3. METHODOLOGY
3.3. Data analysis
3.3.2. Phase 2: Strategic and cosmetic initiatives
In formulating the criteria for strategic CSR initiatives, the author reviewed the key definitions of strategic CSR from some of the existing
litera-Step 1: Initiative description
-The coder copies the description of the initiative as reported in the sustainability report
Step 2: Types of initiatives
-The coder categorizes the initiative based on what cluster of prac-tical action the initiative fits in
-14 categories/codes in table 3 Step 3: Societal issue
-The coder identifies the motive of the firm behind the initiative -10 categories/codes in table 4
Step 4: Stakeholder recipient
-The coder identifies the stakeholder group for whose benefit the initiative is undertaken
-5 categories/codes in table 5 Step 5: Stakeholder vehicle
-The coder identifies whether the firm pursues a sustainability goal by having a certain stakeholder group convey the action -5 categories/codes in table 5
FIGURE 5 Steps in the modified GOLDEN framework for coding
ture. Some definitions were difficult to measure and cannot be applied based solely on data from sustainability reports. Thus, the researcher opted to use Heslin and Ochoa’s (2008) principles of strategic CSR as well as the similar def-inition of Zollo (2008) and Ooi et al. (2017) as criteria for strategic CSR. In order to easily identify the Strategic CSR initiatives from the GOLDEN coding data-base, each criterion was assigned a combination of codes that best describes it (see table 6). Initiatives which match any one of these combinations were then considered as Strategic CSR.
For the first strategic CSR definition Initiatives are integrated into the compa-ny’s routine operations (Zollo, 2008; Ooi et al.,2017), all initiatives that have been coded as Modification of Procedures or Asset Modification were considered. This is because these codes pertain to changes in the normal process and procedures followed by the firm to carry out certain activities (in the case of Modification of Procedures) and changes on the assets owned and used by the firm for produc-tion, commercial, and/or distribution purposes (in the case of Asset Modifica-tion). The cells for societal issue, stakeholder recipient and stakeholder vehicle
TABLE 6 Codes used to identify strategic CSR
Definition
Pertains to Type of
Initiative Societal
Issue Stakeholder
Recipient Stakehold er Vehicle
1
Initiatives are integrated into the company’s routine operations
(Zollo, 2008; Ooi et al.,2017)
Modification of Procedures/
Asset modification
2
Follows at least one of the following principles (Heslin
& Ochoa, 2008, p.131):
- Cultivate needed talent
Training /
Incentives Self-realisation /
Education
Employees/
Local Communitie s and Society 3 - Develop new markets New Products
4 - Protect labour welfare
Self-ownership / Health / Economic security
Employees / Suppliers
5 - Reduce environmental
footprint Environme
nt 6 - Profit from by-products Modification of
Procedures
7 - Involve customers Customers
8 - Greening of supply chain Environme
nt Suppliers
were left blank and shaded in grey since the first definition does not pertain to any particular code for these categories. All initiatives coded as Modification of Procedures or Asset Modification were then automatically coded as Strategic.
The second until the eighth definitions pertain to the principles laid out by Heslin and Ochoa (2008). Initiatives which follow at least one of these prin-ciples are then coded as Strategic.“Cultivate needed talent”pertains to initia-tives which will help the focal company build its capacity to attract and retain a motivated, skilled workforce. Thus, initiatives coded as Training (teaching activ-ities to enhance knowledge, competencies, and skills) or Incentives (delegating of benefits, rewards, or privileges to a certain stakeholder) were considered.
However, not all training and incentives types of initiatives are meant to culti-vate needed talent. Therefore, the societal value need to be coded as Self-realisa-tion or EducaSelf-realisa-tion and further, have employees or local communities who may be potential employees as the Stakeholder recipient.
“Develop new markets” pertains to initiatives which makes use of opportunities for business growth, whether it’s with emerging markets or pre-viously neglected markets. Since the code New Products refer to activities which make new products or services available to the market, all initiatives with this code are further coded as Strategic CSR.
The principle “Protect labor welfare” pertains to activities which aim to safeguard the well-being and livelihood of their workforce. Thus, this principle looks more into the societal value provided by the initiatives, particularly those coded with Self-ownership (aims to prevent abuses to self-ownership e.g. slavery, forced labor, torture) or Health (aims to improve health and physical wellness or avoid threats to health) or Economic Security (aims to provide individuals and families stable expected cash flows). Initiatives with one of these codes were considered but were only counted as Strategic CSR if the code under Stakehold-er recipient is eithStakehold-er Employees or SuppliStakehold-ers given that the principle is specific to the labor force.
“Reduce environmental footprint” covers all initiatives aimed at preserving the environment and minimising their footprint on the ecological environment. Accordingly, all initiatives with Environment as the code for Soci-etal Value are further coded as strategic CSR. This also covers all initiatives that fulfil the principle “Greening of Supply Chain” as the code applicable for Soci-etal Value is Environment. It only differs with “Reduce environmental footprint”
in a sense that “Greening the Supply Chain” uses Suppliers as the stakeholder vehicle or intermediaries in conveying the benefit. Worth noting, all initiatives with Environment as its Societal Value, by rule, have Local Communities and Soci-ety as the Stakeholder Recipient since everyone benefits from a healthier ecolog-ical environment.
“Profit from by-products” pertains to activities where the focal company develops a form of reuse process to benefit in the productive use of its by-prod-ucts. By-products are not considered as the main and steady source of income of the company and, thus, cannot be considered as launch of New Product. Instead, the most fitting code for initiatives of this type is Modification of Procedures.
The principle “Involve customers” refer to any type of sustainability initiatives where the participation of customers are required or encouraged.
This allows the company to gain more loyalty from their customers by provid-ing them with opportunities to make a positive difference. All initiatives which has the code Customers under “Stakeholder vehicle” follow this principle and thus, have been coded as Strategic CSR.
All initiatives which do not match the criteria set forth in table 6 are automatically labeled as Cosmetic (cf. Porter & Kramer, 2006) as they are seen to have only been reported in the sustainability report to improve the reputation and image of the company. Examples of sustainability initiatives of the focal company that have been analysed using the GOLDEN framework are provided
TABLE 7 Examples of strategic and cosmetic initiatives and coding
Initiative description Type of Initiative
Societal Issue
Stakeholder Recipient
Stakeholder Vehicle
Strategic/
cosmetic Reduce carbon emission thru
ride sharing - Globe Ikot - Environment-friendly scheme as sharing journeys reduce carbon emissions; 84% or 122 metric tons reduction of CO2 emissions
Modifica-tion of Procedures
Environ-ment Local Communities and Society
Employees Strategic (Definiti-ons 1 & 5)
In addition, Globe has partnered with St. Luke’s Medical Center-BGC in order to bring various health lectures and seminars on relevant health topics like heart disease prevention, anti-obesity, diabetes, family planning, hepatitis, drug abuse, and more.
Training Health Employees Nothing Strategic (Defini-tion 4)
i-Volunteer, an online
volunteer-matching facility, was also launched in December 2012 to pave the way for building a culture of engaged and active volunteerism. The website highlights opportunities for employees seeking volunteer activities outside of Globe-initiated programs.
Voluntee-rism
Wealth distribut ion
Local Communities and Society
Employees Cosmetic
Aside from school buildings, Globe built 40 houses each in New Washington and in Libacao featuring GK’s new design. Shelter kits were also distributed with Libacao receiving 600 kits, and Madalag receiving 940 kits.
Donation Wealth distribut ion
Local Communities and Society
Nothing Cosmetic
in table 7 to better understand how initiatives are coded as Strategic or Cosmet-ic. Codes that are highlighted in green represent the codes that match the crite-ria for Strategic CSR. Meanwhile, those highlighted in red are ones which do not fit any criteria.