Challenges in the Era of Globalization - iaabd

Challenges in the Era of Globalization
Edited by Emmanuel Obuah
relevance and applicability vary across different country contexts (Matten and Moon, 2008). Companies
across the world exhibit a variety of CSR principles, policies and practices (Baughn et al., 2007), with
different levels of intensity (Welford, 2005). In an institutional analysis of corporate social responsibility
in Kenya, Muthuri and Gilbert (2011), found that conditions such as lack of government regulations, and
the government capacity to enforce regulation, the establishment of a vibrant CSR institutions and a
vibrant civil society that advance civil regulations are key drivers of CSR engagements on organizations.
This confirms the role of external stakeholders in the planning and implementation of CSR engagements
by organizations. Multiple conceptualizations of CSR exist, and a single definition has yet to be agreed on
(Gariba and Mele, 2004).Frederick’s notion of CSR (Frederick, 1997) is that corportions have an
obligation to constituent groups in society other than shareholders and beyond that prescribed by law or
union contract. Similarly, Wood (1991) states that, the basic idea of CSR is that, business and society are
interwoven rather than distinct entities. For Steiner and Steiner (2000), social responsibility is the duty a
corporation has to create wealth by using means that avoid harm, to protect, or enhance societal assets.
McWilliam and Siegel (2001) describe CSR as actions that appear to further some social good beyond the
interest of the firm and which are required by law. The conceptualizations of CSR above are in sharp
contrast with arguments by Sloan (1964) that “the strategic aim of a business is to earn a return on capital,
and if in any particular case the resturn in the long run is not satisfactory, then the deficiency should be
corrected or the activity abandoned for a more favourable one”. However, the myth that firms have only
one overarching goal within society (i.e. shareholder wealth maximization) has, however, clearly become
obsolete. A more balanced, value-based and integrative perspective has evolved (Holliday et al., 2002).
Therefore, in this study, the stakeholder theory approach which is a more balanced, value-based and
integrative approach to CSR is used.
The stakeholder theory therefore requires organizations to balance the conflicting needs of its various
stakeholders. Maignan et al., (2005) outlined common issues of concern for stakeholders: employees-
compensation and benefits, training and development, employee diversity, occupational health and safety
and communication with management. For customers-product safety and quality, management of
customer complaints, services to disabled customers were identified as key issues. Investors were found
to be interested in transparency of shareholder communication and shareholder rights whilst organizations
that encourage suppliers from developing countires as well as minority suppliers were considered socially
responsible. Within the community, public health and safety protection, conservation of energy and
materials and donations to support local organizations are some of issues considered critical.
Environmental groups also focus on minimizing the use of energy, emissions, waste, and adverse
environmental impacts of products and services. Similarly, Harahap (2006), identified some form of
socially responsible behaviors as: disclosure of information to shareholders, disclosure of the board of
directors, equality of treatment for minorities, environmental protections (e.g. reduction of emissions and
waste recycling of materials), philanthropy (donating to charities), involvement in social causes
(involving anything from human rights to AIDS education), urban investment (working with local
government to regenerate
Research Methodology
The study made use of qualitative study to provide insight into the topic (Robson, 2002). Qualitative
research typically seeks to provide insight and not to measure. It is argued that, respondents (Spiggle,
1994) can gain this insight through a process consisting of analysis and meaningful integration of views.
Even though the wider academic marketing community has some reservations about qualitative research
(Hunt, 1994), it has been observed that studies that employ qualitative research have increased markedly
over the past decade (Hinson, 2010). Again, it is well-known fact that most qualitative research is
exploratory and this is in keeping with the purpose of this study, which sought to gain an understanding of
CSR practices among leading firms in Ghana. According to Robson (2002), an exploratory study
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