Corporate citizenship in Australia : some ups, some downs

Issues of corporate citizenship and corporate social responsibility, and more recently triple-bottom-line thinking, have been gradually climbing higher on the agenda of corporate Australia in the last couple of years. This paper reports on the results of a major survey of corporate citizenship of the top corporates in Australia recently completed by the Corporate Citizenship Research Unit, Deakin University. The most significant finding was that, while there is a great deal of understanding of, and aspirations towards, effective corporate citizenship in corporate Australia, there is a general lack of fit between wanting to do it and actually doing it so that it is seen to be core business.

A Look at Corporate Code of Conduct Legislation

Over recent years, there has been a growing perception among civil society in the developed world that multinational corporations are engaged in socially and environmentally exploitative practices that they would never get away with, or even attempt, in their home countries. Whether right or wrong, that perception and its political and economic ramifications have driven a global movement for more responsible corporate behavior. As part of that global movement, three common law jurisdictions—the United States, Australia and the United Kingdom—have seen legislation introduced to enforce standards of practice for multinational corporations based in those countries in respect of their overseas activities. None of those Bills has yet passed into law, but they are worthy of analysis as attempts to transform hitherto amorphous concepts like 'corporate social responsibility' into concrete legislation. This article compares and critically analyses the three Bills, making recommendations as to how they could be improved, with particular emphasis on the need to forge stronger links between the legislative provisions and international human rights law.

Engaging with stakeholders or constructing them? Attitudes and assumptions in stakeholder software

New activists are engaging in a range of extra-parliamentary activities, including extensive use of the internet, to create political change at local, national and international levels. As new activists become more effective, more sophisticated and, above all, more organised, traditional public relations or ‘PR spin’ is increasingly exposed as not just ineffective, but also an unethical way to respond to criticisms. But growing numbers of state and business organisations are trying to create new relationships with stakeholders that are inclusive, sustainable and aligned with the principles of corporate social responsibility (CSR). A range of stakeholder communication software packages claim to guide and support organisations wishing to create such relationships. However, these software packages can do more than merely offer guidance and support. They can actively influence how an organisation engages with stakeholders by embodying particular discourses that construct stakeholders as adversaries. This article examines two stakeholder software packages, showing how each one’s rhetoric of inclusion accompanies discourses that recreate adversarial relationships between organisation and stakeholders. The article sets such developments against the broad backdrop of developing notions of CSR, arguing that the uncritical use of stakeholder communication packages can reduce CSR to ‘more PR spin’.

Are we speaking the same language? Corporate perceptions of human rights responsibilities

Over the last several years, notions of corporate social responsibility and corporate responsibility for human rights have developed on several fronts, including under international human rights law, through voluntary initiatives and in the discourse and the reporting of the corporations themselves. But are all protagonists on all these fronts speaking the same language? Are these developments truly improving the realisation of human rights?
As one aspect of its three year Australian Research Council project examining the legal human rights responsibilities of multinational corporations, the Castan Centre for Human Rights Law set out to discover the perceptions that multinational corporations have of their own human rights responsibilities, the types of activities undertaken by corporations to fulfill those responsibilities and the appropriate extent, if any, of the imposition of legally binding human rights obligations on corporations.
While not setting out the formal findings of that empirical study, this paper reports on some interesting discoveries as to how corporations see their place in the human rights debate. It notes a divergence among corporations' views of the nature of human rights responsibility - whether an obligation or a benevolence - as well as its content. In considering whether corporations ought to have legally binding human rights obligations, a surprising number of corporations replied in the affirmative, citing reasons such as certainty in dealing with suppliers and instituting a level playing field against rogue operators.
However,  perhaps the most important finding is the different understandings of human rights as they relate to a corporation's operations. Agreement on potential reforms would be meaningless if they were not employed towards a commonly understood end. After examining the various responses of the corporations and the evidence they cited to support their contentions, the paper concludes that the various protagonists of human rights responsibility for corporations may be using the same words, but they are not yet speaking the same language.

Stakeholder and gender characteristics of mining and energy IPO boards of directors

The mining and energy sectors are particularly publicly sensitive sectors and subject to a high degree of public scrutiny. Evan and Freeman (1993) suggest that such public scrutiny needs may be better met by having direct public stakeholder representation on the board of directors. Similarly, Bilimoria (2000) argues a strong commercial case for engaging women on boards. This paper investigates the number and proportion of non equity holding public stakeholder directors and the number and proportion of women directors on the boards of Australian mining and energy company initial public offerings (IPOs) and reports a paucity of public stakeholder directors and also a low proportional female representation on such IPO boards.

Can the overcommercialization of cause-related marketing harm society?

The role of social responsibility within business has been debated for decades. It appears that there is a growing understanding that doing the right thing for society can not only be good for business but is also a responsibility of the modern corporation. Causes, corporations, and society have benefited from corporate involvement with social issues. However, it also appears that in some cases, there may be potential pitfalls associated with merging social and corporate objectives. The "overcommercialization" of some activities designed to benefit society may in fact harm those that these activities are trying to help. This article examines potential pitfalls associated with cause-related marketing and provides recommendations for reducing the potential negative consequences

Defining corporate citizenship : evidence from Australia

This study reports the results of a survey of the attitudes to corporate citizenship and practices of corporate citizenship of 93 of the largest private and publicly listed corporations in Australia. The results suggest there was considerable hesitation in positioning corporate citizenship as a proactive, long term, internal culture process. Instead, corporate emphasis was generally on short-term community activities. Also, there was little variation in these results when respondents were classified by industry, international involvement and legal structure. Clearly, significant links have yet to be made by corporate Australia to connect the financial, social and environmental bottom lines.

Customer perceptions of responsible retailing in Australia

For retailers, the adoption of Corporate Social Responsibility (CSR) can act as a source of differentiation and affect reputation, customer loyalty, and competitive advantage. Despite these potential benefits, there has been limited empirical investigation of CSR within the retailing literature. This paper proposes that for retailers to implement CSR to strategic benefit, they must understand how their customers perceive the concept. This paper utilises Carroll’s (1979, 1991) four-part framework of corporate behaviours to operationalise the concept of CSR. To build on Carroll’s (1979, 1991) framework, respondents are asked to identify specific behaviours that constitute socially responsible behaviour for a retail supermarket. Results support the four corporate behaviours proposed by Carroll, but do not support the rank order of economic corporate behaviours being first and foremost. The findings suggest the inclusion of ‘supply chain management’ and ‘provision of customer value’ as additional factors for retailer CSR. From these findings, an initial model of retailer CSR is proposed for further investigation. For academics, such a model provides greater clarity in understanding CSR, allowing future development across alternative retail settings. The model provides retailers with a tool for implementing CSR for strategic benefit, by way of meeting customer CSR demands.

Broadening the stakeholder base : Rio Tinto's business with communities programme

Developing long term Business with Community partnerships is becoming an increasingly strategic means of realising corporate citizenship, in one form or another. Many companies in Australia, and elsewhere, are rushing into this, often with disastrous results. One company which has been at the forefront of developing such partnerships, in ways to avoid some of the rushed disasters we are seeing right now, is Rio Tinto, with its Business With Communities Programme established for the last six years in Australia. At the heart of this programme is an approach to strategic corporate citizenship which has nothing to do with altruism, philanthropy or corporate generosity to the community. It is a serious exercise, driven by stakeholder dialogue, in building social capital in the communities in which Rio Tinto operates.

Understanding issue complexity when building a socially responsible brand

Purpose of the Manuscript- To discusses the importance of understanding Corporate Social Responsibility (CSR) by analysing the issues that comprise CSR. Without this understanding it will not be possible for organisations to develop responsible brands.

Approach – The paper draws on the existing business and marketing literature to define four aspects of issue complexity. It also draws on a range of real and hypothetical examples affecting local and global organisations to explain the four components.

Limitations – The work is conceptual in nature and additional research needs to be undertaken to better understand how organisations define the CSR issues that they will integrate into activities and how the management of these issues can be undertaken to ensure system wide implementation.

Practical Implications – The work suggests that by understanding the four components of issues complexity organisations will be in a better position to integrate CSR related branding. Without understanding these issues, organisations may potentially unintentionally exaggerate claims or set themselves up to be criticised that they are unfairly exploiting consumers’ interest in CSR issues.

Value- Previous research has documented the value of CSR, but to date there have been only limited attempts to systematically examine how managers could know whether they have considered the issue completely and realistically.

Building a corporate socially responsible brand : an investigation of issue complexity

Corporate social responsibility (CSR) is increasingly being leveraged in branding activities. This paper suggests that there are four types of issue complexity associated with defining what issues should be considered for CSR branding activities to be effective. These include the number of social issues considered, diversity of sub-issues, measurement difficulties and
determination of appropriate performance levels. Some implications for developing CSR leveraged brands are discussed.

Who receives the most help? The most needy or those with the best marketers? (Editorial)

Presents an editorial overview of the tussle between who is best at the receiving end- the needy or the best marketer. Adoption of traditional marketing strategies to counter challenges from charitable organizations; Development of the entire market into focusing of the product's social responsibility; Shifting of practice from effective marketing to simply generating more resources from donors; Provision of a neutral field by evaluating charities on what they do rather than their marketing strategy.

Child labour and supply chain : profitability or (mis)management

Purpose – The purpose of this paper is to provide a realistic assessment, with an historical perspective, of the current practises and progress made by organisations towards elimination of child labour in global supply chains.

Design/methodology/approach – Literature review in the area of use of child labour within the global supply chain was combined with additional information obtained from the company searches of the GRI database, company ranking tables, and other sources.

Findings – Child labour is one of a number of areas of concern in global supply chains. Continued exploitation of child labour indicates an imbalanced state and consequently forces can be unleashed through standardization, collaboration and communication amongst all stakeholders to ensure protection of the vulnerable. This paper is part of the broader analysis informing incremental changes to supply chain management to preserve the rights and welfare of children in the present and future generations. Research/limitations/implications – The analysis is based on secondary data sources and further research is thus needed to verify the individual weightings of the criteria used in the primary ranking of the companies.

Practical implications – The findings provide encouragement for policy and decision makers to implement incremental changes to global supply chains in order to protect the rights and welfare of children, according to the standards of Social Accountability (SA) 8000, the International Labour Organisation (ILO), and other world trade stakeholders.

Originality/value – This paper questions the view that child labour incidences have diminished proportional to economic development. A swinging fulcrum with hidden traps for developed and developing nations in light of cross border transactions through supply chains has been proposed.

Global branding and strategic CSR : an overview of three types of complexity

Purpose – There is general agreement that global brands should ensure that they incorporate social responsibility. To do this properly, organisations must understand what it means to be socially responsible and how they can leverage their actions. The paper proposes consideration of three distinct areas: the range of social responsibility issues, what the organisations actually do and how to leverage those corporate social responsibility (CSR) actions. This paper seeks to conceptually develop these three areas of complexity – Issue, Organisational and Communication – as it is only after organisations understand these three areas that they can effectively leverage socially responsible activities in their brands.

Design/methodology/approach – This research undertakes a review and synthesis of the academic, practitioner and industry literature examining CSR and the brand, addressing the three areas of complexity – issue, organisational and communication.

Findings – The research finds that within these three areas of complexity there are a number of sub-issues that must be addressed if CSR is to be strategically integrated into a global brand. This includes sub-issues associated with social issue complexity (identification, heterogeneity, measurement, and interpretation); organizational complexity (overall corporate brand, multiple products and brands, functional activities, and supply chain); and communication complexity (intensity of action/positioning, communicating action, types of programs utilised, and integration issues.) It thus provides an agenda for future research.

Research limitations/implications – There is limited academic literature examining how global organisations incorporate CSR activities into their brand and the research proposes the issues that need to be considered when integrating CSR into branding strategy. Future research needs to be undertaken to explore the internal processes that global firms use to develop their CSR positioning strategies and some research propositions for future research are proposed. Additionally further exploration of each of the issues (and sub-issues) identified in this paper is warranted, and some suggestions are made for this.

Practical implications – The results of this study show that developing a CSR leveraged brand in a consistent way that is salient to all stakeholders is no simple task for global organisations. By considering the three areas of complexity developed here organisations will be able to better understand and align their activities in line with CSR related issues. Being global means that organisations will likely need to ensure they address the highest set of global expectations, as any lower level may be criticised as being less than appropriate.

Originality/value – The paper develops the sub-issues of issue, organisational and communication complexity associated with global brands' CSR activities. This strategic perspective goes beyond focusing on the tactical activities undertaken or the philosophical issue of whether CSR should be undertaken. The work therefore allows global organisations to look at CSR more strategically as a branding issue.