Professional Documents
Culture Documents
UNDERTAKEN BY
COMPANIES
METHODS IN BUSINESS RESEARCH REPORT
By:
SHIREEN ENAM – 20490
AYESHA NASIR – 21008
HUSSEIN SHABBIR – 20620
ABDULLAH AHMED – 20513
ASAD KHAN – 20500
ALEENA BABER – 20854
/2018
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TABLE OF CONTENT
No. TITLES
1 Letter Of Acknowledgment
2 Abstract
3 Introduction
4 Research obejectives
5 Limitations
6 Research Questions
7 Literature review
8 Hypothesis
9 Research methodology
10 References
11 Result
12 Appendix
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LETTER OF ACKNOWLEDGEMENT
December, 2018
Miss Kausar Saeed
Institute of Business Management
Karachi
Dear Miss,
We would like to thank you for the faith you showed in our capabilities & the encouragement
you gave us when assigning this report.
We have tried our best to gather as much information as possible. All rules and regulations for
the preparation of the formal report have been taken into consideration.
If there is anything else you wish to know. We will be glad to assist.
Sincerely,
Sheerin Enam
Asad Khan
Abdullah Ahmed
Ayesha Nasir
Hussein Shabbir
Aleena Baber
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ABSTRACT
The research has been conducted in order to figure out the meaning of Corporate Social
Responsibility in the eyes of the companies. It is their perception and interpretation of what CSR
actually is that shapes their CSR strategies and initiatives. For research, descriptive survey
approach has been implemented. It is of both qualitative and quantitative nature. Questionnaires
have been used for the survey with a sample size of 30 respondents from companies who are
involved in CSR in Karachi within duration of 3 months (Oct-Dec). Selection has been done on
the basis of convenience and distribution was done on (Google Docs). Moreover, it was
suggested that more predictive, pragmatic and empirical research methodologies should be
adopted in future.
INTRODUCTION
Corporate Social Responsibility can be understood as “the continuing commitment by businesses
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.”
Pakistan became acquainted with CSR for the first time when issue of child labor in the football
industry (Sialkot, Pakistan) hit the international headlines (Winstanley, Clark, & Leeson, 2002;
Awan, Kamal, Rafique, & Khan, 2012). This epidemic issue gave rise to the emergence of
national and international non–governmental organizations (NGOs), specifically those NGOs
which were working towards the awareness of CSR (Securities Exchange Commission of
Pakistan [SECP], 2005). Nevertheless, academic literature related to CSR in Pakistan is scarce
despite the fact that different organizations such as Pakistan Centre for Philanthropy (PCP),
United Nations Industrial Development Organization (UNIDO), United Nations Development
Program (UNDP), International Labor Organization (ILO), and Responsible Business Initiative
(RBI) are engulfed in CSR dynamics and in a relationship with the community.
CSR is now a mandatory department in all organizations with multiple activities taking place
throughout the year. Organizations have taken initiatives that have helped their brand reputation
to build while adding a service and contribution to the community.
The trend has grown over the years and it is a positive sign for the community as the population
and problems are on the rise as well; so the companies that earn from the people have also turned
to help the people who lack necessities and facilities.
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RESEARCH OBJECTIVES
The objectives of this study are:
LIMITATIONS
A wholehearted effort will be applied to conduct the study work and to bring a reliable and
fruitful result from which proper strategy can be adopted to strengthen the CSR strategies
developed by companies and to understand on what basis they make their strategies. In spite of
best efforts there are certain limitations that act as barriers to conduct the study:
1. This study focuses on the selective companies only in Karachi city .So the findings of this
study do not reflect the overall status of companies in Pakistan.
2. The time limit puts up a barrier for the research focus and depth..
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RESEARCH QUESTIONS
What is the basic perception of companies towards CSR?
What are the strategies that are identified in relation to the CSR initiatives taken place in
different companies?
LITERATURE REVIEW
Over the years Companies have been engaged thoroughly in CSR activities, as if it has become
an integral part for their growth and it also portrays that they have been very active in playing
their part for the betterment of the society. Thus performing CSR creates a perception/image of
the firm in the eyes of the consumers (or potential customers).
CSR is a way that business can be responsible and profitable and yet CSR initiatives do not seem
to work or convince the society of businesses engagement with social responsibility. As Porter
and Kramer state, ‘first, they pit business against society, when in reality the two are
interdependent. Second, they pressure companies to think of corporate social responsibility in
generic ways instead of in the way most appropriate to their individual strategies’ (Porter &
Kramer 2006). Two years hence, the problem of integrating CSR into the business agenda and
strategy still persists despite the integration and implementation efforts on the side of the
companies and their stakeholders. Despite CSR being implemented to overcome societal hurdles;
the concept’s ambiguity raises misunderstandings. This ambiguity raises several problems, of
which two are especially significant. The first is that CSR is seen as a public relations tool, rather
than a value‐ creating process in its own right, whose goal is to assist manufacturing companies
in achieving sustainability. The second is that some companies have claimed to pursue CSR, but
in fact have only used contributions to social objectives as a mechanism for carrying on profit‐
maximizing operations. Profit is an integral part and a tangible way of evaluating a company’s
growth; however, it is not the only objective. While some corporations appear to embrace CSR in
a serious fashion, others use it as a rhetorical device confined to the domains of the PR
department and without substance.
CSR is a broad concept, so it is not surprising that there are a variety of meanings given to this
term. Mohr (1994) groups the definitions into two general types: (1) multidimensional
definitions and (2) definitions based on the concept of societal marketing. Multidimensional
definitions delineate the major responsibilities of companies. Of these, Carroll’s (1991) work has
received the most attention. He suggests that CSR includes four kinds of responsibilities or
dimensions: economic, legal, ethical, and philanthropic. In his model, each dimension of CSR
can be examined in relation to the various stakeholders of the organization (e.g., owners,
customers, employees, the community, and the public at large). The societal marketing concept
can be used to define CSR at a more abstract level. Kotler (1991) defines the societal marketing
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concept as doing business in a way that maintains or improves both the customer’s and society’s
well-being. Petkus and Woodruff (1 992) extend this concept, defining CSR to include both
avoiding harm and doing well.
Moreover, it could also be said that CSR is impotent to the companies because companies should
provide support to the people where they can as well as help in nurturing and instilling
environment awareness in the heart of the people. (The ICCA Handbook on Corporate Social
Responsibility, 2006)
Several research study have taken place over this topic previously, as reported by Shuilli Du and
Bhattacharya (2010) that the role of CSR communication, companies can not only create positive
stakeholder attitudes and better support behaviors (e.g. purchase, seeking employment, investing
in the company), but also, over the long run, construct corporate image, reinforce stakeholder–
company relationships, and augment stakeholders' advocacy behaviors.
Sen and Bhattacharya (2001) also suggested that consumers assess the company more positively
when a CSR activity is pertinent to the company's existing goods
Furthermore if we talk about the perception of firms CSR activities, researchers like Gray &
Balmer (1998) have quoted about CSR activities influence, “The mental picture of the company
held by its audiences” which is influenced by communication messages. Also reputation builds
upon individual experiences and personality and includes a value opinion by a company’s
stakeholders.
The perception of CSR performing firms leads to Consumers willing to pay higher prices for
products as they consider those companies as moral (Creyer & Ross, 1997), and are willing to
switch brands to support corporations that make contributions to non-profit organizations, and to
purchase products from a company simply because it supports charitable causes (Smith &
Alcorn, 1991).
However it is one of the main challenges for business and academics to establish a CSR
framework that allows for the combination of profits and responsibility without neglecting the
semantic issues. Trust in corporations as well as in markets is connected with ideas. The idea that
profit orientation can be in harmony with social interests does not stand virtually unopposed in
public. (The problem with a narrow-minded interpretation of CSR: Why CSR has nothing to do
with philanthropy, Nick Lin-Hi)
HYPOTHESIS
Ho: Companies in Pakistan do not have different definitions of CSR
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Ho: Companies in Pakistan do not take different CSR Initiatives
Ho: Companies in Pakistan do not take different steps to reduce environmental impact
Ho: Companies in Pakistan do not take different concrete actions towards communities to
implement CSR initiatives
H1: Companies in Pakistan take different concrete actions towards communities to implement
CSR initiatives
RESEARCH DESIGN
Methodology: We will implement descriptive survey approach for this study; the research is of
qualitative and quantitative nature. This research exercises the use of content analysis and survey.
Survey is done through questionnaire. Questionnaires will be developed to collect primary data
from respective audience on the CSR activities and their effects by different companies. It has
open and closed ended questions. Multiple choice questions will be included as well. The
research also depicts some factual data and information from secondary data such as reports and
journal articles available online.. The questionnaire will be filled out by in Karachi. The
respondents will be selected on convenience basis.
Data Collection: We will distribute questionnaires to the various companies who conduct CSR
in Karachi. The distribution will be done using Google docs.
Time Frame: The study will be conducted within the duration of 3 months from October to
December.
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STATISTICAL ANALYSIS
1. A) Frequency test was run to find out the most common response
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Maximize value of wealth creation in a society through sustainable
operation of core business
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Total 28 100.0 100.0
Other
Result
As shown through results, the most common response given by companies was that CSR
means “Operation of business that meets the ethical, legal and public expectations
that society has of business”
The least common responses were where CSR was defined as “Donation of a certain
amount of profit to charitable causes” and “Improving the quality of life of
workforce”
1. B) One sample T-test was performed to understand the perception of companies in regard
to CSR
One-Sample Test
Test Value = 0
Lower Upper
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Concept where companies 22.613 27 .000 1.78571 1.6237 1.9477
decide voluntarily to
contribute to a better society
and cleaner environment
Concept where companies 24.712 27 .000 1.82143 1.6702 1.9727
integrate social and
environmental concerns in
their business operations
Result
The significance values for all variables are less than 0.05 which means that to companies
in Pakistan, CSR fits into all of the definitions provided which were:
Improving the quality of life of the workforce
CSR is about capacity building for sustainable livelihoods.
Donation of a certain share of profits to charitable causes.
Maximize the value of wealth creation to society through sustainable operation of core
business.
Operating a business in a manner that meets or exceeds the ethical, legal, and public
expectations that society has of business
A concept whereby companies decide voluntarily to contribute to a better society and a
cleaner environment.
A concept whereby companies integrate social and environmental concerns in their
business operations.
2. A) Frequency test was run to find out the most common response
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Policy towards employees (e.g. on health and development).
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Social responsible investment.
Results
As shown by the results, the most common response for “ Governance, transparency
and dialogue with clients and stakeholders” was more than moderate
The most common response for “Policy towards employees (e.g. on health and
development)” was high involvement
The most common response for “Principles of responsible business” was more than
moderate
The most common response for “Partnership with the community” was more than
moderate
The most common response for “Social responsible investment” was more than
moderate
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The most common response for “Environmental protection (e.g. on climate change
and recycling)” was more than moderate
2. B) One sample T-test was performed to understand how companies implement CSR
activities.
One-Sample Test
Test Value = 0
Lower Upper
Result
The significance values of all variables tested are less than 0.05 and thus the results show that all
companies in Pakistan undertake one or more of the following CSR initiatives:
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Social responsible investment.
Environmental protection (e.g. on climate change and recycling).
Other.
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3. A) Frequency test was run to find out the most common response
Energy Saving
Waste Recycling
Sustainable Packaging
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Development of environment friendly product
Water reduction
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Other
Results
As shown by the results, the most common responses were “Energy Saving” and
“Waste Recycling”
The least common responses was “Sustainable Packaging”
3. B) One sample T-test was performed to analyze the steps the company takes to reduce
environmental impact.
One-Sample Test
Test Value = 0
Lower Upper
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Result
The significance values of all variables tested are less than 0.05 and which concludes that all
companies take concrete steps reducing environmental impact through one or more of the
practices:
Energy saving
Waste recycling
Mobility management (carpooling, car sharing)
Sustainable packaging
Develop of environmental friendly product
Management of environmental system
Use of renewable resources
Water reduction
4. A) Frequency test was run to find out the most common response
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In-kind (donations of product, contributions of used office equipment or
furniture, use of company premises for community events, or other
services)
Other
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Results
As shown by the results, the most common response was “Cash contributions (direct
donations, social sponsorship, matching employee donations)”
The least common response was “Management overheads (community affairs staff
salaries, running costs & overheads, communicating the community program to
relevant audiences.)”
Test Value = 0
Lower Upper
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Result
The significance values of all variables tested are less than 0.05 and which concludes that all
companies take the following concrete actions towards companies to implement CSR Initiatives:
Cash contributions (direct donations, social sponsorship, matching employee donations)
Time (employee volunteering during paid working hours, etc)
In-kind (donations of product, contributions of used office equipment or furniture, use of
company premises for community events, or other services)
Organize conference on CSR
Management overheads (community affairs staff salaries, running costs & overheads,
communicating the community program to relevant audiences.)
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QUESTIONNAIRE
The students of The Institute of Business Management (IOBM) are conducting a survey on
Corporate Social Responsibility in companies. Please take 10 minutes to fill in this
questionnaire. If you would like to provide us with any additional information not covered
by the survey questions, please use the box for comments and feedback at the end of the
document.
We will keep your responses strictly confidential. The outcomes of this survey will be
presented in aggregate numbers without references to any particular company or
respondent.
Thank you for your cooperation.
3. Designation ______________________
Government Sector
Semi-Government
Private Sector
5. Which of the following best describes the industry sector your company is operating?
[Please check any that apply to your company]
8. According to your company the definition of CSR includes one or more of the following
points
Improving the quality of life of the workforce
CSR is about capacity building for sustainable livelihoods.
Donation of a certain share of profits to charitable causes.
Maximize the value of wealth creation to society through sustainable operation of core
business.
Operating a business in a manner that meets or exceeds the ethical, legal, and public
expectations that society has of business
A concept whereby companies decide voluntarily to contribute to a better society and a
cleaner environment.
A concept whereby companies integrate social and environmental concerns in their
business operations.
Other _____________________________
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11. How integrated are the following areas of CSR in your company’s operations?
Please rate the level of your company in the scale of 0 (no involvement) to 5 (high
involvement)
12. What benefits does your company experience for engaging in CSR activities? (multiple
options can be selected)
Improve public image/reputation
Increase support from the community
Increase customer loyalty
Increase brand image
Lower criticism from public
Increase sales
Enhance employee loyalty
Minimize regulatory problems
Attract quality employees
Enhance investors’ confidence
Improve employee morale
Minimize restrictive regulations
Improve market price of shares
Others: __________________________________________________________
No benefit
13. Which of the following problems has your company recently faced?
Employee safety
Child labor
Irregular work.
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Gender Discrimination
Overtime
Unfair pay.
Other (please specify) ____________
14. Which of the following measures has your company adopted to reduce environmental
impact?
Energy saving
Waste recycling
Mobility management (carpooling, car sharing)
Sustainable packaging
Develop of environmental friendly product
Management of environmental system
Use of renewable resources
Water reduction
Other (please specify) ______________
15. What are the concrete actions towards community that your company takes?
16. For greater transparency to the market in which you operate, which of the following practices
has your company set up?
17. What incentives would encourage your company to implement CSR practices?
Please circle any that apply in order of IMPORTANCE: from 1(lowest) to 5 (highest)
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Government incentives (e.g. financial) 1 2 3 4 5
Award schemes 1 2 3 4 5
18. Please rate the impact of the following problems to the development of initiatives in the field
of CSR in your company?
Please circle any that apply in order of IMPORTANCE: from 1(lowest) to 5 (highest)
Lack of knowledge and corporate skill 1 2 3 4 5
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No business benefits expected from CSR 1 2 3 4 5
Unavailability of technology 1 2 3 4 5
Lack of time 1 2 3 4 5
Please use the below box for any additional information you would like to provide us with.
REFERENCES
https://www.emeraldinsight.com/doi/abs/10.1108/JSM-09-2012-0171?
mobileUi=0&journalCode=jsm
https://www.researchgate.net/publication/228118694_Maximizing_Business_Returns_to_Corpor
ate_Social_Responsibility_CSR_The_Role_of_CSR_Communication
https://onlinelibrary.wiley.com/doi/book/10.1002/9781119202110
30
https://onlinelibrary.wiley.com/doi/pdf/10.1111/j.1745-6606.2001.tb00102.x
http://www.food-
security.nl/sites/default/files/resource/queens_discussion_paper_exploration_of_csr_in_multinati
onal_companies_within_the_food_industry.pdft
https://onlinelibrary.wiley.com/doi/abs/10.1111/j.1745-6606.2005.00006.x
31