Determinants of Corporate Social Responsibility of a Social Enterprise: An Empirical Analysis

Abstract

This paper makes an attempt to estimate the corporate social responsibility (CSR) of a social enterprise in Singapore. Following the literature, we measure CSR based on a set of standard questions to gauge how the public values CSR according to these standard questions. The social enterprise being studied is NTUC Fairprice. NTUC is Singapore's labor movement which is a macro-focused union that works well with the government to achieve growth with equity ([Yao, S and SB Chew (2014). A mathematical model of a macro-focused labour union. Singapore Economic Review, 59(4), 1–13] for the theory of the macro-focused union). In this study, we also measure the CSR of Giant, another supermarket which is a commercial firm. A comparative analysis of the estimate of the CSR of these two firms is then made. The main finding is that, based on a field survey, Singaporeans value the CSR of NTUC Fairprice more highly than that of Giant. Our regression analysis reveals that the CSR valuation of NTUC Fairprice is basically determined by how people perceive NTUC Fairprice in terms of their sentiments. On the other hand, the only variable that is statistically significant in explaining changes in the CSR valuation of Giant is Malay respondents. The study also finds that, based on the second field survey, almost 85% of respondents chose to become members of NTUC because of non-collective bargaining benefits and only 10% joined the union because of sentiment. The main conclusion is that it pays for an organization to be known as a social enterprise. As NTUC Fairprice is a social enterprise of the labor movement in Singapore, union members are always supportive of the social effort of its cooperatives, of which NTUC Fairprice is one. An important incentive for workers to become union members is the provision of non-collective bargaining benefits provided by the labor movement.