corporate social responsibility and cultural diversity actions

Anne Eidelman

Noémie Hirsch

Hélène Klingler

Benjamin Monnier-Perroteau

06/12/2009

Corporate Social Responsibility and Cultural Diversity actions in business management

2 Anne Eidelman/ Noémie Hirsch/ Hélène Klingler/ Benjamin Monnier-Perroteau - Licence Creative Commons –

We have chosen to write our essay in English to keep a certain coherency with this semester’s classes

which were mainly in English.

Table of contents Introduction ............................................................................................................................................. 3

I] What is cultural diversity and CSR ? ..................................................................................................... 4

II] What are the several dimensions associated to the notions of cultural diversity and social

responsibility in organizations? ............................................................................................................... 7

a) Actions to enhance Corporate Social Responsibility ................................................................... 9

b) Actions to enhance Cultural Diversity ....................................................................................... 11

c) Consequences of CSR and cultural diversity programs ............................................................. 12

III] Managing cultural diversity and corporate social reponsability : different aspects emphasized by

different companies .............................................................................................................................. 15

Example 1 : Accor (Anne’s work experience) .................................................................................... 15

Example 2 : L’Oréal (Hélène’s example) ............................................................................................ 17

Example 3 : Europcar (Noémie’s work experience) .......................................................................... 18

Example 4 : Sodexo (Benjamin’s work experience)........................................................................... 19

IV] Counterpoint of CSR and cultural diversity actions ......................................................................... 21

Conclusion ............................................................................................................................................. 22

Bibliography ........................................................................................................................................... 23


Introduction

Should companies be considered as melting pots or salad bowls? Nationalities, gender,

social background, age and temper are infinitely different within a single company. It is not

unusual to have for example a German man leading an American company, which board of

directors is made of one American, two Chinese, 4 Mexicans, 2 Italians and 1 Australian.

People do not stay in a company for a lifetime like it used to be in the past. Entering a

company is not a finished goal and end, it is a mean to progress and accomplish oneself.

Therefore teams build up temporarily and work on the same subject through different eyes

and points of view.

Managing such cultural diversity means to be able to take into account all the differences

between cultures, and trying to find common features to gather people. In that way, they will

feel they share more than they have differences. A manager‟s challenge is to transform

positively the energy of a group to have employees belong to the group without losing their

own identity. Whenever people from different cultures work for the same company they have

to take advantage of the different features of their perceptions and points of view to create

means that will lead to a common goal.

Furthermore nowadays issues (necessity to respect the environment, to act responsibly)

have increased the will for companies to create several ethical rules. These rules are stated

by the CSR, and show how the meaning of 'company' has evolved throughout the years.

It may be interesting to find out how managing cross-cultural diversity at work can be

possible by keeping an established CSR. Cross-culture diversity and CSR are two main

issues inside a company which do not have to contradict one another but should give each

other further value, bringing the synergy concept.

To answer this question we will linger on a first part on the general meaning and definitions

of such broad terms as culture and CSR(I). Then, in a second part (II), we will explain cultural

diversity and CSR at work. We will tackle how management has overcome such cultural

clashes by implementing measures that respond to CSR priorities and pinpoint the main

consequences associated to these measures when put into motions. In a third part (III), we


will provide up-to-date business examples of such measures. Eventually, in a fourth part (IV),

we will draw a counterpoint on these CSR and cultural diversity actions.

I] What is cultural diversity and CSR ?

Culture is defined in many ways because it is such a broad term. In general it is considered

as a common way of thinking and behaving within a group. The group can be a country, a

company, a sports team etc.

The Oxford dictionary states that culture is “the arts and other manifestations of human

intellectual achievement regarded collectively”. Culture is people‟s way of life, the sum of

their learned behaviors, patterns and attitudes. Therefore it can be said that culture is

shared, according to personality, human nature and other aspects we will see later on. There

is not culture if it is not shared. For Claude Lévi-Strauss, culture consists in communicating

between people. Culture is quite an abstract term that is however visible and more or less

easily recognizable. Artifacts are the visible features of a culture, such as food and clothing.

Though, we should be careful about behavior because one has to realize that acting in the

same way does not necessarily mean having the same set of values. And values are what is

most important to define culture. To have a culture is to have values in which you believe in

and which will stick to you your whole life (apart from having experiences that convince you

to change the way in which you perceive the world).

For anthropologist Edward T. Hall, culture is recognizable throughout the way people deal

with space. The way they consider their own space and the others‟ is quite relevant, and is

also called, the „‟Hidden Side”.

Hofstede Geert states culture as being “The collective mental programming of the mind” that

is shared within the same members of a group, a region, a country, but not between several

groups, regions and countries.” Hofstede takes the example of language, which is one of the

main programming of a group. But there are also habits that are typical from a country, that

cannot be explained but that are anchored in the way people behave and can then be part of

one‟s culture.


These habits are echoed within the government of a country, an association, literature, family

structure…This programming can account for the way people behave. It is because people

think in a certain way that they will then behave a certain way. In society, in general, people

will influence their external environment by their way of thinking. Society is the reflection of its

member‟s conceptions of life.

Hofstede reminds us to be very careful about distinguishing differences between national

culture, since it is often too general and superficial. Describing such differences should be

based more on facts rather than just impressions that are risky because very subjective.

Values are another important aspect for Hofstede who thinks they reveal “mental

programming”.

According to Kroeber and Kluckhohn, culture is “that which the human species have and

other social species lack”.

For Trompenaars Fons, culture is a matter of believing in fate or in your own capacity in

changing your life and managing it. It is “the way in which a group of people solve problems

and reconciles dilemmas”. Our culture has evolved since the times when men used to let

gods and spirits decide for them, and accept fate as their sacred will.

Cultural diversity is a mix of culture, though not a heterogenic mix, because the cultures do

not fuse into one and only culture, but interact with each other towards a common goal, with

their different identities. This is exactly the case in most companies, where people from very

different countries and background gather to work together. This is especially true for big

companies.

Employees do not want their own identity to be taken away from them by their company.

Having a management philosophy of convergence is not adapted to everyone‟s need to

claim their own identity. There is therefore a need to assemble all cultures to one same

objective, however keeping their specificities and differences.

Cultural diversity can be explained thanks to many phenomenons like migration trends that

are rising from humble regions and countries to dynamic and rich cities, where work can be

found. We can notice the important migration of Arabic people with a degree and strong

knowledge. During the 80s they moved to Europe where plenty of work was provided for

them, thus creating a „brain wash‟ in Arabic countries.

As for gender, the largest increase in women‟s labor force participation was in Latin America

(in 1997, women workforce made up to 2 fifth of the workforce of South America). Even in


North Africa, women‟s share in work force rose from 20% in 1980 to 26% in 1997. In Western

Asia, women increased from 23% to 27% in working force. More and more companies are

now making the effort to hire women, convinced that it actually is beneficial to have a

diversity of gender (therefore of culture) within their company. According to a study in East-

Asian countries, lowering the school enrollment gap against girls would increase East Asia‟s

economical growth from 0,5 to 0,9 %.

Next to such a cross-cultural context, it is important to bear in mind the definition of what

Corporate Social Responsibility is. The notion of cultural diversity is to be taken into account

within a company where there are more and more different nationalities between employees

but as we will see in the second part, cultural diversity should be seen in a broader

dimension.

Corporate and Social responsibility started during the paternal years in France, with the

industrial firms. From the 1950s there started to be cultural demonstrations from the Blacks

in the USA with Martin Luther King, who claimed that equality amongst races were legitimate.

This showed the hardships that society had to deal with in living with multi-cultural people.

Inside companies, the issues are quite the same, and a lot of progress has been done. Since

the 70s society‟s awareness to the world and people‟s vulnerability has immensely

increased. Companies have from then started to understand the necessity of being

responsible. They are trying to fill in the gaps between people from separate cultures and

backgrounds.

The AIMS (Association Internationale du Management Stratégique : International Strategic

Management Association) describes the CSR as a “ better way for different members of a

society to live together”. Here we have to understand that being able to live together means

to be able to work together in a same company, without clashes due to cultural distinctions.

More recently the concern for environmental protection has become essential and therefore

Corporate Social Responsibility implies valuing people as well as nature.

CSR is not just a trend but a real evolution within the way companies consider their external

environment, being more aware of the fact that they can‟t just focus on their own benefits

without considering the external environment (Humans and Nature). The company with a

strong CSR should take into account all the stakeholders it deals with doing its business,

considering then all actors presented along their value chain (From suppliers to end users).


Nowadays we need to have some kind of values and rules which are static and which we can

rely on in this ever-changing world. Cultures may be different and varied in a company but

there are some laws which have to be closely followed. It is important for a company to show

concretely its concern for a defined set of values by having precise rules and ethical charts.

We are now going to see more precisely how these are implemented within a company‟s

internal organization.

II] What are the several dimensions associated to the notions of

cultural diversity and social responsibility in organizations?

We gave a definition of cultural diversity and social responsibility and their evolutions but we

can‟t help focusing on their dimensions and the notions they are related to.

To begin, we can deal with the four different types of obligations in the social responsibility

determined by Caroll in 1979, which are the economical obligations, the legal obligations, the

ethical obligations and finally the philanthropic obligations.

We can add that there are three levels of social responsibility established by Wood in 1991:

First, the social responsibility which is linked to the economical obligations the institutional

level

Then, the “outcomes” responsibility which are the consequences of a firm‟s activities on the

Society and on people the organisational level

And there are the ethical and personal obligations which are managed by managers and

executives individual level

In addition to the Wood conception, Gardenswartz & Rowe (1993) proposed other levels of

diversity which are more complete and established a classification from what is intrinsic to

the person to organizational characteristics:

- Personality

- Internal dimensions: gender, ethnicity, age, sexual orientation

- External dimensions: education, language, work experience, appearance, habits...

- Organizational dimensions: functional classification, work content, management status,

seniority, union affiliation...


Jean-Yves Mercier made also a classification of the social responsibility‟s dimensions in

companies. Not only did he make a distinction between individuals and the society but also

between operational actions and strategic ones. The strategic actions are related to the

influence of firms towards the customers and the market.

The social responsibility includes many key points (related to economic, legal, ethical and

philanthropic obligations) which a firm has to consider. A firm has to be involved in these

topics and act to be seen as a social responsible one. The following points on which we are

going to focus are some of the bases of diversity and equality. They are meaningful because

if a firm takes them into account it can be recognized as an open and undiscriminating firm.

To begin we can speak about gender equality. The employment of men and women have to

be balanced and there are still significant differences in their consideration, their wages and

women are sometimes perceived as a weakness because they are supposed to give birth

etc. The age is another point and some stereotypes damage the equity in the hiring: in fact

young people could be seen as unskilled and old people as future retired people (and too

expensive to keep). The sexual orientation is also one of the social responsibility‟s issues

which can develop discrimination. In fact, organizations don‟t have to reject gay, lesbian and

bisexual people who have the same abilities to work efficiently as any other people. The

Stonewall‟s Workplace Equality Index shows that in UK, firms are proud to be known for their

workplaces for gay staff.

These three notions confirm that it is important for a firm to mix its employees to get different

point of views, different competences, abilities and personalities. The combination of these

people is a real strength to make a firm successful.

Moreover, disabled people have to be considered by firms because the integration of these

people is a real mean to show the company‟s involvement in social issues, and its wish to

promote integration and social justice. Some firms want to be sociably responsible and

recruit physically or psychologically disabled people and adopt a “diversified sourcing”

method.

Then, we can underline that there is another main notion related to diversity and social

responsibility which is the nationality of employees. As a matter of fact, companies have

especially to struggle against racism and xenophobia which are very important issues as

many associations and laws show it. A firm has to respect the gender, age, sexual

orientation etc but also the origins, beliefs, ideas, practices and so forth.


Finally, we can speak about sustainability which is not only a trend but also a real

preoccupation of firms nowadays. A company which wants to have a corporate social

responsibility has to act in coherence with sustainable development and be involved in the

environment matters. As we‟ve already said, the CSR should be concerned about all actors

the company faces in its business (Hence the Stakeholders model).

As we can see, there are many dimensions associated to the notions of cultural diversity and

social responsibility in organizations and there are different steps towards diversity

management. We have defined these notions, developed their evolution and focused on their

several dimensions but we have to know how to implement Corporate Social Responsibility

in an organization and cultural diversity programs.

a) Actions to enhance Corporate Social Responsibility Corporate Social Responsibility is a concept whereby organizations consider the interest of

society by taking responsibilities for the impact of their activities on customers, suppliers,

shareholders and communities. In the increasingly conscience-focused marketplaces of the

21st century, the demand for more ethical business is increasing. Thus, will Corporate Social

Responsibility turn out to be more than a mere illusion?

Today, more and more companies are adopting corporate social responsibility (CSR)

programs. Broadly, CSR programs are supposed to assess and improve corporate

operations in relation to a range of values beyond profit: human rights, environmental

protection, contribution to local communities, and workplace diversity among others.

Implementing CSR means leading concrete actions and adapting the company‟s way of

working. It is important to create an established and a globally recognized policy for the

development, implementation and disclosure of social and environmental policies and

practices.

That‟s why to demonstrate good business citizenship, firms can report compliance with a

number of CSR standards including for example Green Globe Certification (GGC) or the ISO

14000 environmental management standard.

To be recognized and acknowledged by stakeholders in general, companies usually choose

to be associated with the brand of a local association, an institution, a non-governmental

organization, as well as the government. Some companies can be associated with labels


from the The UNPD (United Nations Development Program) and the Boston College Centre

for Corporate Citizenship for example.

The United Nations encourages American companies to start acting responsibly with its

Global Compact policy launched in July 2000. Companies which are associated to this

project have to follow 4 principles: Human Rights, Labour, Environment, Anti-corruption.

Here the Global Compact is not a regulatory tool but relies on public accountability and

transparency.

Anyway it is much more coherent for companies to take the initiative and show their good will

towards their partner associations. It is interesting to read Ban-Ki Moon‟s quotation about the

purpose of the United Nation‟s Global Compact: “We need business to give practical

meaning, and reach to values and principles that connect cultures and people everywhere”.

According to his definition, we can say that following CSR rules would help companies bound

in a mutual understanding of their employees.

Annual reports should be created every year by companies who claim having integrated

CSR, showing concretely their actions (for example a contribution to a project for helping

children from poor-neighbourhoods, a decrease of the pay gap between women and men,

the purchase of cleaner and safer machines...).

Launching working teams on different key issues subjects could be another mean to

contribute to CSR, and some companies have workshops focused on subjects such as how

to decrease the company‟s harmful fumes for example, or on how it could manage solving an

internal problem which twiggers of unfairness and frustration amongst the employees.

Specialists attend to these workshops to give advice and communicate on the general

progress that has been done so far. Integrating CSR should be directed towards the common

welfare of society. Therefore the sharing of new practices and discoveries brings better ways

to organise the CSR in the company.

As for management procedures, a company which implies CSR in its policies can count on

what is called Moral Management. It consists in considering a company‟s employee as a

great resource that has to be treated with respect and dignity. This approach is the opposite

of immoral management.

This type of management consider laws as an obstacle to profitability, and which has to be

overcome. Acting illegally is not bothering for immoral managers who consider their

employees as tools to increase productivity, and which have to be replaced if „worn out‟.


Laws are regulating immoral management, governments of many countries create new laws

to enhance equality and fairness within the company.

But a truly committed company will actually go beyond laws which can only assure minimum

rights. The body Shop for example, has taken its own initiative to position itself against

animal testing. Companies launch new issues by their own will and concern.

A central feature of many CSR programs arose in response to activism around sweatshop

conditions in the factories where consumer goods are manufactured. International brands--

starting in the apparel, footwear, and toy industries, but spreading to others--have adopted

these codes for the factories that form their global supply chains. The codes require

monitoring of such conditions as freedom of association, child labor, discrimination,

harassment, wages, working hours, and health and safety, all under the rubric of CSR.

b) Actions to enhance Cultural Diversity

Although many managers appear to possess an intellectual awareness of diversity facts and

implications, concerted efforts to engage in the tough actions necessary to appropriately

manage complex diversity issues appear to be lagging. Indeed, diversity management efforts

often involve a cultural reorientation, a focused process for building a culture of diversity

within the organization.

To fully understand and implement all aspects of diversity management, organizational

leaders must first be willing to value and believe in the merits of a diverse workforce. Then,

they must make a commitment to support the needs of this diverse workforce. When top

management demonstrates its commitment, the discrepancy between understanding the

need for diversity management and responding to the needs of diverse employees becomes

workable.

This commitment must be institutionalized through the declination of specific diversity

initiatives with relevant target goals and an evaluation and reward system that clearly reflects

the significance of attention to diversity issues. Of course further education and training could

be considered as means of enhancing the understanding and sensitivity to differences and

providing greater assurance of effective program implementation and acceptance.

Nevertheless this kind of process is time consuming and requires not just a careful

coordination, but also a consistent application. Recognizing an organization's specific

diversity needs is no simple task, and a clear pattern of action is difficult to define. What is


clear is that management must resist the temptation of unilaterally prescribing the

appropriate set of diversity needs.

That‟s why the first policy consideration should involve an understanding of the workforce

diversity needs in an organization. Each organization is unique, each culture reflects that

uniqueness, and the composition and blend of each organization's workforce is different from

all others. Therefore, it is imperative that the set of diversity needs most dominant for each

organization be identified and addressed.

Regarding possible actions, managers can create an environment that both encourages and

demonstrates appreciation of employee diversity concerns and perspectives. Workers must

be given the power to affect the organization's diversity agenda. Second, workers must be

able to identify with the organization's diversity efforts so they can share and work to ensure

diversity success.

Workers must find diversity initiatives important, credible, and realistic, and they must believe

that their interests will be enhanced through the organization's diversity activities. For

instance, one of the processes to manage the diversity is the affirmative action. Also known

as “positive action”, this term refers to a number of methods designed to counteract the

effects of past discrimination and help abolishing stereotypes.

Some other firms have implemented a code of good conduct regarding the environment, the

business ethics and so on. Regarding disabled people the Law of February 11, 2005, For

Equal Rights and Chances, Participation and Citizenship of Handicapped is one of the first

step towards the management of diversity. One of the major concerns of the Human

Resources professionals is to guarantee a long-term integration of disabled workers.

c) Consequences of CSR and cultural diversity programs We will here see the consequences CSR and diversity programs have on their environment

using the stakeholder model. The stakeholder model can be defined as the sum of individuals and groups with a multitude of interests, expectations, and demands as to what

business should provide to society.

Corporate Social Responsibility and diversity programs should have positive consequences

on the stakeholders the company deals with. Moreover, it seems there is a synergy process

between strong diversity programs and CSR where involved companies in these issues are

perceived as major players on the market with a higher degree of attractiveness.


Some studies even link the extent the companies emphasizes on these programs with

financial performance. One can then say that CSR is strategic “ when it yields substantial

business-related benefits to the firm, in particular by supporting core business activities and

thus contributing to the firm‟s effectiveness in accomplishing its mission” (Burke and

Logsdon, 496)

We will here see the main positive points these policies can bring to each actor involved :

1) Employees

Employees are strongly affected by the extent of these policies as their level of trust into the

company tends to rise with the company‟s involvement into these issues. As a consequence,

these companies have the opportunities to attract talented people, independantly of their

nationality, gender, age, sexual orientation and so forth. These internal diversity programs

which are put into motions and displayed allow reduced discrimination and promote mutual

understanding between all types of employee.

These people will see the company as a tolerant one where what matters is the quality of

work and the expertise you provide to the organization and not how your skin looks like or

with what type of gender you date.

Moreover, these diversity programs may lead to higher creativity within the group, a higher

ability to deal with changing market conditions and a better way to anticipate these changes.

A higher involvement in CSR tends to provide employees with more benefits (Health

insurance / extra holidays) and higher wages than lower commited companies in this field.

This can be explained as CSR and cultural diversity-oriented companies value their

workforce not only as a cost on a P&L statement but more as a true asset of the company

that should be treated appropriately.

As an other example, in these companies, women are more taken into account as the

company may promote equal wage and a will to have a better women‟ s representation in the

management level (Both top and middle management). This again participates in the quest

for the utmost talented people for the company.


Moreover, one can say there is a benefitial gain for employees to work in a diverse workforce

environment as a way to reduce preconceived thoughts and to reflect even more how the

society is (Disabled people/Minorities…).

As a global consequence, it seems this involvement may induce a higher employee loyalty

and in a symetrical way, reduce the global employee turnover, and the total hiring and

training cost of the staff of a company. Talented people are more likely to be part of those

CSR invested companies which seem to lead to higher productivity.

2) Shareholders and investors

There is a growing interest for socially responsible investement (SRI) as some trust funds are

specialized in only funding companies that promote, display and act on the CSR and cultural

diversity aspects. Those trust funds value another way of doing business which imply a

greater responsabilty towards the external environment. As we‟ve already said earlier on,

there are also studies that confirm there is a link between the extent to which a company is

involved in CSR and its global financial performance. Still, there is a debate about this fact

but there are some models that stress it is true when companies further themselves from the

“social obligation” aspect of CSR (legal requirements/ reactive actions) to go to the

“responsiveness” aspect (proactive / search for improved methods/ taking public stands on

issues) (Sethi‟s Three-Stage Schema).This is an important fact as researchers evaluate SRI

market to amout $3 trillion by 2011.

3) Communities

A CSR should take into account the impact the company has on the community it evolves in

and should try to reduce the barriers that might exist between them. As a matter of fact, CSR

emphasizes on actions that make the company belong to the community. As an example, the

global environmental policy should be broken down to have concrete actions put into motions

for the community to see and feel. The company that settles in a neighborhood should be a

real local actor of change, promoting exchanges, partnerships with associations, local

recrutments and so forth. This community aspect of CSR reinforces the positive image the

company has among the citizens who can see the company as not only a job-provider but

also as an engaged actor that participates to the community progress. This CSR aspect

allows the company to avoid strong resistance to its implentation and favorizes mutual gain.

4) Government


Governments are also interested in the way CSR is led to measure and balance the positive

and negative impacts the companies have on their internal and extermal environment (called

“negative externalities”). As a matter of fact, governments may impose by laws some basic

regulations about CSR and diversity programs. Having companies with an advanced CSR

prevents the governments from imposing stronger laws or fines that would stress that

companies do not play the game of being an entire part of their environment. Ensuring

cooperation and compliance with code of ethic and government diversity inititiatives may

even provide companies with incentives such as tax-reductions, subsidies…

5) Customers

The CSR and cultural diversity programs are also (and for some companies mainly) focused

on developing an improved relationship between the company and its customers. Being seen

as socially responsible with the environment, developing anti-discrimination policies and

promoting diversity can increase the brand notoriety, the overall loyalty customers have

towards the brand and extend the global marketshare of the company.

This marketing aspect of CSR should not be ignored as customers in a highly competitive

market, with multiple buying choices, tend to rely on companies that display the same set of

values that they personally have. Nevertheless, as part of “the community”, customers may

see how the companies really affect the environment they are in (both external environment

with eco-friendly policy but also internal environment with employees feedbacks) and judge

the degree of sincerity between a marketing strategy and a true willingly Corporate Social

Responsibility.

Now we will try to describe our own experience of CSR with our work experiences in some

major companies involved in this process, trying to stress the different CSR aspects that can

be found among them.

III] Managing cultural diversity and corporate social reponsability :

different aspects emphasized by different companies

Example 1 : Accor (Anne’s work experience)

Accor is a really good example of social responsibility. As a matter of fact, Accor

implemented an important Corporate Social Responsibility and the group is committed to

treating the Earth and its inhabitants with the utmost respect. To keep this promise, Accor


focuses on its employees, developing programs and initiatives to give each of them the

opportunity to grow. Accor wants “to reconcile business performance and social contribution”.

How does Accor implement its social responsibility aspect?

First, with the creation of the Accor Corporate Foundation whose ambition is to link cultures

by supporting the development of people and their integration into the community. The aims

of this foundation are to support initiatives encouraging local know-how, culture and heritage

but also to support education and to participate in humanitarian activities and some

emergency programs.

Then, Accor wants to combine outstanding performance and exemplary behavior in its

human resources policy. Accor promotes mobility, instruction, development of skills and

capabilities.

Much of Accor‟s strength is based on its corporate values which are a source of pride and

differentiation, and the company wants to remain true to these values relying on the

important management principles. Accor‟s spirit and acting with integrity and respect for

others are the guidelines which structure and inform its human resources policy: Accor was

one of the first French companies to set up a European Works Council. The group promotes

social dialogue, mutual respect and attention to employees concerns.

We can add that Accor is a group which is present all over the word and it involves applying

collective agreements, respecting national cultures, and employees‟ right, as stipulated in the

International Union of Food Workers charter, which Accor has signed. Accor promotes

diversity within the group providing a key advantage which supports team spirit, innovation

and openness. Thus, diversity is a true principle that is applied and respected across the

organization. Accor is actively committed to promoting equal treatment for men and women,

diversity with regard to people‟s social, cultural and ethnic origins, and jobs for the physically

disabled. Following a formal agreement reached with employee representatives in 1997 to

combat all forms of discrimination, another major step was taken in 2007 with the signing of a

Group-wide pact on diversity.

In 2008, a dedicated position was created within the organization to address this important

issue. The goal is to encourage diversity not only by hiring but also by regarding the job

training and promotion opportunities. While the workforce in France is comprised of more

than 130 nationalities, the policy in other countries is to hire managers and other employees

locally: nearly half of Accor Hospitality hotel managers are locals in Asia, with for instance

China and South Korea.


Then Accor hires disabled people and in 2008, a new agreement was signed with employee

representatives reaffirming Accor‟s commitment to increasing the number of disabled

employees and helping them to stay on the job. In 2008, Accor had 462 disabled employees

in France and hired 47 more during the year, many through video job interviews.

We can notice that the Etap Hotel and hotelF1 brands in France are pursuing their

commitment to diversity with a new project, called Diversity Managers, which encourages

initiatives to hire the disadvantaged.

Accor is pursuing its ambition to become the global leader in its two core businesses, while

also respecting a number of universal rules. This is a moral obligation for a global company,

as well as a requirement if Accor intends to create competitive differentiation.

Finally, Accor is involved in the deep respect of people and environment as the creation of

the Earth Guest program which provides the Group‟s corporate responsibility approach

linked to sustainable development, contribution to local well-being, and protection of the

planet...

Thanks to many concrete actions (creation of the Accor Foundation, charters…) and its

communication (annual report), Accor implemented well social responsibility.

Example 2 : L’Oréal (Hélène’s example)

One can also mention l‟Oréal as one of the most relevant examples of firms that are

committed to CSR.

L‟Oréal holds many features that show how important its CSR is. As we have already

explained, CRS implies to be respectful and fair to all people who are involved in the

company‟s activity (Stakeholder model). It‟s important for the company to work while bearing

constantly in mind the priorities of a sustainable development.

The company publishes every year a report in which it studies its own internal organization.

Then it focuses on the different organizations‟ recommendations such as the ONU. In this


report we can see that the company is truly enrolled in a responsible company‟s missions (in

2007, 17 million euros were given to humanitarian associations).

L‟Oréal is especially focused on gender equality and leads many projects that have concrete

results responding to their values. Their partnership with UNESCO since 1998, called

“Women in Science”, has promoted womanhood throughout the valuation of their science

work. Science in general and research and development are still a closed masculine area,

and l‟Oréal‟s goal is to encourage people to acknowledge women‟s work as well.

Inside the company, real efforts are being made especially in recruitment. Women have real

opportunities in the company, being just as able to climb the internal ladder as men are. In

2006, 53% of l‟Oréal women workers were promoted. 54% of L‟Oréal employees are

business women, and they are 34% within the board of directors. Even in research and

development we can notice more women than men, around 60% in total and 34% which are

responsible of the R&D department.

With such facts and figures, we may realize how anchored in the internal culture gender

equality is. They have an ethical chart and basic rules to be followed by every employee in

the company regarding women‟s status. But there is also a real evolution in the way women

are perceived, since they are really considered as a reliable value and asset for l‟Oréal

company.

The “Fondation l‟Oréal”, was created in 2007 by the company‟s president, Sir Lindsay Owen-

Jones and Jean-Paul Agon. Its purpose is to help increase welfare in society, like giving

funds for research and development, education, vulnerable people.

Sir Lindsay Owen-Jones gives a definition of their Foundation which shows that it is really

part of CSR: “The creation of the „Fondation l‟Oréal‟ is a real new step in the group‟s

evolution. It is a great progress in our will to go on beyond economical growth and towards a

wider perception of Corporate Social Responsibility

Example 3 : Europcar (Noémie’s work experience)

I made a internship in Europcar IB (rent a car) situated in Minorque in Spain. Incorporated in

a Spanish team I was the only one who came from France, so that it was a token-team. My

mastery of Spanish allowed me to fit in well with the group. When I arrived there was a

welcome meeting and then subsequently have been entitled to language lessons in Catalan

(official language) to better integrate into my world of work. Regarding CSR Europcar bases


its strategy on sustainable development. Its goal is to be recognized as a "green" company

and engaged in this direction. For example, a car does not stay more than 8 years in a fleet.

The company has received ISO 14001 certification. It was also voted the greenest company

in December 2008 and received the Business Travel Award in 2007 in the category Security

and Sustainable Development. Moreover, it is proposed the introduction of hybrid vehicles in

its fleet. More than CSR program, their corporate image relies on.

Example 4 : Sodexo (Benjamin’s work experience)

Sodexo is the leading company in collective catering. In 2004, the company signed the

French “code of diversity” which recommands measures companies should take to ensure

diversity among their workforce. The company also signed diversity labels in

Belgium(diversity and equality label) and in Germany (Charta der Vielfalt). Moreover, in

2006, Sodexo created a position of CSR and diversity director in the company with the

responsibility to develop a diversity program among the company according to four chapters :

Equal men and women representation in managerial positions

Promote inter-generation representation among the staff

Encourage ethnic minority representation in the company

Hiring of disabled people

For this example, I will only talk about the chapter about “disabled people”.

In consideration of disabled people, Sodexo defined quantitative and qualitative goals :

Quantitative goals :

o 200 people to hire in the 3 following years on long term contracts

o 50 trainees to form

o 150 work placements

Qualitative goals:

o Ensuring equal chances for disabled people to be hired, to stay and to

be promoted in the company

o Developing subcontracts with the protected sector

o Ensuring the communication of best practices for disabled people in all

of Sodexo‟s subsidiaries


In 2 years, these quantitative goals were largely overcome with more than 300 disabled

people hired and 60 trainees to be integrated to the company.

Apart from this specified action, Sodexo designed a way to communicate internally to its

employes about the progress done with diversity programs. A corporate movie was

presented about the best practices, an employee-network was created to ensure the respect

of the diversity program, newsletters were sent, and partnerships were created. One can say

that Sodexo wants to benefit from theses diversity program to increase the corporate culture

and promote a strong corporate affiliation among its employees which would lead to less

turnover. Sodexo has also a fundation and uncovers a “ethical and sustainabily annual

report”. This is a strategy of structural intervention as the company provides space and time

for the employees to integrate and work benefitial ways to integrate difference in their day to

day work.


IV] Counterpoint of CSR and cultural diversity actions

There might be a dark side of CSR and cultural diversity actions. For some companies, it

appears that the reasons or drive behind social responsibility towards human and

environmental issues enlightens self-interest. It‟s for the commercial benefit.

This “greenwashing” image is no more than a strategy to be seen as a socially responsible

company. That‟s why CSR programs are sometimes considered as a part of “social

marketing”. Eventually it turns out that companies strive for a unique selling proposition

which can separate them from the competition in the minds of consumers and shareholders.

It seems that some companies are only interested in redeeming their image more than

actually contributing to general welfare. We could take Nike as an example. The sportswear

company, after having raised a huge scandal with child labour, is now communicating on

protecting children‟s rights and claiming to raise funds to promote education in poor

countries. One can wonder if it is a real cultural business shift or a mere reaction to prevent

future possible scandals.

According to Milton Friedman, the “Social Responsibility of business is to increase its profits”.

For Mr Friedman a company cannot act for social welfare as only individuals can state to act

responsibly. He thinks it is pure hypocrisy to have such a speech, and does not believe in the

ethical motives of managers regarding CSR. This is quite an extreme point of view but it is

interesting to consider all perceptions of CSR in order to stay lucid. Even though CSR might

sometimes suffer from criticism it does not just consist in ideas but has concrete

consequences on the company‟s stakeholders.


Conclusion

We can say that cultural diversity has a broad meaning that takes into account different

aspects such as nationalities, gender, sexual orientation, physical abilities and so on.

For a company, implementing a Corporate Social Responsibility means to have a new way to

consider business. Because of the increased general awareness concerning environmental

and societal problems, companies cannot act without considering the impact they have upon

both their internal and external environment.

Therefore management should take into account CSR by launching new strategies, getting a

valuing label, making partnerships with associations or government, all these actions leading

towards a common goal to improve welfare as well as business opportunities.

CSR gives a purpose to employees who get the feeling they are helping out the world they

are living in, and are also respected for what they are and value for what they provide to the

organization.This encourages them to behave the same way towards other people, thus

creating a retroactive positive circle.

CSR principles are of course transformed into concrete actions that have positive effect on

stakeholders on the short term and on the long run (as customers, shareholders…).

However this all-winner strategy is being criticized :Cross-cultural teams may be more

creative but some studies stress that having cross-cultural team could also mean less

productivity as it requires more adjustment, more time for the group to settle and to provide

the global outcomes desired.

Moreover, some authors and politicians consider CSR as a mere mean to redeem a

company‟s image and not as a real interest in helping to get over today‟s main problems.

That‟s why we should be careful when talking about CSR, because it may sometimes seem

to be more about showing measures are taken than actually applying them.

Furthermore CSR has not yet expanded to all companies, and many types of discrimination

are still prevailing over many companies, especially small ones. And we don‟t have to forget

that small and medium enterprises represent even more employees than multinational firms.

The true point about CSR and cultural diversity actions is to really distinguish companies that

are truly and sincerely engaged in this global movement because they really think it is their

duty and it is the right thing to do.


Bibliography

Internet sources (All last consulted 6/12/09) :

http://www.accor.com/fr.html

http://books.google.fr

http://culturalshifts.com/archives/181

http://www.loreal.fr/_fr/_fr/html/mecenat/fondation.aspx

http://www.palgrave-journals.com/jibs/journal/v14/n2/pdf/8490867a.pdf

http://scholar.google.fr/ (Managing Diversity by Michalle E. More Barak)

http://www.sodexousa.com/usen/citizenship/citizenship.asp

http://www.strategie-aims.com/angers05/com/08-426comd.pdf

Articles :

A Caver. K. and B.Livers “Dear white boss” in Harvard Business review

Guasp. A. & Balfour. J. “Peal performance : gay people and productivity” in Stonewall

Naschberger. C “Disabled people in France” in Revue Management et avenir

Minday. D. “Managing diversity in France”

http://www.accor.com/fr.html

http://books.google.fr/

http://culturalshifts.com/archives/181

http://www.palgrave-journals.com/jibs/journal/v14/n2/pdf/8490867a.pdf

http://scholar.google.fr/

http://www.strategie-aims.com/angers05/com/08-426comd.pdf

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