Is Engagement in CSR Motivated by the Defined Values of Entrepreneurs?

Abstract

Companies have a high impact on responsible living while caring for Corporate Social Responsibility (CSR). Entrepreneurs engaged in CSR often claim that they act on the basis of ethical values, namely through value orientations such as “Universalism” and “Benevolence”. In this investigation, the value orientations of the entrepreneurs, managing and owning small or mediums sized enterprises (SMEs), have been measured with the Schwartz Values Survey and have been related to their engagement, e.g., for the environment and their employees. The results are: Greater engagement for the environment and employees is correlated with greater “Universalism” and “Benevolence”. Unexpected positive correlations were found between the values “Security”, “Tradition”, “Stimulation” and “Engagement to Employees” respectively “Engagement to the Environment”. No correlations were found in the categories “Achievement” or “Power”. CSR finally does correlate with some desirable results of the companies, such as profit or a reduction in customer complaints. Therefore, CSR should be of strategic relevance to the entrepreneurs of SMEs.

Appendix

Mean Values and Standard Deviations in the Scales on Engagement in Customer Orientation and Product Safety, Environment, Supplier Relations, Employees

Do not agree at all = 1, Agree absolutely = 5.

Customer orientation and product safety	Level	N	Mean value	Stand. dev.
QM1. Regarding the products/services of our organisation only negligible residual risks arise for the customers	Legal	79	4.23	1.09
QM2. Regarding the products/services of our organisation a risk assessment was carried out	Legal	76	2.92	1.70
QM3. The reliability and quality of our products/services is checked regularly when delivering products/services	Ethical	78	4.03	1.38
QM4. Customer details are treated with the strictest of confidentiality	Legal	81	4.77	0.64
QM5. Complaints are answered quickly and precisely within a few days	Ethical	81	4.73	0.57
QM6. Complaints are analysed in the company from a customer orientated perspective	Ethical	80	4.31	1.09
QM7. Routines exist to change processes in order to clearly reduce the complaints rates	Ethical	79	3.80	1.42
QM8. We survey the requirements of the customers in respect of the services/products of our organisation in order to secure customer satisfaction	Philanthropic	77	3.96	1.16
QM9. We have offers for customers which extend beyond the statutory Warranties	Philanthropic	71	3.21	1.50
QM10. When marketing the products, only product or service features are described, which our products or services actually achieve	Ethical	73	4.52	0.82

Environment	Level	N	Mean value	Stand. dev.
EM1. The statutory provisions for the manufacturing of our Products/Services regarding conditions applicable to the protection of the environment (Air, Water, Working Materials …) are systematically implemented	Legal	70	4.41	1.00
EM2. We always enclose a description with the product (e.g. Safety Data Sheet), which clearly describes the environmental risks	Ethical	62	3.21	1.54
EM3. Our purchasing department has rules to ensure that ecological aspects are systematically considered	Ethical	63	3.00	1.28
EM4. When developing new products, ecological aspects are systematically considered equally to other product characteristics (e.g., energy consumption, disposal)	Ethical	60	3.43	1.32
EM5. There are rules on how waste products have to be disposed of in accordance with statutory conditions	Legal	69	4.42	0.85
EM6. There are rules to keep minimise wastes	Ethical	66	3.92	1.06
EM7. There are rules to minimise energy consumption in the company	Ethical	68	4.10	1.01
EM8. The transport processes were examined in order to minimise the energy costs	Ethical	68	3.62	1.27
EM9. Employees are instructed how to deal carefully with natural resources	Ethical	67	3.88	1.11
EM10. Customers, Supplier and Local Authorities receive information on the environmentally-related impacts of the Products/Services which they receive from our company	Philanthropic	62	2.87	1.43
EM11. We regularly (at least once a year) support projects financially or with human resources (e.g. at schools and local authorities), in order to promote environmentally compatible behaviour	Philanthropic	62	2.15	1.38

Supplier relations	Level	N	Mean value	Stand. dev.
SR1. We regularly visit suppliers in their production facilities	Ethical	55	2.82	1.09
SR2. Suppliers are checked to ensure they maintain the rules to ensure they meet the regulations on the health and safety of their employees	Ethical	52	2.27	1.14
SR3. Our Company/Our Organisation passes Knowhow on to Suppliers, in order to support them	Philanthropic	52	2.90	1.32
SR4. We have rules to secure the openness and transparency in the contracts	Ethical	53	2.96	1.16
SR5. Our Company/Our Organisation has rules to quickly meet the requirements of its suppliers (6 weeks max. after receipt of the invoice)	Ethical	54	4.17	1.09
SR6. Our Company/Our Organisation aims for long-term relations with suppliers	Ethical	56	4.64	0.59
SR7. The Company/The Organisation engages in regular Dialogue with the Suppliers, in order to improve mutual relations	Ethical	55	4.51	0.72

Employees	Level	N	Mean value	Stand. dev.
E1. In the Company/In the Organisation regular risk analyses are carried out at the work desks	Legal	53	3.45	1.39
E2. Special offerings are made to keep the employees health, such as industrial health promotion measures	Ethical	52	3.10	1.38
E3. Employees work the legally prescribed working hours	Legal	58	4.55	0.75
E4. Necessary recovery hours (breaks, rest times) are fully met	Legal	56	4.30	0.87
E5. Additional work times are not permanently demanded to employees	Ethical	56	4.59	0.76
E6. Procedures are in place to ensure that employees of differing Gender, Race, Disability, Origin, Religion, Age or Sexual Orientation are treated equally	Legal	54	3.94	1.34
E7. The work has been arranged in such a way for older employees as well (>50 Years) that it can be practised through to pension age	Ethical	56	4.36	1.00
E8. Special measures in the field of company re-integration are in place for employees who have fallen ill	Legal	51	3.08	1.37
E9. Employees are paid in accordance with the defined minimum wage for the industry. If not applicable: Where no minimum wages apply, wages are not paid at a level of less than 8 € per hour)	Ethical	55	4.47	1.10
E10. Employees are paid on a performance/achievement basis	Ethical	56	3.88	1.27
E11. Employees are supported if they wish to gain further qualifications	Ethical	55	4.38	0.83
E12. Employees receive many kinds of support in order to agree on private and professional goals and objectives	Ethical	55	4.22	0.94
E13. Employees are asked about their identification and satisfaction with the organisation and management and are informed about the results	Ethical	54	3.44	1.34
E14. Organisation development measures are—if required—carried out with the participation of employees	Ethical	53	4.11	0.85
E15. Employee details and data are treated confidentially	Legal	57	4.79	0.65