its headquarters is situated in the city of Mumbai. Its steel plant is in the eastern part of the country in the city of Jamshedpur, and its captive collieries and iron ore mines are located in the cities of Jharkhand and Orissa (Singh, 2007: 119). It is having strength of more than 42,000 workforces. It is the first integrated steel plant in Asia and is now the worlds second most geographically diversified steel producer and a fortune 500 company (Sandhu, 2010: 8). Tata steel has 26 manufacturing units in various countries and a worldwide presence in more than 50 European and rapidly developing Asian economies, which is a well balanced approach (Sandhu, 2010). The Tata steel group currently reported a turnover of US $ 22, 796 million (Tata Steel, 2010). Despite their growth to reach the current state, they never lost sight of their founders core values like concentrate on nation-building activities; plowback the wealth generated from efficient business in the communities where it was earned; treat employees as the producers of its wealth (Singh, 2007: 119). The following part of this section, I would discuss and analyse the Tata case study on its CSR activities and its relation to competitiveness with reference to various key aspects highlighted in the literature.
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The legacy of the Tatas initiatives in CSR grew as the company grew, adding to a host of CSR activities undertaken by them. They in fact had started to voluntarily undertake a host of social activities even before the CSR was recognised in the management lexicon. The literature resulted in finding that the CSR insights of companies in the developed countries are higher when compared to those in developing countries. Contrastingly, Tata steel, a company in a developing country like India has done significantly well concerning the CSR activities and the expenditure comparing to the companies of same sector in the developed countries. For example, in the year 2008 Tata steel spend $30 million concerning environmental and social aspects (Corporate Citizenship Report, 2009), which is more when compared to $23 million by United States Steel Corporation, one of the largest manufacturer of steel in the US (USS Annual Report, 2008). This shows the importance of corporate social responsibility in developing countries and when compared to the developed countries and it also highlights Tata Steels commitment towards the society and its CSR activities ever since its inception. Their dedication to the society stays as the foundation of it is more than a century of sustainability. The various CSR activities that they have undertaken includes health care, education, rural development, relief operations after natural calamities, sports and adventure, civic and community services, vocational training, environment (Singh, 2007: 124). Identifying the significance of health care, Tata Steel have extended their support to the society by opening hospitals, clinics and also other health care campaigns especially in the city of Jamshedpur. They also adopted greater initiatives in educating the rural and lower class people with an aim to reduce the poverty there by enhancing the economic development; vocational training with a purpose to reduce the unemployment in the society especially to the youngsters by establishing vocational training institutions. The company also set up a Tata relief fund for helping the society and also for emergency services
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especially for people affected due to natural calamities (Singh, 2007:128). Concerning the sports activities, they laid concrete foundation to encourage and support several sporting activities sportsmen from different parts of the country. For making this objective further successful Tata Steel dedicated various sports academies especially for football, athletics etc. In relation to environmental safety, Tata Steel was sensitive to the environmental concerns even before talk of ecosystems and biodiversity became fashionable; they spend around Rupees 100 ($ 2.3) for every ton of crude steel manufactured for environmental safety; they also spend huge sums of money to adopt environmental friendly and pollution free technologies and they carried out significant voluntary efforts to plant millions of trees in the various cities they operated (Singh, 2007: 129). All these host of social activities gave an impression to many that it was a company that also made steel (Singh, 2007: 124); that is a company that is primarily social, rather than a business organization. All these activities of the Tata steel enabled in enhancing the ethical, social, governance, labour and environmental aspects in the country. Linking this with the Carrolls statement in the literature, these activities have helped to a greater extent in covering the economic, legal and prudent outlook that the society has on the company (Crane et al, 2008). Despite all these practices, they have not lost the focus in strengthening the business and in fact they have become more competitive. Tata Steels financial reports has shown year on year increase in its production and profitability (net profit) since 2008. Thus, it cannot be said that Tata Steels environmental concerns and CSR activities as a strategic aspect of being competitive. Despite their voluntary environmental practices, large CSR expenditure they were able to post a decent profit every year. This is evident that the company has maintained its profitability and CSR at a steady pace in different paths without exploiting CSR as a strategic tool to increase its competitiveness and performance. This clearly contradicts with the view of Vilanova et al, who indicate that competitiveness is certainly an important driver
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for adopting corporate social responsibility approach (2009). This enhances the companys business prospects in the long run. The alignment of social and economic goals can be seen in the vision statement of the company which states We aspire to be the global steel industry benchmark for Value Creation and Corporate Citizenship (Tata steel, 2009b). The vision statement is the aspiration and model of the all strategic planning of the company in which they have stick with their vision objective. The companys prospect of adopting a global strategy also made them further competitive and became worlds fifth largest steel manufacturer and the worlds only globally diversified steel company. They achieved this worldwide diversification through acquiring companies worldwide. As Mirvis indicated (2008) in the literature that the companies trying to take advantage in the developing environment, and look to acquire the companies which had strategic view in setting up their business prospects. But Tata Steels global approach of acquiring companies worldwide was to achieve increased market share and moreover to be competitive in the global market. They acquired Singapore based NatSteel Ltd to earn its steel business in 2004 for $486.4 million (Business Line, 2005) and also in the year 2005-06 they acquired Millennium Steel based in Thailand (Anand & Singh, 2006). Tata Steel in 2007 acquired Corus by valuing for 6.7 billion, which is an Anglo-Dutch manufacturer of steel which is many times bigger than Tata (Singh, 2007) which especially gave them access to the EU markets (Goldstein, 2008). As a result, they have eased themselves to become the worlds fifth largest steel company. Despite these acquisitions they continued to maintain the same CSR perspectives by strictly binding to their goal and vision. Tata Steel Europe at Port Talbot in the United Kingdom, has started its BOS gas recovery project, which will decrease the locality carbon dioxide emissions yearly by 2,40,000 tonnes (Annual Report, 2010). In Thailand they strengthened their environmental concerns through a safety excellence journey,
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when NatSteel also had been accredited for their efforts in various activities in the area (Annual Report, 2010). Tata Steel thus with all these activities made themselves a role model in the eco friendly and CSR activities all around the world. As Porter & Kramer indicated (2006) that strategy is always about reaching at a certain position, and CSR success is no different, moreover, to a greater extent it is concerned with choosing which all aspects to focus on. Tata Steels worldwide practices and efforts in various social and environmental activities shows their success by all means. As indicated by Frynas (2009) in the literature, the Tata Steels approach to social and environmental aspects can be examined through the two theories, which are stakeholder theory and institutional theory. When considering the responses of the Tata Steel Company in addressing to the social and environmental concerns, they have made greater effort in maintaining appreciable relationship between the external stakeholders. This really highlights their relations to the social drivers in the country. This positive relationship with the stakeholders cannot be concluded on the basis of their influence in the country where they operating, but strictly because of their strategic approach towards the society and environment and various achievements which they have made in terms of corporate social responsibility and there by succeeding their goal and vision. Especially, even when operating in various different economies like Thailand, Singapore, and Europe they continued to carry on with the same strategic move concerning CSR activities. Though there were a lot of environmental, institutional, cultural differences, they have stuck to their principles. Their approach and achievements in the developed countries like Europe is appreciable despite the institutional differences. In fact Tata Steels host country subsidiaries have blended to the CSR practices where ever they have operated.
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environment by creating and supporting sustainable environment and community, increasing the profitability it is significant for all the business firms, and finally to be productive in all its operations. Vilanova et al (2007) in the literature grouped various CSR activities under five dimensions, the Coca-Cola Companys vision which includes the six Ps in fact clearly overlaps with five dimensions indicated by Vilanova et al. All the activities of the company ensure their strictness of being environmental friendly and being stick to the vision of the company. The question which arises here is that whether the Coca-Cola Company followed or sticks to their vision by fulfilling CSR initiatives and maintaining the both community & environmental sustainability a developing country like India. Together with all the efforts they have made in terms of CSR and environmental aspects, the company also devoted itself towards set of environment responsibilities through its business activities in the country. The responsibilities concerning environment was primary out of the corporate social responsibility activities of Coca-Cola in India. As the company is involved in the production process of the beverages, the environment was effected by their production processes through the over consumption of the water level, matters concerning the discharge of the wastewater, abundant consumption of electricity (Faheem, 2009). Though the Coco-Cola company is known for its environmental, community and various other CSR initiatives ever since inception, their expenditure or investment on the CSR and environmental aspects dropped down. Many critics indicated that their expenditure of US$ 20 million for its water conservation was just 1 percent of the companys annual advertising budget, which stood as US$ 2.4 billion (www.indiaresource.org as cited in Faheem, 2009:13). That is they were spending extravagantly more for reputation and image in terms of advertisements but less for managing the water conservation and other related projects. Several allegations arose even which questioned the Companys credibility towards its environmental activities. They were alleged for groundwater level depletion, discharging
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hazardous waste materials in the surrounding which resulted in no accession of water for daily needs in the local communities where they operated (Faheem, 2009). In the Southern part of India, Kerala state, Coco-Cola Company confronted serious allegations like groundwater depletion, wastewater disposal, and also for supplying hazardous chemical fertilizers to the farmers in the local community (Faheem, 2009). Similarly, in another South Indian state called Tamil Nadu, an initiative by SIBCL- a franchisee of CocaCola India Company to start a soft-drink unit by spending US$ 6,500,000 in the district of Thirunelveli poop out in to problems; this initiative of SIBCL was opposed by the local residents in the community, environmentalists and certain political parties have arose fears that the plant may deplete the ground water level and contaminate the water which will affect the local both the environment and the community (Jayaraman, 2005). Coca-Colas reputation in Kerala state and in various other activities that have affected the society was the main reason for the opposition of the new plant in the district of Thirunelveli (Jayaraman, 2005). Though Coca-Cola have made lot of achievements in environmental, community and CSR activities, these above instances shows their lost of trust by the people in the society and the country. Lots of environmentalists and people protested by conducting rallies against their plants in various parts of the country (Faheem, 2009). Moreover, the Center for Science and Environment (CSE) relinquished a report in the year 2003 released evidences of the impurities involved in the soft-drink brands sold by the company, that is 36 times higher than even the European Economic Commission have allowed (Johnson et al, 2006; Faheem, 2009). Despite all these issues and allegations the company neglected all the allegations and controversies and adopted various techniques to create awareness among the people and local community by opening new websites (Faheem, 2009), newspaper ads and various campaigns to assure their products testing results, safety and quality. In addition to these, they overtook various environmental and CSR activities together with activities like water conservation;
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Coco-Cola India exacted that its initiatives concerning rainwater harvesting, water sustainability had helped to a greater extent to make significant reduction in the water consumption by 35 percent between the year 1999 to 2006, and also stated that in next few years it would control the water consumption ever to a greater percent to reach a mark of zero water balance (Faheem, 2009). In addition to these, they aimed to invest extra US$ 25 to 30 million for various water conservation projects; the company made another significant move by investing another US$ 1 million in the year 2008 (Faheem, 2009). These activities helped the Coca-Cola Company to a greater extent to recover from its bad reputation. By the end of 2007, Coca-Cola India, accounted a increase in their sales where the company indicated the significance of Indias population of over 1.1 billion as a major aim for the company in the future (Faheem, 2009). The Coco-Cola Companys operations and activities shows a fall in the investment concerning CSR and other environmental, community aspects. Though they were doing CSR and environmental activities ever since inception, the environmental and product safety concerns that arose in the society especially in the local communities where they operated evidences the clear indication of the companys incapability to stick with their vision. However, their improvements in investments and activities terms of CSR and other environmental activities in 2007 and 2008 shows the Coco-Cola Companys dramatic development in their approach in terms of environmental and community concerns. I view these developments concerning the investments in their CSR and other activities as a move to improving their brand image or as a reputational factor rather than voluntarily adopting those initiatives and implementing as a strategic move. This development helped the company to increase its sales and competitiveness to a greater extent. Though they are the biggest player in the countrys beverage industry and the competition exists everywhere in the market. The primary motive behind developing a CSR model as a
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strategy resulted in gaining awards for its social and environmental initiatives carried out by the company. The Coca-cola India was awarded Golden Peacock award (Faheem, 2009) for the various environmental and also community initiatives, especially the CSR activities carried out by the company in the country. As Kay (1993) indicates in the literature, reputation is one of four elements of competitiveness, which is very powerful tool to convey the information to the customers and achieve recognition in the markets, especially in a developing country like India. CSR is a powerful tool that can be used to gain or build reputation among the public. From the analysis of the above evidences, I infer that CocaColas initiatives towards the social and environmental issues were to gain public recognition and build its brand image. Kemp (2001) and Olukayode (2008) indicated the idea that the companies are trying to assure the social world through various initiatives and practices as a cosmetic approach especially in developing economies as a part of their tactics to elude various obligations towards the society and environment. Moreover, they utilized those initiatives they did as a tactical cosmetic approach to move or divert the attention of people, government and authorities from the environmental causes and other issues which the company created in various parts of the country and to regain the public image as a more tactical.
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5. CONCLUSION
Corporate social responsibility is not something new, though it existed even from the early years; it has recently become a significant for the MNCs as a tool for sustainability, especially in a developing country like India. More and more companies in the developing economies have started adopting and implementing the CSR initiatives. Though the developed countries grades top in terms of the CSR, MNCs in developing economies have also made significant developments in CSR in the recent years. This shows the social, environmental and community concerns of the companies in the developing world. It highlights the MNCs strategy of putting environmental or sustainable development before
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business operations. As a globalized economy, where large companies operate it is more strategic for them to adopt CSR commitments, to carry out its business successfully in this intense competitive world. This article has studied corporate social responsibility used as a strategic tool by multi-national companies in developing countries. The study concentrated on companies in India. In the various literature reviewed on the strategic implications and other factors why companies adopting and implementing CSR in developing countries, the following ideas were used to analyse the case. The classifications and terminologies proposed and aimed by Vilanova et al (2007); the various prospects and views of CSR which he grouped under five dimensions (Vilanova et al, 2007). Carrolls point that the various CSR initiatives and practices carried out by the companies is not just for attaining their goals, but also with an aim to fulfil their rights towards the society and to maintain economical, legal and ethical expectations that society has on the business organization (Crane et al, 2008) and also how organizations or companies carried out and implemented various initiatives as cosmetic approaches as a part of their tactics in terms to benefit a way or another, to gain recognition and image (Kemp, 2001; Olukayode, 2008). The research method adopted for this study was case study method and the reason was because of its appropriateness for analysing, comparing the topic of study and studying the companies in a developing country perspective. I analysed the cases of Tata Steel and CocaCola in India. These two multinational companies were from different sectors and the study explored and analysed their social responsibility aspects and the primary aim behind it especially in a developing economy like India. From my analysis I found that Coca-cola in India developed its CSR strategy and various other environmental initiatives as a reputational factor. Moreover, the company adopted a cosmetic strategy that depicts their tactics for deviating from various allegations and to gain back and increase the companys goodwill and
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public brand image. Though the soft-drink giants corporate vision and policies admits the CSR prospects, they failed to carry on it in all its operations in the country. They utilized it as tool to conceal, overshadow and to direct the attention of the society, government and the authorities from the issues and consequences that the company created and to regain its reputation and brand image in the society. Tata Steel on the contrary adopted CSR strategy which showed their voluntary environmental and social concerns. Tata Steels efforts highlighted their commitments towards their society. The company has made outstanding success in maintaining its relationship with its stakeholders. The strategy of CSR adopted by Tata Steel was not oriented as a cosmetic effort to build false public image. This approach of the company differentiates its intention and motives from that of Coca-Cola. Tata Steel was more
successful in following their vision as they continued to follow the same CSR initiatives strategically in all countries where they had their presence. Though Tata Steel focused CSR as a strategic tool, they were more successful in being competitive, maintaining performance and CSR initiatives without any discrepancies. Their global initiatives especially in countries like Thailand, United Kingdom depicted their commitment towards the society wherever they were present. Though home and host country differences existed among the companies, Tata Steels global strategy and CSR initiatives indicated that they were truly able to follow their policies and vision compared to Coca-Cola.
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