1
ANALYSIS OF HOW CORPORATE
SOCIAL RESPONSIBILITY (CSR) POLICIES
CREATES VALUE-ADDED FOR
COMPANIES
Dissertation August 2013
MBA in Finance
Beatriz Jaenicke 1670035
2
Table of Contents
Acknowledgements ................................................................................................................... 5
Abstract ...................................................................................................................................... 6
Chapter 1: Introduction .............................................................................................................. 7
Chapter 2: Literature Review .................................................................................................... 8
2.1 Concept of CSR ............................................................................................................... 8
2.2 The Shareholder vs. Stakeholder Concept ..................................................................... 10
2.3 Different perspectives of CSR ....................................................................................... 14
2.4 Need for CSR ................................................................................................................ 15
2.5 Concept of Value ........................................................................................................... 16
2.6 The Triple bottom line of CSR ...................................................................................... 17
2.6.1 Economic dimension ............................................................................................. 20
2.6.2 Social dimension ................................................................................................... 22
2.6.3 Environmental dimension ...................................................................................... 23
Chapter 3: Methodology .......................................................................................................... 25
3.1 Research Questions and Hypothesis .............................................................................. 26
3.2 Structure of Research Method ....................................................................................... 27
3.2.1: Positivism .............................................................................................................. 27
3.2.2: Deductive ............................................................................................................... 28
3.2.3: Case study .............................................................................................................. 29
3.2.4: Multi- Method Quantitative Research ................................................................... 30
3.2.5: Survey .................................................................................................................... 30
3.2.6: Cross Sectional. ..................................................................................................... 31
3.3: Sample .......................................................................................................................... 31
3.4 Ethics ............................................................................................................................. 32
3.5 Limitation ...................................................................................................................... 33
3.6 Assumption to research ................................................................................................. 33
Chapter 4: Research Findings .................................................................................................. 34
4.1 Economic Dimension .................................................................................................... 34
4.2 Environmental Dimension ............................................................................................. 45
4.3 Social Dimension ........................................................................................................... 52
Chapter 5: Conclusions ............................................................................................................ 68
3
Recommendations for Future Research ................................................................................... 70
Self Reflection on own Learning and Performance................................................................. 77
Bibliography ............................................................................................................................ 76
Appendix ................................................................................................................................. 82
Content of Tables and Figures
Figure 1. Sustainability ............................................................................................................ 19
Figure 2.Research’s Hypothesis ................................................................................ 25
Figure 3. Research Method ...................................................................................................... 27
Figure 4.Revenue ..................................................................................................................... 37
Figure 5. Net income ............................................................................................................... 37
Figure 6. Return on Equity (ROE)........................................................................................... 38
Figure 7. Return on Assets (ROA) .......................................................................................... 39
Figure 8. Comparison ROE and ROA ................................................................................. 39
Figure 9. Economic Value Added (EVA) ............................................................................... 41
Figure 10. Stock Market Price ................................................................................................. 43
Figure 11. Performance ........................................................................................................... 43
Figure 12. Energy Reduction vs. Energy Policy Target .......................................................... 48
Table 1. Environmental &Energy Goals ................................................................................. 51
Figure 13. Awareness of CSR policies .................................................................................... 54
Figure 14. Good corporate citizen ........................................................................................... 55
Figure 15 Good reputation ....................................................................................................... 56
Figure 16 Retention and Attraction of Employee .................................................................... 57
Figure 17 Pride of work ........................................................................................................... 58
Figure 18 Job Satisfaction ...................................................................................................... 59
Figure 19 Social Involvement ................................................................................................. 60
Figure 20:Aligment with the CSR policies.............................................................................. 62
Figure 21 Environmental Involvement ................................................................................... 62
Table 2. Cross Tabulation ........................................................................................................ 63
Table 3. Employee commitment & engagement ..................................................................... 65
4
Figure 22.Sales per Employed ................................................................................................. 66
Figure 23.Net income per Employed ....................................................................................... 66
Figure 24. CSR value curve ..................................................................................................... 67
5
Acknowledgements
I would like to express my sincere gratitude to my supervisor Andrew Quinn for his
useful comments, remarks and engagement throughout the learning process of this
master’s dissertation. Furthermore, I would like to thank all the participants in my
survey who have shared their precious time. I would like to thank friends and family,
who have supported and encouraged me throughout the entire process.
