Factors influencing uptake of corporate social responsibility
Published: 13 September 2009
In 2007, the Centre for Population, Poverty and Socioeconomic Policy Studies (Centre d’Études de Populations, de Pauvreté et de Politiques Socio-Économiques/International Networks for Studies in Technology, Environment, Alternatives, Development, CEPS/INSTEAD [1]) conducted a survey of companies with 10 or more workers belonging to virtually every sector of economic activity. The managers of 1,509 enterprises were questioned during a face-to-face interview on their activities with regard to corporate social responsibility [2] (CSR). A representative sample of 1,399 interviews was taken into account for further analysis.[1] http://www.ceps.lu/[2] www.eurofound.europa.eu/ef/observatories/eurwork/industrial-relations-dictionary/corporate-social-responsibility
Based on data collected in 2007 from companies employing at least 10 workers, an empirical analysis shows that the size of the enterprise, its sector of economic activity, its legal status, its position in the market and its values have a significant effect on the adoption of the corporate social responsibility concept. Smaller companies are less familiar with the concept, which indicates that promotion efforts should primarily target these enterprises.
About the study
In 2007, the Centre for Population, Poverty and Socioeconomic Policy Studies (Centre d’Études de Populations, de Pauvreté et de Politiques Socio-Économiques/International Networks for Studies in Technology, Environment, Alternatives, Development, CEPS/INSTEAD) conducted a survey of companies with 10 or more workers belonging to virtually every sector of economic activity. The managers of 1,509 enterprises were questioned during a face-to-face interview on their activities with regard to corporate social responsibility (CSR). A representative sample of 1,399 interviews was taken into account for further analysis.
Using the survey data, a 2009 study (in French, 459Kb PDF) provides a picture of the companies’ main economic characteristics and of the action that they are taking in the environmental and social fields. It also reveals the extent of the companies’ familiarity with the CSR concept and whether they are putting it into practice. This analysis follows on from a more general study of the attitudes and commitment of employers to CSR in 2008 (LU0809029I).
CSR measures undertaken by companies
According to the study, 66% of the companies had tried to reduce their waste output or decrease their energy consumption (see table). In total, 78% of the enterprises had taken at least one of these two measures in favour of the environment. In terms of labour relations, 29% of the companies had taken measures intended to promote the diversity of their personnel, 27% had chosen their suppliers on non-economic criteria, 26% had participated in labour market reintegration projects and 10% had set up a partnership with a non-governmental organisation (NGO). More than half of the companies (58%) had taken at least one of these measures.
Among the enterprises with at least 10 workers, 21% stated that they were familiar with the concept of CSR and 10% responded that they were applying it.
| CSR measures taken by companies | Proportion of companies (%) N=1,399 |
|---|---|
| Environmental: | |
| Reduction of waste output | 66 |
| Reduction of energy consumption | 66 |
| At least one environmental measure | 78 |
| Social: | |
| Promoting diversity | 29 |
| Choosing suppliers on non-economic criteria | 27 |
| Reintegration support | 26 |
| Partnership with NGOs | 10 |
| At least one social measure | 58 |
Source: CEPS/INSTEAD
Forms of responsible behaviour
The factors behind four forms of responsible behaviour were considered using simple dichotomy models. The four forms of behaviour examined were:
the adoption of measures with a positive environmental impact;
the adoption of measures with a positive social impact;
familiarity with the concept of CSR;
implementation of CSR.
Companies adopting environmental and/or social measures
Compared with the commercial sector, companies in the financial or services sector are less likely to have taken environmental or social measures. Those in the manufacturing sector are more likely to have taken environmental measures, but neither more nor less likely to have taken social measures. It is interesting that enterprises in the construction or transport sector are less likely to take social measures. Companies in other sectors – education, health and social work, public, social and personal services – are less likely to take environmental measures, but are more likely to take social measures.
A company’s size has a positive effect on the likelihood that it will take environmental or social measures. Compared with enterprises employing 50 to 249 workers, companies with at least 250 workers are more likely to take environmental or social measures; smaller enterprises (10 to 49 workers) are neither more nor less likely to take environmental measures, but are less likely to take social measures.
Enterprises whose turnover has risen for the last three years are more likely to have taken social measures but neither more nor less likely to take environmental measures.
The likelihood of taking environmental or social measures is not affected by the company’s legal status or membership of a group. Intensity of competition and the company’s position in the market do not have any impact either.
Companies familiar with and implementing CSR concept
Company size and sector of economic activity have a significant effect on the likelihood of familiarity with and implementation of the CSR concept. The analyses also show that membership of a group, the company’s legal status and its position in the market play a considerable role in the adoption of CSR.
Compared with medium-sized enterprises (50 to 249 workers), larger companies (at least 250 workers) are more likely to be familiar with the CSR concept and to put it into practice. On the other hand, smaller enterprises (10 to 49 workers) are less likely to be familiar with the concept, although they are just as likely to be putting it into practice.
In comparison with companies in the commercial sector, enterprises in the financial or services sector are more likely to be familiar with the CSR concept, but neither more nor less likely to be implementing it. By contrast, companies in the transport and construction sectors are less likely to be implementing CSR.
Public limited companies, market leaders and enterprises which believe that businesses should be concerned about the major social and environmental issues are more likely to be familiar with the CSR concept and to put it into practice.
Commentary
These results suggest that efforts to promote CSR should be aimed primarily at smaller enterprises, and that different economic sectors need to be addressed depending on which aspect of CSR policymakers are trying to encourage – social or environmental. As the values upheld by a company seem to be one of the drivers of responsible behaviour, awareness-raising efforts relating to companies’ responsibility and role with regard to current environmental and social issues appear to be vital.
Source
Poussing, N., Les déterminants de l’adoption de la Responsabilité Sociale des Entreprises [Factors in the adoption of corporate social responsibility], Économie et Entreprises, No. 12, CEPS/INSTEAD, January 2009, available online at: http://www.ceps.lu/pdf/4/art1408.pdf.
Véronique De Broeck, Prevent
Eurofound recommends citing this publication in the following way.
Eurofound (2009), Factors influencing uptake of corporate social responsibility, article.
