Purpose:
A case study to investigate the implementation of Corporate Social Responsibility practices in a European company and determine the relationship between theatrical recommendations (World Wide and Europe) about CSR and its implementation in a European Company.
Infojobs corporate social responsibility case in practice
1. INFOJOBS CORPORATE SOCIAL RESPONSIBILITY CASE IN PRACTICE 1
Infojobs Corporate Social Responsibility case in practice
Implantation of CSR policies in the European Companies. Infojobs case in practice.
Hristo B. Kolev1
AUBG2, EMBA3 program
1
Corresponding Author – contact: hbk127@aubg.bg
2
American University in Bulgaria
3
Executive Master of Business Administration
2. INFOJOBS CORPORATE SOCIAL RESPONSIBILITY CASE IN PRACTICE 2
Abstract
Purpose:
A case study to investigate the implementation of Corporate Social Responsibility
practices in a European company and determine the relationship between theatrical
recommendations (World Wide and Europe) about CSR and its implementation in a
European Company.
Methodology/approach:
The paper is based on the Harvard Business Review’s article Strategy & Society: The
Link between Competitive Advantage and Corporate Social Responsibility by
Michael E. Porter and Mark R. Kramer; the European’s Commission framework: A
renewed EU strategy 2011-2014 for Corporate Social Responsibility; and a case in
practice: Implantation and Report of Social Responsibility Practice in a European
company – Infojobs.
Findings:
The paper finds that there is a close relationship between the article’s
recommendations, the European Commission’s framework and the CSR practice in a
concrete company. The company's performance (Infojobs) proves that the best
practice given by the article and the EC4 is the shared value between business and
social responsibility, but one of the most important variables is the fact that managers
and employees should implement these practices on voluntary bases.
4
European Commission
3. INFOJOBS CORPORATE SOCIAL RESPONSIBILITY CASE IN PRACTICE 3
Introduction
Free market does not always perform perfectly. Marketplace participants must act
honestly and justly toward each other if the ideals of the free market are to be
achieved. CSR is a concern of all the society, ethics in business has been an issue for
academics, practitioners, and governmental regulators for decades, some believe that
unethical, immoral, and/or illegal behavior is widespread in the business world and
their concerns are supported by the numerous scandals from the late ’90s and early
2000s (WorldCom, Enron, Lehman Brothers, Bernard Madoff), others believe that
there is a framework where all stakeholders together (companies, analysts,
government, etc) should integrate CSR in companies. Can CSR gain some credence in
stakeholders? And correct a part of the satated his market imperfection? Actually
modern trends of CSR practice goes further from giving positive response to these
questions, and stands that CSR is becoming a strategic issues for modern
organizations in their competitive advantages.
WBCSD5 defines CSR as "The continuing commitment by business to behave
ethically and contribute to economic development while improving the quality of life
of the work force and their families as well as of the local community and society at
large", this definition is supported by the top ten motivators driving corporations to
engage in CSR for competitive reasons: Economic considerations; Ethical
considerations; Innovation and learning; Employee motivation; Risk management or
5
World Business Council for Sustainable Development
4. INFOJOBS CORPORATE SOCIAL RESPONSIBILITY CASE IN PRACTICE 4
risk reduction; Access to capital or increased shareholder value; Reputation or brand;
Market position or share; Strengthened supplier relationships; Cost savings6.
This paper is organized as follows. Part one is reviewing the Michael E. Porter and
Mark R. Kramer’s article. Part two presents the European governmental framework
and policies to support and extend the implantation of CSR in Europe (the directive is
given by the European Commission). Part three provides a practice case of implanting
and reporting CSR in the Spanish company Infojobs. Part four is a concluding section.
1. Analyst point of view of CSR7
From analytical point of view, there are several approaches that try to explain and
put in practice the CSR. As common in most economic and social differences, there
are different approaches depending on the geographical location: Canadian (Montreal
school of CSR); Continental European and Anglo-Saxon. Other approaches are:
Philanthropy; CSR as business strategy; and Creating Shared Value. One of the most
popular approaches is the Creating Shared Value (CSV) approach, based on the idea
that corporate success and social welfare are interdependent. CSV received global
attention after an article publicized in 2006 by the actual second ranked business
school in the world8 – Harvard Business Review article Strategy & Society: The Link
between Competitive Advantage and Corporate Social Responsibility, by Michael E.
Porter and Mark R. Kramer (2006).
Porter & Kramer (2006) stand that CSR efforts are counterproductive for two
reasons: they put business against society; and CSR is approached in generic ways.
6
KPMG's International Survey of CSR, 2005
7
This section is based on the Harvard Business Review’s article Strategy & Society: The Link between
Competitive Advantage and Corporate Social Responsibility by Michael E. Porter and Mark R. Kramer
8
Financial Times Global MBA Ranking 2012
5. INFOJOBS CORPORATE SOCIAL RESPONSIBILITY CASE IN PRACTICE 5
CSR is getting mature an the framework proposed is to identify all of the effects, both
positive and negative, companies have on society; determine which ones to address;
and suggest effective ways to do so. When looked at strategically, CSR can become a
source of tremendous social progress, as the business applies its considerable
resources, expertise, and insights to activities that benefit society, and this approach
should lead to build a long-term competitive advantage.
Four prevailing justifications for CSR have been used: Moral Appeal (companies
have a duty to be good citizens and to do the right thing); Sustainability
(environmental and community stewardship); License to Operate (tacit or explicit
permission from government); Reputation (improve companies image, strengthen ist
brand, raise stock value). But none of these could help a company identify, prioritize,
and address the social issues that matter most, because all of them focus on the
tension between business and society rather than on their interdependence. Porter &
Kramer (2006) point as the biggest problem that internally, CSR practices and
initiatives are often isolated from operating units-and even separated from corporate
philanthropy. Externally, the company’s social impact becomes diffused among
numerous unrelated efforts, each responding to a different stakeholder group or
corporate pressure point. The consequence of his fragmentation is a lost opportunity.
To correct this bias and integrate business and society, the authors propose companies
to identify those areas of social context with the greatest strategic value by:
identifying the points of intersection between inside-out and outside-in practices;
*Figures 1 and 2 – About Here*
choose which social issues to address; and creating a corporate social agenda, making
Responsive CSR and Strategic CSR.
6. INFOJOBS CORPORATE SOCIAL RESPONSIBILITY CASE IN PRACTICE 6
The moral purpose of business should focus efforts to find shared vale in operating
practices and in the social dimensions of competitive context have the potential not
only to foster economic and social development, but also to change the way
companies and society think about each other. NGOs, governments, and companies
must stop thinking in terms of “Corporate Social Responsibility” and start thinking in
terms of “Corporate Social Integration”. When a well-run business applies its vast
resources, expertise, and management talent to problems that it understands and in
which it has a stake, it can have a greater impact on social good than any other
institution or philanthropic organization.
Porter & Kramer (2006) support their CSR framework mainly with 2 examples:
Toyota – Prius hybrid electric/gasoline vehicle. This product has created a unique
position with customers and has established technology standards, the combination of
these two could suppose a competitive advantage for the company in near future; and
Nestlé’s example – the company went to Moga to build business and establish local
sources of milk from a large, Nestlé diversified base of small farmers in the region,
and the result was a creation of shared value for both the company and the region.
Today Moga has higher standard of living and knowledge, compared to other regions
in the vicinity.
2. European Framework of CSR9
The government is one of the most important stakeholders when we speak about
CSR. Its role is crucial. On one hand regulation can set the agenda for social
responsibility by the way of laws and regulation that will allow a business to conduct
9
This section is based on the European’s Commission policy: A renewed EU strategy 2011-2014 for
Corporate Social Responsibility
7. INFOJOBS CORPORATE SOCIAL RESPONSIBILITY CASE IN PRACTICE 7
itself responsibly, on the other hand, and most important, the government could act in
education with regulations for high school and undergraduate education, this could
build in a social responsibility from the very beginning, therefore future managers and
companies will carry integrated CSR in their DNA. That way CSR will be part of the
company’s strategy and culture.
European Commission is taking measures in CSR since early 2001 when the first
definition was stated: COM (2001)336 “a concept whereby companies integrate social
and environmental concerns in their business operations and in their interaction with
their stakeholders on a voluntary basis”. The Commission has played a pioneering
role in Europe ever since, creating European Multistakeholder Forum on CSR in 2001,
European Alliance for CSR in 2006. CSR underpins the objectives of the Europe
2020 strategy for smart, sustainable and inclusive growth. Under this objective of
Europe 2020 the Commission has reviewed and established a strategy for CSR 2011-
201410 aligned with internationally recognized principles and guidelines as OECD
Multinational Enterprises, the principles of the United Nations Global Compact, the
ISO26000 Guidance Standard on Social Responsibility, the ILO Tri-partite
Declaration of Principles Concerning Multinational Enterprises and Social Policy, and
the United Nations Guiding Principles on Business and Human Rights. This European
Governmental framework seems a necessity as, today, only 15 out of 27 EU Member
States have national policy frameworks to promote CSR11.
A modern understanding of CSR needs a modern (new) definition. This new
definition, given in the EU Strategy 2011-2014 is aligned with the analysts’ opinion
10
European Commission: A renewed EU strategy 2011-2014 for Corporate Social Responsibility
11
European Commission, 2011, “Corporate Social Responsibility: National Public Policies in the EU”
8. INFOJOBS CORPORATE SOCIAL RESPONSIBILITY CASE IN PRACTICE 8
given in part one. European Commission (2011) stands that enterprises should have in
place a process to integrate social, environmental, ethical, human rights and consumer
concerns into their business operations and core strategy in close collaboration with
their stakeholders, with the aim of: maximizing the creation of shared value; and
identifying, preventing and mitigating their possible adverse impacts. This definition
is completely suitable with the framework given by Porter & Kramer (2006). This
2011-2014 strategy shows that the Commission is aware of the multidimensional
nature of CSR, and that public authorities should play a supporting role through a
smart mix of voluntary policy measures and, where necessary, complementary
regulation, for example to promote transparency, create market incentives for
responsible business conduct, and ensure corporate accountability.
The agenda for action 2011-2014 covers 8 main areas:
• Enhancing the visibility of CSR and disseminating good practices: launch a
multistakeholder CSR platforms in a number of relevant industrial sectors; and
launch in 2012 award scheme for CSR partnership between enterprises and other
stakeholders.
• Improving and tracking levels of trust in business: limit the “green washing”
practices and effects; and periodic surveys of citizen trust in business and attitudes
towards CSR.
• Improving self-and co-regulation processes: launch a code of good practice.
• Enhancing market reward for CSR: increase consumer attention to CSR-related
issues; implement a Public Procurement Directives facilitating the better
integration of social and environmental considerations; and promote CSR practice
from public companies or public investments.
9. INFOJOBS CORPORATE SOCIAL RESPONSIBILITY CASE IN PRACTICE 9
• Improving company (SME12 and large companies) disclosure of social and
environmental information: 2,500 European companies publish CSR or
sustainability reports, which puts EU in a position of global leadership13, however
this is still a small fraction of the 42,000 large companies in the EU.
• Further integrating CSE indo education, training and research: provide
further financial support for education and training projects: and raise the
awareness of education professionals and enterprises on the importance of
cooperation on CSR. This area needs special attention, if performed well means
that future European corporations and SME will bring implemented CSR in their
culture, and will be leaded by managers who care CSR in their DNA.
• Emphasizing the importance of national and sub-national CSR policies: create
in 2012, with all Member States, a peer review mechanism for national CSE
policies; European Commission invites all Member States to develop or update by
mid 2012 their own plans or national lists of priority action to promote CSR of the
Europe 2020 strategy.
• Better aligning European and global approaches to CSR: monitor enterprises
>1,000 to take ISO26000; commit all European enterprises to take account of at
least one set of principles form those listed in page 7 of this paper; identify ways to
promote responsible business conduct in its future policy initiatives towards more
inclusive and sustainable recovery and growth in third countries.
12
Small and Medium Enterprises
13
CorporateRegister.com
10. INFOJOBS CORPORATE SOCIAL RESPONSIBILITY CASE IN PRACTICE 10
This agenda is really ambitious and if all actions are to be performed as pretended
European companies would build the strong, long-term competitive advantage, in
terms of CSR, discussed by Porter & Kramer (2006).
3. Infojobs CSR case in practice14
Infojobs is a Spanish company established in 1998 in Barcelona. Its business is to
optimize selection and recruitment process for B2B clients. Ifojobs meats the two
parts of the process – Demand (unemployed or looking for new employment people)
with Supply (companies that offer jobs). The service is free for the Demand and pay-
per-offer for the Supply. Infojobs is owned by Schibsted (94%) and Grupo Intercom
(6%), the company has divisions in Spain, Italy, Portugal and Brazil. Spanish division
is of about 200 people with headquarters in Barcelona and offices in Madrid.
The strongest Infojobs’ CSR policy is its core business, the Demand, at the same
time, Demand supposes only 2% of the company’s revenue (Infojobs is primary B2B
firm). The company’s competitive advantage is based on having the highest possible
numbers of active15, actualized, online CVs16. The online platform, available in their
web, is easy to use, however the company provides free online and call center support
for those (Demand) who have difficulties to make a profile, build their CVs and apply
for an active job offer. Infojobs has a special program to support and help those
people who don’t have access to Internet or lack of basic computer and Internet
knowledge. Main efforts are focused on the Demand, but still, Infojobs helps on a free
base the Supply to start using the Internet to publish its job offers, Infojobs gives
14
This section is based on a telephone interview with the HR director of Infojobs - Joan Pau Fisas
Suriol; Infojobs CSR report of 2011 and Infojobs CSR agenda 2012
15
Unemployed People actively searching job or employed people actively searching to switch their job
16
Curriculum Vitae
11. INFOJOBS CORPORATE SOCIAL RESPONSIBILITY CASE IN PRACTICE 11
support to those companies who don’t have experience in this type of selection and
recruitment, also the first 5 job offers are free for the companies. Actually Infojobs
has more that 7 million CVs in its online database and more than 12,000 companies
subscribed (as clients). The company is pushing the society into innovation and use of
the new technologies, optimizing their time and creating better opportunities for both
Demand and Supply.
Still Infojobs is going further and is doing another type of CSR, based at lease at 3
of the 4 prevailing justifications of CSR, named in both, the Porter & Kramer (2006)
analysis and presented in the European Commission CSR strategy 2011-2014: Moral
Appeal; Sustainability; and Reputation. Since 2009 Infojobs presents an annual CSR
report to its stakeholders.
• 2011 CSR Report: The company had 5 main commitments in 2011.
o Infojobs made a free additional service of 22,000 packs to
unemployed and 12% of them got a job.
o Infojobs ran a total of 31 trainee in-situ sessions for unemployed in
Madrid, Barcelona and Zaragoza.
o Infojobs dedicated €22,000 for scholarships in the IT area.
o Infojobs created a voluntary program for internals. More that 30
internal senior assessors helped external companies and NGOs in
selection and recruitment practices.
o Infojobs donated its Christmas budget for presents for employees to
3 NGOs.
• 2012 CSR agenda/commitments:
o Improving CSR Policies: the company is continuing to improve its
CSR policies in 3 axis: various projects to increase the access to
12. INFOJOBS CORPORATE SOCIAL RESPONSIBILITY CASE IN PRACTICE 12
employment for people at risk of social exclusion; transmit its
values to the children – future managers and stakeholders who will
have the responsibility to establish responsible and productive
companies; preserve the environment and reduce the impact from
Infojobs’ activity.
o Community Support: continue with the voluntary project; launch
software for unemployed and employed professionals; assess the
Supply (companies) in order to create Responsible job offers.
o Environmental Protection: reduce energy losses in the company;
increase the use of recycled paper; calculate greenhouse gas (GHG)
emitted by the company and run a project to reduce it; get ZeroCO2
stamp.
o External Communication: improve information to stakeholders:
via email (to Demand and Supply subscribed to the service);
Newsletter; Blog; 2.0(tweeter, facebook, etc.); improve
communication though web page; present the 2012 CSR report to
the United Nations Global Compact.
o Internal Communication: continue with the voluntary program
and increase participation
The company has established KPIs17 in order to measure the CSR impact in 2012.
*Figure 3 – About Here*
17
Key Point Indicator
13. INFOJOBS CORPORATE SOCIAL RESPONSIBILITY CASE IN PRACTICE 13
After reviewing Infojobs CSR commitment and policies, conclusion is simple.
CSR is part of the company’s culture and business, it is approached strategically and
generates opportunity, innovation, and competitive advantage while solving pressing
social problems. Infojobs has created a distinctive value for both company and society
(Demand and Supply). The company’s progress is related with its stakeholder’s
progress (Demand, Supply, Government) and the company’s R&D is investing in the
stakeholder’s improvement in the industry (job market through technology). Infojobs
fits 100% in the Porter & Kramer (2006) framework for CSR and is a good case to
follow by the first area from the European Commission’s strategy 2011-2014.
4. Conclusions
It is all about people. Companies, their strategy and structure are driven by people
and if we have social responsible people we will have CSR companies. Analysts
opinion and frameworks, government’s directives are very important part of the CSR
as well, their work is basic in aligning companies commitment with CSR and they
have lots of possibilities to improve actual situation by laws, recommendations, public
procurement, education. But still, people are the most variable in this equation,
because companies should integrate CSR on voluntary bases, as part of their strategy
and business, just like Infojobs, Nestlé’s case or Toyota. Infojobs didn’t implant CSR
practice, didn’t needed a directive or low obligation, it just was created with this
values and culture, its main business is social responsible and sustainable. That’s why
the most important area to work in future is education. If society manages to implant
social responsibility in schools and universities, the managers, entrepreneurs,
governments, and other stakeholders will create and rule social responsible
corporation.
14. INFOJOBS CORPORATE SOCIAL RESPONSIBILITY CASE IN PRACTICE 14
References:
Joan Pau Fisas Suriol, (15.3.2012) Infojobs HR Director, telephone interview
Infojobs (2011) CSR report
Infojobs (2012) CSR agenda
Harvard Business Review’s article Strategy & Society (2006) “The Link between
Competitive Advantage and Corporate Social Responsibility” by Michael E. Porter
and Mark R. Kramer
European’s Commission policy (2011) “A renewed EU strategy 2011-2014 for
Corporate Social Responsibility”
European Commission, (2011) “Corporate Social Responsibility: National Public
Policies in the EU”
European Commission’s CSR web page, (20.3.2012)
http://ec.europa.eu/enterprise/policies/sustainable-business/corporate-social-
responsibility/index_en.htm
15. INFOJOBS CORPORATE SOCIAL RESPONSIBILITY CASE IN PRACTICE 15
KPMG, (2005) “International Survey of CSR”
Social Enterprise Block, (10.3.2012) http://www.socialenterpriselive.com/your-
blogs/item/why-csr-why-now
Slide Share Corporate Social Responsibility, (11.02.12) "Need of the Hour", by
Sikander Kushwaha; Sitakant Behra; Sudhir Kr. Pandey; Sushil Bandict Lakra
Financial Times Global MBA Ranking, (2012)
http://rankings.ft.com/businessschoolrankings/global-mba-rankings-2012
Wikipedia, (15.3.2012) http://en.wikipedia.org/wiki/Corporate_social_responsibility
16. INFOJOBS CORPORATE SOCIAL RESPONSIBILITY CASE IN PRACTICE 16
Figure 1 – Looking inside-out: mapping the social impact of the value chain
17. INFOJOBS CORPORATE SOCIAL RESPONSIBILITY CASE IN PRACTICE 17
Figure 2 – Looking outside-in: social influence on competitiveness
Figure 3 – Infojobs KPIs indicators