This document summarizes a study examining the relationship between cultural factors and corporate social responsibility (CSR). The study analyzed data from over 40 firms in 15 countries. It found that CSR is a multidimensional concept consisting of concern for shareholders, stakeholders, and community. Cultural values like collectivism and power distance influenced managers' priorities among these three CSR dimensions. Specifically, collectivist cultures prioritized more aspects of CSR, while high power distance cultures valued CSR less. Additionally, visionary leadership within organizations was found to positively influence managers' views on shareholder and stakeholder CSR. The study concluded that cultural, demographic, and leadership factors are important determinants of how managers approach CSR internationally.
3. Methodology
Form associations between CSR Decision-Making Values
and 3 dimensions of societal-level culture:
Institutional-level collectivism
In-group Collectivism
Power Distance
15 countries, 40 firms each, across industries (not stratified)
GLOBE RESEARCH PROGRAM
Multiple Survey & Respondent Approach
Didn’t measure actual CSR actions or performance
Austria
Brazil
China
Germany
Greece
Guatemala
India
Mexico
The Netherlands
Nigeria
Russia
Slovenia
Spain
Taiwan
Turkey
4. Findings
2. CSR IS A MULTI-DIMENSIONAL CONSTRUCT
Consisting of concern for:
shareholders, stakeholders & community.
Each predicted differently by variables.
Previously there was a lack of clarity about dimensionality & depth
5. Findings
3. POWER DISTANCE
HIGH Manager’s value all 3
branches of CSR less
Manipulative use of power
On the part of managers without
concern for either of the 3
(Carl et al, 2004)
Cause for concern for proponents of
global CSR
Stakeholder management is relevant
to profitability (Hillman and Keim, 2001)
firms in such context may be at a
disadvantage in the global economy
6. Findings
5. ORGANISATIONAL LEVEL
VARIABLES
VISIONARY LEADERSHIP & INTEGRITY
Can account for variables in managerial
values with regard to CSR
May be a driver of how subordinate
managers view CSR
More related to Shareholder and
Stakeholder CSR
CONCLUSION
Demographic, Cultural and Leadership factors are critical determinants of
the CSR values of managers. International firms should assess such
variables for managers in different countries.
Leadership can help align decision making across borders, despite culture
4. COLLECTIVISM
COLLECTIVIST CULTURE
managers value more aspects of CSR
Such cultures encourage delaying immediate
needs or gratification for future concerns.
INSTITUTIONAL COLLECTIVISM
Significant relationships with all 3 dimensions
IN-GROUP COLLECTIVISM
No significant relationships with any dimension
7. Waldmanintoday’ssociety
CONCLUSION 1: GDP INFLUENCES CSR
Occupy Wall Street
Occupy Together communities
mobilized to protest corporate
greed
“to change current monetary
policies to help the 99% of the
population, instead of just the elite
1% that they currently benefit”
Top 1% of earners earn 23.5% of
GDP
South Africa
"Leveraging Local Savings for
Local Development,” –
Financial Services
Cooperative
Al Baraka Bank: Iqraa Trust in
1994. Humanitarian
organization. Focuses on
education, training, skills,
development & health care
and is active in all provinces.
8. Waldmanintoday’ssociety
POWER DISTANCE IMPACT ON CSR
Sierra Leone: PDI: 77
Human Rights abuses of miners
Info relating to mining
agreements between the
government and natural
resource extraction companies
was kept at the ministry of
mines on documents that were
neither secure nor accurate.
Profits used to fund civil war
Australia: PDI 36
“NICE ICE”
North Australian Diamonds
Co. Ltd
Kimberly Project
Conservation projects, how
to best extract the diamonds:
Shareholder profitability and
environmental concern
Best practice
recommendations
embodied in 10 corporate
governance principals which
have been broadly adopted
by the ASX
MINING
INDUSTRY
DIFFERENTIALS
9. Waldmanintoday’ssociety
CONCLUSION 5: ORGANISATIONAL LEVEL VARIABLES
(VISIONARY LEADERSHIP
& INTEGRITY AMONGST CEOs)
Domiciled in the USA- largest GDP
in the world
Top management tendency to
disregard Societal Level CSR in
decision making
Yet the visionary leadership of
Howard Schultz has the company
involved in many Societal Level
CSR activities
Opportunity Finance Network
Ethical Sourcing
Environmental Stewardship
Community involvement