Today, ethics gain more and more importance in our economy and the often-heard statement “Global capitalism, local values” underlines the trend to make money with the help of local values. From that aspect, capitalism does not seem to appear that ignoring and barbarous but shows us that in deed that human values and ethical standards are anchored in the acting of huge, successful multinational concerns.
The role of values in that case is crucial as they affect our everyday life. Everything we do and the way we think is guided by values which we got communicated from our families, people that seem to be important for us or from institutions that accompanied us for a period of our life. Values and behaviour are some kind of indicators that form generations and decades.When talking about values and ethics, the upcoming importance of corporate socially responsible behaviour in form of CSR projects can not be disregarded. It is definitively the buzzword of the early 21st business century. Nearly every huge company has to face corporate social responsibility activities in order to behave in a way its customers and society in general want them to. So the role of external pressure should not be underestimated. A good example is McDonald’s. The 40 billion US-dollar concern continuously implements CSR programs but does not behave in a socially responsible way when talking about the firm’s employees and working conditions. Work at Mc Donald’s is low-skilled, hard and most of the time unrelenting, as one of the company mottos suggests: “… if there is time to lean there is time to clean” (Royle, 2005, p.45). Bad working conditions like underpayment and endless night shifts make Mc Donald’s to appear in another light in the minds of its employees and customers, after the motto “We sold them a dream and paid them as little as possible”.
If participating companies mean these activities really serious is often doubtful. Also the question if these activities really fit to the corporate culture of the organization stays unanswered. So organizations implement projects like that in order to be legitimated by society, but when we take a look behind the organization’s curtain, it can be recognized that the CSR activity is only a facade of legitimating.
Inhaltsverzeichnis (Table of Contents)
- I Declaration
- II Motivation
- 1 Corporate Social Responsibility
- 1.1 Definition
- 1.2 History
- 1.3 Corporate Social Responsibility in Austria
- 1.4 "Implicit" and "Explicit" Corporate Social Responsibility
- 1.5 The Two Pillars of CSR
- 1.6 Prominence of CSR
- 1.7 Why to Behave in Socially Responsible Ways?
- 1.7.1 Motivation for CSR
- 1.7.2 Advantages of CSR
- 1.8 Limits of CSR
- 2 Organizations
- 2.1 What is an Organization?
- 2.2 Natural Adaptation: Herbert Spencer
- 3 Strategy
- 3.1 Mintzberg
- 3.2 Social Responsibility in Strategy
- 3.2.1 Drivers of Implementation
- 3.2.2 Instrumental and Intrinsic CSR
- 3.2.3 Comparison Between the Instrumental and Intrinsic Form of CSR to Explicit and Implicit CSR
- 3.3 Image and Reputation
- 4 Theories Behind CSR
- 4.1 Theory of Contingency
- 4.2 Theory of Consistency
- 4.3 Congruency and Culture - 7-S Framework McKinsey
- 4.3.1 Objective and Application
- 4.3.2 Hard S
- 4.3.3 Soft S
- 5 Values and Attitudes
- 5.1 The Role of Personal Values and their Impact on our Behaviour
- 5.1.1 Universal Values
- 5.1.2 Personal Values
- 5.2 Values and Organizational Behaviour
- 5.2.1 Value Systems
- 5.2.2 The Impact of Values on Organizations
- 5.2.3 Example of BDO Stoy Hayward
- 6 Change on Values and Consumer Behaviour
- 6.1 From Material to Post Material Values
- 6.2 Maslow's Hierarchy of Needs
- 6.3 Herzberg's Motivational Theory
- 6.4 Maslow, Herzberg and CSR today
- 7 Stakeholder Theory
- 7.1 Definition
- 7.2 Stakeholder-Perspectives
- 7.2.1 Inside-Out Perspective
- 7.2.2 Outside-In Perspective
- 7.3 Importance of Stakeholders
- 7.4 Three Approaches of Stakeholder Theory
- 7.5 Shareholder Value vs. Stakeholder Value
- 8 Institutionalized Organizations
- 8.1 Isomorphism
- 8.1.1 Does Isomorphism Legitimate?
- 8.1.2 Practical Examples: Shell and Nike
- 8.2 Importance of Ethics and Social Responsibility for Organizational Effectiveness
- 8.3 Institutionalism and Corporate Socially Responsible Behaviour
- 9 Corporate Culture
- 9.1 Definition
- 9.2 Applied Levels of Corporate Culture
- 9.3 Consequences of a Strong Corporate Culture
- 9.3.1 Strong and Weak Cultures
- 9.3.2 Corporate Identity
- 9.4 Benefits and Positive Effects
- 9.5 Corporate Culture - The Key to Success?
- 10 Discussion
- 11 Case Study Palfinger
- 11.1 Introduction to the Company
- 11.2 External Activities
- 11.3 Background
- 11.4 Palfinger's Solidarity Network
- 11.4.1 Why to Act in a Socially Responsible Way?
- 11.4.2 Why Focusing on the Solidarity Network?
- 11.4.3 Intention
- 11.4.4 Palfinger's Solidarity Network under the Aspect of Institutionalism
- 11.5 Corporate Culture of Palfinger
- 11.5.1 Palfinger's Core Values
- 11.5.2 Palfinger's Values Management
- 11.5.3 Explicit or Implicit CSR?
- 11.6 The Role of Stakeholders at Palfinger
- 11.7 Conclusion
- III Literature
- IV Sources from the Internet
- V Table of Figures
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This diploma thesis explores the concept of Corporate Social Responsibility (CSR) and its implications for organizations. It investigates the historical development of CSR and its prevalence in Austria. The thesis delves into various theoretical perspectives, including contingency theory, consistency theory, and the McKinsey 7-S framework. The work further examines the role of personal values and organizational behavior in influencing CSR practices. It explores how consumer behavior has shifted from materialistic values to post-materialistic values, drawing on Maslow's hierarchy of needs and Herzberg's motivational theory. The thesis also examines stakeholder theory and its implications for CSR, including the inside-out and outside-in perspectives. It explores the concept of isomorphism and its role in legitimizing CSR practices, using examples of companies like Shell and Nike. Key themes explored in this work include: * The definition and historical development of CSR. * The influence of values and attitudes on organizational behavior. * The importance of stakeholder perspectives in CSR. * The role of institutionalism in shaping CSR practices. * The impact of corporate culture on CSR initiatives.Zusammenfassung der Kapitel (Chapter Summaries)
Chapter 1, "Corporate Social Responsibility," defines the concept and traces its historical development. It examines the significance of CSR in Austria and distinguishes between implicit and explicit CSR practices. The chapter further discusses the motivations for engaging in CSR and its advantages, while also addressing its limitations.
Chapter 2, "Organizations," explores the concept of an organization and examines Herbert Spencer's theory of natural adaptation. This chapter sets the stage for understanding the context in which CSR operates within organizations.
Chapter 3, "Strategy," discusses Mintzberg's strategic framework and its relevance to CSR. It examines the drivers of CSR implementation and distinguishes between instrumental and intrinsic CSR, highlighting the differences between these approaches and explicit and implicit CSR practices. The chapter also emphasizes the importance of image and reputation in CSR initiatives.
Chapter 4, "Theories Behind CSR," delves into contingency theory and consistency theory as theoretical frameworks for understanding CSR. It then focuses on the McKinsey 7-S framework, which emphasizes the importance of congruence and culture in organizational effectiveness. The chapter elaborates on the framework's objectives and application, distinguishing between "hard S" and "soft S" elements.
Chapter 5, "Values and Attitudes," explores the role of personal values in shaping individual behavior. It differentiates between universal and personal values and examines how these values influence organizational behavior. The chapter also analyzes the impact of values on organizational culture and provides an example of BDO Stoy Hayward to illustrate these concepts.
Chapter 6, "Change on Values and Consumer Behaviour," examines the shift from materialistic to post-materialistic values in society. It analyzes Maslow's hierarchy of needs and Herzberg's motivational theory, demonstrating how these theories help understand contemporary consumer behavior and their implications for CSR.
Chapter 7, "Stakeholder Theory," defines the concept and examines stakeholder perspectives, including the inside-out and outside-in perspectives. The chapter discusses the significance of stakeholders in CSR, exploring three different approaches to stakeholder theory. It concludes with a discussion of shareholder value versus stakeholder value.
Chapter 8, "Institutionalized Organizations," investigates the concept of isomorphism and its role in legitimizing CSR practices. The chapter examines whether isomorphism effectively legitimizes CSR and provides examples of Shell and Nike to illustrate these concepts. It also emphasizes the importance of ethics and social responsibility for organizational effectiveness, exploring the connection between institutionalism and CSR.
Chapter 9, "Corporate Culture," defines the concept and explores different levels of corporate culture. It examines the consequences of a strong corporate culture, contrasting strong and weak cultures and highlighting the significance of corporate identity. The chapter further discusses the benefits and positive effects of a strong corporate culture and its potential to drive organizational success.
Chapter 10, "Discussion," offers a critical analysis of the key concepts discussed in the previous chapters.
Schlüsselwörter (Keywords)
This work focuses on the concept of corporate social responsibility (CSR), examining its theoretical underpinnings, practical implications, and applications within the Austrian context. Key terms and concepts include: organizational behavior, stakeholder theory, institutionalism, corporate culture, contingency theory, consistency theory, and the McKinsey 7-S framework. The work also explores the shift from materialistic to post-materialistic values, highlighting Maslow's hierarchy of needs and Herzberg's motivational theory in relation to consumer behavior.- Quote paper
- Katharina Ruschak (Author), 2008, Corporate Social Responsibility, Munich, GRIN Verlag, https://www.hausarbeiten.de/document/188219