Download - Week 4 Summary 7
Summary 7 1. Motivation and Contribution
The contribution to literature is to provide a case study of ZETA and their journey of
CSR in the wake of a crisis
Previous research has been done on legitimation CSR and Strategic CSR but never
applied it to a company
I think the author’s motivation was to outline how a company applied CSR into
financial reporting, and how CSR is not reported to fix non-financial issues
(legitimation CSR) but to show how ZETA applied CSR to the overall company
model and long-term strategy.
2. Latest Work done and findings
Following the Global Reporting Initiative (GRI) framework and Integrated Reporting
(IR) framework research was done by Carroll & Shabana (2010) reviewing the
concepts and practice of CSR
The legitimation phase of CSR is made up of Discovery, Explanation, Penance and
Rehabilitation
Findings from the case study showed 3 stages of CSR that ZETA engaged in;
i. A legitimation process transforming corporate culture and fixing issues that
caused the huge losses.
ii. A process of regaining society’s trust, improving communication with
shareholders and bringing organisation performance back to normal
iii. A process of adapting environmental and social goals into the business model
and strategy of the organisation.
Findings also found that ZETA moved to integrate CSR Reporting into its’ financial
reporting
3. Implications of findings on current research
The paper states many companies are already presently integrating environmental and
social goals into their strategy and it can be seen with McDonalds having the Ronald
McDonald house initiative and Michael Hill Jewellers sponsoring the Michael Hill
Violin competition and so on.
In my opinion, more firms must develop environmental and social incentives,
regardless of whether the company had a threat to its’ legitimacy, as ZETA did
because the public, and users’ focus have moved towards how the company is viewed
in the wider environment and more consideration from shareholders on how the
company treats society and the environment they operate in.
Overall, companies are walking a fine line between staying competitive and focus on
increased profits in an increasingly competitive and globalised environment while
making sure they stay within social and environmental boundaries,
As in Cormier & Magnan (2015) that a firm’s management faces a tension between
responding to the information needs of financial markets and maintaining its
legitimacy within the community
And companies should strive for triple bottom line reporting of financial, social and
environmental performance and initiatives in a single annual report and develop
strategies combining all three aspects.
4. Interesting/Controversial findings
Interestingly, companies are already getting positively involved in the environment
and society with its’ social and environmental incentives but have a separate report to
address these and not a full report giving an overall view of the company
This may be because, businesses still view CSR as optional reporting unlike financial
reporting which is viewed as compulsory.
Questions
1. I was a bit confused on whether environmental disclosure is in majority legitimacy driven or strategically driven?
2. As public perception defines CSR on an industry and firm-specific level, do businesses cater what environmental disclosure to include from a public perspective or what the business perceives the public wants?