What does enlightened self interest as a justification for corporate social responsibility CSR presume?
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journal article Show Journal of Business Ethics Vol. 85, Supplement 2: Corporate Social Responsibility Implementation (2009) , pp. 285-301 (17 pages) Published By: Springer https://www.jstor.org/stable/40294842 Read and download Log in through your school or library Abstract As a reflection of the values and ethics of firms, corporate social responsibility (CSR) has received a large amount of research attention over the last decade. A growing area of this research is the CSR-consumer relationship. Results of experimental studies indicate that consumer attitudes and purchase intentions are influenced by CSR initiatives-if consumers are aware of them. In order to create this awareness, business is increasingly turning to 'pro-social' marketing communications, but such campaigns is met with scepticism and their effectiveness are therefore uncertain. Consequently, researchers in the field (for example, Maignan, 2001; Mohr et al., 2001) have called for empirical studies to determine the level of actual consumer awareness of CSR initiatives. This study examines the Australian banking sector, which engages in and promotes its CSR activities, to help fill this gap. Results from our qualitative study with bank managers, and our quantitative study with consumers, indicate low consumer CSR awareness levels. Consumer understanding of many of the social issues banks engage with is also low. While CSR is effective in eliciting favourable consumer attitudes and behaviour in theory, CSR has not proven its general effectiveness in the marketplace. The low consumer awareness of the various social issues in which firms engage with their CSR programs suggests that firms may need to educate consumers, so they may better contextualise CSR initiatives communicated. However, better context may amount to little if claimed CSR initiatives are perceived as inconsistent with other facets of the business that reflect its values and ethics. Journal Information The Journal of Business Ethics publishes original articles from a wide variety of methodological and disciplinary perspectives concerning ethical issues related to business. Since its initiation in 1980, the editors have encouraged the broadest possible scope. The term 'business' is understood in a wide sense to include all systems involved in the exchange of goods and services, while 'ethics' is circumscribed as all human action aimed at securing a good life. Systems of production, consumption, marketing, advertising, social and economic accounting, labour relations, public relations and organisational behaviour are analysed from a moral viewpoint. The style and level of dialogue involve all who are interested in business ethics – the business community, universities, government agencies and consumer groups. Speculative philosophy as well as reports of empirical research are welcomed. In order to promote a dialogue between the various interested groups as much as possible, papers are presented in a style relatively free of specialist jargon. Publisher Information Springer is one of the leading international scientific publishing companies, publishing over 1,200 journals and more than 3,000 new books annually, covering a wide range of subjects including biomedicine and the life sciences, clinical medicine, physics, engineering, mathematics, computer sciences, and economics. Rights & Usage This item is part of a JSTOR Collection. Many organisations invest heavily in corporate social responsibility (CSR) programs, in order to create trust amongst their shareholders, employees and customers, as well as improve their corporate brand. But what role does HR play in CSR? Does the profession need to take a more involved role in deciding the direction of organisational CSR strategies? According to Jonny Gifford, research advisor to the UK-based Chartered Institute of Personnel and Development (CIPD), the term ‘CSR’ emerged in the 1960s. Gifford explained “The term ‘CSR’ became increasingly common in the 1990s, in particular when the spotlight was being shone on poor working conditions in global supply chains. CSR or CR (corporate responsibility) has its skeptics, as well as advocates, but the defining feature is that it activity and standards that companies voluntarily sign up to, separate from legal governance.” However, most organisations find it easy to use it as a branding opportunity, maintaining a CSR webpage but not necessarily doing anything about it. By a certain point, organisations usually actually have to take action, as expectations are raised among stakeholders. Organisational attitudes to CSR have evolved over the last decade, and not something to be dismissed. There are two broad aspects to corporate responsibility: the traditional focus on CSR where the organisations works to benefit local communities in which it operates, and environmental policies and activities core to the business and their profits. People Management & CSR People play a central role in the value creation process which is about understanding the way an organization works and the consequences of its activities. An example is organisations treating their customers and suppliers ethically. Defining value creation in narrow financial terms, organisations can develop very far while maintaining a deep disregard for social responsibility. But a triple bottom line view focuses on long-term value creation and unifies this with a broader stakeholder view. This leads organisations to look at what is socially and environmentally sustainable, with ethical conduct integrally linked to value creation.” HR professionals have a three-fold role in CSR, as many aspects relate to HR management. Gifford comments that
HR functions should be merged into CSR. Sometimes, CSR is misconstrued and used as a marketing tool. The HR function is required to think about leadership, recruitment and rewards. A challenge facing organisations in CSR is evaluating the impact of CSR activities on targeted communities, according to Professor Kamel Mellahi, professor of strategic management at Warwick Business School. See: Content Strategy? It’s Also a Recruiting Tool Mellahi explained “CSR differs from any other corporate activity. It deals with issues like environmental pollution, child labor and product safety which are often seen as outside the traditional boundaries of a business. Therefore it’s not easy to measure CSR performance by using traditional indicators such as return on investment. Effective measures of CSR must consider economic, social and environmental impact.” Embedding corporate responsibility into a business is about making it an integrated part of the organisational culture. HR is ideally placed to gauge organizational culture, understand it and change it. The biggest driver for an organisations increased focus on CR generally comes from greater pressure by governments or regulators. Justifying CSR CSR can be justified either in terms of altruism or enlightened self-interest. Definitions of CSR typically contain altruistic elements requiring corporations to acknowledge their obligations to stakeholders. By comparison, enlightened self-interest advances the belief that ethical behaviour can be good for business. An example can be gaining a competitive edge by adding value to an organisation’s products or a positive public reputation. Of these two approaches, enlightened self-interest is favoured most strongly by companies. To illustrate this, Google’s CSR strategy is openly motivated by enlightened self-interest. According to Axel Marrtinez, the assistant treasurer for Google, it invested US$28 million in 240 affordable housing units for low-income families in Boston, Massachusetts. This not only showed it to be a good corporate citizen, but was also calculated to benefit Google from an improvement in societal standing. B contributing to social problem solving, they created positive branding for themselves within local communities and elsewhere. CSR programs like Google’s are justified by enlightened self-interest, on the basis of their utilitarian benefit. In this case, the material benefits of low-cost housing enjoyed by Boston residents is equal to the reputation gains and societal standing afforded to Google. CSR beneficiaries are perceived in terms of their intrinsic value to the company. This is where the donor-recipient relationship can seem exploitative and enlightened self-interest can damage the integrity of CSR. To reduce cynicism and to avoid producing exploitative-prone CSR strategies, altruism must be embedded within the corporation’s core purpose and the interests of all stakeholders must be taken into account, not only those of shareholders. Aygaz, Turkey’s leading gas provider, is a good example of a company with altruistic orientation. Their Climate Change Education Program aims to increase awareness amongst Turks of global warming. Aygaz centred their program around recipients, involving their customers in pilot projects and eventually achieving a 51 percent increase in climate change awareness. The 21 percent increase sale in gas appliances was an added bonus, rather than the sole focus of CSR activity. Aygaz showed that CSR strategies motivated by a genuine concern for the common good are less open to criticism. Accountability of CSR strategies is improved when beneficiaries are actively involved within the CSR design process and are seen as ‘ends’ in themselves, not simply a ‘means to an end’. In ending, strong CSR strategies are those where altruism is deeply embedded within the organisation and places beneficiaries at the centre of programs. This increases both organisational accountability and transparency. Although enlightened self-interest provides a logical business reason for pursuing CSR initiative, these frequently produce weak programs open to accusations of marketing spin or stakeholder manipulation. References Friend, J (2014). CSR: Altruim vs Enlightened Self-Interest. CSR International. Higginbottom, K. (2014). Why HR Needs To Take A Leadership Role in CSR. Forbes. (Visited 1 times, 1 visits today) What is the enlightened selfWhat is the enlightened self-interest model of CSR? That it is in an organization's own best interest to put itself first rather than its ethics. That it is in an organization's best interest to consider what a shareholder would want. That it is in an organization's own best interest to act in an ethical way.
How social responsibilities are enlightening the selfCorporate Social Responsibility
Other enlightened self-interest examples in business include donations or scholarships, which double as a form of public relations. They encourage consumers to form a positive opinion of the brand in much the same way as traditional marketing campaigns.
What is the justification for CSR?CSR demonstrates that you're a business that takes an interest in wider social issues, rather than just those that impact your profit margins, which will attract customers who share the same values. Therefore, it makes good business sense to operate sustainably.
Can CSR be converted into enlightened selfCSR can be justified either in terms of altruism or enlightened self-interest. Definitions of CSR typically contain altruistic elements requiring corporations to acknowledge their obligations to stakeholders.
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