Relationship between general CSR management practices and the development of internal social responsibility

Oscar Licandro

doi:10.21678/jb.2020.1453

Abstract

Companies that embrace corporate social responsibility (CSR) tend to adopt certain general practices, such as: establishing social responsibility areas, preparing codes of ethics, publishing social or sustainability reports, joining organizations that promote social responsibility, or starting their own foundations. The question then arises as to whether these general practices actually influence the responsible behavior of companies. This article explores the relationship between the application of these general CSR practices and the level of development of internal social responsibility (ISR). To study this relationship, information was drawn from the system of CSR indicators (CSRI) overseen by the Cristian Association of Business Managers (Asociación Cristiana de Dirigentes de Empresas, a self-evaluation system in which Uruguayan companies participate annually. The CSRI uses 25 indicators to measure the level of ISR development and record the application of eight general CSR practices. After carrying out a review of the literature, the 25 indicators were organized into nine dimensions of ISR: employees’ human rights; informing employees about issues that affect them; occupational health and safety; internal environment; personal and professional development; employment protection; voluntary provision of benefits; union relations; and fair pay. After analyzing the statistical correlation between the application of general CSR practices and the level of development of social responsibility across the nine dimensions, the results indicate the following: three general practices positively correlate with the development of ISR in all its dimensions (including CSR in strategic planning, involving the management team in CSR issues, and joining an organization that promotes CSR); one practice (preparing a code of ethics) correlates with half of the dimensions; and the other four practices (publishing a social or sustainability report, assigning a full-time employee to CSR management, having a CSR team or area, and possessing a foundation) correlate with none or almost none of the dimensions.

Highlights

A growing number of firms around the world have embraced corporate social responsibility (CSR)
Indexes were built to measure each of the dimensions of internal social responsibility (ISR), for which the mean value was calculated of the indicators that comprise them
The finding that only some of these practices have an impact on the level of development of the ISR is a new one, since it is assumed in the business world that its application is conducive to higher levels of social responsibility and acts as an indicator of companies’ socially responsible behavior

Summary

Introduction

A growing number of firms around the world have embraced corporate social responsibility (CSR). In the Latin American case companies are members of national organizations (such as IARSE in Argentina, Instituo ETHOS in Brazil, Acción Empresarial in Chile, Corporación FENALCO Solidario in Colombia, Asociación Empresarial para el Desarrollo in Costa Rica, Consorcio Ecuatoriano para la Responsabilidad Social in Ecuador, CEMEFI in Mexico, SUMARSE in Panama, Perú 2121 in Peru, DERES in Uruguay) and international organizations (such as Global Compact Network) that promote, and have brought their corporate foundations (originally geared toward philanthropic activities) into line with their CSR strategies in the communities in which they operate In this context, it is worth asking whether these practices do have a positive influence on the responsible behavior of companies. Do these practices translate into concrete actions conducive to responsible management of business externalities vis-a-vis stakeholders and the environment? The answer to this question is important, for various reasons: 1) because these actions require resources, and it is important to determine whether these resources are used efficiently to improve CSR; 2) because, in general, these actions are easy to communicate and can be used by companies as an easy means of projecting an image of social responsibility

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Conclusion