Advertisement

Conceptual Framework for Corporate Responsibility Management: A Critical Review of Sustainable Business Practice Based on a Case Study of a Leading Transnational Corporation

  • Linda O’Riordan
  • Piotr Zmuda
Chapter
Part of the FOM-Edition book series (FOMEDITION)

Abstract

As stakeholder expectations surrounding the role of business in society evolve, concepts of corporate responsibility (CR) and sustainable development (SD) become increasingly relevant. Significantly in this regard, a review of the latest literature suggests that the management tools for translating notions of sustainable responsible management into everyday business practice are limited. The instruments available inadequately provide feasible management solutions either because they are vague and under-developed, and accordingly lack comprehensiveness, or, in contrast, they are so overly complicated that management decision-makers view them as incomprehensible. The resulting lack of transparency for all stakeholders, but in particular for decision-makers facing the management challenge of identifying why and how to integrate CR and SD solutions into their business operations, is the “missing link” upon which this chapter focuses. It aims to address the identified lacunae by rigorously reviewing a recent conceptualisation (CR management framework) of corporate approaches to responsible stakeholder management. It applies problem-solving techniques both theoretically and empirically via qualitative evidence obtained in a case study of a leading transnational corporation’s CR activities. This study simultaneously tests the framework and, in doing so, critically examines the responsible activities of the company under investigation. The ensuing results highlight both the positive potential and eventual room for improvement in both the management framework and the company’s CR response.

Keywords

Corporate Social Responsibility Business Ethic Corporate Responsibility Management Framework Triple Bottom Line 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

References

  1. Aguilar, F. J. (1967). Scanning the business environment. New York: Macmillan.Google Scholar
  2. Andler, N. (2011). Tools for project management, workshops and consulting: A must-have compendium of essential tools and techniques. Erlangen: Publicis Publishing.Google Scholar
  3. Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99–120.CrossRefGoogle Scholar
  4. Barney, J. B., & Hesterly, W. S. (2010). Strategic management and competitive advantage: Concepts and cases (3rd ed.). Upper Saddle River: Prentice Hall.Google Scholar
  5. Berggren, E., & Bernshteyn, R. (2007). Organizational transparency drives company performance. Journal of Management Development, 26(5), 411–417.CrossRefGoogle Scholar
  6. Biggs, D. (2010). Management consulting. A guide for students. Hampshire: Cengage.Google Scholar
  7. Brundtland, G. H. (1987). Our common future. Oxford: Oxford University Press.Google Scholar
  8. Burchell, J., & Cook, J. (2006). It’s good to talk? Examining attitudes towards corporate social responsibility dialogue and engagement processes. Business Ethics: A European Review, 15(2), 154–170.CrossRefGoogle Scholar
  9. Campbell, D. J. (2000). Legitimacy theory or managerial reality construction? Corporate social disclosure in marks and spencer plc corporate reports, 1969–1997. Accounting Forum, 24(1), 80–100.CrossRefGoogle Scholar
  10. Carroll, A. B., & Buchholtz, A. K. (2009). Business and society. Ethics and stakeholder management (7nd ed.). Mason: South-Western Cengage Learning.Google Scholar
  11. Crane, A., & Matten, D. (2004). Business ethics, a European perspective: Managing corporate citizenship and sustaintability in the age of globalization. Oxford: Oxford University Press.Google Scholar
  12. Crane, A., & Matten, D. (2007). Business ethics: Managing corporate citizenship and sustaintability in the age of globalization (2nd ed.). Oxford: Oxford University Press.Google Scholar
  13. Crane, A., & Matten, D. (2010). Business ethics: Managing corporate citizenship and sustaintability in the age of globalization (3rd ed.). Oxford: Oxford University Press.Google Scholar
  14. Eisenführ, F., Weber, M., & Langer, T. (2010). Rational decision making. Heidelberg: Springer.CrossRefGoogle Scholar
  15. Eisenhardt, K. M. (1989). Building theories from case study research. Academy of Management Review, 14, 532–560.Google Scholar
  16. Elkington, J. (1997). Cannibals with forks: The triple bottom line of 21st century business. Oxford: Capstone Publishing.Google Scholar
  17. Ethical Corp. (2009). If Roche sneezes the pharmaceutical industry catches a cold. http://www.ethicalcorp.com. Accessed 18 Sept 2009.
  18. Fama, E., & Jensen, M. (1983). Separation of ownership and control. Journal of Law and Economics, 26(6), 301–325.CrossRefGoogle Scholar
  19. Ferrell, O. C., Fraedrick, J., & Ferrell, L. (2013). Business ethics: Ethical decision-making and cases. Mason: South-Western Cengage Learning.Google Scholar
  20. Fombrun, C. J., & Nevins, M. D. (2004). The advice business: Essential tools and models for management consulting (pp. 75–240). Upper Saddle River: Prentice-Hall.Google Scholar
  21. Forbes. (2011). The 147 companies that control everything. http://www.forbes.com/sites/bruceupbin/2011/10/22/the-147-companies-that-control-everything/. Accessed 28 Jan 2014.
  22. Freeman, R. E. (1984). Strategic management: A stakeholder approach. Marshfield: Pitman Publishing.Google Scholar
  23. Freeman, R. E., Martin, K., & Parmar B. (2007). Stakeholder capitalism. Journal of Business Ethics, 74, 303–314.CrossRefGoogle Scholar
  24. Friedman, M. (13 Sept 1970). The social responsibility of business is to increase its profits. The New York Times Magazine.Google Scholar
  25. Gray, R. H., Kouhy, R., & Lavers, S (1995). Corporate social and environmental reporting: A review of the literature and a longitudinal study of UK disclosure. Accounting, Auditing, and Accountability Journal, 8(2), 47–77.CrossRefGoogle Scholar
  26. Haniffa, R. M., & Cooke, T. E. (2005). The impact of culture and governance on corporate social reporting. Journal of Accounting and Public Policy, 24(5), 391–430.CrossRefGoogle Scholar
  27. Hardin, G. (1968). The tragedy of the commons. Science, 162, 1243–1248.CrossRefGoogle Scholar
  28. Hardin, G. (1994). The tragedy of the unmanaged commons. Trends in Ecology and Evolution, 9(5), 199.CrossRefGoogle Scholar
  29. Holland, D., & Albrecht, C. (2013). The worldwide academic field of business ethics: Scholars’ perceptions of the most important issue. Journal of Business Ethics, 117(4), 777–788.CrossRefGoogle Scholar
  30. Homann, K., & Lütge, C. (2005). Einführung in die Wirtschaftsethik [Introduction to business ethics]. Muenster: Lit-Verlag.Google Scholar
  31. Hungenberg, H. (2010). Problemlösung und Kommunikation: Vorgehensweisen und Techniken [Problem solving and communication: Procedures and techniques] (3rd ed.). Munich: Oldenbourg.CrossRefGoogle Scholar
  32. Interview. (2014). Face-to-face interview based on a structured questionnaire held with the two authors and two senior executives from the Johnson & Johnson Corporate Citizenship Trust at the Dorint Neuss Kongresshotel, Selikumerstrasse 25, Neuss, 41460, Germany on 22 Jan 2014.Google Scholar
  33. ISO. (2010). Guidance on social responsibility. International Standard ISO/DIS 26000. Geneva: International Organization for Standardisation.Google Scholar
  34. Johnson & Johnson. (2014a). The J & J Corporate Citizenship Trust. http://www.jjcct.org/who-we-are/. Accessed 24 Jan 2014.
  35. Johnson & Johnson. (2014b). About us. http://www.jnj.com/about-jnj. Accessed 24 Jan 2014.
  36. Johnson & Johnson (2014c). Corporate Citizenship Trust annual report 2012: Inspiring, connecting, engageing. http://issuu.com/trust2013/docs/Johnson-Johnson-corporate-citizensh/1?e=8440982/2937331. Accessed 24 Jan 2014.
  37. Jonker, J. (2012a). New business models. An exploratory study of changing transactions creating multiple value(s). Nijmegen: Nijmegen School of Management.Google Scholar
  38. Jonker, J. (2012b). Sustainable thinking acting 2011–2035: An inspirational book for shaping our common future. Alphen aan den Rijn: Kluwer.Google Scholar
  39. Jonker, J., Stark, W., & Tewes, S. (2011). Corporate Social Responsibility und nachhaltige Entwicklung: Einführung, Strategie und Glossar [Corporate social responsibility and sustainable development: Introduction, strategy and glossary]. Heidelberg: Springer.CrossRefGoogle Scholar
  40. Jonker, J., O’Riordan, L., & Marsh, N. (11–13 Sept 2013). Organising as the art of balancing values: Enabling the realisation of multiple and shared values through a generation of new business models. Paper presented at the Corporate Responsibility Research Conference, University of Graz (Austria).Google Scholar
  41. Küpper, H. U. (2011). Unternehmensethik: Hintergründe, Konzepte und Anwendungsbereiche [Business ethics: Background, concepts and applications]. Stuttgart: Schaeffer-Poeschel.Google Scholar
  42. Laux, H., Gillenkirch, R. M., & Schenk-Mathes, H. Y. (2012). Entscheidungstheorie [Decision making theory] (8th ed). Wiesbaden: Springer-Gabler.CrossRefGoogle Scholar
  43. Lindblom, C. K. (1994). The implications of organisational legitimacy for corporate social performance and disclosure. Paper presented at the Critical Perspectives on Accounting Conference, New York, NY.Google Scholar
  44. Lindgreen, A, & Swaen, V. (2010). Corporate social responsibility [Special issue]. International Journal of Management Reviews, 12, 1–7.CrossRefGoogle Scholar
  45. Lindgreen, A., Swaen, V., & Johnston, W. J. (2009). Corporate social responsibility: An empirical investigation of U.S. organizations. Journal of Business Ethics, 85(2), 303–323.CrossRefGoogle Scholar
  46. May, S., Cheney, G, & Roper J. (2007). The debate over corporate responsibility. Oxford: Oxford University Press.Google Scholar
  47. McDonough, W., & Braungart, M. (2002). Cradle to cradle: Remaking the way we make things. New York: North Point Press.Google Scholar
  48. Millennium Development Goals. (2014). Millennium development goals and beyond 2015. http://www.un.org/millenniumgoals/. Accessed 22 Jan 2014.
  49. Minto, B. (2009). The pyramid principle: Logic in writing and thinking (3rd ed.). Harlow: Pearson.Google Scholar
  50. New Scientist. (2014). Revealed—The capitalist network that runs the world. http://www.newscientist.com/article/mg21228354.500-revealed-the-capitalist-network-that-runs-the-world.html#.UudnPbS1L3g. Accessed 28 Jan 2014.
  51. O’Riordan, L. (2010). Perspectives on corporate social responsibility (CSR): Corporate approaches to stakeholder engagement in the pharmaceutical industry in the UK and Germany (Doctoral thesis, Bradford University School of Management, Bradford, UK). http://ethos.bl.uk/OrderDetails.do?uin=uk.bl.ethos.545644. Accessed 1 Dec. 2013.
  52. O’Riordan, L., & Fairbrass, J. (2008). Corporate social responsibility (CSR): Models and theories in stakeholder dialogue. Journal of Business Ethics, 83(4), 745–758.CrossRefGoogle Scholar
  53. O’Riordan, L., & Fairbrass, J. (2013). Managing stakeholder engagement: A new conceptual framework. Journal of Business Ethics. doi:10.1007/s10551-013-1913-x.Google Scholar
  54. O’Riordan, L., Jonker, J., & Marsh, N. (2013). The missing link in corporate responsibility: Connecting for sustainable growth. KCC White Paper 1, Essen. http://www.fom.de/fileadmin/fom/kc/kcc/KCC_White_Paper_1_ONLINE.pdf. Accessed 22 Jan 2014.
  55. Pies, I., Hielscher, S., & Beckmann, M. (2009). Moral committments and the societal role of business: An ordonomic approach to corporate citizenship. Business Ethics Quarterly, 19(3), 375–401.CrossRefGoogle Scholar
  56. Porter, M. E. (1980). Competitive strategy. New York: Free Press.Google Scholar
  57. Porter, M. E. (1985). Competitive advantage: Creating and sustaining superior performance. New York: Free Press.Google Scholar
  58. Porter, M., & Kramer, M. (2011). Creating shared value: How to reinvent capitalism and unleash a wave of innovation and growth. Harvard Business Review, 89(1/2), 62–77.Google Scholar
  59. Rasiel, E. M., & Friga, P. N. (2001). The McKinsey mind: Understanding and implementing the problem-solving tools and management techniques oft he world’s top strategic consulting firm. New York: McGraw-Hill.Google Scholar
  60. Robson, C. (2004). Real world research (2nd ed.). Madden: Blackwell.Google Scholar
  61. Schreyögg, G., & Werder, A. (2004). Handwörterbuch Unternehmensführung und Organisation [Handbook dictionary of business management and organisation]. Stuttgart: Schaeffer-Poechel.Google Scholar
  62. Schwalbach, J. (2000). Image, Reputation, und Unternehmenswert [Image, reputation, and company value]. In: B. Baerns (Ed.), Information und Kommunikation in Europa. Forschung und Praxis. [Transnational communication in Europe. research and practice] (pp. 287–297). Berlin: Vistas. http://www.econbiz.de/archiv/b/hub/management/imge.pdf. Accessed 22 Jan 2014.Google Scholar
  63. Schwartz, M. S., & Carroll, A. B (2008). Integrating and unifying competing and complementary frameworks: The search for a common core in the business and society field. Business & Society, 47(2), 148–186.CrossRefGoogle Scholar
  64. Stark, A. (1993). What’s the matter with business ethics? Harvard Business Review, 71(3), 38–48.Google Scholar
  65. The Economist. (2009). What went wrong with economics. http://www.economist.com/node/14031376. Accessed 24 Jan 2014.
  66. The Economist. (2013). The Johnson & Johnson dynasty: Pass the painkillers–A headache-inducing biography of the Johnson family. http://www.economist.com/news/books-and-arts/21583230-headache-inducing-biography-Johnson-family-pass-painkillers. Accessed 24 Jan 2014.
  67. Ulrich, P., & Fluri, E. (1995). Management: Eine Konzentrierte Einführung [Management: A concise introduction]. Berne: Campus.Google Scholar
  68. Wagner, G. R. (2006). Gesellschaftliche Verantwortung als Unternehmensbild? [Social responsibility as a company image]. In S. Hilger (Ed.), Kapital und Moral: Ökonomie und Verantwortung in historisch-vergleichenden Perspektive [Capital and moral: Economics and responsibility from historical and comparative perspective] (pp. 35–66). Cologne: Böhlau.Google Scholar
  69. Weber, M. (1917). Der Sinn der “Wertfreiheit” der soziologischen und ökonomischen Wissenschaften [The meaning of “value-freedom” of the sociological and economic sciences]. http://www.zeno.org/nid/20011440333. Accessed 21 Jan 2014.
  70. Weber, M. (1988). Die “Objektivität” sozialwissenschaftlicher und sozialpolitischer Erkenntnis [The “objectivity” of social science and social cognition]. http://www.zeno.org/nid/20011440104. Accessed 21 Jan 2014.
  71. Weber, M. (1992). Politik als Beruf [Politics as a vocation]. Stuttgart: Reclam.Google Scholar
  72. Welford, R. (2008). Reporting on community impacts—A survey conducted by the global reporting initiative, the University of Hong Kong, and CSR Asia. https://www.globalreporting.org/resourcelibrary/Reporting-on-Community-Impacts.pdf. Accessed 5 Feb 2014.
  73. Wickham, L., & Wilcock, J. (2012). Management consulting. Delivering an effective project (4th ed.). Harlow: Pearson.Google Scholar
  74. Wieland, J. (1999). Die Ethik der Governance [The ethics of governance]. Marburg: Metropolis.Google Scholar
  75. Williamson, O. E. (1979). Markets and hierarchies: Analysis and anti-trust implications. New York: Free Press.Google Scholar
  76. Williamson, O. E. (1985). The economic institutions of capitalism. New York: Free Press.Google Scholar
  77. Woodward, D., Edwards, P., & Birkin, F. (2001). Some evidence on executives: Views of corporate social responsibility. British Accounting Review, 33, 357–397.CrossRefGoogle Scholar
  78. Yin, R. K. (2009). Case study research: Design and methods (4th ed.). Thousand Oaks: Sage.Google Scholar

Copyright information

© Springer Fachmedien Wiesbaden 2015

Authors and Affiliations

  1. 1.FOM University of Applied SciencesEssenGermany

Personalised recommendations