Employee awareness and engagement as a gateway to creating value from corporate social responsibility (CSR): The strategic role of internal CSR communication in Finnish Firms
Takala, Lotta-Liisa (2016)
Kuvaus
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Tiivistelmä
Corporate social responsibility (CSR) has become an established part of business activity. In addition to social impact, it has also been increasingly studied to bring strategic value for a company, for instance in the form of competitive advantage or enhanced corporate reputation. However, as firms are subjected to different stakeholder demands and contextual factors, successful management of CSR has become an important factor to consider in the hopes of maximizing the returns on social responsibility.
Despite the importance of employees as a key stakeholder group for business, their role in the realization of CSR has not been commonly addressed. Even less attention has been paid to the practices and effectiveness of communicating CSR within the company. To address this gap, this paper examines the role of employee communication on CSR, approaching the topic particularly from a strategic management perspective. Moreover, the aim of this research is to find out whether and how employee CSR communication can influence the ability of a company to capture value from social responsibility. To provide a comprehensive picture on the previous literature related to the subject, the key theoretical areas of the business case for CSR, the role of employee behaviour in CSR, as well as effective internal CSR communication are reviewed. To support the theoretical framework developed for CSR value creation and effectiveness of communication, empirical findings from a qualitative case study of 9 Finnish organisations are introduced.
The findings of the study suggest that internal CSR communication has an important role in increasing the awareness, understanding, and engagement of employees in terms of the initiatives and objectives developed for social responsibility. The relationship between employee behaviour and the strategic value creation for CSR was found to be most evident in the areas of 1) risk management, 2) operational effectiveness, 3) corporate image, 4) competitive advantage, 5) new business opportunities, 6) employee well-being, and 7) organizational alignment of objectives and values.
Despite the importance of employees as a key stakeholder group for business, their role in the realization of CSR has not been commonly addressed. Even less attention has been paid to the practices and effectiveness of communicating CSR within the company. To address this gap, this paper examines the role of employee communication on CSR, approaching the topic particularly from a strategic management perspective. Moreover, the aim of this research is to find out whether and how employee CSR communication can influence the ability of a company to capture value from social responsibility. To provide a comprehensive picture on the previous literature related to the subject, the key theoretical areas of the business case for CSR, the role of employee behaviour in CSR, as well as effective internal CSR communication are reviewed. To support the theoretical framework developed for CSR value creation and effectiveness of communication, empirical findings from a qualitative case study of 9 Finnish organisations are introduced.
The findings of the study suggest that internal CSR communication has an important role in increasing the awareness, understanding, and engagement of employees in terms of the initiatives and objectives developed for social responsibility. The relationship between employee behaviour and the strategic value creation for CSR was found to be most evident in the areas of 1) risk management, 2) operational effectiveness, 3) corporate image, 4) competitive advantage, 5) new business opportunities, 6) employee well-being, and 7) organizational alignment of objectives and values.