CORPORATE SOCIAL RESPONSIBILITY AS AN INNOVATIVE CONCEPT OF ENTERPRISE MANAGEMENT

Anna Wolak-Tuzimek, Ph.DUniversity of Technology and Humanities in Radom, Poland

Joanna Duda, Ph.DAGH University of Science and Technology in Krakow, Poland

The following hypotheses are posited : H:1 Application of CSR policies is in

direct proportion to size of an enterprise.

H:2 Development of a positive image is the key benefit from applying CSR by Polish enterprises.

H:3 Financial expenditure required of an enterprise is the main barrier to implementation of CSR

Definition of Corporate Social Responsibility CSR refers to the obligations of businessmen to pursue

those policies, to make those decisions, or to follow those lines of actions which are desirable in terms of the objectives and values of our society (Bowen, 1953),

Businessmen‘s decisions and actions taken for reasons at least partially beyond the firm‘ s direct economic or technical interest (Davis, 1960),

Corporate social rectitude embodies the notion of moral correctness in actions taken and policies formulated. Its general value referent is the body of sometimes dimly or poorly expressed but deeply held moral convictions that comprise the culture of ethics (Frederick, 1986),

CSR as actions that appear to further some social good, beyond the interest of the firm and that which is required by law (McWilliams, Siegel, 2001)

Arguments for introducing CSR

Business activities create problems, therefore enterprises should be involved in solving them

Employees make up social groups to which businesses are responsible

Enterprises have the resources necessary to solve social problems

Enterprises are partners in an economy just like the government and society, therefore, they should try to meet social, economic and ecological needs of their partners

By accepting its social, economic and ecological commitments, an enterprise acts in its own interest and in the interests of society

Arguments against introducing CSR

The object of business is to generate profits to owners

Enterprises don't have commitments other than economic, except those stipulated by law

Involvement in social problems helps enterprises to influence their environment

Conflicts of interest are possible Enterprises lack experience of managing social

programmes All decisions not associated with market

activities reduce economic efficiency, waste time and energy of management, which diminishes economic effectiveness

Benefits experienced by businesses operating in conformity with CSR in Poland

Improved company image in the market 52%

Growing acceptance by the environment 36%

Rising interest of business partners 30%

Growing sales 26%

Rising interest of potential workers 24%

Cost reductions 23%

Enhanced media presence 8%

*Two responses could be providedSource: The authors' own compilation on the basis of KPMG (2014).

Reasons for failure to realise CSR projects in Poland

Lack of knowledge and deficit of workers with adequate qualifications

47%

Ignorance of the concept 45%

Absence of clear benefits to the business 44%

Unavailability of sufficient resources or finance

41%

Source: The authors' own compilation on the basis of KPMG (2014).

Structure of enterprises applying principles of Corporate Social Responsibility (%)

SpecificationMicro

enterprisesSmall

enterprisesMedium

enterprisesLarge

enterprises

Yes 60.5 65.5 68.0 71.4

No 39.5 34.5 32.0 28.6

Source: The authors' own research.

External benefits of applying the concept of CSR (%)

SpecificationMicro enterprises

Small enterprises

Medium enterprises

Large enterprises

External benefits

Positive image 86.4 82.4 88.2 90.0

Good relations with the environment

54.5 41.2 41.2 80.0

Improved reliability 81.8 76.5 88.2 90.0

Efficient functioning in local communities

31.8 41.2 29.4 30.0

Improved loyalty of existing and acquisition of new customers

63.6 70.5 76.5 70.0

* Several responses could be providedSource: The authors' own research.

Internal benefits of applying the concept of CSR (%)

SpecificationMicro enterprises

Small enterprisesMedium enterprises

Large enterprises

Internal benefits

Higher wages 31.8 29.4 70.5 60.0

Improved work safety 68.2 76.5 76.5 60.0

More professional development and prospects 31.8 58.8 64.7 70.0

Improved welfare facilities63.6 58.8 64.7 70.0

Improved motivation, satisfaction and commitment of staff

36.4 64.7 64.7 60.0

Greater employee identification with their firm 31.8 70.5 58.8 60.0

* Several responses could be providedSource: The authors' own research.

Barriers to implementation of the CSR theory (%)

SpecificationMicro enterprises

Small enterprises

Medium enterprises

Large enterprises

Need for financial spending68.2 54.7 35.9 20.0

Lack of staff knowledge and skills 36.4 31.2 35.4 40.0

Lack of owner/ management commitment

31.8 29.4 21.5 30.0

Lack of benefits 45.7 36.5 33.3 20.0

* Several responses could be providedSource: The authors' own research.

Conclusion

The hypotheses posited by this article have been proven in full. Results of the Mazovian and national surveys show that: There is a dependence between company size and application

of the CSR theory. The larger an enterprise, the more willing it is to implement CSR ideas. In Mazovia, approx. 60% of micro-enterprises and more than 70% of large entities put this concept into practice.

Building of a positive company image is the key benefit from application of CSR, as confirmed by 52% enterprises queried in the national survey and 80-90% enterprises operating in the Mazovian region.

Micro-, small and medium-sized enterprises in Mazovia find the necessary financial spending (68.2%, 54.7% and 35.9%, respectively) to be the principal barrier to implementation of CSR, whereas larger businesses point to lack of worker knowledge and skills (47% in the national and 40% in the Mazovian survey).