CORPORATE SOCIAL RESPONSIBILITY ON EMPLOYEE
HOW TO IMPROVE A COMPANY’S CSR WORK
Dr. ELIZABETH FURIO PEREZ ACADEMIC HEAD
MYANMAR METROPLITAN COLLEGE
MYINT ZU TUN
It is my pleasure to convey my gratitude to my thesis supervisor, Dr. Elizabeth Furio Perez Academic Head of MMC for her supervision, advice, and guidance from the early stage of this research study to the end. Most notably, I would like to thank her for her encouragement, support, and patience throughout this entire thesis-writing process. She continually instilled in me the value of excellence in research, which greatly inspired me in my research education and in my completion of this thesis. I attribute a large portion of the credit for my Masters education to her. Without her guidance and persistence in helping me, this thesis would not have been possible.
In addition, I would like to thank my friends Nay Zin Myint and San Thita who benefited from the advice and kindly granted me their time to answer my questions regarding the thesis. And the Graduate Program Office has kindly provided the support and equipment I have needed to produce and complete my thesis. I would like to thank all of them.
I’m grateful for all the people who participated in the survey. I would also like to thank my colleagues (Ayeyar Hinthar Holdings Company’s Staff) who support during my research.
Finally, I would like to thank my husband and my mother for supporting me throughout my studies at Myanmar Metropolitan College.
Background: Since the start of the twenty-first century it has become very important for companies to act in a responsible manner, in guides of CSR. The idea is that companies have more responsibilities than to achieve a higher profit for their shareholders. They should also care about the society and act in a responsible way.
Corporate social responsibility (CSR) is regarded as voluntary behaviors that contribute to the society welfare. Based on the concept of sustainable development, corporations should not only stress on their economic and business outcomes, but also pay attention to their effect on the society and environment. Corporations are expected to engage in the improvement of their employee quality of life, as well as the well-being of employees’ families, local communities, and the overall society.
Problem discussion: Problems concerning CSR are that the internal part of the sustainability work has not encountered the same level as the external part of the sustainability work. Companies are today struggling with implementing CSR into their business strategies.
Purpose: The purpose of this thesis is to examine what a company has to consider when working with CSR and how management control systems can help the implementation of CSR into the organisation. The intention is that this thesis will constitute an input for how Seven Aluminium can continue their further work with developing CSR.
Delimitations: This thesis focuses on one company, Seven Aluminium Company, and how they can improve their CSR-work within their organisation.
Method: The research is carried out through a qualitative research approach, with the primary data collected through interviews.
Conclusions: Important to consider when working with CSR is that the initiative has to come from the top and be communicated throughout the organisation. Further, the company studied in this case, has to identify its external stakeholders needs, in the process of evolving the CSR work. Moreover, in the process of implementing CSR into the organisation and the business strategies, management control systems can be used. By first identifying the stakeholders’ interest and then creating goals, the company reduces the risk of creating wrong goals. It is in the implementation process important to use both formal measurement and informal control in the implementation process.
Suggestions for further research: It would be interesting to further study if the results presented in this thesis would be different, if inputs from interviews with external stakeholders had been included in the research.
Key Words: Corporate Social Responsibility, Stakeholders, Benchmarking, Management Control Systems, Strategies and Sustainable Development
Table of content
The Corporate social responsibility (CSR) is one of the hotly debated topics in today’s highly competitive business world. The concept has long evolved from being merely a “nice but optional” activity to virtually mandatory for many companies, and as such, these companies nowadays exercise increased willingness to act responsible towards key social issues. Reputation, brand image, ethical consideration, economic considerations, increased shareholder value, improved relationship with suppliers and government, and risk management are amongst many reasons for companies actively integrating CSR with their business plan.
Corporate social responsibility (CSR) has grown significantly in importance during the last decades. The idea behind is that corporations should not only care to enhance the shareholders return, they should also take responsibility and act in a responsible manner towards the environment and people. Many companies, especially multinational ones, have to improve their engagement in CSR and reconsider how to establish it into the every-day operations (Carroll & Shabana, 2010).
CSR can be explained as: “The integration of business operations and values where by the interest of all stakeholders, including customers, employees, investors, and the environment are reflected in the organisation’s policies and actions”. (Smith, 2002: 42)
And also: “Corporate social responsibility is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large”. (World business council for sustainable development, 1998)
1.1 The importance of CSR research in Myanmar
First of all, due to the distinctive cultural and social environment, Myanmar corporations are relatively lacking well-developed commercial rules when compared and are thus vulnerable in the global business of existing laws and regulations. The lack of a well-developed CSR system makes corporations suffer from social and environmental issues imposed by the worldwide industry, such as product quality, workplace safety, and environmental pollution.
Moreover, Myanmar is characterized as having a distinctive collectivistic culture, with an emphasis on social harmony. Investors seeking to enter Myanmar are being encouraged to incorporate corporate social responsibility (CSR) into their business model. The push comes not just from Western governments and local and international NGOs, but from the Myanmar government itself. Myanmar government is taking steps to build investor confidence and promote responsible investment in Myanmar.
Myanmar Seeks to Implement CSR. The government is looking to demonstrate to Western investors, as well as new foreign investors from the region, that the investment climate is changing. The Myanmar Investment Commission (MIC) now asks for information about CSR, and in some sectors makes an environmental and social impact assessment (ESIA) a prerequisite for obtaining MIC approval. (Myanmar Times)
1.2 Developing a CSR Strategy in MyanmarForeign businesses are expected to be a major player in the development of the country. There is a real opportunity for investors to bring in international standards and set a model of good corporate behavior that not only builds wealth and creates jobs, but acts as a steward for protecting the surrounding environment and human resources. Such an approach can take many forms, beyond the baseline ‘responsibility to respect’: training and education, community based projects such as providing clean water or improved roads, provision of medical supplies, assistance to support the growth of a local supply chain, or income generation opportunities for excluded groups.
We offer the following recommendations to assist in thinking through as follow:
Consult stakeholders. Engaging with relevant government officials, political leaders, and civil society is important, but ensure outreach goes beyond Yangon and Nay Pyi Taw and embraces groups often excluded, including women, children, disabled, and minority populations. Very few communities in Myanmar have been consulted, either about investment or a company’s CSR approach. Too often, impacted communities find out about major investment projects after a contract has been signed and the bulldozers move in. Ethnic areas are home to a wealth of natural resources and development opportunities but economic development has the potential either to fuel conflict or build peace. With complicated local dynamics and multiple actors, stakeholder engagement in conflict and post-conflict areas needs to be particularly careful and thorough. Listening to communities’ desires and concerns, explaining the scope of intended investment, and discussing how it could impact the community can go a long way to positively enhance engagement and prevent future problems.
Additionally, contact with international NGOs and donor agencies is beneficial. Donor-funded human resources development programs will be necessary to build a competitive economy. The country is flooded with offers of assistance, much of it poorly coordinated and competing, and these should not be developed in a vacuum separate to business investment in the country.
Understand the local and national context. Myanmar struggles with the same issues that every least developed country does: corruption, inadequate infrastructure, under-resourced public services, and a poor skills and education base. Some CSR approaches which have worked well elsewhere will translate, others may not, so avoid the cookie-cutter. We will also need to understand the complexity of recent history, and the impacts of decades of ethnic conflict, human rights abuses, religious diversity, and military rule. Changes to the regulatory and business environment are confusing and opaque, notifications last minute, and not available in English; the changes to state structure and regional autonomy are likely to increase over the coming years as a result of peace agreements and constitutional change, making the environment more complex.
Ensure CSR approach fits both business and real needs
Creating a program designed to fit a community’s needs in which they have a say is important. Setting boundaries is equally important; programs should not supplant the government’s lack of service provision. Communities will expect to build schools and clinics. But the checkbook approach is not sustainable, and if not careful, the government will then expect to pay for the teachers and doctors too. In the end, we may be distracted from addressing the issues that matter more fundamentally to business and the community, such as livelihoods and jobs, cultural heritage, and environment.
Transparency has shallow roots in the new Myanmar, but there is now rich soil in the wealth of new social media, traditional print journals, TV and radio channels, and the internet. Communication barriers between business and civil society have existed for decades; work with the media to communicate the facts about the business, adherence to international standards, particularly on anti-corruption and sound labor practices, and how there are looking for these in our local suppliers and partners. Ensure consultation processes and published information are accessible, transparent, and publicly documented. Pursuing a CSR program should be viewed as an opportunity, not a burden. It should be seen as an investment in goodwill critical in an environment with little in the way of rule of law, capacity, and an increasingly vocal civil society and political active communities willing to publicly—and rightly—highlight substandard investment practices. Well-designed CSR programs in which go beyond respect and promote enjoyment of human rights, in particular through ensuring that the economic benefits of the investment are felt locally, will bolster a company’s social license and contribute to Myanmar’s development.
1.3 Objectives of the StudyThe purpose of this research paper is to explore the potential relationships between employees’ perceived CSR and employee behaviors. This study also looked at the attitudinal constructs that may exist in the relationships of the perceived CSR and employee behaviors. These attitudes such as job satisfaction and organizational commitment, have been shown to relate to CSR perception and work behaviors (Folger & Konovsky 1989, Morman 1991). That is the relationships between employees perception of CSR and employee behaviors will be mediated by job attitudes. The focus will be on current employees, the corporation’s internal stakeholder (Freeman, 1984; Donaldson & Preston, 1995), who may positively or negatively react to their perceived CSR programs (Wood & Jones, 1995). The attitudinal and behavioral reactions to CSR by employees will be examined in the context of Myanmar.
Utilizing their CSR efforts, companies can enable opportunities not only to increase brand awareness and strengthen their relationship with suppliers and government bodies, but also to influence their employees’ commitment and motivation to the organization. The impact of CSR on employees’ commitment to the organization, isstudied across various geographical boundaries including Malaysia (Viswesvaran, Deshp & Milman, 1998), USA (Peterson, 2004), UK (Brammer et al., 2007), Chile (Rodrigo & Arenas, 2008), Turkey (Turker, 2009a), Romania (Stancu, Grigore & Rosca, 2011), Greece (Samanta, Kyriazopoulos, & Pantelidis, 2013), and South Korea (Moon, Hur, Ko, Kim, & Yoon, 2014). However, existing literatures provide little evidence of study on the link between CSR and employees’ commitment to work in Myanmar.
1.4 Methodology of the study
This chapter presents how this thesis has been conducted, the research approach, how the company was chosen, a review to the approach for the interviews and also how the data was collected is included in this part. This chapter ends with the weaknesses of the thesis.
The most suitable method to conduct this study has been by combining qualitative data, from the interviews, with qualitative content analysis from documents, articles and literature. The choice of a qualitative study was made, as the result of the study does not have a given answer. Using quantitative data means measuring and collecting data through pre decided forms, for example with questions on a scale 1-10. Seeing that this thesis and the subject that it examines do not have right or wrong answers, the use of qualitative data was decided. When collecting qualitative data no pre stated answers or results are used, instead the outcome of the research is based on given information. (Jacobsen, 2006: 91-133) This thesis also consists of a case study, which can be described as a study that can be limited in time and space and focuses on one unit (Jacobsen, 2006: 95-98).
This case study focuses on the company Seven Aluminium. It will examine what Seven Aluminium could work with considering CSR and how they with management control systems, could implement it into the organisation.
1.4.1 Methods of data Collection and Selection of company and interviews
In the process of choosing a company to study for this thesis some requirements were set by the authors. The company have located by Yangon, Myanmar based, this to enhance the chance of contact with higher-level managers, the company should also preferably be in the Aluminium selling and Aluminium production business and have initiated their work with CSR.
Already before, in the starting process of this thesis the company Seven Aluninium came up as an option to contact, as one of the author is still working at the company, an email and directly interviewed with Management team was therefore sent to the director of production, who the author also had been in contact with before. Due to the workload at the company, an initial meeting was decided and conducted during the fourth week of the thesis.
In the meeting discussions were made about further cooperation and a sponsor input was provided to the authors containing information about Seven Aluminium expectation of the thesis, and also what support the company could provide to the authors. Weekly meetings were set up with the contact person, from the Legal, Regulatory and Quality Affairs department, appointed by the company where the authors were provided with the opportunity to ask questions and gain access to company documents, such as ISO 2015, sustainability reports and code of conduct. The authors were also provided the opportunity to sit at the Ayeyar Hinthar Holdings Co., Ltd – Head office and write the thesis.
The study is based on the work already done by Seven Aluminium considering CSR. What will be examined in the study is how the company is acting and working today, resulting in what they can do to become better and more committed going forward. In order to conduct the thesis the input of the company’s stakeholders were required. To find out what the stakeholders require ten interviews were set up with internal stakeholders within the organisation. The results of the interviews represent the primary data of this study and provides the basis for our empirical discussion and furthermore the analysis.
1.4.2 Interviews Approach
The interviewees were people from the two divisions Project Sales and Operation, with local responsibility within the areas of market, sales, production and R&D. The interviewees were also from the department corporate communication. The interviews were conducted in Myanmar, at the Seven Aluminium office in Hlaing Thar Yar. Due to heavy workload and the thesis being written closely to Myanmar New Year, three interviews were not possible to conduct. The interviewees missing were from the department’s procurement team and production (Operation Team). Before the interviews were conducted an interview guide was made. The guide was made by looking at Durden’s (2007) article and an old thesis about CSR, provided with useful inputs to formulate the questions. The questions were then sent to the respondents in advance, to provide the respondent the opportunity to prepare. The interview guide also informed the interviewees that the interview would be recorded, with their consent, and that the interviewee’s identity would be anonymous in the thesis. This was done to prevent the interviewee’s from containing sensitive information. Numbers from 1-7 therefore mentions the respondents throughout the thesis. The interviews were conducted with one respondent at a time, with one author asking questions and writing down the answers, all interviews were approximately 25 minutes long. The interviews where conducted between 13th of March and 17th of March.
The interviews consisted of primarily standard questions that were asked to all interviewees, which was complemented by area specific questions to the respondents. The questions were semi open, so that the respondent’s answers would be open. (Jacobsen, 2006: 162-163) Follow up questions were asked when needed. Due to the interviewees having different competence and knowledge in the area of CSR, some found it hard to answer all the provided questions. New questions were therefore also formulated during the interviews in order to cover as much as possible.
1.4.3 Secondary data
Throughout this thesis secondary data has been used to a large extent. The secondary data consist of two different parts; one consisting of preformed benchmarking towards two companies and the second one consisting of gathered information from articles. According to Jacobsen (2006) secondary data is data collected by others in another purpose than what is later examined.
Benchmarking has therefore been done to receive valuable inputs and information about what are best practices for CSR. In order to find relevant companies to benchmark the Dow Jones sustainability index was evaluated. The company with the highest index from the Project Tender Section and business relation division for Aluminium & Glazing work and also construction industry. In addition the companies Eclion and Forward was chosen, which is one of Seven Aluminium’s competitors and was proposed by our contact person at the company and also through some of the interviews. Collection of data has mainly been gathered through the benchmarked companies websites, sustainability reports and also their annual reports.
1.5 Organisation of the study
This paper includes five chapters including this intorductory chapter and chapter (2) discusses about literature view which forcuses one Engergy Mix. Chapter(3) explain the detail review of Myanmar Generation and Energy Mix used for generation while Chapter (4) highlight the suitable engery resource for current generation of Myanmar including existing situation, challenges target and issues that is making the development slow. Chapter (5) ends with recommendation of the best solution for Myanmar electricity development mechanism.
2. Literature Review of Methods
2.1 Contribution of the study
The author is hopeful that the study would make a two-fold contribution. Firstly, this study is to provide a contribution towards filling the apparent gap in the existing literature with regards to the study of impact of CSR on EOC in Myanmar. Secondly, the researcher is hopeful that the result from this study would provide insights to business practitioners with regards to influencing and motivating their employees through the practice of CSR.
2.1.1 Theoretical contribution
This study has developed a framework for the range of CSR. The model links employees perceived CSR to their attitudinal and behavioral outcomes. The perception of ties organizational level to individual level, it is providing a unifying model of CSR. In addition, the study widens the horizon of previous CSR research by extending it to the Asia context. Given the distinctive Myanmar context, the study explores and enriches the understanding of profound impact of perceived CSR on employees’ behaviors through attitudinal reactions.
In brief, this study contributes to CSR theory development by:
(1) Establishing a distinct CSR model to explain how CSR influences employees behaviors,
(2) Examining the model in the context of Myanmar, and
(3) Involving in attitudinal and behavioral variables in the model from the literature.
2.1.2. Practical implications
Thisstudyexploredthepotentialrelationshipsbetween employees perception of CSR and work outcomes, such as employeesjob satisfaction and extra-role behavior. Along with the theoretical contributions of this study, several practical implications can be drawn for the management.
First of all, CSR has influenced not only the organizations financial performance but also individual work outcomes. Rather than evaluate the financial effect of CSR, this study tests the intangible effect of CSR, namely employees work attitudes and behaviors. The study indicates that the management should consider focusing on organizational ethics and CSR activity, which may bring about more positive outcomes for the organization.
The way for companies to think in a social and environmental manner, also known as corporate social responsibility (CSR) started in the 1960s and beyond. The idea of CSR is that companies have more responsibilities than to achieve a high profit for their shareholders. They should also care about the society and act in a responsible way. (Carroll & Shabana, 2010)
“Development that meets the needs of the present without compromising the ability of future generations to meet their own needs”. (Our common future, 1987)
Sustainable development has three dimensions, social, environmental and financial, which are interdependent. The social part includes how to increase human welfare and fairness around the world. The environmental part focuses on how to minimize global warming and the emission of carbon dioxide in Seven Aluminium to slow down the Greenhouse gas effect. The financial part focuses on maintaining a long-term economic profitability while addressing social and environmental issues. Another focus is on how to achieve a more equal economic growth than if not a sustainable perspective is adopted. (GEO4, 2007)
Therefore, there are many similarities between the concept of “sustainable development” and “CSR”, because CSR concerns how organisations should act in order to contribute to a sustainable development. (Larsson and Ljungdahl, 2008:12) The concept “Sustainability” is often used as a synonym to CSR when speaking to the broader audience (Kassel, 2012).
Since the start of the twenty-first century it has become even more important for companies to act in a responsible manner, in accordance of CSR (Adams and Zutshi, 2004). Dominique Ménard, a partner at PWC (2013), says;”the emergence of social values in business is no passing trend. It is a response to the current growth pattern that is putting people and ethics back at the heart of business” This investigation highlights the importance for companies to acknowledge and engage in CSR.
2.2 Problem discussion
CSR issues are something necessary to most organisations today as well as to put emphasis on CSR, even though many still see it as a cost instead of an opportunity, an investigation by PWC shows. The main issue for companies today is how to improve their work with CSR simultaneously as increasing shareholder return. (Hart and Milstein, 2003) One of the biggest challenges with CSR is the paradox of improving environmental, social and financial goals at the same time. In the long-term, social and financial initiatives benefit each other, but in the short-run, they are instead often conflicting with each other, as they are using the same resources. CSR related decision-making is therefore often seen as a trade-off the company has to make to achieve a more sustainable organisation. If managers feel controlled by financial goals in their work, they are less willing and enthusiastic to engage in social and environmental goals at the risk of not meeting set financial goals. Therefore it is important that managers are provided the opportunity to set and follow other goals than financial. (Epstein, Buhovac and Yuthas, 2010)
During the last decades different external frameworks and guidelines have emerged, such as GRI, global compact and ISO 26000. These frameworks and guidelines have been developed to improve companies reporting and transparency towards their stakeholders. Communication to the company’s external stakeholders is an essential part for companies to receive the benefits, which adoptions to a CSR perspective provide. Although the external part of the sustainability work has grown and become something that many companies engage in, the internal part of the sustainability work has not encountered the same level. Companies are today struggling with implementing sustainability and CSR into their business strategies. Today, there are very limited frameworks of implementation for companies, as working with CSR is something relatively new and not regulated by law. The implementation is therefore in many ways challenging for companies, since there is no right way of approaching it. (Durden, 2007)
In the process of approaching and implementing CSR issues into the business strategies it is important that the main stakeholders are identified early in the process, in order to make the implementation successful. It is important that the companies are not only focusing on the needs of the shareholders, but also on other stakeholders. Otherwise the company ?s right to operate can be questioned, as customers, suppliers and society feel neglected. Today also involving non-governmental organisations, shorten NGO ?s, are important to companies, as their ability to effect has increased significantly. For CSR to be profitable the company need not only to know, but also to meet, its stakeholder needs. One challenge is to find a balance between what is the most important to the company and what the stakeholders find most important. Difficulties with CSR are not only limited to find out what the stakeholders are requesting, it is also to transform those needs into strategies and policies and then implement it into the organisation (Weber and Marley, 2010). It is equally important to involve the stakeholders in the process of the CSR work and strategy making. By involving the stakeholders both the company’s and the stakeholder’s needs can be better met. (Durden, 2007) A relevant question that has to be answered is, who are the organisation’s main stakeholders?
Research also shows that in areas concerning sustainability and CSR, benchmarking can be a helpful tool, which companies can use in order to improve its CSR work. Important CSR issues can be identified and examined by looking at how competitors and other successful companies are working. By adopting relevant parts from the benchmarking and transform it into the company’s own strategies and policies, the company may improve its sustainability work. However, difficulties can occur with benchmarking, both about determination of suitable companies to benchmark but also to obtain the right information and inputs from other companies. Even though CSR issues are something that companies intend to be transparent about, information regarding how companies are working with implementing CSR into their business strategies, might be hard to obtain. Benchmarking is, however, still an effective tool to use in order to receive new ideas that other companies are using successfully. The information received from the benchmarking can then be transformed and implemented into the company’s own business. (Pojsek, 2010) An interesting question to answer is therefore, what have other companies done to become successful in their work with CSR issues?
In order to implement CSR issues, within the business strategies in a successful way, a useful tool to apply is management control (Durden, 2007). Management control consists of all systems a manager use to ensure that the employees are acting in the organisation’s best interest (Merchant and Van der Stede, 2012: s 6-13). Durden (2007) has created a framework showing how a company can integrate management control systems and CSR goal. However, reviewing management control from a CSR perspective, there are many difficulties that can occur. According to Durden (2007) it is important for companies to have a strong stakeholder focus when creating strategies and policies, to deal with this problem a company can use an appropriate management control system that control and evaluate the employees and their work. The framework emphasise how important it is for companies to find and connect their stakeholders with their CSR goals, in order to create CSR outcomes. (Durden, 2007)
Seven Aluminium Company (A Member of Ayeyar Hinthar Holdings Co., Ltd), the company studied in this thesis, is a company that has initiated their work with CSR. Seven Aluminium company which will be a part of their way to improve the CSR work and they strive to accomplish is to take this concept and move on to the next level. When writing this thesis we were appointed an assignment and a contact person at Seven Aluminium company’s Chief Operating Officer, who would introduce us into their CSR work.
2.3 Research Questions
This thesis examines how a company can proceed in the work with CSR within the organisation; focus is on finding and formulating strategies, which the stakeholders inquire for. Thus, the following research questions will be examined:
1. What does a company has to consider when working with CSR?
2. How can management control systems help the implementation of CSR into the organisation?
2.4 Purpose of this study
The purpose of this thesis is to examine what a company has to consider when working with CSR and how management control systems can help the implementation of CSR into the organisation. The intention is that the thesis will constitute an input for how Seven Aluminium company can continue their further work with developing CSR.
This thesis focuses on the company Seven Aluminium and how they work with CSR issues. In this thesis no interviews or surveys are conducted with external stakeholders, such as customers, suppliers or governments. Their opinions and needs do instead emerge from interviews with internal stakeholders.
2.6 Limitation of the study
A weakness with the thesis is that interviews only were conducted with internal stakeholders. Due to the interviewees varying knowledge of CSR, the result of the primary data could be questioned. With this taken into consideration not the result of the study is questionable, but its applicability towards other studies could be considered. Another weakness of the study is that the external stakeholders requests were collected through the interviews with the internal stakeholders. This enhances the risk of subjectivity in the provided information and has been taken under consideration in the study. A possible risk with the thesis is that most of the interviews have been conducted in Yangon-Myanmar, and quotes have therefore been directly translated from Myanmar to English by the authors.
2.7 Theoretical framework
This chapter provides a description of the different theories concerning CSR, models and areas concerned in this thesis, which have been divided into four parts. This theory is provided to understand the subject of this thesis. In the first part the concept CSR is thoroughly presented, followed by introduction to the different concepts stakeholders, benchmarking, and ends with frameworks for implementing CSR.
3. Benchmarking and CSR
According to Pojasek (2010) “benchmarking is a powerful tool that can help an organisation plan, implement, and improve its sustainability program”. By identifying and examine how competitors and other successful companies are working with CSR questions within their organisation, the company can achieve an overview over which trends that are the most important to follow, and what the society’s expectations are. (Pojasek, 2010) When working with CSR one of the major challenges is that there are no direct frameworks for integrating the CSR questions into the organisations strategies, Pojasek (2010) therefore suggests that companies should look at each other, via benchmarking (Pojasek, 2010). Benchmarking is an effective tool, which companies can use in order to improve their knowledge and performance, by identify what is “best practice”. By identifying and comparing its own business to what competitors and other successful companies are doing, a company can obtain valuable information about how to improve their own business. Benchmarking can be done either internally or externally. By using an internal perspective it is the own organisation, which is evaluated. Different parts of the organisation can share and transfer important information between each other in order to improve the whole organisation. In an external perspective it is instead organisations outside the company that are evaluated. External perspective can be either competitors, companies operating in the same industry or companies from a completely different market. However, it is important that the evaluated company is successful in what they are doing, and that there is a value to evaluate. The benchmarking process consists of a few steps, which can be described in the model below. (Elmuti and Kathawala, 1997)
Figure 3. Benchmarking (Bateman, 1989:6)
The first step is to decide which function the company wants to benchmark and then identify which company to benchmark against. The second step involves collection of data and other information to identify how the benchmarked company process looks like. It is though important that the company already before has identified how their own process looks like. By doing this it will help the company to be conscious of its own process and how progress is possible. Next step includes analysing the collected data from the benchmarked company, compare it to its own business and identify gaps between them. The last step is to take action and investigate what needs to be done to implement those strategies, which have been identified in the benchmarked company, and then conduct the implementation. To get the best result from the benchmarking process it is also important that employees are involved in all steps of the process. (Elmuti and Kathawala, 1997)
To achieve a successful benchmarking in sustainability it is even more important to look beyond competitors, and evaluate both companies in the same industry or in other industry sectors. It is also important to try to identify which preferences the company’s stakeholders have about an ideal company to benchmark against. When using benchmarking as a tool a few things have to be taken into considerations, benchmarking is not about copying other companies ideas and strategies, instead the purpose is to adapt those ideas and strategies and transform them into the organisation’s own culture and strategies. What is working for one company does not necessary means it is working for another. Benchmarking is also a process, which has to be conducted continuously to ensure that the company is aware of how the market and surrounding develops, this in order to keep its competitiveness. (Pojasek, 2010)
3.1 Implementing CSR within the business strategy
52705216535000In the process of addressing the CSR issues many corporations find themselves unable to see the profit in it. To many companies CSR work equals lower profits to the shareholders. According to Hart and Milstein (2003) managers need to see sustainable development as a multidimensional opportunity, including the financial, social and environmental concerns, instead of seeing it as a one-dimensional irritation, involving more regulations, added cost and liability. In the article written by the above-mentioned authors they describe a shareholder- value-framework that in different ways explain how companies can increase shareholder profit by performing sustainable activates. (Hart and Milstein, 2003)
Figure 4. Sustainable value framework (Hart and Milstein, 2003)
The model is divided into two well-known dimensions, were the vertical axis reflects a company’s need to manage the business today, while simultaneously working on creating new business opportunities tomorrow. The horizontal axis reflects a company’s need to grow and retain internal skills while simultaneously introducing new knowledge and perspectives from external parts. These two axes together create a four-dimension model that explains how companies can work to generate shareholder value, which is referred to as sustainable value by the authors. The lower-left dimension shows the aspects that are mainly internal and in the near-term nature, such as cost and risk reduction. Companies can increase wealth and sustainable value by combining short-term revenues and growth with reduction of liabilities such as pollution, waste, Seven Aluminiumion and suppliers. The lower-right dimension also focuses on performances in the near-term nature, but does also include input from external stakeholders. Without including stakeholders such as customers, suppliers, regulators, communities, NGOs, and also the media a company’s right to operate can be questioned. By including the external stakeholders a company’s legitimacy and reputation can enhance and thereby the sustainable value can increase.
The upper-left dimension of the model explains that it is important for company’s to not only focus on being efficient in the business today but that it is equally important to generate product and services for the future. By constantly developing or acquiring new competencies, skills and technologies it will increase a company’s future growth. This will in term translate into innovation and reposition to the company, which will generate increased sustainable value to the company. The last dimension, the upper-right, concerns a company’s external stakeholder in a long-term perspective, the future expectations. Here the importance of having a clear vision and being able to communicate it to the stakeholders is highlighted, by doing this a company’s future growth trajectory will increase. For a company to gain maximum sustainable value it must perform well in all four dimensions. By performing in only one or two dimensions the risk of suboptimal performance or even failure arises. (Hart and Milstein, 2003)
3.2 Review of Working with CSR
Furthermore a study made by Epstein et al. (2010), states that CSR or sustainability decisions are often moved down from top management to individual managers at business unit level. The main reason is because sustainability impacts are mostly local, which implies that the managers have to make right trade off decisions, regarding environmental and social verses the financial decisions. Problems can occur if these managers are not being supported when these decisions are made. Epstein et al. (2010) argues that it is important that the leaders are supportive and provide managers with the opportunity to actually make trade offs regarding sustainability decisions. “Once people understand the goal, creativity and innovation immediately follow” (Epstein et al, 2010). The role of the organisation culture is also an important part in the process. As a culture that builds on and supports sustainability helps managers to deal with the trade offs, environment and social verses financial goals often cause. (Epstein et al, 2010)
In the study Epstein et al. (2010) also highlights the importance of communication from the CEO – ” CEOs should communicate – and overcommunicate – the importance of sustainability and establish a culture of integrating sustainability into day-to-day management decisions. Commitment to social and environmental concerns must be communicated consistently, both in word and actions” (Epstein et al, 2010). Epstein et al. (2010) also argue that when the company has its sustainability strategy and systems in place a special CSR department is playing an important role, in order to educate business units regarding Why the company should engage in CSR issues and also How the company can improve and include CSR into the decisions making. (Epstein et al, 2010)
Figure 5. MCS and social responsibility (Durden, 2007)
Durden (2007) has created a framework, based on prior literature, showing how a company can integrate management control systems and CSR goals. The framework emphasise how important it is for companies to find and connect their stakeholders with their CSR goals, in order to create CSR outcomes. The first a company has to do it to identify and study their stakeholders and their needs. It is here important that the stakeholder needs are understood and taken into consideration when moving forward with creating CSR goals. Meaning there has to be a two way process, the company should not first develop goals and then advise their stakeholders, but include them in the process so that their needs are included in the goals. The goals should then be implemented into the management controls systems. The highlights how important a direct and focused management is to the integration, this by thoroughly monitoring and measuring to avoid hinders. Without or with poor monitoring and measurement, it risk failing, mainly due to misinterpreted or completely missed identification of stakeholders and their needs.
This Chapter is divided into four different sections; the first section will provide a description of the company, which this thesis is focusing on, Seven Aluminium. Their current CSR work will then be presented in the second section through a short resume of their sustainability report from 2012. Followed by the third section where data is consolidated from the interviews, which have been conducted with different managers within Seven Aluinium. The information will provide both a background of Seven Aluminium’s CSR work today, and also different managers view of the company’s work so far. The fourth section will finish with the results gathered from the benchmarking, this section is divided into two parts, one with Eclion company and one with Forward company
3.4. Seven Aluminium Company “Who they are”
The brand name Seven comes from the name of the lucky number (Myanmar) in which the company was established in 2006 and owned by Ayeyar Hinthar Group of Companies (AYHG). Seven Aluminium has always been at the forefront of cutting edge technologies and services in Aluminum, UPVC, Stainless Steel & Glass. Over the year experiences – most of the Myanmar’s Construction Industry has accepted and embraced incredible Design & Installation works of Seven Aluminium. Seven Aluminium imports Aluminium, Stainless Steel & Glass from reputable international manufacturers. We are the largest stocklist and aluminium, steel and glass products are sold and distributed in Myanmar, as the brand name of Seven®.
Strength, Solid and Style have been the benchmark of Seven® brand Aluminium, Stainless Steel & Glass products. Quality and Customer friendliness & satisfaction are the basic tenets of works and business culture at Ayeyar Hinthar Holdings in general, and Seven® brand products in particular.
We provide a high level of individual service and encourage customers to visit our Factory and Warehouse to see our aluminium farbrication being made from start to finish. We have an in-house technical department who will assist you or your architect to ensure the best possible solution for your aluminium door and window requirements.
Our experienced Design Consultants work flexible hours to coincide with our clients’ schedules including weekends. Our extensive knowledge of our industry and product range, together with sample products and portfolios of our work, will assist you to choose your individual aluminium & glazing requirements from the comfort of client building.
The excellent team consisting of office staff, installations and production managers, qualified surveyors, experienced fabricators and highly skilled installers have been with Seven Aluminium product for many years. A friendly and helpful approach is guaranteed.
Seven Aluminium has more than 300 employees in over three regions in Myanmar. Seven Aluminium’s vision is “Our passion for excellence and innovation will make us the most trusted healthcare brand in the world”, with the mission “To be a global company that provides outstanding solutions for safe, efficient surgical procedures and gentle, effective wound care”. The company is today divided into four divisions, Business Relation, Operation (Production & Installation), Procurement and Corporate division. Business Relation division is promoting and local market leading products and service solutions to minimize the risk of infections for patients.
Seven Aluminium with three core values: passion, learning and integrity. These values work through the entire organisation, the meaning of passion is that every employee should feel enthusiastic about their work and that all products and services should be of best quality to patients, healthcare professionals and stakeholders. Seven Aluminium also works a lot with learning, and taking what we learn into making new ideas and better solutions for the customers. Integrity is very important to Seven Aluminium, to believe in what we do and stand up for it, and also to deliver what we promise. Through this concept Seven Aluminium are responding to the most profound human instinct, to care for and improve the lives of others. (Seven Aluminium, 2013)
Seven Alumimium Product & Expertise
Organisation Division Chart
3.5 Current CSR sustainability work
This part provides information about Seven Aluminium current commitment and what they are communicating to the stakeholders through their sustainability report. Seven Aluminium does today apply to the United Nation’s Agenda 21, declaration of human rights, global compact’s ten principles. They follow the OECD guidelines for multinational companies, Relevant ILO (International Labour Organisation) conventions, and ISO 26000 the guidance on social responsibility. The sustainability report is issued once a year in agreement with the Global initiative guidelines (GRI), to provide their stakeholderss an overview and a genuine picture of the organisation`s sustainability performance.
Code of conduct: All employees and everyone who represents Seven Aluminium have to be familiar with the company’s code of conducts. In the code of conduct it is stated basic standards regarding compliance with the law, the employee’s responsibility, corporate and ethical responsibility, equality and respect in the workplace, environmental management and working proactively with the health and safety policies. Even suppliers are expected to act in consistency with the special code of conduct for suppliers, which they also have to sign before starting to work with Seven Aluminium.
Our Employees: This part summarizes different surveys and indexes set up by Seven Aluminium. The surveys are divided in white collar and blue-collar workers at Seven Aluminium. Of the white collar workers 91 % are proud working there, 87 % feels respected by their manager, and 80 % feels motivated at work. Of the blue-collar workers 78 % are proud working at Seven Aluminium, 76 % feels respected and 70 % feels motivated at work. The employees are Seven Aluminium most important asset, and to improve their employees situation Human Resources (HR) are represented in all countries management and executive teams. Of the over 300 employees 89 % are men and 11 % are women, the executive team consist of 7 men. Indexes and KPIs of health and safety for employees are also presented in this part. Seven Aluminium is constantly working to be a better employer and reduce accidents at work.
Responsibility for our products: It is important for Seven Aluminium that their products offer the highest quality, safety and efficiency. As Seven Aluminium is operating within construction industry, with both safety in the working area and work done successfully they have numerous of standards and regulations, which they have to fulfil. In order to live up to these requirements, Seven Aluminium has a special quality department called Quality Affairs, which aim is to support the quality management system and ensure compliance with all the requirements and regulations are followed. Seven Aluminium has today achieved certifications, for ISO 2015.
Minimizing environmental impact: Seven Aluminium has since 2013 an environmental management system, ISO 2015. The system is included in the Quality Affair department where strategies, objectives and policies are developed in order meet the environmental goals. They are constantly striving to reduce waste, emissions, energy, water, material and Seven Aluminiumi to minimize their environmental impact, but on the same time without compromising their reliability and efficiency of their products and services.
Community support: Seven Aluminium has during 2012 to 2018 donated products, time and funds to different organisations, the respected of the relevant religion building and projects, blood donation to hospital and donation activities to despicable children to the around region of Yangon, Myanmar and other regions.
For instance we are involved in the project ” Donate Drinking Water Donation Activities involving its staff throughout Myanmar”
(Yangon, 10 May, 2017) – Seven Aluminium is distributing drinking water to areas that are affected by the worst of the dry season. Under its broader Clean and Sustainable Water Program of works to alleviate problems of water access for the most vulnerable people, this latest drive will be in action until the rains return to Myanmar.
Seven Aluminium’s regional network of staff has been drafted in to assist with the distribution of water. Employees across the country stand in solidarity with the people of Myanmar and have used their participation to share their caring spirit for those without sufficient clean water at this time.
Seven Aluminium has collaborated with local charity Nobel Heart in Yangon Region including in Dala Township, to ensure that the water is delivered to the places with the most need. The water donation in Yangon and Bago West will take place during the month of May, and large water trucks have already begun to make their rounds. In the dry zone of middle Myanmar, such as Mandalay, Sagaing and Magway, the distribution will be beginning at the end of May and early June to meet the driest time of the season.
“Seven Aluminium is committed to helping the underprivileged in our society. Water is our most precious resource and the driest months of May and June can be difficult for some people. Seven Aluminium will be distributing drinking water to 5 regions and places that are in need of immediate relief. It is part of our Clean and Sustainable Water Program which is funded to a total of 250 million kyats. This includes the latest fresh water deliveries, as well as our projects to build long-term solutions to water scarcity such as drilling new tube wells”, said Mr. Htin Lin Naing, Managing Director of Seven Aluminium.
Water distribution via tanks, trucks and bottles will be in action until the monsoon rains return, and Seven Aluminium’s Clean and Sustainable Water Program continues to build effective water ponds and tube wells in order that people are more resilient to dry periods in the future.
3.6 Interview to Seven Aluminium
The interviewed people within Seven Aluminium, are from both Project Sales team and Corporate division. Their titles are Chief Operating Officer of Production, Market and R&D. Interviews were also conducted with the Director of Corporate Communication and the PR and Media Relations Manager. The interviewed have been working between three years within the company, and most of them have also worked in other positions within the company before they were assigned their current position.
3.7 CSR according to the respondents
This part of the result is connected to the present work with CSR done at Seven Aluminium today. Throughout the interviews and the respondent’s answers provided about their current work. From both the Business Relation and the Operation division all the respondents think that CSR is something important to address and work with. However, the reasons to address it varies, the respondents thinks that CSR consist of three dimensions; environmental, social and financial, and that evolving the social part is of great interest to them. Working with issues as child-labour, fair working hours and conditions to all factories employees, give back to the society and support them in contact with their product are all of great importance to these respondents. As respondent states “CSR is a good way to show the stakeholders what the company does and also that being part of a community means acting accordingly to what is expected of you. Seeing that CSR is important to especially the customers, acting in a socially responsible way is important to the company, as our right to operate otherwise can be questioned”. Today the company follow all laws and regulations, which are strictly regulated from national, regional and local authorities. By complying with laws and regulations the foundation of a CSR work is already set in the organisation. With the development of the brand concept Life proud to be part of it, they have initiated the process to enhance their CSR work. Respondent refers to the concept as “as of now no one is really working with it, it has been launched but not yet implemented. We will fill this brand concept with values and take it to the next level”.
One of the main focuses today internally is on the company’s code of conduct, which every employee is tested on and has to pass, this is tested through an online-based questionnaire. All the respondents find the code of conduct to be important to the company and a good way to be responsible, even though respondent think that just working with a code of conduct is too little and that more is needed. For instance according to respondent 2, the company does today not have any education within the CSR area. Furthermore they also have a supplier’s code of conduct, which all the suppliers must sign and comply to. According to respondent 1, “to reassure that our suppliers are acting in accordance to the suppliers code of conduct, we conduct inspections in all the factories every or every second year. We also use a third party to conduct additional inspections in strategically important factories, depending on how important their inputs are in our process or if they are manufacturing complete product. These inspections are not made annually in every factory, but approximately 4 times per year in total”.
Seven Aluminium has as a policy to always follow local laws, which in some cases can be difficult seeing that Seven Aluminium policies sometimes are in violation of the local law. For instance they support trade unions to all their employees, but in China the law forbids involvement with trade unions. Other difficulties that they meet according to respondent 1, regarding suppliers and their compliance to Seven Alumimiu policies, is that they in many factories have higher demands than other companies using the same factory. Problems then arise concerning who should pay to reassure that the factory fulfils these demands. A problem expressed by all the respondents is that the CSR work today lacks off management and guidance. All the departments are today working separately with some CSR issues, and collaboration between the departments is wanted.
3.8 Managers interest in future CSR work
Throughout the interviews a great interest in advancing the CSR work have emerged and also many ideas of how they can improve it. For instance many of the respondents talk of doing more in the local area, to work more with main-contractor and owners, caring of and reduce waste. Respondent 6 express a deep compassion for actions such as employees with caring responsibilities. As the respondent states “today one out of seven in a workforce is caring for someone, and the respondent refers to the organisation, employers for carers, and highlights that a company can gain by provide these employees with extra support, such as more flexible working hours and special support in order for the employees to remain at work.
Respondent also suggests that Seven Alumimium should engage more in charity to patient-support groups, involving those patients who are in contact with their products. The respondent feels that supporting those with a relation to the company’s products is a good way to evolve the CSR work. For instance respondent also feel strongly about that everyone; employees, their families, customers and suppliers should feel proud about working with Seven Aluminium. “When feeling proud the efforts you make, the way you talk about the company and the way you feel about your employer, reflects the company in a good way”. To them an important part in evolving the CSR work is to make sure that everyone working at or with Seven Aluminium should be proud of it.
It is though expressed that what the respondents mostly search for in the process of evolving the CSR work is a direct and clear management in the area. Today the company lacks a responsible person in the area of CSR, instead the work is done separately in the different divisions and departments. All the respondents therefore requests for a responsible person. This person should be globally responsible and active so that instead of having different priorities and work processes in every department, the work will be coordinated throughout all departments to strive for a likewise work.
What is also requested is a better way to make CSR issues a part of the strategies, today it is according to respondent a lack from the management side in involving CSR. Due to the lack of proper support from the executive team, this result in difficulties for managers at department level to work thoroughly with CSR questions. Not said that CSR issues are not important to the executive team, just that financial priorities are higher. Additionally respondent suggest that a CSR plan should be developed to reassure that the CSR aspects are included when developing new strategies. The other respondent think the current work on CSR is good but that “everything can be improved, and developing CSR and improving the company’s involvement should come from the Quality Assurance department, but they are at the same time willing to engage more to increase the CSR work.
From the interviews some current problems are also expressed, which the respondents think is important to attend in order to advance the CSR work and take it to the next level. Respondent 1 expresses some concerns about suppliers, and how far back in the supply chain Seven Aluminium can and should control and be responsible for. The respondent thinks that Seven Aluminium “should have demands towards our suppliers and the subcontractor, but further down the chain is very hard to control. Not said that we do not care and have requests, but that controlling further down the supply chain is harder and almost impossible as they are too many and controlling all would be too expensive”.
Other concerns, express by respondent 2 is the matter of workload, resulting in stress and difficulties being away from work. Today due to that the company has grown heavily in the last decade, many projects are in place at the same time with no prioritising, resulting in difficulties being away from work even though you are allowed. Respondent 2 and 5 also expresses that their communication need to be improved both concerning CSR and in general, suggesting that they should be more active on social medias. Respondent 5 point out that the company need more external publicity in order for the company to become more known to the public. The respondent think that an increased work with CSR can be a good way in showing the public what the company really does.
3.9 Benchmarking of Eclion Company and Forward Company
In addition to the interviews benchmarking is conducted towards two companies within the Aluminium and Glazing work, to better understand what Seven Aluminium could do to evolve their CSR work. The focus of the benchmarking process is to find aspects, which can be relevant for Seven Aluminium. This part is divided into two subparts, the first about Eclion company and the second about FGI. Both subparts will start with a short presentation of each company and continue with the successful CSR work performed by the companies.
3.9.1 Introduction of Eclion Global (Aluminium ; Glass)
Eclion Global (Aluminum ; Glass) is a Local-Based supplier of advanced technology and innovative design for aluminum and glass works which has been incorporated since 2011. We provide one stop service with a total package of highly top notch user-friendly products, and reliable, trustworthy services and solution. Their services are backed by experienced technicians and professional knowledge to ensure high quality to fulfill customers’ needs.
The factory is equipped with automatic and modern machineries, located in Mingalardon Industrial Zone, with 6000 sq-meter factory premises and 650 sq-mete r office. For their clients’ convenience, the showroom has been opened at East Horse Race Course Road, Tamwe Township.
Eclion Production: Eclion Global produces Sliding Window, Sliding Door, Casement Window, Casement Door, Curtain Wall, Folding Door, Aluminum Toilet Door and various international standard accessories. We not only aim at satisfying our customers’ needs, we also make sure our products are wind-water-and-noise proof, and capable of saving energy and withstanding pressure and typhoon. Beyond the everyday use status, our products are symbols of a high living standard. Therefore, our foreign experts exercise quality control on each production step.
Glass Production: Eclion Global imports our glasses from world-famous manufacturers like Guardian and Asahi. We then performed Steel Ball Dropping Test, Heat Test, Elastic Test, and Breaking Test on the tempered glass in front of the construction experts.
They are producing Tempered Glass that is five times tougher than other glasses and capable of controlling heat and cold, Safety Tempered Laminated Glass that is beautifully designed and safe to use in public area in case of accidental breakage, Vacuum Glass that joins the two panels, using a vacuumed area in between and reducing outside noises, and various functional glasses.
3.9.2 Eclion and their CSR work
Eclion is involved in several projects around the Yangon and other regions, most of them with their products and solutions. However, they also try to make long-term investments in some local areas, such as in the developing countries where they do not have adequate after sales services and where customer communication is often poor. Instead of only provide the main-contractor with, they try to invest in prevention and education of the health care workers with intention to provide a more sustainable solution for the local area. For instance, since 2012 they are running a programme to improve relocation for homeless in Yangon. Also in 2012 a program started to help the government, through education and infrastructure development, to provide access for homeless to the one million poorest in the country.
To ensure that suppliers are acting in compliance with the supplier’s code of conducts and other standards, audits are conducted regularly at the manufacturer both by Eclion themselves and by a third party. In order to increase the CSR work Eclion try to actively engage and collaborate with their suppliers, to reduce environmental impact and find innovations, but also to help them to manage risks, performance and ensure quality on the products.
In order to improve the effectiveness of the SHE (Safety, Security, Health and Environment) the employees are constantly encouraged to come with innovation and share their ideas, for instance” Competitions are also conducted to contribute with ideas of improvement concerning the CSR work. The competition has resulted in several improvements regarding as reducing energy consuSeven Aluminiumions, improving logistics both production and transportation.
3.9.3 Introduction of Forward (Shaetho Engineering & Construction Co., Ltd)
Forward company is one of the local company and they are leading companies in Myanmar specializing in the installation, supplying and maintaining curtain walls, canopies skylights, Louvers, all kind of window, doors, aluminium composite/solid cladding systems, balustrade, handrails, ceilings and partitions. FGI is managed by experienced design professionals with over 27years of international engineering, design and construction experience. They offer a “one-stop shop” with services to take a project from conceptual design to construction.
In 2013, Forward has Awarded ISO 9001-2008 Certificate for Quality Management System by It’s Various Kinds Of Performance & Firmed Attitude.
Their services “Scope of Buiness are as follow:Facade System: Curtain wall system, unitized curtain wall, semi-unitized curtain wall, spider fitting system. The specific of the works are Aluminium Doors ; Windows, Composite Pannel Cladding,Stainless Steel ; General Iron Work, Decorative Ceiling ; Drywall Partition, Other System: Balustrade, Balcony, Canopy, Skylight, Louver3.9.4 Forward and their CSR work
Forward have been working with CSR since the 2014 end when their Managing Director at that time. Forward have since 2010 created several different ways of reducing their environmental impact by the same thinking that lead to 3P and other projects have been developed, such as project life cycle management and goals to reduce their environmental footprint. A formal environmental policy has been established and followed since 2010 including goals as developing products that support a sustainable environment, ensuring that all facilities and products are in agreement with relevant regional and local environmental requirements and obligations and that they assist whenever possible, governmental agencies and other official organisations involved in environmental activities.
“Supplying innovative and reliable products that help construction material improve the quality of care, we are a local leader in construction industry and construction products, and processing various glass.
Foward have found new and smart ways to conduct business. By working through three strategic principles they have managed to implement sustainability in everything they do.
3.9.5 Forward’s strategies for sustainability:
Social Responsibility: Engage key stakeholders in dialogue and take action to improve Forward’s sustainability performance”
Forward believes that their core values and the early work with 3P set the foundation for their sustainability work, but also that it has been impacted by the fact that the work always have been strongly supported and pushed from the top of the company. They work a lot with involving and engaging the employees and support them in contributing with new ideas. In 2014 Forward hosted its first Employee Sustainability Conference, to further engage the employees and to encourage their innovation regarding sustainability where employees have the chance to hear from the COO and other executives how the company could grow through sustainability and also about the latest innovations in the sustainability work. In Forward work with encouraging sustainability innovation among employees everybody is motivated.
4. Analysis and Findings
In a company’ work with CSR questions one very important aspect is the stakeholders. Who they are and what they require. For the CSR work to be successful the identification of the stakeholders are extremely important to the companies, also a deeper understanding of the definition of a stakeholder is needed. (Gjerdrum Petersen, 2011) Carroll and Bushholtz (2000) describes a stakeholder as:
“An individual or a group that has one or more of the various kinds of stakes in a business. Just as stakeholders may be affected by the actions, decisions, policies, or practices of the business firm, these stakeholders also may affect the organisation’s actions, decisions, policies, or practices. With stakeholders, therefore, there is a potential two-way interaction or exchange of influence” (Carroll and Bushholtz 2000: 65-66).
In an influential and still current article on stakeholder theory, Donaldson and Preston (1995), discuss the distinction between a traditional “input-output model” with “the stakeholder model”. It describes differences in the value creation process.
Figure 1. The stakeholder model (Donaldson and Preston 1995)
By instead using the perspective of the stakeholder model every stakeholder interest is included, seeing that the arrows go two ways. The stakeholder model argues that all stakeholders with legitimate use are equally important and that they all want to gain from doing business (Donaldson and Preston, 1995).
According to Lawrence and Weber (2008) you can divide stakeholders into groups of primary and secondary stakeholder. Primary or so called market based stakeholders are the employees, customer and shareholders, the secondary or nonmarket based stakeholders are the media government agencies and community activist groups (Lawrence and Weber, 2008). Mitchell, Agle and Wood (1997) did in an article try to understand, by composing a model of how companies priorities their stakeholders. They found three different attributes possessed by the stakeholders: power, legitimacy and urgency that the companies could identify and thereby decide what priority different stakeholder have. (Mitchell, Agle and Wood, 1997)
Figure 2. Stakeholder typology: one, two or three attributes present. (Mitchell et al, 1997)
The figure shows three circles of different attributes with the seven different stakeholders inside: Dormant, Discretionary, Demanding, Dominant, Dangerous, Dependent, Definitive and Non-stakeholder. Depending on where the stakeholder is and what attribute it possess it importance to the company is decided. The attributes can also shift and they are dependent of each other. This means that even if a stakeholder has a lot of power, it might not be of importance to the company since it lacks legitimacy and urgency. For a stakeholder to be of great importance to the company it has to possess all three attributes. It is first when a stakeholder can affect the company that they will take action. However, the conception of the attributes are also objective, this means that what companies and stakeholder define as important can be different. Therefore there can be situations where the opinions of a stakeholder’s importance cannot be decided fairly. (Mitchell et al, 1997) It is also a question about resources, a company does not possess unlimited resources and therefore cannot always act on their stakeholders needs and requests (Oliver, 1991).
Power as an attribute is according to Mitchell et al. (1997) article that a party can make another party do something that they otherwise would not do, meaning that a stakeholder possesses influence over the company. A stakeholder, who possess power and can combine and can support it with legitimacy, will gain authority. (Mitchell, et al, 1997)
In this chapter the information from the result is tied to the theoretical framework in order to provide an analysis. The analysis will answer the question of what a company has to consider when working with CSR, providing the inputs from stakeholders and benchmarking, and also how management control can help the implementation of CSR.
4.1 What to consider when working with CSR
The result of the interviews shows that CSR is already a part of the Seven Aluminium organisation. Seeing that they operate in an area strictly regulated by national, regional and local environmental requirements and obligations from different governments, most of the work done today is mandatory. However, the company does today lack of work beyond what is mandatory. From the company’s point of view they want to evolve and take their CSR work to a new level, but from the interviews other reasons such as higher customer demands is found to be an additional reason for an increased CSR work. When the customer’s interest in CSR issues increases, the company also has to improve their work in order to continue to operate. What is important for Seven Aluminium to do today is to find their level of ambition for how they want to work with CSR and what they should work with. This chapter will provide, based on information from the interviews, the benchmarked company’s and also the literature input, through different ambition levels, to Seven Aluminium on how and what they can work on, to reach a higher level with their CSR work.
4.2 What to consider regarding external and internal perspectives
Hart and Milstein’s (2003) model shows different dimensions, which are important to consider when improving the CSR work within an organisation. Seven Aluminium has to consider their need to manage the business today, while simultaneously working on creating new business opportunities tomorrow. They also have to consider their need to grow and retain internal skills while simultaneously introducing new knowledge and perspectives from external parts (Hart and Milstein’s, 2003).
In order to improve Seven Alumnium’s external work today, it is important that their stakeholders are identified and involved in the process. Valuable information can then be received about, which CSR issues the stakeholders are mainly interested in. If the stakeholders interest is not identified the company may risk developing wrong CSR goals (Durdan, 2007). Accordant to Seven Aluminium, their main stakeholder consists of customers, suppliers, society, shareholders, governments and NGOs.
The customers are stakeholders, which possess a high level of power, legitimacy and also urgency (Mitchell et al, 1997). The theory means that it is important for Seven Aluminium to react to what the customers want and require. If the customers feel neglected, there is a risk that it will impact the company in a negative way, therefore it is important for Seven Aluminium are to take action on what the customers are interested in. From the interviews it did though occur that no closer collaboration with external stakeholders regarding CSR exists today. To enhance the collaboration and to better understand what the customers require for regarding CSR, Seven Aluminium should engage more to find out what they want. It is important that when working with stakeholders it has to be a two-way- dialog (Donaldson and Preston, 1995). Both Seven Aluminium and their stakeholders should feel that they profit from the collaboration. However, it is not just the customers that are of great interest to the company, also the suppliers and society fulfils attributes that make them important to Seven Aluminium. To enhance the collaboration with the suppliers, Seven Aluminium can adopt the work being done by Eclion. Instead of just having demand towards the suppliers Eclion works with offering support to their supplier in order to help them fulfilling the demands. This is something that Seven Aluminium could work with as well. By helping the suppliers to fulfil the demands, they will also overcome the tension mentioned by respondent 1 created by who should attend the matter of reassuring that the demands are fulfilled. This is a high ambition level for Seven Aluminium to strive to fulfil.
Another measure that Seven Aluminium can adopt from Eclion is that they collaborate with other companies within the construction industry through raw materials and construction materials Supply Chain Initiative. Through this collaboration companies can further reassure that the suppliers are operating in consistency with industry expectations. For Seven Alumimium to engage in this kind of collaboration could enhance their control over their suppliers.
For instance extend their charity work to also involve diabetes and burned patients. This is a good way to contribute to the society for Seven Aluminium and also become more known to the public by being out there and showing their products. Eclicon contributes to the society by conducting charity in another way. They provide developing countries with education on how to use their product, in order to make the work more effective and also safer. This is something, which Seven Aluminium could also work with.
In order to improve Seven Alumimium’s internal CSR work in a long-term perspective it is important to develop sustainable ideas and improvements. An improvement for the employees, which respondent speaks warmly about, is to introduce “employers for carers” at Seven Aluminium. This program makes it possible for the employers to help their employees with caring responsibilities to adjust their working hours to be more flexible. In this way the employee will have the ability to both work as normal as well as care for a relative who is ill, frail or has a disability. This is something that Seven Aluminium could adopt and try to work with, in order to support these employees. Looking at developing sustainable ideas, both the benchmarked companies Eclion and Forward are working a lot with innovation and encouraging their employees to contribute to a long-term sustainable development in the company.
Eclion and Forward take their sustainability work even further by including three CSR principles in everything they do. By involving a CSR perspective within the process of developing new products provide themselves with the ability to not only reduce their own impact, but also their customers. In addition Eclion is working much with engaging and supporting their employees, for instance they are offering education regarding sustainability issues and trends. In 2012 a special “Employee sustainability Conference” was hosted by Eclion to engage the employees and to encourage their innovation regarding sustainability. The employees had at the conference the chance to hear from the MD (Managing Director) and other executives how the company could grow through sustainability and also about their latest innovations in the sustainability work. Further Eclion also has a special program where they encourage and motivate every employee to spend up to 15 per cent of their time focusing on non normal job related challenges, such as sustainable innovation. Also at Foward they are working much with encouraging their employees to be innovative and share their ideas. For instance through different competitions,
In the process of evolving the CSR work at Seven Aluminium, they can use the ideas and also solutions provided by both Eclion and Forward. What Seven Aluminium does today is to test all their employees on the content of their code of conducts. According to respondent they do not offer any education within the CSR area. If the employees do not have the knowledge of what CSR is about, they have neither the ability to contribute to new ideas and improvements within CSR. By providing their employees with education, the employees can receive a higher understanding and knowledge about CSR, which also can improve the possibility for new ideas to be developed regarding CSR. This is something Seven Aluminium should engage in and develop. A suggestion for Seven Aluminium could be to introduce CSR in “Employee sustainability Conference” where the employees are invited to participate in different seminars and provided with information about CSR. It is first when employees possess some knowledge about CSR issues that the company can start working with and develop programs. For instance Seven Aluminium can as well as Eclion have competitions where the employees can contribute with new ideas and improvements regarding CSR. As Seven Aluminium is a company with employees that have great competence and are driven, this is something that they could work with. By supporting and encouraging people to think on their own, new products and ideas can be born.
4.3 How to work with and implement CSR
What is most important according to Epstein et al. (2010) and also something that have been proven to be very successful for Forward, is that the initiative to a CSR work must come from the Managing Director and the executive team of the company. Further a communication has to be established, where the initiative to CSR is communicated throughout the organisation to all employees. As revealed in the interviews, the organisation is today decentralised, where all departments are working separately with CSR, which lead to that the CSR work does not get the same effect as it would if they were collaborating. For Seven Aluminium to address this matter, and create collaboration between the departments regarding the area of CSR could lead to that the results of the work will improve. What Seven Aluminium also has to address is to appoint a CSR responsible person. This is something that all the respondents asks for and also needed in the process of developing CSR. Appointing a responsible CSR person is something Seven Aluminium should do, since it could help create collaboration between the departments to strive for a likewise work. Firstly after this have been done, can they initiate the process of developing CSR and also implement it within the business strategies. A future work that Seven Aluminium could develop is to advance from a responsible CSR person into creating a special CSR department, as Epstein et al. (2010) argues is a good way to enhance the CSR work even more.
However, CSR is often something which companies see as a local matter and therefore it is the managers at unit level who mainly works with it. Epstein et al. (2010) therefore argues that it is important that the leaders are supportive and provide managers with the opportunity to actually make trade offs regarding sustainability decisions. (Epstein et al, 2010) Something that 3M have created to assure that a CSR perspective is always included when developing strategies, and also in everything else they do, is three principals, social responsibility, environmental stewardship and economic success. By including this three principles Forward have taken their CSR work further and managed to not only reduce their affect on the environment, but also their customers. This is something that Seven Aluminium should try to adapt and transform into their own principal, to improve their CSR work. To adapt this it is important with support for the management. Something that Seven Aluminium also has to work with is to implement these CSR principles into their strategy process. However, implementing CSR into everything they do and helping their customers reduce their waste might be a too high ambition level for them today, but to implement CSR into the strategies is something that they could work with. In order for Seven Aluminium to implement CSR issues within the previously mentioned business strategy process they need to develop and improve their CSR work within every department of the organisation. They then need to break down all CSR strategies to goals for the employees. By this every employee gets information about how to contribute.
For a deeper involvement with CSR issues a company need to involve their stakeholders in the process. When involving the stakeholders it is important for the company to have control system in place that reflects a stakeholder focus. Management Control systems can therefore be a useful tool for managers to regularly monitor whether the company’s CSR goals are in congruence with the stakeholders. Durden (2007) has developed a framework in order for companies to work with this. According to this framework, in the first step it is important to first identify the company’s stakeholder needs and then create CSR goals. Otherwise the company risk creating wrong goals. Which might lead to that the purpose of why the company wanted to adopt CSR will not be reached.
When looking at Seven Aluminium they have to work and communicate more with their external stakeholders. Today they would have problems creating the right CSR goals, based on the information provided from the interviews and due to the lack of external stakeholder inputs. The CSR goals should then according to Durden (2007) be implement into the management control systems. In this second step the goals are transformed from descriptive CSR goals into workable components of management control systems. For Seven Aluminium it is important to have a direct and focused management that monitors and measures the result to avoid obstacles in the implementation process. Due to that Seven Aluminium has a lack of external stakeholder inputs, it is important that they do receive input from those external stakeholders and then monitor it, in order not to misinterpret or completely miss important needs, before moving on to the next step.
In the third step of Durden’s framework, he talks of the importance of formal measurement and informal control. Formal measurement meaning that a company has to have an approach that supports CSR aspects, through measuring and systematic monitoring. The informal control being that the formal measurement should be implanted in the company culture. (Durden, 2007) Today Seven Aluminium work actively with formal measurement through KPIs, this is something that they could apply to CSR goals as well. Problems are that CSR often is hard to measure. Formal measurement is also important since it implies to the managers that the stakeholders and the CSR goals are important (Epstein et al, 2010). Working with this at Seven Aluminiumare could thereby increase both the managers and the employee’s engagement in CSR issues and help in the process of evolving the commitment. It is though important to remember that a formal measurement by itself can cause confusion among the managers, it is therefore equally important to work with the informal control at Seven Aluminium. Also Epstein et al. (2010) highlights the importance of working with informal control, he argues that a company cannot work with a formal measurement before having implemented an informal control properly in the organisation (Epstein et al, 2010).
Seven Aluminium does here have a great advantage, since their employees already are engaged in the subject and want to improve the work with CSR. By creating a commitment through working with CSR, in ways such as with code of conduct, supplier code of conduct, sustainability report, ISO certifications, charity projects and the brand concept Life. Proud to be part of it. Seven Aluminium has created a foundation to their CSR work. What Seven Aluminium has to work on is to connect these different areas and transform it into a holistic perspective. Another advantage, which they possess, is that the employee’s feel proud to work at Seven Aluminium and as the products they offer are helping people. This could make them evermore enthusiastic to create new innovating measures regarding CSR and further improvements. The above-mentioned advantages could together help create, through informal control, an awareness that in a long- term perspective could influence the company’s culture into being more sustainable.
The fourth step of Durden’s framework is management actions, which imply the importance of management control systems as a guide for management decision making, to reflect and cover the CSR aspects (Durden, 2007). For Seven Aluminium it is important that the managers obtain result through monitoring and measuring using their KPIs, in order to provide the management of a perception of how the work proceeds in different departments. It is also important that the management support the managers in their further work with CSR to signify the importance with it and also what to evolve. Problems that can occur are that the mangers do not understand the expectations or that they lack motivation or competence. By being aware of that these problems exist, the management can reduce the risk that they could occur (Merchant and Van der Stede, 2012: 6-13). However, management being supportive towards the managers in the process of developing the CSR work will not help if the managers still do not understand what they are doing or why they are doing it. This is why, as previously suggested, it is important for Seven Alumiium to engage in education regarding CSR at the company.
The last step of Durden’s framework is then how the final outcome of the CSR work should be in congruence with the external report which should communicate to all Seven Aluminium’s stakeholders and provide information about what they have done during the last year regarding CSR and sustainability. The report will further show the stakeholders Seven Aluminium’s contribution to the sustainable development.
In this chapter conclusions are drawn from the analysis and the two research questions are answered. This chapter also present research contribution and ends with suggestions for further research.
5.1 What does a company have to consider when working with CSR?
When working with CSR it is very important that the initiative comes from the top management of the company and then is being communicated throughout the organisation. In addition it is important that the managers in every department are supported from the management in order to work with CSR issues. This is something that Seven Aluminium has to work with and improve. By moving the issue of working with CSR to the top of the organisation they will have a better chance of successfully implementing it into the organisation. Further, dedicating a person responsible for CSR questions could be valuable to the company. When developing and improving the CSR work, this person could help create likewise work in the different departments. When working with CSR it is also important that the company consider inputs received from their stakeholders, as it is otherwise a risk that they will create wrong CSR goals. This is an important matter for Seven Aluminium to address, to collect the today missing input from the external stakeholders. In the process of evolving the CSR work at Seven Aluminium, benchmarking on what other companies have done successfully, can also be used in order to receive valuable input. Moreover when working with CSR issues Seven Aluminium need to manage their business today, while simultaneously working on creating new business opportunities tomorrow. They also have to consider their need to grow and retain internal CSR skills, while simultaneously introducing new knowledge and perspectives on CSR from external parts. In Seven Aluminium’s work with CSR it is important that they decide on an ambition level that is suitable for them and then communicates it, both internally and externally.
5.2 How can management control systems help the implementation of CSR into the organisation?
Management control consists of all systems a manager needs to ensure that the employees are acting in the organisation’s best interest. Durden has created a framework in order to help organisations to implement the CSR issues within the business strategy. The framework highlights the importance to first identify the stakeholder’s interest, before developing CSR goals. This as the CSR goals must be influenced by the stakeholder’s interest and their needs. Otherwise Seven Aluminium will risk creating wrong goals, which might lead to that the purpose and goals, of why they wanted to adopt CSR, will not be reached. Further to implement the CSR goals within the management control system, they have to transform the descriptive CSR goals into workable components of the management control system. They also have to develop different ways of monitoring and measuring the CSR goals, for instance by using KPIs. By measuring the outcome of the CSR goals, it indicates to the management, managers and employees whether or not the proceeding work is successful. In order for the implementation to be successful, it is important that Seven Aluminium works actively with both formal measurement, such as KPIs, and informal control. By working with informal control it could help create awareness that, in a long-term perspective, could influence Seven Aluminium’s culture into being more sustainable.
This thesis has academically contributed to an empirical study on an actual case examining how a company can work with implementing CSR into the business strategy process. The idea to implement CSR in the business strategies is something that both literatures discuss, and also something that companies want to work with, in order to improve the CSR work. This makes the subject of this thesis something that is relevant to further examine. By examining the subject towards an actual case, the thesis shows how companies in the initiating process can proceed with their CSR work. Something that should be stated is that the company this thesis studies, Seven Aluminium, has not yet been able to successfully implement CSR into their strategies. This could have its reason in the fact that the company still is in a starting point of developing the CSR work, but it should also be stated that working with CSR and implementing it, is something that is very hard for companies to do successfully. After conducting this study it is clear that the inputs from external stakeholders are crucial for Seven Aluminium to succeed in their work with CSR.
Further this thesis contribute as an input to how the studied company, Seven Aluminium, can develop and improve their CSR work by providing different ambition levels for them to work by. The first ambition level concerns measures they should work with. The second ambition level is an applicable level, explained as what they could do in order to improve their CSR work. On this level they will try to apply the inputs provided throughout the analysis of this thesis. The third is a high ambition level, being measures they could work on in the future.
6.2 Suggestions for further research
It would be interesting to further study if the results presented in this thesis would be different, if inputs from interviews with external stakeholders had been included in the research.
Another interesting subject for further research would be to examine the problem, on how to decide on which CSR issues are most important to work with, for the company and for the stakeholders.
Yet another interesting subject for further research would be to examine how the CSR work, in the studied company, proceeds after the implementation.
Adams, C & Zutshi, A. (2004) Cprporate social responsibility: Why business should act responsibly and be accountable. Australian Accounting Review vol.14 NO.3
Campbell, J.L. (2007). Why would corporations behave in socially responsible way: An institutional theory of corporate social responsibility. Academy of Management Review, 32, 946–967.
Carroll, A.B., & Buchholtz, A.K. 2000. Business & society: Ethics and stakeholder management (4th ed). Cincinnati, Ohio: South-Western Collage Publishing.
Carroll, A. & Shabana, K. 2010. The Business Case for Corporate Social Responsibility: A Review of Concepts, Research and Practice. International Journal of Management Reviews, 12 (1): 85-105.
Dahlsrud, A. 2008. How Corporate Social Responsibility is Defined: an Analysis of 37 Definitions. Corporate Social Responsibility and Environmental Management, 15 (1): 1-13.
Donaldson, T., & Preston, L.E. 1995. The stakeholder theory of the corporation: Concepts, evidence, and implications. Academy of Management Review, 20(1): 65-91.
Durdan, C. 2007. Towards a socially responsible management control system. Accounting, Auditing & Accountability Journal, Vol. 21 Iss: 5, pp.671 – 694
Elmuti, D. and Kathawala, Y. (1997), An overview of the benchmarking process: a tool for continuous improvement and competitive advantage, Benchmarking for Quality
Epstein MJ, Buhovac AR, Yuthas K. (2010) Implementing sustainability: the role of leadership and organisational culture. IMS ?s foundation for applied research.
Hart SL, Milstein MB. (2003) Creating sustainable value. Academy of management executive, vol 17, no2.
Gjerdrum Pedersen, E.R. 2011. All animals are equal, but …: Management perceptions of stakeholder relationships and societal responsibilities in multinational corporations. Business Ethics: A European Review, 20(2): 177-191.
Kassel, K. 2012. The Circle of Inclusion: Sustainability, CSR and the Values that Drive Them. Journal of Human Values 2012 18: 133
Mitchell, R.K., Agle, B.R., & Wood, D.J. 1997. Toward a theory of stakeholder identification and salience: Defining the principle of who and what really counts. Academy of Management Review, 22(4): 853-886.
Norris, G. and O’Dwyer, B. (2004), Motivating socially responsive decision making: the operation of management controls in a socially responsive organisation, British Accounting Review, Vol. 36, pp. 173-96.
Oliver, C. (1991). Strategic responses to institutional pressures. Academy of Management Review, 16, 145-179.
Robert. B, Pojasek 2010. The Environmental Quality management: Benchmarking to sustainability in four steps).Volume 20, issue 2, pages 87-94, Winter 2010.
Smith, K., 2002, “S0 Considers Corporate Social Responsibility Standards, The Journalfor Quality and Participation 25.3 42.
Weber, J ; Marley K.A. ( 2010). In Search of Stakeholder Salience: Exploring Corporate Social and Sustainability Reports. Business Society 51: 626
World Commission on Environment and Development. 1987. Our common Future. Oxford: Oxford University Press, p. 8.
Eclion : http://www.eclionglobal.com/http://www.eclionglobal.com/projectsForward : http://www.forwardglassaluminium.com/
EY. (2013). Sustainable stakeholder relationship viewed 2017-12-17 http://www.ey.com/GL/en/Services/Advisory/Business-Pulse–Sustainable-stakeholder- relationships
Dow Jones Sustainability Index. (2013). Industry group leaders. viewed 2017-12-16 http://www.sustainability-indices.com/review/industry-group-leaders-2013.jsp
Global reporting initiatives. (2013). About GRI.. viewed 2017-12-07 https://www.globalreporting.org/information/about-gri/Pages/default.aspx
Seven Aluminium. (2013). About the company. viewed 2017-12-04 http://www.molnlycke.com/About/
United nations global compact. (2013). The ten principles. Viewed 2018-4-03 http://www.unglobalcompact.org/AboutTheGC/TheTenPrinciples/index.html
United nations. (2013). GEO 4 report. Viewed 2018-4-03 http://www.unep.org/geo/GEO4/report/GEO-4_Report_Full_en.pdf
World business council for sustainable development. (1998) Meeting changing expectations. Viewed 2018-4-14 http://www.wbcsd.org/pages/edocument/edocumentdetails.aspx ?id=82;nosearchcontextkey=true
8.1 Research questions:
What does a company has to consider when working with CSR?
How can management control systems help the implementation of CSR into the organisation?
8.2 Interview questions
How long have you been in this position and how would you describe your role?
What are CSR for you?
Which CSR questions are of greatest interest to you?
How do you see MHC working with these CSR questions?
How are long-term goals and plans developed?
When and how are long-term plans discusses, debated and challenged?
Has the long-term direction changed over time and way?
How are long-term plans conveyed to staff and translated into the daily work?
What are the benefits of these processes?
Are there any problems or shortcomings with this process?
How are long-term goals and plans monitored and reported?
Are there any problems or shortcoming with this process?
Do you see an increasing demand for CSR work from the surrounding?
Do you know of any company, who are handling CSR questions in a particular good way?
Who do you see as Seven Aluminium main external stakeholders concerning your department?
How are different stakeholders affecting the CSR work?
What are the stakeholder’s strengths? Could these strengths help or hinder the business?
What are the stakeholder’s weaknesses? Could these weaknesses help or hinder the business?
What positive expertise and connections does the stakeholders have? Could these be useful?
What threats could the stakeholders bring to the business? Could the stakeholders put the business at risk? How can these threats be reduced?
How does your cooperation with different stakeholders look?
From the sustainability report we can see that you demand that all your suppliers apply to your “code of conduct” and also live up to Seven Aluminium’s values. How is it possible for Seven Aluminium to control this?
Do you feel that there are cultural differences between supplier and customer demands regarding CSR in different countries?
Do you see an integration possibility in your department of CSR questions?
Is there anything else you wish to add?
Seven Aluminium have a suppliers code of conduct, do you have similar conditions and standards toward your buyers?
Do you feel that there are cultural differences between suppliers and customers demands regarding CSR in different countries? ?
Do you see an integration possibility in your department of CSR questions?
Is there anything else you wish to add?
How do you work with monitoring that all factories are following Seven Aluminium’s code of conduct and not are in violation of any laws?
Do you feel that there are cultural differences between supplier and customer demands regarding CSR in different countries?
What internal reporting systems are used in the business and what do they cover?
In Seven Aluminium communication to the surrounding how transparent are your regarding CSR?
Do you see an integration possibility in your department of CSR questions?
Is there anything else you wish to add?
In the process of developing new product, to what extend are stakeholder interest included?
Do you see an integration possibility in your department of CSR questions? ?
Is there anything else you wish to add?
How does the process of developing the sustainability report look? ?
How come Seven Aluminium chose to report on the parameters that you do?
How can the CSR work be monitored and measured?
Do you see how CSR could become a part of Seven Aluminium business strategies?
Do you see an integration possibility in your department of these CSR questions?
Is there anything else you wish to add?