Adoption of Corporate Social Responsibility in a Large International Financial Corporation in Switzerland from the Triple Bottom Line Sustainability Viewpoint

Abstract

In the context of globalisation and the increasing power and impact of globally acting corporations on the environment and societies, the concept of Corporate Social Responsibility (CSR) is gaining central importance. CSR is, however, a difficult term to define and understanding of its concept varies among stakeholders. In this way, its absorption and adoption into a corporation could vary depending on the particular conditions, such as market segment, management paradigm, regulations and other societal and environmental conditions. As a comprehensive concept, Triple Bottom Line (TBL) sustainability provides a holistic framework for a comprehensive CSR policy implementation within a global context considering environmental, societal, and economic aspects. TBL suggests that these aspects are interwoven and cannot be managed separately. The level of adoption of a TBL-based CSR policy could be, therefore, an indication of the degree of a sustainable business conduct. This thesis assesses the current level of adoption of a TBL-based CSR policy in a global financial corporation headquartered in Switzerland by a) assessing employees’ perception of the impact of various CSR-related aspects on corporations’ financial and operational performance and b) the managerial perceptions and the position of the dominant management paradigm in relation to CSR. The thesis considers the corporation as a social organization comprising aspects of complexity. With these lenses, the requirements of a TBL-based CSR policy are discussed and contrasted with the functionalist dominant management paradigm, which is perceived and assumed as shareholder value-oriented and as being focused solely on profit maximization. A survey among the employees has been conducted capturing the individual employee’s perception of sustainability and the involved values for their judgment of the corporation’s performance indicators. Furthermore, a series of interviews with four directors in charge of CSR activities have been conducted on their perception of CSR, its implementation within the corporation and on managerial aspects in dealing with CSR. The analysis results of both studies were presented to these directors in the joint analysis and reflection sessions with the aim of capturing emerging additional insights, generating actionable knowledge, and specifying actions for change where possible.