1.

INTRODUCTION
This chapter will present a background of the research topic of this study on CSR, followed by problem
discussion leading to research aims, objectives and questions for the thesis. Finally, limitations as well
as thesis outline will also be presented.
1.1 Background and relevance of the research
Years ago, the concept of social responsibility did not exist. Doing good towards the environment and
society were not considered to influence any financial performance of the organisation; also
philanthropic activities were not essential to an organisations goals (Kotler and Lee, 2005). However,
todays business world is illustrating by increased globalisation, environmentalism and privatization
have changed the agenda and generating higher demands to take positive stance on issues related to
ethical behaviour and socially responsible (Andriof and McIntosh, 2001). Organisations are under
pressure due to increased awareness of society, legal concerns, various interest groups, government,
and media to behave in an ethical way (Jamali and Sidani, 2008). Subsequently, Vuontisjarvi, (2006)
highlights that more and more organisations are increasingly engaging in social responsibility,
principles and ethics. Ethical concern & ethical business behaviour has become necessity and helps in
building long-term success, also reflect positively on the corporate image in todays modern era of
business (Maignan and Ferrell, 2001). However, Pharoah, (2003) emphasized that good reputation is
one of the organisations major assets and can take years to build up. Therefore, it can be conclude
that there is a contrast between competitive advantages within corporate social responsible and the
corporate social impact.
However, the area of CSR is enormous, involves issues like sustainability of the usage of resources,
environment, labour relations, beliefs, corporate governance and so on (Werther and Chandler, 2006).
It is influenced by supporting of human rights which is itself a renowned idea but unfortunately not that
well defined as different parties have their own elucidations on the issue.
United Nation has however a declaration on human rights that might act as a common starting ground
to which people refers. Consequently, it could be said that CSR is just a way of thinking that includes a
large blend of human principles, behaviours, standards and beliefs which might entail narrowing down
further and defining depending on the circumstances, in order for the ordinary individual to recognize it
more deeply.
Wade (2005) explained CSR as a form of corporate self regulation incorporated into a business model.
Fundamentally, CSR is the deliberate inclusion of people interest into business decision-making, and
the dedicatory of what has been called the 3Ps: People, Planet and Profit. Further, Porter and Kramer,
(2006) highlights that organisations today are in-line increase in demand for Green products and
responsible practices from the customers and they are willing to pay high for products that meet these
requirements.
Furthermore, large numbers of organisations are developing philanthropic activities within CSR, which
shows their altruistic nature does not seem any explicit return on investment. Conversely in other
cases, this altruistic is used for advertising, promoting brand by cause-related marketing. Thus, these
are two separated issues pushing organisations in opposite ways. One is the need to be as profitable
as possible for increased competitiveness, and other need is to work more for environmental and social
issues, which is not money-making. Are these issues giving rise to why organisations engage in CSR?
This thesis will consider the area of CSR and other explanations of how organisations apply CSR,
which is an appropriate subject to study as it is a rather vital issue currently with all the major
organisations in the globe spending significant resources in this field mainly to establish and support a
proper relationship with their stakeholders both outside and inside of the organisations.
On the other hand business should be actively involved in various social problems even if it costs to
shareholders, which is called the society service view. Moir, (2001) emphasize three organisation
approaches to CSR: The one which views social responsibility as providing employment and
recompensing taxes called neo-classical approach. The enlightened self-interest approach; says CSR
gives following benefits to the business like enhanced brand image, employee loyalty, motivation and
retention. The moral imperative approach says that if organisations have resources and skills there is a
responsibility to get involved. The concept of CSR investment has escalated in an astonishing speed in
the industrialist countries (Waring and Lewer, 2004). This is driven by shareholders seeking to align
their investment strategies with their ethical concerns, a substantial expression of the increased
awareness of CSR and its importance among the society. Most CSR investing has been mostly
concerned with health and environmental issues; however, it is progressively focusing on the human
resource management (HRM) reputation of organisation (Phatak et al., 2005). Some authors argue that
this may have considerable impact for HRM practices in listed companies. Consequent research has
shown that organisation with best HR policy have superior market sensitivity than the competition and
thus deliver the best performance for the shareholders, along with great support for the significance of
CSR in HRM (Vermeir et al., 2005). Additionally the workforce is seen as the second most significant
reputation shapers after customers.
Today, there are a plenty of CSR names exist such as corporate citizenship (CC), corporate
responsibility (CS), corporate social performance (CSP), corporate ethics (CE), corporate accountability
(CA), responsible entrepreneurship and triple bottom line Waddock, (2004). CSR issues become vastly
integrated into modern era of business, which cause refereeing to it as responsible competitiveness or
corporate sustainability (Moir, 2001). But out of these most well known names are CSR and CSP with
long and varied history (Coldwell et al., 2007).
1.1.1. CSR and CSP
Rundle-Thiele et al., (2008) state that CSR increased customers loyalty, organisation market value,
stakeholders support, reputation and image (See Figure 1.1). While, Coldwell et al., (2007) state that
CSR is managers acceptance of the responsibility to consider customer satisfaction, profit and society
concerns of equal value in evaluating organisations performance. CSR is business leaders vision
besides making a profit and this is where CSP could be used (Rundle-Thiele et al., 2008).
CSP is derived from the terms of discretionary and ethical aspects of Carrolls CSR model (explained
in the literature review) and reflects on how organisation should proactively respond to stakeholders
expectations and values regarding organisations CSR policies. Both concept CSR and CSP is closely
linked to the reputation (De Bussy and Archer, 2007).

Figure: 1.1 CSP (Rundle-Thiele et al., 2008)
After reviewing the difference between CSR and CSP, it should be pointed out that the present study is
focused on the basis of CSR definition while CSP is discussed as part of CSR concept.
1.2 Problem discussion
Contemporary literature has claimed that involving in CSR activities is an opportunity rather than cost
(UNESCAP, 2005), thus CSR acts as a driver for competitive advantage not drawback for
organisations.
Pressure that organisations take their CSR policy has enlarged demand from all stakeholders (Jenkins,
2005). Customers are starting to make decisions on such factors like human rights, social concerns,
working conditions and environmental concerns before purchasing a product or service (Matten and
Moon, 2008).
Researchers highlight that due to the influence of five main drivers there is an increase in the focus on
CSR which are, social behaviour, investors & direct stakeholder pressures, greater awareness of
corporate ethical, environmental behaviour, as well as an increased sense of socially responsible.
Furthermore, organisations are recognizing the significance of CSR for their image and reputation
(Comfort et al., 2006).
Even though it appears that organisations are more and more focused on CSR policies, there is an
immense difference between belief and action. Recent study shows that only 10% of US customers pay
more for products called Green products. On the other hand, 65% of MBA students believe that they
would change their customers behaviour according to CSR policies of the organisations but in reality
only 3% has done so (Niskanen, 2006).
Due to several different definitions of CSR and organisations choose to apply it in diverse ways has
also caused a lot of condemnation and thereby, it is a rather complex subject.
Many authors argue that employee commitment and activism is the most critical success factors in the
CSR practices (Glade, 2008). Some researchers conclude that a holistic view of CSR is required and
that HRM are to implement and run CSR activities which will give benefit to the organisation and its
stakeholders. The question is not to engage in CSR, but rather how can it be achieved especially,
innovation, retention, morale, productivity & recruitment are the most significant components of a CSR
strategy. Henceforth, a further research is required in order to conceptualize CSR in human resource
practice.
Nevertheless, some claim that there are four limitations for CSR which need to serve as a successful
internal marketing lever (Bhattacharaya, et al., 2008).
The first limitation is due to lack in communicating CSR details clearly and consistently to the workforce
by the organisation and alone involve in these initiatives cause less awareness & participation in CSR
activities. Research shows that most of the employees are eager to know more about CSR activities
and yet not close to these CSR efforts. Second, organisations often overlooked the basic feature of job
products like job role, benefits, performance based reward or promotion and career opportunities.
Satisfying these higher order psychological needs of employees meaningfully is the key power of CSR
as internal marketing. There are four basic needs that employees aim to fulfil by the organisation
involved in CSR activities include self-enhancement by creating opportunities, fulfilling work & family
needs to improve work-personal life, create bonding with the organisation and lastly create shield of
reputation (Bhattacharya, et al., 2008).
Thirdly, there is a lack in employee motivation, which is one of the most important factors required for
contributing to CSR activities. When personal needs of employees are fulfilled they are likely to identify
with the organisation, which reflects the sense of self-matches of employees with their sense for the
organisation. This gives internal and external outcomes like sense of job satisfaction, high level of
commitment, pride, well-being and dedication. These psychological outcomes of workforce engagement
lead to external behavioural outcomes like contribution in achieving the organisation goal to reduce the
rate of absenteeism, increase pride, performance & retentions (Maignan and Ferrell, 2004). Lastly, the
top-down approach to CSR creates gap between employees & senior executives for taking initiatives in
CSR activities. This can be rectified by strategic approach. This approach, gives greater ownership to
the employees for participating in CSR activities, energize & empower them to achieve organisation
goals.
Several researchers consider any information about organisation CSR activities such as recruitment
materials, reports, and website are all community relation instruments. This can help to know which
information signalling potential job applicants to attract as different kinds of applicants attract towards
different organisations. However, a study reveals 90% of applicants claim that they are willing to
renounce some money-making benefits while comparing to work for an organisation having good
reputation for CSR and ethics (Montgomery and Ramus, 2003).
Smith et al., (2004) claim that little research has been made to guide organisations in order to identify
which activities, values and policies help in attracting positively to prospective job applicants.
Several studies and literature with contrast results have been accomplished in the issue of CSR.
However, several questions related to CSR still do not have evident answer like: why organisations
engage in CSR, how they apply CSR. Also, there are many suggestions from authors on CSR
programs focusing employees attraction, motivation and retention, there is little empirical research
considering these issues in practice. This gap has been the inspiration for the present thesis in CSR
research.
1.3 Aim and objectives of the study
Based on the problem discussion, the aim of this study is to gain deeper understanding of CSRs rapid
growth and its recent practices in the organisations, with focus on CSRs ability to attract, motivate and
retain employees.

Based on aim of the study following objectives summarises:
To determine the benefits that organisation gain through engaging in CSR.
To find the applications of CSR practices in the organisations.
To determine the factors of CSR which contribute in attracting, motivating and retaining
talented workforce.
1.4 Research questions
And in order to provide an understanding and answer to this matter; key research questions have been
devised and intricate on.
1. Why do organisations engage in CSR?
2. How do organisations apply CSR?
3. How do organisations use CSR to attract, motivate and retain employees?
1.5 Research Limitations
The study of CSR is vast and it can be examined from various different perspectives. The perspectives
we have preferred to focus on this study lead to the need of delimitating others.

We have preferred to focus on the use of financial reports, news, and online published CSR material to
analyse CSR engagement. However, there are many different terms of CSR like, sustainability,
responsible competitiveness etc. In this thesis, we will not elaborate the meaning of these terms as
these are fairly close to CSR and have somewhat same sense.

Finally, due to time limitations and resources, this thesis will be based on one case study of Trident
group. In the illustrative case study on Trident, different CSR policies will be described, however, this is
only to depict how Tridents CSR engagement has extended over time.

Additionally, we are aware of the fact that Trident has used methods other than CSR in order to build
positive image such as innovation, marketing campaigns and new product launches. However, we will
not mention these methods in our study, as this thesis is based on CSR only.


1.6 Thesis outline
This thesis will consist of seven main structures mentioned in below figure 1. First section called
introduction presents background of CSR gives overview of the subject, followed by problem and
discussion which resulting in the purpose, objectives and developing of the research questions. Finally
ends up with scope and delimitations of the thesis. In second section called literature review presents
concept of CSR based on previous research and most appropriate theories related to research
questions. It commences with theory related to why organisations engage in CSR, continuing with how
organisations apply CSR and it finally describes how organisations use CSR to attract, motivate and
retain employees. Section three presents conceptual framework which is the research foundation of
the thesis and base for data analysis. Section four presents methodology of how the thesis was
accomplished and discussed the reliability and validity of the thesis. In section five presents the
empirical data accumulated via an interview with the respondents at Trident group and written sources.
In section six called data analysis analyzed the collected empirical data in comparison with CSR
theory. Finally, section seven presents the findings and conclusions with practical implications and
suggestions for future research.


Figure 1.2 Thesis outline.









Introduction
Literature
review
Conceptual
Framework
Methodology
Emperical
data
Data
analysis
Conclusion