sustainable development The_Impact_of_Corporate_Social_Responsib.pdf - 1 ~ Center for Interdisciplinary Studies ~ and ~ Institut de la Communication ~

Sustainable development The_Impact_of_Corporate_Social_Responsib.pdf

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Unformatted text preview: 1 ~ Center for Interdisciplinary Studies ~ and ~ Institut de la Communication ~ UNESCO Chair in Cultural Policy and Management Master thesis: The Impact of Corporate Social Responsibility on Sustainable Cultural Communities by: Nedeljko Kovačić Supervisor: Lidia Varbanova, PhD Belgrade, September 2015 2 TABLE OF CONTENTS Index of Tables – 9 Abstract – 11 Résumé – 16 I. – Introduction – 22 I.1. – Foreword – 22 I.2. – Context – Theoretical Background – 24 II. – Methodology – 27 III. – Theoretical Framework Research – 29 III.A. – Part One: Overview of CSR – 29 III.A.1. – Historical Background of the Idea of Socially Responsible Business – 29 III.A.2. – Definitions of CSR – 30 III.A.2.1. – Definitions Most Commonly Used Today – 30 III.A.2.2. – History of CSR from 1950s to 2000s: Evolution of an Academic Concept – 33 III.A.2.3. – Approaches and Models – 37 Carroll's Pyramid of CSR – 39 Triple Bottom Line (TBL) – 40 The School of Montréal – 44 3 III.A.3. – Related Concepts: What CSR Is (Not) – 48 Corporate Social Performance (CSP) – 48 Corporate Citizenship (CC) – 49 Cause-Related Marketing (CRM) – 50 Corporate Governance (CG) – 51 Corporate Sustainability (CS) – 52 Socially Responsible Investment (SRI) – 53 Impact Investing – 54 Corporate Accountability (CA) – 55 III.A.3.1. – Dilemma: Is Corporate Philanthropy = CSR or Not? – 55 Philanthropy as Competitive Advantage or Not? – 57 o Strategic Corporate Philanthropy (SCP) – 59 o Strategic Social Investment (SSI) – 60 III.A.4. – Comparative Analysis of CSR Approaches Across the World – 61 US / Europe – 62 CSR Worldwide – 68 Culture-Specific Factors – 72 III.A.5. – Business Performance of CSR? – 75 III.A.6. – CSR & Business Ethics: Philosophical, Spiritual and Psychological Approaches – 78 Moral Philosophy – 80 Spirituality – 83 Psychological Approach to CSR – 85 III.A.7. – Criticism of CSR in Theory and Practice – 88 4 III.A.8. – Significance and Relevance of CSR – 92 III.A.9. – Codes and Reporting – 96 GRI Guidelines – 99 ISO 26000 – 104 III.A.10. – Relation Between CSR and Sustainable Development – 109 Equating CSR and SD or Differentiating between CSR and SD? – 109 III.B. – Part Two: Overview of Issues Regarding Sustainable Development – 111 III.B.1. – Definitions of Development – 111 What is "Development"? – 111 III.B.1.1. – From "Grand Visions" to Performance Indicators – 112 III.B.1.2. – Human Development – 118 Development as Freedom – 121 III.B.2. – What is Sustainability / Sustainable Development – 122 III.B.2.1. – Limits to Growth: Historical Perspective – 124 III.B.2.2. – The Brundtland Report and the 3-Pillar Model of SD – 127 III.B.2.3. – From Stockholm to Rio to Global Compact: UN Overview – 132 UN Global Compact – 140 5 III.B.3. – Sustainable Communities – 145 What is Community? – 145 Community Development – 146 Community Sustainability – 147 Sustainable Communities – 148 Sustainable Community Development (SCD) – 151 III.B.4. – Sustainable Development: Criticisms of the Concept – 154 Development as the "Dominant Discourse of Western Modernity" – 154 Sustainable Development as "a New Era of Development" – 156 The Present Situation: A "Failed System"? – 159 III.C. – Part Three: Cultural Sustainability – 162 III.C.1. – Introduction – 162 What is "Culture"? – 163 Cultural Development – 165 III.C.2. – UNESCO: Linking Culture and Cultural Development with Development and Sustainable Development – 168 III.C.3. – The World Bank and Different Concepts of Social Capital – 173 Cultural Capital and Habitus – 176 III.C.4. – Hawkes: The 4th Pillar of Sustainability – 179 III.C.4.1. – Community Cultural Development (CCD) – 185 6 III.C.4.2. – Agenda 21 for Culture – 187 III.C.5. – UNESCO: From Millennium Goals to Post-2015 Development Agenda – 191 III.C.6. – Towards Cultural Sustainability – 195 III.C.6.1. – Differentiating Cultural Sustainability from Social Sustainability – 196 III.C.6.2. – Culture and Sustainability: 3 Models and Possible Instances – 197 III.C.6.3. – Towards a Concept of Cultural Sustainability? – 207 Cultural Diversity – 211 Cultural Heritage – 213 III.C.6.4. – Cultural Sustainability: Practical Models and Indicators – 218 Circles of Sustainability – 219 UNESCO Culture for Development Indicators (CDIS) – 221 III.C.6.5. – Emerging Criticisms of Cultural Sustainability – 226 III.D. – Coming Full Circle: Relation Between Culture and CSR – 228 III.D.1. – Introduction – 228 III.D.2. – Culture in the Existing Frameworks of CSR – 232 III.D.2.1. – Quadruple Bottom Line (QBL) – 238 III.D.3. – Forms of Business Support for Culture – 240 7 Direct Investment in Culture – 241 Sponsorship – 241 Patronage and Donations – 243 III.D.3.1. – The Role of NGOs: Arts & Business Organizations – 245 Differences Europe / US – 248 III.D.3.2. – Americans for the Arts: CSR and the Arts – 250 III.D.3.3. – CSR and Cultural Heritage – 253 III.D.4. – Corporate Cultural Diplomacy (CCD) – 256 III.D.5. – Corporate Cultural Responsibility (CCR) – 262 IV. – Analysis of Practices – Case Study Serbia – 267 IV.A. – Part One: Case Analysis – CSR in Serbia – 267 IV.A.1. – Regional CSR Context – 267 IV.A.2. – Serbia: General Country Context – 270 IV.A.3. – Serbian CSR Context – 271 IV.A.4. – The Development of the Concept and Practice of CSR in Serbia – 273 International Frameworks – 274 Initiatives by the Government of the Republic of Serbia – 275 8 Business Sector Initiatives – 276 IV.A.5. – CSR in Serbia: Present State – 279 IV.A.6. – Business Support for Culture in Serbia and the Role of CSR – 282 IV.B. – Part Two: Empirical Study – CSR and Culture in Serbia – 285 IV.B.1. – Qualitative Research – 285 IV.B.1.1. – Companies – 285 IV.B.1.2. – CSOs – 289 IV.B.2. – Quantitative Research – 294 IV.B.3. – Analysis of Results – 300 V. – Conclusions and Recommendations – 304 V.1. – Concluding Remarks – 304 V.2. – Assessment: "What is to be Done?" – 307 V.3. – Impact of Corporate Social Responsibility – 309 V.4. – Sustainable Cultural Communities: A Tentative Definition – 313 V.5. – Possible Recommendations – 315 VI. – References – 317 * Short Biography – 364 9 Index of Tables: Table 1 – Carroll's Pyramid of CSR – 41 Table 2 – Carroll's 3-Domain Model of CSR – 42 Table 3 – Elkington's Triple Bottom Line (TBL) / 3P – 47 Table 4 – Visser's Pyramid of CSR Compared to Carroll's – 73 Table 5 – Categories and Aspects in the GRI G3 Guidelines – 101 Table 6 – ISO 26000 Core Subjects and Issues of Social Responsibility – 107 Table 7 – Standard 3-Pillar Model of Sustainable Development – 133 Table 8 – UN Millennium Development Goals (MDGs) and Targets – 138 Table 9 – UN Global Compact – The Ten Principles – 143 Table 10 – 3-Pillar Model of Community Sustainability – 150 Table 11 – Hawkes' 4-Pillar Model of Sustainability – 184 Table 12 – The Contents of Agenda 21 for Culture – 189 Table 13 – 3 Models of Culture and Sustainable Development – 199 Table 14 – Culture as Central Pillar of Sustainable Development – 203 Table 15 – The Medicine Wheel Model – 214 Table 16 – Cultural Heritage Counts for Europe Model – 217 10 Table 17 – New Zealand's 4 Well-beings of Community Sustainability – 220 Table 18 – Circles of Sustainability Domains, Perspectives and Scale – 223 Table 19 – Circles of Sustainability Matrix – 224 Table 20 – UNESCO Culture for Development Indicators (CDIS) Matrix – 225 Table 21 – CECP Data on Corporate Giving for 2013 – 230 Table 22 – UN Global Compact – Blueprint for Corporate Sustainability Leadership – 236 Table 23 – SurveyMonkey – Questionnaire – Question 3 & Question 5 – 299 11 Abstract This thesis begins its inquiry into the impact of Corporate Social Responsibility (CSR) of sustainable cultural communities by first conducting a theoretical research into the background concepts of CSR, sustainable development and cultural sustainability. Part One presents an overview of the theory and practice of Corporate Social Responsibility. First, the historical background of the idea of socially responsible business is being explored. The second chapter discusses the various definitions of CSR, starting with different definitions of this term that are most commonly used today. It continues to trace the history of the evolution of CSR as an academic concept, from the 1950s into 2000s. Then, several approaches and models of CSR are being explained, including the most widely used one, Archie B. Carroll's Pyramid of CSR, John Elkington's Tripple Bottom Line (TBL) framework, and the School of Montréal, represented by the work of Corinne Gendron. The third chapter is discussing what CSR is and that it is not by exploring several concepts that are commonly used in an interchangeable or overlapping way: Corporate Social Performance, Corporate Citizenship, Cause-Related Marketing, Corporate Governance, Corporate Sustainability, Socially Responsible Investment, Impact Investing and Corporate Accountability. It continues to discuss the first important dilemma related to the overall concept of CSR, namely, whether it can be equated with Corporate Philanthropy or not, while also exploring the notions of Strategic Corporate Philanthropy and Strategic Social Investment in relation to ongoing debate should philanthropy itself be presented as a source of competitive advantage or not. The third chapter explores differences in various approaches to CSR across the world, with a particular focus on different notions of this concept in the US and Europe, as well as in Asia and Middle East, and on culture-specific factors that influence CSR in practice. Next, the "business case" for CSR is explored, i.e. the argument for its acceptance on the part of companies by advocating its business performance contribution, which remains a contested issue. 12 The next chapter continues to explore this second important dilemma related to CSR – whether it should be advocated on the basis of its business advantage or ethical value – by discussing the business ethics in relation to social responsibility, presenting three different approaches to this ethical argument from three different angles: moral philosophy, spirituality and psychology. Then, criticisms of CSR both in theory and practice are being presented, and finally, the significance and importance of this concept are discussed specifically in the context of globalization. In conclusion, there is a discussion of CSR codes and reporting frameworks, such as GRI Sustainability Reporting Guidelines and the ISO 26000 international standard. The question of relationship between CSR and sustainable development is discussed as well, in the sense of dilemma whether to equate these two concepts of differentiate between them. Part Two presents the overview of issues regarding sustainable development. Firstly, the idea of development itself is being discussed in a historical overview that describes how in the decades following World War Two the notions of "developed" and "developing" countries were introduced and treated in the light of the ideas of Westernization and the economic conceptualizations – such as the Modernization theory the Dependency theory – which equated the idea of development with economic growth and industrialization. Then, the alternative concept of human development is being explained, as introduced and advanced by the UNDP's Human Development Index, and in relation to that, Amartya Sen's notion of development as freedom. The second chapter goes on to discuss the notions of sustainability and sustainable development, from the first historic mentions of such concepts, via the Clube of Rome report to 1987 Brundtland Commission Report which widely introduced the notion of sustainable development into global discourse and in relation to that the broadly used 3-pillar model of sustainable development, comprising the dimensions of economic, social and environmental sustainability. Next, an overview is given of the United Nations' initiatives regarding the advancement of sustainable development, from 1992 Earth Summit in Rio de Janeiro and its main document, Agenda 21, via UN Millennium Declaration and Millennium Development Goals, until today, 13 with a particular discussion of UN Global Compact, an initiative to connect global corporations within UN framework for the purposes of sustainability. The third chapter treats the topics of sustainable communities, first by offering different views on what is a community itself, then by discussing the notions of community development, community sustainability, sustainable communities and sustainable community development. Finally, criticisms of the concept of sustainable development are presented from different angles, regarding this concept as the continuation of the dominant discourse of Western modernity or as a new era of old notions of economic development, concluding with the summary of the present global situation which many regard as a failed system. Part Three is exploring the emerging concept of cultural sustainability. First, different views on what actually the concept of culture itself represents are given, and the concept of cultural development is being discussed. Then, an outline of UNESCO's efforts in linking culture and cultural development to the notions of development and sustainable development is being given, with a particular focus on the 1995 report by the World Commission on Culture and Development. Next, the World Bank's advancement of the concepts of social capital and cultural capital in relation to cultural dimensions of development is discussed, with a further discussion of Pierre Bourdieu's theories in this regard. The fourth chapter explains the idea of culture as the 4th pillar of sustainability, as introduced by Jon Hawkes in 2001, and in relation to that, the concept of Community Cultural Development and the Agenda 21 for Culture, as well as the continuation of UNESCO's initiatives from the UN Millennium Summit towards the Post-2015 Development Agenda, including the 2005 Convention on the Protection and Promotion of the Diversity of Cultural Expressions. 14 In conclusion, various topics in relation to the emerging conceptualization of cultural sustainability are being discussed, first by differentiating between cultural and social sustainability, and then by explaining three possible 4-pillar models of sustainability and potential instances related to them. Next, cultural diversity and cultural heritage are discussed in relation to cultural sustainability, and then some practical models and indicators are explained, including the Circles of Sustainability framework and UNESCO's Culture for Development Indicators (CDIS). Finally, some emerging criticisms of the notion of cultural sustainability are outlined. The fourth part of the thesis attempts to come full circle by exploring relations between CSR and culture. First, by discussing the role of culture in the existing frameworks of CSR such as the Pyramid of CSR, GRI and ISO 26000, and the emerging notion of Quadruple Bottom Line (QBL). Next, the general forms of business support for culture are shown, with a specific focus on sponsorship and donations and patronage in the context of corporate philanthropy. Then, the role of NGOs in linking business and culture is discussed, first through arts & business organizations, next by defining differences in approaches between the US and Europe, and then by presenting framework given for CSR and the arts by US organizations. Finally, the role of CSR in the area of cultural heritage is also discussed. In the end, two emerging new concepts are being explained: Corporate Cultural Diplomacy (CCD), as an extension of cultural diplomacy in the business sector, and Corporate Cultural Responsibility (CCR), as a new dimension of CSR. The last part of the thesis presents the case study of Serbia – first by introducing the development and present state of CSR practice in the wider regional context, and then by covering the topic of business engagement with culture in Serbia, specifically with the focus on social responsibility. Then, the empirical research that was carried out for the purpose of this thesis is presented, first by summarizing and then by analyzing two bodies of research – interviews conducted with the representatives of socially responsible companies in Serbia in relation to their engagement with cultural sector and with the representatives of NGOs advancing the ideas of 15 both CSR and arts & business collaborations, as well as questionnaires answered by former and present students of UNESCO Chair in Cultural Policy and Management at the University of Arts in Belgrade. Finally, tentative conclusions and possible recommendations are given concerning the topic of the impact of CSR on sustainable cultural communities. 16 Résumé Le présent mémoire ouvre son travail d'enquête sur l'impact de la responsabilité sociale des entreprises (RSE) pour l'émergence de communautés culturelles durables, en menant en premier lieu une recherche autour des concepts qui constituent l'arrière-plan théorique de la RSE, à savoir le développement durable et la viabilité culturelle. La première partie offre ainsi une vue d'ensemble de la responsabilité sociale des entreprises, tant sur le plan théorique que sur le plan pratique. Nous commençons tout d'abord par explorer les origines historiques de l'idée d'une entreprise socialement responsable. Le second chapitre met en débat les différentes définitions de la RSE, en commençant par quelques unes des définitions auxquelles l'on recourt le plus souvent de nos jours. Par la suite, nous retraçons l'histoire de l'évolution de la RSE .en tant que concept universitaire, des années 1950 aux années 2000. Nous détaillons ensuite plusieurs approches et modèles de la RSE, et notamment le plus largement utilisé, celui de la pyramide de la RSE, développé par Archie B. Carroll, ainsi que le cadre de la triple performance (Tripple Bottom Line, TBL), proposé par John Elkington, et l'école de Montréal, représentée par les travaux de Corinne Gendron. Le troisième chapitre cherche à mettre en lumière ce qu'est la RSE, et ce qu'elle n'est pas, à travers l'exploration de plusieurs concepts fréquemment utilisés de manière interchangeable, ou qui se chevauchent : la performance sociale des entreprises, la citoyenneté d'entreprise, le marketing à vocation humanitaire, la gouvernance des entreprises, la viabilité et la durabilité des entreprises, l'investissement socialement responsable, l'investissement d'impact et enfin la responsabilité des entreprises. Nous poursuivons en débattant du premier dilemme majeur lié au concept général de la RSE, à savoir le fait de déterminer si elle peut ou non être assimilée à la philanthropie des entreprises ; dans le même temps, nous explorons également les notion de stratégie philanthropique des entreprises et d'investissement social stratégique, en lien avec le débat toujours en cours de savoir si la philanthropie elle-même peut et doit être présentée comme une source d'avantage compétitif. 17 Le quatrième chapitre explore les différences au sein de diverses approches de la RSE dans le monde, en se concentrant particulièrement sur différentes variations de ce concept aux ÉtatsUnis et en Europe, mais aussi en Asie et au Proche-Orient, ainsi que sur les facteurs spécifiques à certaines cultures qui influencent la RSE dans la pratique. C'est ensuite l'argument économique (ou commercial) en faveur de la RSE qui est exploré, c'est-à-dire l'argumentation qui entend convaincre les entreprises d'adopter ce concept en mettant en avant sa contribution à la performance économique ou commerciale, qui reste un sujet controversé. Le chapitre suivant explore un second dilemme majeur lié à la RSE, à savoir s'il faut en faire la promotion sur la base des avantages économiques qu'il procure ou en fonction de sa valeur morale ou éthique. Pour ce faire, nous débattons de la morale des affaires en relation avec la responsabilité sociale, et nous présentons trois approches différentes de c...
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