CSR in the Construction Industry

Corporate Social Responsibility (CSR) in the Construction Industry

An Analytical Investigation into the Development and Prosperity of CSR through Applicable Industrial and Academic Illustrations.

By

David Barry

Dissertation Presented to

The School of Engineering

Waterford Institute of Technology

In Partial Fulfilment of the Requirement for

The Honours Degree of Bachelor of Science

In Construction Management and Engineering

April 2011

Preliminaries Corporate Social Responsibilities in the Construction Industry

i

“Problems cannot be solved at the same level of awareness that created them”

"Out of clutter ... find simplicity. From discord . . . find harmony. In the middle of

difficulty lies opportunity. "

- Albert Einstein (1879 – 1955)


ii

Preface

The prevailing interpretation of a modern organisation has significantly transformed

with the infiltration of societal expectancies now motivating predominant aspects of

an organisations business model. Ethical practices are fast becoming a responsible

requirement in the business environment and have progressed beyond the

philanthropic recognition that it historically procured responsible business practice.

Focus has surpassed the principle ‘bottom line’ and the undeniable growing emphasis

on the non-financial accountability of a company. Investigating the global

organisations practices instigates the principle importance that Corporate Social

Responsibilities (CSR) has in the business environment.

The academic literature of respected authors Hopkins (2007), Lantos (2001), and

Mullerat (2009) and successful industrial implementations of Carillion Plc, Skanska, and

the Royal BAM Group departs no reservation concerning the importance and

dependability of CSR in all business levels and societies. The tangible existence of

fruitful examples of application and practices in the UK construction industry has

proved evidence of its remunerations and reinforcement within society and the

business envelope. The strategic success factors of CSR have been correlated to

corporate reputation (Mullerat & Brennan 2005), future prospects (Hopkins, 2007),

employee motivation (Mullerat, 2009), profitability (Kotler & Lee, 2005) and

stakeholder and community engagement (Maignan & Ferrell, 2004), which all

subsequently commend total quality management and honourable corporate

reputation.

The predominant and unavoidable trends have largely influenced the author to further

research the concept of CSR and its historic development in the business and

construction environments. The purpose of this dissertation is to demonstrate the

underlying benefits and implementation methods of CSR through combining both

primary and secondary research methodologies. Predominant focus will be placed on

successful and competent industrial organisations in a fluency that encourages and

demonstrates an initial foundation for subsequent research, while also providing a

reference to interested undergraduates and professionals alike.


iii

Acknowledgements of Support and Dedications

I would like to take this opportunity to thank a number of people who have helped me

throughout this dissertation, academically, intellectually and physically. Without the

support I have received over the past seven months this research project would not

have been conceivable. While also acknowledging the persons who have helped with

the inclusive success of this dissertation, I would additionally like to recognisably

acknowledge the contributions of the people who have provided the foundation for

which I have developed my academic and practical knowledge and abilities

respectively. They have personated a dynamic role in helping me to achieve what I

have with this dissertation and with the academic course.

My initial appreciation of gratitude is for my academic supervisor Kevin Ryan. Kevin

has undoubtedly exceeded his role as a supervisor, through his attentiveness, strategic

direction, gratuitous support, directive knowledge, accommodating awareness and

general appreciation of the work I have done in a motivating demeanour. Kevin’s

motivational attributes have inspired me to expand my knowledge in the area of CSR

through post graduate research upon completion of my degree if the opportunity

arises.

Sincere appreciation is also comprehended for the lecturers of the Construction

Management and Engineering course specifically Eugene O’ Sullivan and Brian Graham

for their general encouragement and assistance over the preceding four years. All

relevant academics have appreciatively provided the theoretical knowledge for which I

will reiterate in my future years in the industry.

In respect to the internals of the dissertation, I am intently grateful to the

professionals who have provided guidance and given their valuable time during the

primary research stage through interviews and questionnaires, your experienced

sentiments and personal understandings have given this dissertation the grounds for

which it has been possible.

Finally my personal appreciation progresses to all my family who have emotionally

supported me over the last four years. To my Dad Kevin, Mom Bernadette, girlfriend

Divina and all my family, I dedicate this to you.


iv

Particulate Dissertation Word Count

Chapter 1 - Introduction 745

Chapter 2 - Literature Review Corporate Social Responsibilities 9273

Chapter 3 - Research Design and Methodology 2012

Chapter 4 - Findings and Discussions Part One - Qualitative Research 4332

Chapter 5 - Findings and Discussions Part Two - Quantitative Research 2197

Chapter 6 - Conclusions and Recommendations 3897

Dissertation Word Count Total - 22456


v

Declaration of Originality

I declare that this dissertation in whole or in part, has not been submitted to any

University as an exercise for an Honours Degree. I further declare that, except where

reference is made in the text, the contents are entirely my own work. All subsequent

work has been completed to the standards and guidelines illustrated by the

Department of Construction and Civil Engineering, Waterford Institute of Technology,

Ireland.

I have discussed, agreed and compiled with whatever confidentially or anonymity

terms of reference were deemed appropriate by those participating in the research.

The author agrees that the library may lend or copy the thesis upon request for study

purposes, subject to the normal conditions of acknowledgement.

.

David Barry

.

15th April 2011


vi

Table of Contents

Page No

Preface ii

Acknowledgements of Support and Dedications iii

Particulate Dissertation Word Count iv

Declaration of Originality v

List of Illustrations ix

List of Abbreviations x

Executive Summary xii

Chapter 1 - Introduction 1

1.1 Chapter Overview 2

1.2 Research Aspirations 2

1.2.1 Hypothesis 2

1.2.1 Research Aim and Objectives 2

1.3 Dissertation Content 3

1.3.1 Chapters 2 & 3 - Literature Review 3

1.3.2 Chapter 4 - Research Design and Methodology 4

1.3.3 Chapter 5 & 6 - Primary Research 4

1.3.4 Chapter 7 Conclusions and Recommendations 4

1.3.5 Chapter 8 References and Bibliography 4

1.4 Chapter Summary 4

Chapter 2 – Literature Review Corporate Social Responsibilities 5


2.2 Defining Corporate Social Responsibilities 6

2.3 Classification of Corporate Social Responsibilities 7

2.3.1 Economic / Instrumental Stakeholder Theory 7

2.3.2 Political / Legal Theory 8

2.3.3 Integrative / Philanthropic Theory 8

2.3.4 Ethical Theory 9

2.4 The Development and Evolution of CSR and Ethical Practices 10

2.4.1 Historical Development 10

2.4.2 Stakeholders Engagement 11

2.4.3 Globalisation 13

2.4.4 Cause Related Marketing 13

2.5 CSR in the Construction Industry 14

2.6 Influential Factors and Key Performance Indicators 16


vii

2.6.1 The Brundtland Report 16

2.6.2 Global Reporting Initiative 18

2.6.3 Social Responsible Investing & Social Anchored Competences 19

2.6.4 Sustainability Indexes 22

2.6.5 ISO 14001 - Environmental Management 21

2.6.6 ISO 26000 - Social Responsibility 22

2.6.7 CEMARS 23

2.6.8 World Business Council for Sustainable Development (WBCSD) 25

2.6.9 Considerate Constructors Scheme (CCS) 26

2.6.10 Green Public Procurement (GPP) 26

2.7 Remunerations and Benefits of CSR 27

2.7.1 Image Formation and Corporate Reputation 28

2.7.2 Future Prospects 28

2.7.3 Employee Enthusiasm and Improved Workforce 29

2.7.4 Profitability and Productivity 29

2.8 Transition and Company Change 30

2.9 Limitations 32


Chapter 3 - Research Design and Methodology 37


3.2 Research Objectives 38

3.3 Defining Research 39

3.3.1 Secondary Research 39

3.3.2 Primary Research 40

3.3.2.1 Quantitative and Qualitative Methods of Research 40

3.4 Quantitative Research - Survey/Questionnaire 43

3.4.1 Survey Participants 43

3.5 Qualitative Research - Structured Interviews 43

3.5.1 Interview Participants 44

3.6 Research Limitations 45


Chapter 4 - Findings and Discussions Part One - Qualitative Research 46


4.2 Interview Structure 47

4.3 Structured Interview Respondents 48

4.4 Corporate Social Responsibility in the Company 48

4.5 Subjective Opinions and Interpretations 57

4.6 Qualitative Research Summary 61

Chapter 5 - Findings and Discussions Part Two - Quantitative Research 63



viii

5.2 Online Questionnaire Structure 65

5.3 Respondent Profile and Background 65

5.4 Personal Opinions and Views 66

5.5 CSR in your Organisation 69

5.6 Quantitative Research Summary 74

5.7 Primary Research Conclusion 75

Chapter 6 - Conclusions and Recommendations 76


6.2 Research Aim and Objectives 77

6.2.1 Research Aim 77

6.2.2 Research Objectives 77

6.2.3 Objective Summary 84

6.3 Hypothesis Appraisal 84

6.4 Recommendations for the Construction Industry 85

6.4.1 Awareness in the Global Environment 85

6.4.2 Staff Inclusion 86

6.4.3 Better Responsiveness in the Irish Construction Industry 86

6.4.4 Potential ICT Developments 86

6.4.5 Supplementary Acknowledgement of External Accomplishments 87

6.4.6 Incentives for SME’s 88

6.4.7 Instigation of ISO 26000 as a Documented Business Policy 88

6.4.8 Contractual Obligations 88

6.5 Avenues for Further Research 88

6.6 Research Limitations 89

Chapter 7 - References & Bibliography 91

7.1 References & Bibliography 92

Appendices

Appendix A - Construction Interview Manuscripts xiii

Appendix B - CSR Professional Interview Manuscripts xiv

Appendix C - Online Questionnaire Results xv

Appendix D - Questionnaire Cover Letter xvi

Appendix E - Sample Dissertation Review Meeting xvii

Appendix F - Carillion Plc Strategy Model xviii


ix

List of Illustrations

Tables

Table 1 - The Development and influential factors of CSR at Skanska Table 2 - Summarised Benefits of CSR Table 3 - Comparison between Interviews and Questionnaires Figures

Figure 1 - Stakeholder Management Figure 2 - Company Stakeholders Figure 3 - Reduction of waste per tonne in the construction Industry Figure 4 - GRI Integers Figure 5 - 7 Core Subjects to Social Responsibility Figure 6 - How to get CEMARS certification Figure 7 - Kg of CO₂ per m² on Managed Sites Figure 8 - Carillion ‘sun diagram’ Figure 9 - CSR Development and Transition Figure 10 - Defining CSR Figure 11 - Future prominence of CSR in the business environment Figure 12 - Government Involvement Figure 13 - Importance of Sustainability Figure 14 - Strategic Relevance Figure 15 - Implementation Period Figure 16 - Complications of Implementation Figure 17 - Influences of Acquisition Figure 28 - CSR Reporting Figure 19 - Environmental Management Systems Figure 20 - Economic Benefits Figure 21 - Company Benefits Figure 22 - Company Performance Figure 23 - Skanska Sustainability Agenda Figure 24 - Green BIM


x

List of Abbreviations

BLL Bovis Lend Lease BIM Building Information Modelling BITC Business in the Community CCS Considerate Constructors Scheme CDP Carbon Disclosure Project CEC Commission of the European Communities CEEQUAL Civil Engineering Environmental Quality Assessment Award Scheme CEMARS Certified Emissions Measurement and Reduction Scheme CIB Construction Industry Board CIF Construction Industry Federation CIOB Chartered Institute of Building CIRIA Construction Industry Research and Information Association CRC Carbon Reduction Commitment CRM Cause Related Marketing CSR Corporate Social Responsibility CO₂ Carbon Dioxide EFQM European Foundation for Quality Management EU European Union EU Corporate Leaders Group on Climate Change (EU CLG) EMS Environmental Management System ESG Environmental Social Governance GDP Gross Domestic Product GM General Motors GPP Green Public Procurement GRI Global Reporting Initiative H&S Health & Safety HSE Health, Safety & Environmental ICE Institute of Civil Engineers ICT Information Collaboration Technologies IFSD Institute for Sustainable Development ISO International Organisation for Standardization IT Information Technology KPI’s Key Performance Indicators KPMG Klynveld, Peat, Marwick, Goerdeler LCA Life Cycle Analysis MENCAP Royal Society for Mentally Handicapped Children & Adults MNC’s Multi-National Companies NJUG National Joint Utilities Group OECD The Organisation for Economic Co-operation and Development ORB Organisation for Responsible Businesses PCC Project Carbon Calculator PR Public Relations PwC Price Waterhouse Coopers SAC’s Social Anchored Competences SDI Sustainability Development International SME Small, Medium Enterprise


xi

SRI Social Responsible Investing TBL Triple Bottom Line UKCG UK Contractors Group UKGBC UK Green Building Council UN United Nations UNEP United Nations Environment Programme UNPRI United Nations Principles for Responsible Investment UNFCCC UN Framework Convention on Climate Change WBCSD World Business Council for Sustainable Development WCSD World Commission on Sustainable Development WCED World Commission on Environment and Development WGBC World Green Building Council WLC Whole Life Costing WTO World Trade Organisation


xii

Executive Summary

Title: Corporate Social Responsibility in the Construction industry

Sub-Title: An Analytical Investigation into the Development and Prosperity of

CSR through Applicable Industrial and Academic Illustrations.

Author: David Barry

Academic Supervisor: Kevin Ryan

Submission Date: April 2011

CSR can be seen as an imposition placed on an organisation by external stakeholders, who believe it is the honourable obligation of the organisation to give back to the society that has perceivably facilitated their successes. Others believe it is merely the latest in an extensive catalogue of modernistic trends and academic management theories.

Conversely, these observations miss the conceptualisation of ethically incorporated CSR. Evaluating the authentic integrities CSR stipulates evidently conceives that it is a fundamental creed and methodology that serves not only the broader environment but the preeminent interest of the organisation itself. CSR is a doctrine of “enlightened self-interest” in which the organisation in the pursuit of its own success helps the wider community, creating further opportunities that not only fuel the company’s long term success, but conceive extensive benefits for the expansive environment (Urip, 2010).

The construction industry as a global environment has excessively and recurrently attracted hostility among local communities and residents owing to its unmethodical and riotous impact arising from its disruptive nature. The rising importance and attention of socially responsible investment, increasing consumer and environmental concern and a growing political/legislative environment have all contributed considerably to the pressure on business to be socially responsible. CSR is increasingly being identified as central to core business activities which strongly link with a firm’s marketing strategy and economic success (Bhattacharya, et al, 2004).

Multinationals increasingly recognise the major impact they have on the environment, society, and the economy (Skanska, the Royal BAM Group and Carillion Plc). The intention of this research project is to arrive at a clear conceptualisation of CSR in the context of an emerging particular in the industry, focusing on the historical development, remunerations both internally and externally, influencing factors and the paramount methods for its implementation. The secondary research supported evidential illustrations of competent organisations and academics. This additionally provided a theoretical basis for the author to appraise using primary research methodologies conducted through a combination of qualitative interviews and quantitative surveys. Acutely evaluating these combining investigation methods further facilitated the predominant significance of CSR in the construction industry and appropriately approved the hypothesis stated.

In conclusion to the delineating purpose, it is the informed contemplation of the author that CSR is a dynamic strategy of considerable importance in today’s society and business environments. Its responsiveness in the construction industry is varied among organisations but with current market trends, its inevitable growth, benefits and importance are conclusive. The underlining aspiration is that this initial research will establish a foundation for further exploration and provide a guide or reference to instigate the recommendations and initiate implementation incentives for inquisitive organisations.

Chapter 1 Introduction

Page | 1

Chapter 1

Introduction

‘Earth provides enough to satisfy every man’s need, but not every man’s greed’

- M.K Gandhi (1869 – 1948)


Page | 2

1.1 Chapter Overview

The fundamentals of this chapter outline the intentions, determined objectives

and purposes of the academic research which subsequently succeeds this preparatory

chapter. It is a guide to identify the assessment targets, introduce the reader to the

methodology, illuminate the structure of the contents and potentially provide an

incentive for further research.

1.2 Research Aspirations

1.2.1 Hypothesis

Corporate Social Responsibility in today’s business environment plays a fundamental

role in developing a company for future compliance and competitive success. As

described by Douglas B. Johnson a CSR Consultant, during preliminary interviews, ‘its

proper implementation consequently results in organic and inorganic growth for the

organisation through goodwill, social and environmental performance, increased

efficiency, productivity and furthermore new market opportunities’. The following

tentative statement of prediction will be investigated throughout this dissertation:

“The preference and prosperity of evolving Corporate Social Responsibilities as a

dynamic policy in the development of construction companies central objectives and

strategies towards enhancing corporate reputation, increasing efficiency and enriching

profitability”.

1.2.2 Research Aim and Objectives

The primary aim of this dissertation is to demonstrate the importance of CSR in the

construction industry through its implementation as a core business strategy, which

can be summarised in the following statement:

“Illuminating the prominence of incorporating CSR as an imminent organisational

feature to succeed in the future markets of the construction industry”.

The succeeding objectives have been compiled to illustrate the significant motivations

and substance for which companies are now evolving and becoming more socially and

environmentally responsible in an industry that primarily requires extensive corporate

governance.


Page | 3

1. To literate the prominence and connotation of Corporate Social Responsibilities

in the Construction Industry through its historic development and

characteristics.

2. To appraise the research developments concerning the motives, drivers and

market influences for company change towards social, sustainable and

environmental strategies.

3. To establish the justifications and prominence behind changes and adaptations

to innovative market opportunities.

4. To investigate the Key Performance Indicators and influencing factors shaping

the imminent markets.

5. To identify the challenges strongly associated with company adjustments and

recommend the best approach to integrate a CSR business model.

These research objectives will be examined via a combining illustration of research

methodologies, comprising of a secondary research stage which embraces the

appraisal of honoured academic literature, and a primary research stage involving a

personal selection of investigation techniques to provoke a professional opinion on the

subject.

1.3 Dissertation Content

This dissertation has been composed to include numerous chapters which have

been compiled to illustrate the required information thus successfully demonstrating

the overall aim of the author as previously stated.

1.3.1 Chapters 2 & 3 - Literature Review

In these chapters the author initiates with the historical development of CSR as a

business concept, describing its progress and growth over the years, illustrating the

different classifications and portraying the primary influencing factors that have

instigated its development. In the latter it includes construction related examples

based on the companies that have shown exemplary contributions towards CSR with

the attitude to influence other organisations of the benefits and change agents

required for successful implementation. These research chapters have been devised by

the contribution of academic researchers and authors that have been influenced by


Page | 4

the attributes of CSR in the business society both in construction and other

professional business sectors.

1.3.2 Chapter 4 - Research Design and Methodology

This chapter defines the selected methods of research for the dissertation and main

reasons behind their adaptation, including primary and secondary research phases.

1.3.3 Chapter 5 & 6 - Findings and Discussions

This primary research chapter presents the selected practical methods of research,

including structured interviews and a business related survey. It is the thought of the

author that combining these two methods of research will provide a distinguished

basis for concluding the dissertation.

1.3.4 Chapter 7 - Conclusions and Recommendations

Resulting from the investigation stages the conclusions and recommendations chapter

outlines the overall findings of the dissertation based on the aim and objectives

previously set out by the author. The chapter finally appraises the hypothesis proposed

and sets out the recommendations for a construction based organisation grounded on

the appraisal findings and the author’s educated judgements.

1.3.5 Chapter 8 - References and Bibliography

In this concluding chapter the author illustrates the comprehensive list of references

and bibliography which have been utilised throughout the dissertation.

1.4 Chapter Summary

It is the overall aim of the author to present a dissertation that stipulates an

informative, interesting and educated read, while illustrating the significance of CSR in

the construction industry and the respected remunerations it presents to an

organisation.

Chapter 2 Literature Review - Corporate Social Responsibility

Page | 5

Chapter 2

Literature Review

Corporate Social Responsibilities

“Never doubt that a small group of thoughtful, committed citizens can change the

world; indeed it’s the only thing that ever does”

- Margaret Mead, US Anthropologist (1902-1978)


Page | 6


Industries and businesses are constantly changing and evolving with the

introduction of new technologies, legislation and outside influences. EU and

Government policies play a major role in the direction in which a company regulates its

strategies for the future. Jenkins & Plowden (2006) believes that although the

Government is the largest client of the industry shaping legislation, fiscal and general

public policy framework within which construction delivers, further proposing the

governments cannot be the sole influences and drivers of the new environmental

policies and frameworks. The challenge and tribulation is for the future businesses to

incorporate instrumental and persuasive strategies to influence its stakeholders

(consumers, clients, employees, etc.) and shareholders to maintain their support and

commitment to sustainable practices. This concept has been adapted by major

corporations and focuses on the notion of Corporate Social Responsibilities (hereafter

CSR), particularly in the areas of climate change, sustainable development, employee

progress, and community impact. These aspects form the basis for adjustments to the

new social requirements and business ethics (Mullerat, 2009).

This Chapter illustrates the global concept of CSR and how it has been fostered and

developed over the centuries to become an international phenomenon adopted by

businesses not only as an important ethical practice, but also to achieve economical

intentions.

2.2 Defining Corporate Social Responsibilities

The term CSR has been one of much debate and delegation among businesses

and governments alike and can signify many different values to numerous

organisations and groups. The Organisation for Economic Co-operation and

Development (OECD, 2001) concluded a general view that in a global economy, the

business environment extends beyond the ‘bottom line’ and a company has ethical

responsibility to contribute to sustainable development. The European Commission

(2006) adapts the definition that CSR is a concept whereby companies incorporate

social and environmental policies into their operational strategies, attitude and

process of work, along with collaborating with associated stakeholders on a voluntary

basis. The World Business Council for Sustainable Development defines this process as:


Page | 7

“The continuing commitment by business to behave ethically and contribute to

economic development while improving the quality of life of the workforce and their

families as well as of the local community and society at large” (WBCSD, 2010)

All CSR characterisations conclude that it is a process by which a company’s ambitions

are to create higher standards of living while preserving the profitability of the

organization for people within and independent of the corporation (Hopkins, 2007). A

company with virtuous ambitions aims and objectives to be successful and profitable

in their industry must look to the future markets and sectors, where sustainable

development and the role of society will influence the growth of the organisation. It

can be said that if you treat society in a respectable manner, society will revert the

favour.

2.3 Classification of Corporate Social Responsibilities

Within the concept of CSR there are numerous theories and classifications that

can be defined as social and environmental practices. Chand, (2006) & Mulleret, (2008)

all promote that the principle classifications of CSR can be divided into four theories;

economic, political, ethical, and altruistic theories. Similar to these theories numerous

academic publications have analogously segregated CSR into instrumental, legal,

ethical and philanthropic categorisations (Lantos, 2001; Garriga & Mele, 2004). Each

characteristic has significant meanings and all adapt different processes to achieve

corporate compliance, but similarly the different theoretical methodologies assumed

by the proposing authors can be compiled to accompany the other as collective

arguments can be initiated in both classifications.

2.3.1 Economic / Instrumental Stakeholder Theory

The dominant methodology to instrumental stakeholder theory assimilates exploiting

CSR as a fundamental and strategic instrument to achieve economic intentions and

objectives for the company. This theory focuses on the ‘bottom line’ of organisations,

concentrating on profitability for the associated shareholders while subsequently

ignoring many social and environmental conflicts between corporations and their

numerous stakeholders (Banerjee, 2007). If stakeholder theory is incorporated to

promote ethical and corporate moral, it must be customarily recognised and accepted


Page | 8

as an imperative central purpose of the company on normative and not instrumental

terms. The obligation of the company is to understand and involve the dominant views

of the stakeholder and the unique monetary prospects of the shareholders. Banerjee

(2007) believes that companies have responsibilities to provide an account of their

actions, and are not only in business to provide profits for the shareholder’s. This

theory requires primarily reorganising the organisations outlook and focus on not only

the primacy of the shareholders but also the significant social responsibilities of the

firm (Banerjee, 2007).

2.3.2 Political / Legal Theory

Political theory centre’s on the interactions and connections between corporate and

societal responsibilities and the dominance of these responsibilities on the position of

the business in civilisation (Garriga & Mele 2004). One of the first scholarly

contributions to examine the power in which a business has on society was Davis

(1960) who also observed the social impact of this competence and argued that this

‘business power’ is a new component in the CSR debate. A powerful business in society

must use its influence to act both ethically and responsibly to create a social

supremacy for its stakeholders and community. Davis (1960) illustrates the

consequence of organisations exploiting their dominances in society will be retained

responsible for their actions by the social order, which he cleverly describe as ‘iron law

of responsibility’. CSR at this degree should be recognised as a pursuit of the

organization ambition for legitimacy. Organisations have a moral obligation to society

not to exploit the power they have generated, or they face to lose the inherent social

charter. An authoritative business has the influential dominance to change and

encourage the equilibrium of the market (Davis, 1960). Chand (2006) believes an

organisation has the ethical responsibility to implement social practices within the

company, further stating there is an obligatory social contract between the

organisation and civilisation.

2.3.3 Integrative / Philanthropic Theory

This method of social concern is considered to be philanthropic in nature or motivated

by the noble interest of the organisation. Garriga & Mele (2004) consider this

technique if a firm does not have the resources and ability to fully commit to their


Page | 9

ambitions. Philanthropic theory observes how the organisation incorporates the social

requirements, based on its dependency of external bodies for societal success,

expansion and economic wealth as suggested by Garriga & Mele (2004). The corporate

management of a business must integrate with social demands in a concept that

incorporates the interaction of business and society which results in certain legitimacy

and prestige aligned with present social values (Chand 2006; Garriga & Mele 2004).

Corporate philanthropy promotes a charitable belief of contributing money, time, and

services to society. Many organisations now feel obliged to in some way or form apply

this altruistic theory of corporate donation into their business strategy (Lantos, 2001).

Skanska UK, a global construction firm, have implemented this scheme as a small part

of their CSR activities. An example of their commitment includes the charitable

donation of over £55,000 to charities including MENCAP (Royal Society for Mentally

Handicapped Children & Adults) and other local organisations. This has been achieved

through incentives such as £1 donations for every Safety and Environmental reports

filled out by staff, totalling £25,000 in 2009 (Skanska, 2009). Historically in the USA

they have customarily signified CSR as an organisation ‘philanthropic strategy’ as

opposed to corporate responsibilities (Brady, 2005). This concept is perceived as being

responsible, but it can be argued that it is not paramount if the main objective of the

company is social and environmental improvements. This policy does not consider the

environmental requirements to reduce carbon or the social to improve working

conditions for employees.

2.3.4 Ethical Theory

The concluding classification of the four theories involves the ethical philosophy

towards CSR. Ethical practices are perceived as being a moral liability and implicate

unbiased procedures including respecting the needs of people and society and

preventing any avoidable harm to others. Lantos (2001) credits these moral practices,

if incorporated correctly and sustainably, can achieve more than the legal obligations

and limitations. Ethical theory is perceived as being morally mandatory and progresses

further than complying with a firms financial and legal requirements. This theory is

incorporated as a moral achievement for the organisation and not economic growth

and competitive benefits (Mulleret, 2008). Garriga & Mele (2004) divide this theory


Page | 10

into three sub-categories, universal rights, sustainable development, and the common

good approach, each involving and resulting in social and corporate compliance for the

company. This type of ethical practice would be seen as respectable and honourable in

the business culture and as an investor or a member of society is the most desirable of

the four theories. It can be simplified into a social practice that will promote social

good and avoid causing damage to humanity.

2.4 The Development and Evolution of CSR and Ethical Practices

Over the past century few organisations have directly involved ethical business

practises into their strategies or traditions. Some companies such as General Motors

(GM) have been proactive in the early stages of social development with the

introduction of the auto industries primitive ‘supplier’s diversity plan’ in 1968. This

scheme involves a continuous objective to ensure an unremitting diverse supply chain

for all aspects within the GM Company (GM, 2010). Allouche (2006) educationally

wrote that the CSR trend has significantly grown over the past ten years and has been

subject to substantial critical analysis by authors and academics alike.

2.4.1 Historical Development

CSR is not a modernistic concept however it has been distinctively regenerated over

the past few years as a major topic of interest among many groups in the business

environment. The term CSR is a contemporary expression of a concept that has been

incorporated in society for centuries. According to Asongu (2007) an historical example

of ethical business practices involved the Dutch East India Company in 1622, where the

shareholders were angry about the secrecy of the management and ‘self-enrichment’

of the top managers. The moral of which shows that even in 1622 shareholders were

aware of their rights in society and were arguing about similar situations we entail in

today’s economic society. An early and local example of ethical practice was

performed by John Sisk and Son Contractors in the early 1900’s to accommodate their

employees in close proximity of their developments in Cork they built houses to

accommodate their employees and families, while also providing health care for the

aforementioned (John Sisk and Son, 2009). The term CSR would not have been used

for these practices but rather the term respectable corporate citizenship or corporate

ethics (Canniffe, 2005).


Page | 11

During the 1960’s and 1970’s the concept of CSR was of considerable interest and

became a dominant factor in business society and as a business model for many

organisations. During this time it was embraced by the scholarly contributions of Heald

(1970); Ackermann & Bauer (1976); & Carroll (1979) amongst others. After emerging in

the 1960s, CSR slowly became obsolete from company strategies, only to re-surface in

recent years (Maignan & Ferrell, 2004). Centuries ago the concept of these ethical

practices was founded on an instrumental approach, whereby the corporations could

meet their social and environmental commitments without consuming financial

exhausting and losing sight of the shareholders requirements, (Jones et al, 2005). CSR

in today’s society has consequently been adapted as an ethical obligation of the

organisation, determined by the stakeholders and shareholders of the company.

2.4.2 Stakeholders Engagement

“Business cannot hope to enjoy concrete benefits from CSR unless they intelligently

communicate about their initiatives to relevant stakeholders”

Maignan & Ferrell (2004, pp. 17).

The term stakeholder constitutes to describe the persons or groups who have an

interest, claim or stake in the organisation (Carroll, 1991). The growing emphasis on

corporate responsibility is affecting the relationship between companies and their

various stakeholders, and is resulting in investors seeking social responsibility and

environmental performance as well as financial sustainability. Management must

consider the attitudes and thoughts of their stakeholders, as outside influences are

now becoming the customary activity and the focus of a business’s core (Paloviita &

Luoma-aho, 2010). As with stakeholder theory, organisations must work together with

their stakeholders, not only to achieve a sound work place but also the obstinate

‘triple bottom line’, effect of social, economic and environmental success (Elkington,

1998).

Upon extensive research Pajunen (2006) concluded organisations need to be proactive

with the involvement of stakeholders if they aim for ‘organisational survival’. Paloviita

& Luoma-aho (2010) further added that stakeholder’s influences predominantly drive

the business to achieve a sustainable performance which exceeds beyond the legal and

ethical compliance expected of them. With these transitions and influences it is


Page | 12

important to understand the management process involved with successful

stakeholder integration into an organisation. Carillion Plc believes by successfully

understanding their stakeholders opinions and ensuring stakeholders understand

theirs, it results in stronger business ethics for the organisation (Carillion, 2010). To

successfully implement the requirements of the stakeholder an in-depth analysis must

be carried out which will identify and analyse the needs of the concerned

stakeholders. This process of management is illustrated in Figure 1.

Figure 1 - Stakeholder Management (Leadershipchamps, 2008)

To help understand the main persons associated with the term stakeholder, Figure 2

exemplifies the internal and external stakeholders involved in an organisation.

Figure 2 - Company Stakeholders (Skanska, 2010)


Page | 13

2.4.3 Globalisation

Globalisation is an economically motivated and ambitious corporate movement; Ngowi

et al (2004) asserts the attitude that its instantaneous foundations integrate the spatial

reorganisation of production, international trade, and the integration of financial

markets. Globalisation has been around for decades from colonisation in the

fourteenth century to immigrations in the nineteenth century. The contemporary

concept of globalisation has advanced in recent decades due to rapid developments

and innovations in communications and expansions to the global transport network.

Ngowi et al (2004) couples these advances with international protocols such as the

World Trade Organisation (WTO) which in collation have resulted in an open network

and infiltration into world markets. In today’s markets the former barriers of political

interferences and national differences are ignored and are irrelevant in a society that is

centred on the economic interdependencies of global nations (Ngowi et al, 2004).

O.Brady (2005) argues that approximately all Multi-National Companies (MNC’s)

throughout the world operate in a global scale, performing and competing in different

regions. Conversely this movement involves the knowledge of vastly distinctive,

atypical and increasingly stringent legislation and regulations in all sectors. Global

organisation must always expand and study the changing legal requirements and

understand the implications that may result if they are not correctly adhered to.

Contending in the global economy can be the financial downfall of a company. As

proposed by O.Brady (2005), companies now find it easier to work to a superior

standard of workmanship and ethics, rather than incorporating the different levels of

legislation in the required region. Potentially this results in less expenditure and

reducing risk of potential liability. With the introduction of international legislation in

developed countries particularly on environmental aspects, organisations are

beginning to find it easier to participate and compete in the indigenous markets. A

MNC is a world acknowledged organisation and should be seen to compile and exceed

the ethical standards that are required of them (O.Brady, 2005).

2.4.4 Cause Related Marketing

Cause Related Marketing (CRM) reflects on organisations charitable contributions to

worthy causes and can range from sponsorship of a local team, donations, advertising,


Page | 14

sales promotion, and public relations. Defined by Kotler, (2003), cited in Kim et al

(2005) the transition of marketing has developed over the past few years through a

variety of six phases, beginning with the production concept, the product concept, the

selling concept, the marketing concept, the customer concept, and finally the modern

societal marketing concept. The final concept is strongly linked with the process of

philanthropic CSR where companies are contributing to local causes and communities.

As a construction industry example, in 2009 construction contractors the Royal BAM

Group (2009) developed a strategy called the BAM 140 fund where they donated

£140,000 to 140 charitable organisations which were selected by BAM employees.

The CRM concept is mutually beneficial for both organisations. The charitable

organisation benefits financially and increases its public profile, while the company

associated with the CRM remunerates by involving itself ethically with a charity, while

also increasing profile and brand awareness. On a global scale it can be utilised to

stipulate a competitive advantage across unacquainted competition (Kim et al 2005).

In many cases CRM is integrated into company strategies as tool to promote the

organisations dependability, reliability and as stated by Business in the Community

(BITC) (2010) customers consider the company more innovative and 30% of

consumer’s switched brands as a result of a CRM partnership. With all social and

environmental issues consumers are becoming increasingly aware of what is ethically

required from a business, together with the escalation of market prices, the consumer

demand has intensified momentously.

2.5 CSR in the Construction Industry

In the construction industry CSR is becoming a global responsibility of all firms

on an ethical and corporate level driven by the history of a bad environmental and

social reputation. The industry is one of the leading producers of waste material and

exerts huge quantities of CO₂ each year. In the UK it is estimated that 70 million tonnes

of construction demolition material and soil end up as waste and 13 million tonnes of

material delivered to sites are unused and dumped (Halliday, 2002). CO₂ production is

an active problem in today’s society and with the industry producing 2.5% of the UK’s

emissions through concrete production alone (Halliday, 2002). These statistics are

staggering, however Figure 3 demonstrates what is currently being recycled and it is


Page | 15

clear there have been vast improvements in this area. This information demonstrates

the ability organisations comprehend but it is nevertheless inevitable that the

construction sectors must step up and set an example to prove their moral ambitions.

Figure 3 - Reduction of waste (tonnes) in the construction Industry (Pulse, 2010)

With the influences of external schemes and incentives such as Global Reporting

Initiatives, Sustainability Indexes, Social Responsible Investment and Management

systems the industry has become a forceful partner of CSR in the economy.

Industrially, CSR concepts are absorbed in concerns relating to how the construction

business might affect people and environment in which it is operating. Governments

have also strongly initiated the importance of this development as stated by Irish

Minister for the Environment John Gormley (2010), illustrating that ‘Green Firms’ will

be given priority in competing and selection for all government contracts in the future.

‘Green Firms’ relates to the CSR activities in respect to environmental benign, the

organisation community collaboration and utilisation of sustainable products.

Focusing on the industrial leaders in the area of environment and sustainability,

specifically Skanska, the Royal BAM Group and Carillion PLC, this section of the

literature review aspires to outline the factors that have influenced the transition of

these companies towards a sustainable perspective. Focusing on the dynamics that

have subjectively prompted companies to restructure their strategies, incorporate

more socially sustainable practices, to improve industrial power, enhance stakeholder

values, and demonstrate a competitive edge. The literature will conclude with the

evolving process of the company and the techniques required when implementing the

new environmental ethics of the company, as described by O.Brady (2005) this

transition is a ‘marathon not a sprint’.


Page | 16

2.6 Influential Factors and Key Performance Indicators

The construction sector has many reasons and motives to comprehend the

increasing pressure to engage with social and sustainable systems of work. The

European Commission (2006) considers CSR as a characteristic of the European Social

model which if incorporated correctly can protect the solidarity, cohesion, and equal

opportunities, hostile to the current framework of intensifying global competition. The

introduction of investment indexes and schemes (Dow Jones Sustainability Index,

FTSE4GOOD, and Fortune 100), government initiatives (Green Public Procurement) and

international organisations (WBCSD) have added to the induced pressure for change. A

competent company will understand the beneficial implications of these performance

indicators and over time will strategize the company structure to include these

advantageous and globally recognised schemes.

2.6.1 The Brundtland Report

The influential components of CSR were fully comprehended in the aftermath of The

Brundtland Report, which has been very influential towards sustainable development.

This report has inspired the modern global understanding of the term CSR and

analytically accentuated the relationship between poverty, environmental

degradation, and economic development. The WCED (World Commission on

Environment and Development) cited in Strong & Hemphill (2006, pp. 3) clarify the

findings of the report stating that it has introduced a number of actions and strategies

that are considered as the main objectives in a successful sustainable development

policy.

Reviving economic growth;

Changing the quality of growth;

Meeting essential need for jobs, food, energy, water, and sanitation;

Ensuring a sustainable level of population;

Re-orientating technology and managing risk;

Merging environment and economics in the decision making process.

The Brundtland report cited an influential definition of sustainable development. This


Page | 17

definition supports that organisations must now respect and contemplate the

unfamiliar stakeholders in society such as the environment and future generations

(Strong & Hemphil, 2006). The WCED (1987) defined this process by the following

reflective demeanour:

“Development that meets the needs of the present without compromising the ability of

the future generations to meet their own needs”

The Brundtland Report has been very influential towards sustainability as it introduced

many actions, development strategies, organisations and frameworks soon after it

was published, some of which include:

UN Earth Summits (Rio de Janeiro, 1992 and Johannesburg, 2002)

The UN Framework Convention on Climate Change (UNFCCC)

Worldwide "Agenda 21" programs

World Business Council for Sustainable Development in 1992 (WBCSD)

Specifically to the construction industry the following have been developed and

incorporated for environmental and sustainability success:

World Green Building Council in 1999 (WGBC)

Creation of member state sustainable development strategies such as the UK´s

Sustainable Development Strategy

UK Green Building Council

ICE Environment and Sustainability Committee

Constructing Excellence Programme

Additionally arising from the influential Brundtland Report was the highly accredited

initiative, the United Nations Global Compact which was officially launched in 2000.

Leipziger (2003) cited in Isaksson & Steimle (2009) believes developing this initiative

within an organisation shows the company encourages and respects fundamental

international standards, such as the universal declaration of human rights, and the Rio

declaration on environment and development. This network also encourages

corporations to adapt social and sustainable policies in a global format to challenge

sustainable development and advance the concept of corporate responsibilities in the


Page | 18

globalising economy. The Global Compact is the largest corporate initiative in today’s

society; it advocates companies in the appreciation and understanding of CSR.

Additionally it accommodates a publicising reputational podium for the companies

initiating and progressing in combating social and environmental issues (Leipziger,

2003) cited in (Isaksson and Steimle, 2009).

2.6.2 Global Reporting Initiative

The concept of the Global Reporting Initiative (GRI) began in 1997 with the perception

of a framework for sustainability, which soon transformed into the Global Reporting

Initiative. Almost immediately after it was initiated the United Nations Environment

Programme (UNEP) acknowledged the scheme and became a partnering

representative, resulting in global recognition. The initiative bases itself on a

comprehensive number of framework guidelines (identified as G3 guidelines) for

accurately implementing and effectively producing a company’s Sustainability Report

for the given year. To date the scheme receives over 1400 reports a year from all over

the world (GRI, 2010). The framework proactively sets out the ideologies, guidelines

and indicators in which the business can use to quantify and report on their

progressing economic, environmental, and social performance all of which are

demonstrated in Figure 4.

Figure 4 - GRI Integers (Arksustainability, 2009)

Numerous companies in the industry including the Royal BAM Group, Carillion Plc, and

Skanska have strongly implemented this initiative into their sustainability and

environmental strategies to achieve global credibility, environmental success and


Page | 19

social performance. Soon after it was launched Skanska produced its first

Environmental Report in 1997 and credit the GRI as one of the main influences to their

sustainability strategies (Skanska, 2010). GRI (2010) credits companies producing

sustainability reports grounded on the GRI framework can be used as a beneficial

promotion to the corporation and is described as a benchmark for organizational

performance with respect to laws, norms, codes, performance standards and voluntary

initiatives; demonstrate organizational commitment to sustainable development; and

compare organizational performance over time.

The Royal BAM Group has sturdily implemented this strategy with dominant

contribution and consultations from their internal and external stakeholders. BAM

focuses its sustainability reports to embrace significant economic, environmental and

social accomplishments and endeavours throughout the specific year, which

encompasses both negative and positive issues on the part of the company (Royal

BAM Group, 2009). In a publication by Chartered Institute of Builders (CIOB), the

effectiveness of CSR requires transparent communications regarding the

environmental and societal responsibilities of organisations; however according to the

CIOB (2010) awareness of these responsible practices is currently despondent in the

industry. The implementation of GRI in the corporate world consents and promotes a

standardised methodology to reporting on the stimulate necessity for sustainability

information. This will benefit the organisation involved through accredited recognition

of their sustainability successes (Schaltegger et al, 2006).

2.6.3 Social Responsible Investing & Social Anchored Competences

Social Responsible Investment (SRI) is now a dominant factor in the selection of

competitive companies for capitalisation. Price Waterhouse Coopers (PwC), (2009)

describes SRI as an investment strategy which pursues to maximize both financial

return and social good. According to Fortune Magazine one in every ten dollars of

assets under management amounting to $2.3 trillion is being invested in companies

that rate highly on some measure of CSR or social responsibility (Demos, 2006). The

growth of SRI has increased dramatically with Sparkes & Cowton (2004) suggesting it

has become an ‘investment philosophy’ among an increasing society of investment

institutions. The 21st century combined global disaster of Enron an American energy


Page | 20

company and WorldCom a telecommunications company has resulted in a severe

decline of consumer and investor confidence. The disaster caused the US economy

approximately $42 billion of their GDP (Gross Domestic Product) and had severe knock

on effects to the shareholder market, resulting in a collapse of stocks and investor

confidence (Arnold & de Lange, 2004). The absenteeism of social responsibilities in this

case have been predominantly exposed to the point where the company have cause

significant damage to the economy and community (Arnold and de Lange, 2004). This

catastrophe alone justifies the concept and importance of SRI in today’s society.

The term SAC’s incorporates the organisations ability to involve the industrialised

management programmes such as the Environmental Management System (EMS)

ISO14001, carbon reduction scheme CEMARS (Certified Emissions Measurement and

Reduction Scheme) and investment indexes such as the prevalent FTSE4GOOD index.

Stakeholders and shareholders correspondingly agree the introduction and

involvement in these systems will prove financially beneficially, along with CRM,

companies involving social and environmental policies will increase brand awareness

and competitiveness. The growing awareness among shareholders has increased

pressure on the organisations to involve these systems (Arnold & de Lange, 2004).

2.6.4 Sustainability Indexes

The introduction of such sustainability indexes as KLD Domino 400 Social Index,

ETHIBEL, FTSE4GOOD, and the Dow Jones Sustainability Index have opened a new

concept of SRI in the corporate industry. Investors use these indexes as a base for

responsible investing knowing the corporation involved has respectable

environmental, social and ethical standards. Fisher (2009) states that these

sustainability Indexes are used by ‘profit seeking’ investors to promote sustainability,

and although each of the indexes have specific requirements and criteria, they all aim

to seek sustainable compliance. Investor and stakeholder demand surpasses the

economic parameters of the company to seek the comfort of investing in an

organisation that embraces opportunities and understands the risk evolving from

environmental and social developments (Holliday et al, 2002). The practicing company

is seen as a reliable industry leader by shareholders, stakeholders and government

bodies in a fiercely conscious and competitive market. As a successful implementation


Page | 21

example of these sustainability indexes, in 2009 BAM were initiated as the leader in

the Dutch Investors Association (VEB) (Royal BAM Group, 2009).

2.6.5 ISO 14001- Environmental Management

The management system ISO 14001 is the prevalent Environmental Management

System (EMS) used vastly in the Industry today. After launching in 1996 this EMS has

become the largest environmental certification in the world with over 20,000

members (Fuller, 2008). Active involvement results in huge beneficial outcomes for the

organisation, as described by (Fuller, 2008; Woodside et al, 1998) with the growing

emphasis on incorporating environmental credentials by consumers, it provides

competitive advantage over unapprised rival companies as well as an excellent means

of demonstrating corporate responsibilities and reducing risk to the consumer. Within

the community and governmental agencies this system provides an ethical and

positive image for the organisation. (Woodside et al, 1998) describes this auditing

process as a constantly evolving systematic progression of achieving the corporation’s

environmental goals and encouraging the development of environmental

accomplishments. Skanska (2010) propose this programme as an essential industrial

management system which has been proactively incorporated by Skanska UK since

2000. Skanska have been leaders in dynamically initiating this system and in 2009

through active utilisation of the guidelines, achieved zero environmental incidents.

Arising from this exceptional accomplishment they developed a similar strategy for

2010 focussing on competency, energy and climate, materials and flora, fauna and

eco-systems as specified in the Skanska CSR Report (2009).

2.6.6 ISO 26000 - Social Responsibility

The International Organisation for Standardization (ISO) 26000 is a standard giving

guidance in the area of Social Responsibility. Development of the standard began in

2004 for use by businesses of all sizes and types in both public and private sectors in

developed and developing countries (ISO, 2010). Influenced by the growing conception

that global organisations including their stakeholders and shareholders are becoming

increasingly aware of the need for and benefits of socially responsible behaviour. It

provides guidance for the organisations to effectively initiate, develop, manage and


Page | 22

control socially responsible operations in a manner that society increasingly demands

(ISO, 2010). The standardisation intends to succour organisations interjecting

ambitions to sustainable development. The principle objective is for the organisation

to surpass legal compliance in all aspects, fundamentally acknowledging that

conformity with law is an underlying customary duty of any organisation and an

indispensable part of their corporate governance. ISO 26000 will address a globally

appropriate understanding of the social responsibility concept and the objectives of

the organizations to operate in a socially responsible manner (ISO, 2010).

The sustainable benefits of this imperative implementation and management system

are similar to the values of CSR, embracing, competitive advantage over rivals,

reputation among business industries, ability to attract and retain workers or

members, customers, clients or users, maintenance of employees' morale,

commitment and productivity, view of investors, owners, donors, sponsors and the

financial community, and an improving relationship with companies, governments, the

media, suppliers, customers and the community in which it operates (ISO, 2010).

ISO 26000 contains voluntary guidance, not requirements, and therefore is not for use

as a certification standard like ISO 9001:2008 and ISO 14001:2004. It incorporates 7

core subjects to achieve its standardization as illustrated in Figure 5. Each subject from

organizational governance to community involvement and development must be

embraced within the organisation to achieve full compliance and official recognition.

Figure 5 - 7 Core Subjects to Social Responsibility (ISO, 2010)


Page | 23

As described by Kehal and Singh (2006) the encouraging ISO 26000 provides and

unprecedented opportunity for global discussion and widespread involvement to

implement the goals of sustainable development at all strategic levels. Kehal & Singh

(2006) also believe this alone standard could be a crucial actor in the process of

harmonization and ethical development in the business environment and is a standard

that is mutually compatible with the established ISO 9000 for quality and ISO 14000 for

the environment.

2.6.7 CEMARS

Being one of the highest consumers of CO₂ in the world, the construction industry is

vastly becoming more conscious to the reality of this growing concern. Organisations

are increasingly concentrating on their energy expenditure and the possible methods

of reducing their CO₂ emissions. The Royal BAM Group (2009) considers the growing

concern is a result of three main intelligences:

1. Future and more stringent legislation and regulations

2. Societal Requirements

3. Possibility of good economic performance and enhancing CSR

To aid the global business the ‘carboNZero’ organisation established a scheme called

CEMARS (Certified Emissions Measurement and Reduction Scheme) which was

established in 2001 and is vastly becoming the leader in carbon reduction

management in the world. This scheme which is owned by the New Zealand

Government provides the auditing tools and management schemes to help reduce the

greenhouse gas emissions and carbon footprint of individual and leading global

corporations with the highest level of credibility and integrity (carboNZero, 2010). The

key benefits to this scheme as identified by (carboNZero, 2010) include:

Understanding your potential risk exposure

Ensuring peace of mind in relation to new climate change legislation

Addressing consumers, shareholders and investors’ concerns

Understanding inherent carbon liabilities

Avoiding the cost of carbon and rising energy prices

Reducing operating costs


Page | 24

Reducing reputational risk and cost

The fundamentals and certification of the scheme are split into four protocols as

demonstrated in Figure 6.

Measure Accurately measure your carbon footprint and understand your emission sources. We provide

tools and assistance to help calculate emissions.

Manage Make a commitment to manage and reduce your emissions by preparing a reduction plan. We

provide resources to help you identify emissions reduction opportunities.

Verify Clients are required to have an external verification prior to certification.

Market We help you to communicate your CEMARS status.

Figure 6 - How to get CEMARS certification. (CarboNZero, 2010)

The recent recognition of CEMARS as a Carbon Trust Equivalent scheme by the UK

Environment Agency has given fantastic opportunities to UK based companies under

the Carbon Reduction Commitment (CRC) Energy Efficiency Scheme (carboNZero,

2010). The Royal BAM Group have been proactive in the area of CO₂ reduction and

have developed an internal initiative to combat the growing concern regarding CO₂

consumption. In conjunction with KPMG, BAM established the PCC tool (Project

Carbon Calculator) which is used along with the supply chain partners to determine the

possible methods of moderating, reducing and calculating CO₂ emissions during the

design, tendering, procurement, construction and maintenance phases of all projects

(Royal BAM Group, 2009). William Van Niekerk of BAM expresses that the

implementation of the PCC tool was not only influenced by CSR ambitions but also by

the ‘realisation that an effective response to the climate crises will be instrumental in

determining the company’s future (Royal BAM Group, 2009). Figure 7 illustrates the

significant and remarkable CO₂ reduction of 35% which BAM have achieved over the

past few years.


Page | 25

Figure 7 - Kg of CO₂ per m² on Managed Sites (adapted from BAM Carbon Footprint

Summary, (2009)

2.6.8 World Business Council for Sustainable Development (WBCSD)

As one of the first sustainability councils for sustainability development the WBCSD has

predominately influenced the business environment to a sustainable and societal

perspective. The WBCSD has built on its vast network of members, partners, regional

networks and stakeholders to become a global, diverse organisation, influenced by its

extensive network and assisted by the diverse groups to articulate a collective and

communal apparition for which businesses contribute to sustainable development. The

WBCSD (2010) and Tolhurst et al (2010) believe focussing strategic exertions on four

important topics including: the role of a business in society, energy and climate,

ecosystems, and company development, will empower the societal knowledge and

collective growth of sustainable development in an organisation.

In order to fulfil this new mandate, the WBCSD work program includes projects and

initiatives mixing both on-the-ground action and advocacy, business experiences in

implementation, activities challenging sustainability thinking within companies, and

the strengthening of its regional network (WBCSD, 2010). Membership to this council

opens the organisation to vast and experienced knowledge and also gives the business

the opportunity to have a say on sustainable issues.

2.6.9 Considerate Constructors Scheme (CCS)

The construction industry is essential in developing communities, regenerating towns

and building vital infrastructure; however the initial works can have implications in the

surrounding communities and sensitive locations. Realising the disruption caused,

0

50

100

150

2005 2006 2007 2008 2009

Year

Kg of

CO₂ per

m²

http://www.wbcsd.org/includes/getTarget.asp?type=p&id=MTEzOA&doOpen=1&ClickMenu=LeftMenu

http://www.wbcsd.org/includes/getTarget.asp?type=p&id=NjY&doOpen=1&ClickMenu=LeftMenu

http://www.wbcsd.org/includes/getTarget.asp?type=p&id=Njc&doOpen=1&ClickMenu=LeftMenu


Page | 26

companies should exhibit and extemporise an image of competency, efficiency, local

environmental awareness and neighbourliness in the surrounding community

according to the CCS (2010) and the Construction Industry Board (CIB) (1996).

Established in 1997 the CCS was implemented to ‘improve the image of construction’

throughout United Kingdom. It is a voluntary scheme founded by the CIB, which

inspects the associated company’s codes of considerate practice on the registered

sites (CCS, 2010). All competent contractors from local to international have

integrated this scheme on the majority of their sites and it is seen as an important

aspect of each development. CIB (1996) stated that the principle of this scheme is

proving that the industry can be self-regulating and not forced on a policy basis by

local authorities. The main beneficial factors of this scheme for the considerate

contractor as stated by CCS (2010) include:

Membership of a nationally recognised and government endorsed scheme for

the company and the site.

A competitive edge in securing future work.

An external assessing tool for the organisation, which can be used a

competitive benchmark of the companies own performance potentially leading

to development and improvement.

Environmental awards for excellence and evidence of high achievement.

Within this scheme Carillion Plc have been proactively seeking to improve year on year

and in 2009 they achieved an astonishing seven Silver Awards and 11 Bronze Awards

from the Considerate Constructors scheme (Carillion, 2010). Initiating from this report

the Royal BAM Group in conjunction Ballast Nedam, Strukton, and Volker Wessels

developed the Netherlands version of the CCS called Conscious Constructors (Bewuste

Bouwers in Dutch) (Royal BAM Group, 2009).

2.6.10 Green Public Procurement (GPP)

The power of Europe’s public authority in the construction industry can unpersuasively

be the demise or amplification of the industries already intensely competitive market.

With the development power of around 1.8 Trillion their impact on the European

environment is colossal (SDI & UNEP, 2007). In the book Climate Action by the


Page | 27

consortium of Sustainable Development International (SDI) and United Nations

Environment Programme (UNEP) (2007) stated that authorities have the power to

trigger the growth of sustainability and greener products which consequently reduces

their own environmental impacts and risks and has been successively termed Green

Public Procurement (GPP). SDI & UNEP (2007) further outlined that the strategic

importance of GPP for the environment and competitiveness in EU member states is

receiving growing attention as governments seek more sustainable and

environmentally friendly companies when contracting work.

For public or private clients seeking to involve GPP in their specific project, the EU

outlined some basic essential criteria when selecting an appropriate contractor, the

main point being considering environmental performances of the company and not

only the most economical advantageous tender (Commission of the European

Communities, (CEC), 2004). Clients are advised to incorporate environmental clauses in

the tender documents, and it is felt that contractors that already incorporate these

strategies and sustainable criteria through CSR activities will have advantage over

competitors through experience and the use of case studies and documented results

(CEC, 2004).

2.7 Remunerations and Benefits of CSR

There have been many surveys conducted over the past few years concerning

the concept and values of the incorporating CSR into business society (Economist

Intelligence Unit, 2005; UNDP, British Council & PwC, 2002) resulting in the conclusion

that CSR has emerged as a significant theme in the global business community and is

gradually becoming a mainstream activity. Businesses are aware of the growing

perception of CSR and the economical, ethical and environmental remunerations it

conceals. (KPMG, 2005) a leading advisory and services firm, conducted a global survey

interpreting CSR in the business industry. The detailed and comprehensive analysis

presented inclusive details of the global perception and virtuousness of CSR which

comprised of economic, environmental and ethical accomplishments, reduction of risk,

company reputation and awareness, capital access or augmented shareholder value,

internal and external economic savings, and vitally employee enthusiasm, eagerness

and edification on arising social and environmental issues. As presented by a


Page | 28

renowned CSR literates (Hopkins, 2007; & Mullerat, 2009) there are a number of

benefits the CSR concept entails for the company and communities which will

inevitably improve the financial ‘bottom line’ and help to resolve the severe

environmental and social problems exerted in construction environment.

2.7.1 Image Formation and Corporate Reputation

In an article by Constructing Excellence (2004) the belief is that developing and

working among shareholders, stakeholders and other bodies in a proactively social and

environmental manner vastly improves the reputation of the organisation. By

incorporating the influential factors and schemes such as GRI and ISO 14001

aforementioned, the reputation of the organisation becomes an international and

ethically recognised perception (Van Tulder & Van der Zwart, 2006; & Hopkins, 2007).

Mullerat & Brennan (2005) believe the main benefits of CSR are in terms of marketing,

whereby improving ‘image’ and ‘reputation’ and the effect this has on consumer

attitudes and employee commitment. Successful implementation of CSR builds on key

intangibles such as thrust, dependability, regularity, relationships and credibility, while

also to providing ‘competitive’ advantage over companies tolerating subordinate

reputations (Hopkins, 2007).

This is facilitated by the Sunday Times who produces a ‘Best Green Company’ each

year including 60 of the UK’s top green performers. In 2009 Skanska were announced

as the 4th greenest company in the UK. This result was based on their ambitious

abilities and commitment to green procurement throughout all sectors and has proved

the Skanska environmental brand in the industry and business atmosphere (Skanska,

2010).

2.7.2 Future Prospects

The importance of attaining work in the current economic climate is imperative if a

company desires to continue or even expand. Environmental procurement methods

are now seen as a necessity to many companies as a means of obtaining work,

shareholder values and increasing reputation, as these CSR strategies and initiatives

can decide the settlement of tendering contracts. As an industrial example the Skanska

Sustainability Report (2009) described the introduction of a new sustainable


Page | 29

procurement initiative which they developed to ensure value for money when sourcing

services, accounting for environmental, social and ethical aspects over the whole

product or service lifecycle. These eco-friendly approaches will certainly be more

approachable and favourable when competing for government or environmentally

driven projects. This environmental procurement was recently exemplified by BITC

(2010) whereby they discussed the importance of CSR and how it can affect future

business. Further describing the ‘preferred bidder’ status is the London Olympics 2012,

BITC (2010) stated companies that tendered for procurement had to produce evidence

of their responsible and sustainable business practices to even be considered at the

procurement stage. Achieving good relationships with governments and local

authorities not only makes business easier but also promotes and generates positive

press coverage (Hopkins, 2007; & Mullerat 2009).

2.7.3 Employee Enthusiasm and Improved Workforce

Stated by Mullerat & Brennan (2005), the underlying assumption is that employees

and consumers understand and appreciate the consequences that CSR has on the

environment, the community and the society. Mullerat & Brennan (2005) confidently

trust for this reason employees are willing to meet the costs of these practices by

working harder and in an environment that rightfully respects its ethical obligations.

CSR is an important factor for employee motivation and maintaining important

skillsets. As an additional factor to the Royal BAM Group’s CSR approach, they have

established the ‘BAM Professional School’ to consistently educate and utilise their

employee’s knowledge and skills creating a learning culture for their staff (Royal BAM

Group, 2009).

2.7.4 Profitability and Productivity

One of the major advantages of globally incorporating CSR is the introduction and

utilisation of GRI and SRI as discussed previously. These initiatives can dramatically

increase the profitability of the organisation through the acknowledgement and image

the company portrays. Instigating environmental schemes such as CEMARS, ISO 14001

and GRI potentially increases stocks and shares through the SRI programme (Kotler &

Lee, 2005). Kotler & Lee (2005) further described the reduction of operating costs and


Page | 30

increased revenue as one of the key results of CSR instigation into company strategies

as an esteemed business model. Implementing measures to combat waste and CO₂

such as BAM’s ‘PCC’ tool provides an effective measurement apparatus for which the

company can enthusiastically reduce surplus waste and detrimental emissions. The

signing of the Kyoto protocol has also introduced a number of significant changes to

the building industry, predominantly focused on the introduction of CO₂ charges for

the companies (Morris, 2004). The UN (United Nations) have also now prompted that

they have intensions to investigate company’s internal environmental conditions and

possibly introduce sanctions on Multi-National Companies (MNC’s) for not initiating

producing or providing corporate responsibilities (Allouche, 2006).

2.8 Transition and Company Change

The benefits of CSR have been extensively covered by numerous authors

(Keinert, 2006; Mullerat 2009; & Hopkins, 2007) but in order to be successful the

organisation must undertake the transition period involving detailed and studied

strategies for future success and incorporate and apprehend the KPI’s (Key

Performance Indicators) involved in the sustainability evolution. Carillion Plc has been

one of the most successful construction companies in the area of CSR. On the back of a

major environmental incident in 1992 under the company Tarmac, they have

inventively designed an informative diagram Figure 8 below, to illustrate the processes

they understand to be the principle KPI’s to successful implementation and guidance

under corporate responsibilities. The ‘sun diagram’ has helped with affective delivery

of their business objectives, across the four priority areas of the UK Government’s

sustainable development strategy (Carillion, 2010). The diagram provides the links

between policies, government’s objective and the key sustainability impacts of a

specific project or contract (Shah, 2007). It illuminates the fundamental objectives,

targets, and KPI’s which must be extensively assessed to form the Sustainability

Excellence Model (Carillion, 2010). Carillion have also developed a ‘Sustainability

Strategy Model’, which can be appreciated in the appendix F attached. It has been

developed to assist in the understanding of how the KPI’s could be incorporated to

improve performance in sustainability while delivering business benefits and

objectives (Shah, 2007).


Page | 31

Figure 8 - Carillion ‘sun diagram’ (Carillion 2010).

Skanska developed its CSR strategies based on the bad business ethics and reputation

of the construction industry along with some environmental incidents that have

occurred, such as the Hallandsasen scandal. Table 1 below elucidates the development

process, influential factors and CSR occurrences that have motivated Skanska to

incorporate and spearhead the CSR campaign in the industry from the early stages.

1997

- - The Toxic Scandal of Hallandsasen

- - Sustainability issues are being discussed, but with focus on the environment

- - Top management are making verbal commitments about ethical issues of the

company

1999 - - Environmental unit is established

2000 - - The notion of sustainability is expanded

- - Benchmarking the CSR work at Shell

2001

- - Environmental unit is renamed sustainability unit

- - Code of conduct is presented

- The asphalt cartel exposed

2002 - - The first sustainability report is established

2003 - - Ethical education of 2,500 employees

Table 1 - The Development and influential factors of CSR at Skanska (adapted from von

Schantz, 2005) cited in (von Schantz & Herbert, 2006)

In the book ‘Cannibals with Forks: The Triple Bottom Line of 21st Century Business’,


Page | 32

John Elkington summarised that the companies of the 21st century are now in demand

to not only produce financial statements but additionally social and environmental

productivity and performance (Elkington, 1998). The demand for companies to

develop these strategies was described by Allouche (2006) as a primary interest from

external organisations and persons, but in the current, modern environment, the

concept has been industrialised by the internal company itself. Allouche (2006) further

clarified that prevailing organisations absorb this concept to reassure the growing

criticisers and to demonstrate the company’s adherence to their ethical environmental

obligations.

As explained by Yang, et al (2005) the involvement of sustainability in the UK remains a

government and policy powered legislation, rather than a response to market appeal.

The governments in the UK are treating the situation as a volunteering appetite for the

companies who see the legislation as a primary driver towards succeeding in

sustainability as such legislation is not destined. Embracing CSR is the right thing to do

in today’s business sphere and the principle has become a key to the organisation’s

competitiveness and survival. With specific reference to construction business,

understanding and addressing CSR carries potential significant implications for

business success. In fact, it plays a very broad umbrella concept about role and impact

of business in society and most relevant when it connects with an organisation’s core

business (Hopkins, 2007).

2.9 Limitations

The question asked prior to any investment, strategy or company movement is

will it accomplish the ‘Triple Bottom Line’ (TBL) concept, meeting social, environmental

and economic consistencies throughout the transition. Companies must aim to achieve

this concept and not only profitability (Idowu & Filho, 2009). Driving a company

towards sustainability requires the systemically dramatic changes to the performance

in contradiction of the TBL (Elkington, 1998). A lot can be said about CSR and the

benefits it has on society and the environment, but all organisations have a bottom

line which must also be strategised and incorporated into this concept. BAM’s chief

executive Chairman J.A.P van Oosten illustrated the importance of this by expression

that BAM aims to offer the most economically beneficial solutions for its stakeholders


Page | 33

while minimising the negative impact on the environment (Royal BAM Group, 2009).

O.Brady (2005) believes that the biggest problem with the development of CSR in the

21st century is the transition of this concept from local needs to a global scale, further

positioning that CSR requires a ‘radical rethink’ of the fundamental philosophy to

achieve global recognition. BITC (2010) produced some very interesting information

about the realities of CSR in business success, which Hopkins (2007) also conceives as

limitations. The precincts embrace the following:

The short term success of CSR is one of moral achievement for the company,

whereas the ‘bottom line’ or economic success will not be achieved in quick

succession as CSR is correlated with long term attainment and sustainable

business growth.

In order for CSR to be successful and effective in the long term, the

organisation must understand the process, and actively manage the constant

changing process to proactively add value to all its stakeholder relationships,

and not just the financial attributes of the scheme.

In order to measure the impact that CSR devises on a business structure, BITC

believe the organisation must consider and justify the impact the strategy

endures on all its stakeholders to increase the company's positive impact and

reduce the negative impact.

Agreeing with the first above point Friedman (1970) conceive that the benefits of CSR

are ‘separated in time’ but the financial aspect of implementation is current whereas

the future economic benefits will be achieved years after the investment.

Vividly presented in Figure 9 is the transition from implementation to sustainable

accomplishment, and the anticipation/development period which inevitably

materialises through diligence and experience.


Page | 34

Figure 9 - CSR Development and Transition (Bakerhughes, 2010)

2.10 Chapter Summary

This chapter summarises the basic concepts of CSR through concentrated

erudite research, focusing on history, perceptions, and systemic importance on an

international scale. CSR centres on the relationship between business and the

surrounding society; it concentrates on the businesses behaviour regarding their key

stakeholders and can influence shareholders interpretations and financial patronage to

the company. Firms are beginning to realise the potential of CSR and its relationship to

globalization and the international economy. Despite the various views and disparities

in the literature, it can be said the importance of high ethical values in society is an

inevitable cause for recognition in a ‘stakeholder’ culture.

When globalising a brand or company the initial marketing should incorporate social

and environmental responsibilities and contend with the predicaments communities

encounter. Transnational corporations now play a fundamental part in global politics,

economics and culture than ever before (Karliner, 1997). It is a vital aspect for all

businesses initially to develop a social responsible image and brand, and the profits,

reputation, corporate supremacy will all shadow this opening movement of corporate

branding. The author asserts the certain moral and ethical responsibility for

organisations to give back to society and the communities, concluding that if your

organisation supports the community, the community will support the company back.


Page | 35

CSR development creates a higher standard of living for employees while preserving

the profitability of the organization for shareholders in the organization (Hopkins,

2004). The importance of incorporating and constantly assessing a company’s social

and environmental polices is a fundamental aspect of growth and success, and should

not be underestimated if a company aspires to expand in the community, economically

and strategically. As informatively outlined in a report published by The Commission of

European Communities (2002, pp. 5) on the subject of CSR, quoting:

“There is today a growing perception among enterprises that sustainable business

success and shareholder value cannot be achieved solely through maximising short-

term profits, but instead through market-oriented yet responsible behaviour.

Companies are aware that they can contribute to sustainable development by

managing their operations in such a way as to enhance economic growth and increase

competitiveness whilst ensuring environmental protection and promoting social

responsibility, including consumer interests”.

This further explains that CSR is an integral component of Europe’s 2020 strategy for

smart, sustainable and inclusive growth that can help influence company

competitiveness. Europe’s needs for global expansion and investors see these ethical

values as a positive business investment and a venture that virtually ensures long term

investment value. With the growing emphasis, and the increasing pressures being

enforced on companies, management now recognise that they can no longer avoid or

ignore the ethical and environmental expectations of society. In a recent publication,

the importance of this strategy was outlined in the Irish economy by Chambers CEO

Ian Talbot, where he praised the current sustained commitment by all businesses to

invest in their stakeholder communities through CSR programmes and assurances.

Talbot further believes:

“This continued commitment and the positive values underpinned by CSR best practice

can play a key role in restoring our international reputation in the future”

(Business and Leadership, 2010).

Although there is no legislation to date concerning the full perimeter of CSR, the

government recognises the significant contribution that CSR makes to society, dealing

with issues including the environment, disability, raising standards of education and


Page | 36

tackling poverty in developing nations (Business and Leadership, 2010). A socially

responsible company will be recognised for its contributions to society through its

reporting, programs and initiatives, promoting its reputation and potentially amplifying

the organisations probabilities of persuasively attracting new clients and opening

doors to additional markets and sectors.

IFSD (Institute for Sustainable Development) cited in (Mullerat, 2009) categorised the

benefits of CSR into three classifications once actively practised, these classifications

are summarised in Table 2.

Company Benefits Community and Public

Benefits

Environmental Benefits

- -Improved financial

performance

- -Lower operating costs

- -Enhanced reputation and

brand image

- -Productivity enhancement

- -Enthusiastic employees

- -Access to capital

- -Diversity of workforce

- -Reduction of Liability

- -Charitable contributions

- -Volunteering

- -Community involvement in

education, employment and

other programs

- -Safe and quality

developments

- -Recyclability of more

materials

- -Better use of Renewable

sources

- -Environmental

management tools and

standards

- -Better product durability

and functionality

Table 2 - Summarised Benefits of CSR, (IFSD, cited in Mullerat, 2009)

In this chapter the author aspires to express the fundamental objectives of this

transition and the patience and knowledge required to successfully implement CSR

strategies.

The KPI’s illustrated only indicate a peripheral number of schemes and activities that

can influence and facilitate an organisations transition to corporate governance. There

is an abundance of other actions and societies in the global environment including:

UKCG (UK Contractors Group), UKGBC (UK Green Building Council), CIOB and

NJUG (National Joint Utilities Group) Sustainability Groups

UN Environment Programme, "Sustainable Building and Construction Initiative“

EU Corporate Leaders Group on Climate Change (EUCLG)

Various WRAP groups

London Leaders


Page | 37

CEEQUAL (Civil Engineering Environmental Quality Assessment and Award

Scheme) working groups

ICE (Institute of Civil Engineers) Environment & Sustainability Panel

CIRIA (Construction Industry Research and Information Association) Biodiversity

Group

These societies and management organisations not only prove beneficial directly for

the company but also indirectly, as described by Bragança (2007) modern clients do

not only seek the lowest tenders when selecting contractors, but they also pursue eco-

friendly contractors by incorporating environmental constraints and criteria into the

selection process. Companies that use Management Systems such as the ISO 14001

will be considerable advantageous in the clients decision of selection. Based on the

industrial revelations of Skanska, Carillion, and the Royal BAM Group, the significance

and importance of this transition is a vital future strategy for competitiveness,

reputation and growth of the business. Evidently even companies that have a

prominent and powerful name in the Industry will always want to increase their

clientele and business thus increasing revenue and enhancing their social image (Yang,

et al, 2005).

Chapter 3 Research Design and Methodology

Page | 37

Chapter 3

Research Design and Methodology


Page | 38


The purpose of this Dissertation is to outline the possible benefits and

prosperities of evolving Corporate Social Responsibilities into strategies, objectives,

and methodologies of Construction Companies for future affluence.

The intention of this chapter is to distinguish the paramount method for collecting and

establishing effective and conversant information to aid with the findings and

conclusion of this dissertation. Using the various established methodologies the author

aspires to underline and select the research methods that will provide the greatest

informative evidence that justifies and determines the proposed hypothesis and

outcome of this dissertation.

Selecting the principle research methodology in order to achieve a reliable judicious

supposition for the outlined hypothesis is the fundamental foundation for which to

begin academic investigation. According to Allison (1996), research methodologies

range from philosophical to experimental and practical, and should be carefully

adapted depending on the type of study.

3.2 Research Objectives

The following objectives have been compiled to illustrate the significant

motivations and substance for which companies are now evolving and becoming more

socially and environmentally responsible in an industry that primarily requires

extensive corporate governance.

1. To literate the prominence and connotation of Corporate Social Responsibilities

in the Construction Industry through its historic development and

characteristics.

2. To appraise the research developments concerning the motives, drivers and

market influences for company change towards social, sustainable and

environmental strategies.

3. To establish the justifications and prominence behind changes and adaptations

to innovative market opportunities.


Page | 39

4. To investigate the Key Performance Indicators and influencing factors shaping

the imminent markets.

5. To identify the challenges strongly associated with company adjustments and


3.3 Defining Research

To fully understand the dissertation topic, effectively achieve precise

recommendations and an overall conclusion, in-depth primary and secondary research

must proactively take place. Defining research can be difficult as numerous sources

have determined various definitions. Agreeing with the list compiled by Brew (2001)

research is:

Finding out something and making it public.

A mean of testing, validating and generating knowledge.

A systemic process of investigation that contributes to knowledge and guides

academic disciplines.

Advancing knowledge and understanding.

For the purpose of this dissertation the author felt the Concise Oxford Dictionary (cited

in Naoum, 2007 pp. 2) proposed the paramount definition of research as:

“a careful search or enquire; endeavour to discover new or collate old facts etc. by

scientific study of a subject; course of critical investigation”.

Naoum (2007) concluded this definition that research may be used as the principle

trajectory of the words ‘enquiry’, ‘study’, or ‘investigation’.

3.3.1 Secondary Research

The secondary research stage involves extensive reviewing and researching in

collaboration with pertinent academic literature. It is a vital aspect of the research and

forms the basis for which the dissertation develops. Naoum (2007) outlines that this

stage involves the exploitation of relevant themes and focus areas in relation to the

proposed topic, through resources such as journals, publications, books, conference

papers, databases, and articles previously reviewed by peers. The Waterford Institute


Page | 40

of Technology Library provided a large honoured database of information by which the

author was able to access freely and obtain beneficial documents and preceding

student dissertations.

Facilities such as the World Wide Web (WWW) has introduced the social environment

to a vast innovative system of research, aiding the researcher to achieve optimum

respected interpretations and observations on the elected topic of CSR.

The author conducted a comprehensive literature review to facilitate and form the

basis of the coherent argument. The literature review revealed information based on

existing data and evidence, case studies of experienced and accomplished industrial

organisations and theories proposed by supplementary personnel. The results of the

secondary phase enabled the researcher to further analyse the topic of CSR through a

primary research stage.

3.3.2 Primary Research

Primary research is a stage by which the researcher further explores the techniques

and examples by others, but personally generates the design and procedural method

of the study and furthermore is responsible for the collection and analysis of the data.

This stage is indispensable in answering specific questions outlined by the researcher

and facilitating the conclusion of the hypothesis stated (Blaikie, 2003). Throughout this

stage suitable research methods were explored and selected through the concept of

compatible research analysis.

Primary research involves the selection of Quantitative or Qualitative research

methods, both of which include various approaches and procedures to congregate the

necessitated information and results for which the author can consequently advocate

to accomplish the anticipated recommendations and conclusion.

3.3.2.1 Quantitative and Qualitative Methods of Research

Upon completing a comprehensive literature review, Yin (1994) cited in Naoum (2007)

described the primary research stage as an action plan for getting from ‘here’ to

‘there’, initiating with a set of questions to be answered and concluding with a set of

answers to determine the recommendations. There are many steps along this path


Page | 41

which have to be considered including collection and analysis of the collected data

from the proposed research techniques (Naoum, 2007).

Quantitative analysis involves the numerical process of collecting, analysing, and

interpreting the results of a study or survey through statistical analysis. The

respondents have the same selection of answers and options to select from, which

supports the conclusion of this method of research (Creswell, 2003). Qualitative data

is a source of dependable, informative descriptions and clarifications of procedures in

identifiable local contexts. The qualitative research provides a chronological flow

deriving ‘fruitful’ explanations (Miles & Huberman, 1994).

Brown (1991) believes that productive internal research should comprise of both the

qualitative and quantitative methods, where the qualitative stage involves interviews

with top management and front-line employees and middle managers, in addition to

those with customers. Based on these qualitative results, a questionnaire can be

established to assess the relative importance of service or product and the company's

views and performance. The merits and demerits of each method are outlined in table

3 to follow.

To achieve optimum and reliable results the author proposes to use both Qualitative

research through semi-structured interviews and Quantitative research through a

professional business based survey. These methods will be focused on experienced

industrial based companies and their unbiased employee’s and business professionals

respectively, all of whom accommodate informative opinions. The fundamental

purpose of the primary research stage is focused on obtaining quality, knowledgeable

and personal opinions that will encourage and inspire the outcome and aspiration of

the author.


Page | 42

Qualities Interviews Questionnaires

Identity of Respondents Known Unknown (Depending on Layout)

Interaction between interviewer and respondent

Close Distance

Time involving the Researcher

High Significantly lower than interviews

Sample Small Large

Quality of Information Deep and Detailed Rich

Skill and Experience Skill Relevant to the specific area of research

No skill required

Control of the process High Low

Flexibility

Great flexibility to reword questions and clarify terms

Answers accepted as they are

Analysis of the Results

Strenuous and difficult particularly with unstructured

interviews

Simple to analysis

Interviewer Bias

Interviews allows for bias views of the respondents

Can be subject to bias if inappropriately conducted

Table 3 - Comparison between Interviews and Questionnaires (adapted from Naoum

2007)

3.4 Quantitative Research - Survey/Questionnaire

Questionnaires or similarly surveys are a simple and effective method of

quantifying results based on a quantitative approach to research. The respondent is

specified with a number of diverse options for each statement or question, allowing

them to select the pre-eminent personal response. Surveys provide a well-structured

solution to analysing results in an unproblematic and artless approach. Modestly

identified by Brown (2001, pp.60) as:

“any written instruments that present respondents with a series of questions or

statements to which they are to react either by writing out their answers or selecting

from among existing answers”

It is a basic statement for a simple and prevalent method of research. Rendering on

the thoughts of Dornyei (2003) who expertly believes questionnaires engender three

types of particulars about the respondent:

Attitudinal: Attitudes, Opinions, Believes

Behavioural: Experience and Knowledge


Page | 43

Factual: Demographic Characteristics

All of which are extremely important components of a coordinated and articulate

questionnaire yielding dependable responses.

3.4.1 Survey Participants

The author has chosen to develop a questionnaire grounded on the verity that they are

unprecedentedly effective in terms of time and exertion in application. In a well-

structured questionnaire the processing of the data can be punctual and comparatively

undemanding (Dornyei, 2003). The questionnaire will be designed as so it can be

distributed to business professionals in all industries and sectors who obligate a

virtuous opinion on the area of CSR not only in their associated business practice but

also on a personal sentiment. This will provide a global business opinion on the topic

and confidently embrace shareholders, stakeholders and leading executive’s attitudes

on its importance, remunerations, particular business actions and personal

perspectives.

Conversely with all research approaches they can only accomplish certain results based

on their established objective. Dornyei (2003) comprehends there to be certain

disadvantages to questionnaires including: superficiality to answers, unreliable and

unmotivated respondents, and social desirability or bias opinions. To prohibit this

transpiring and to embrace the construction industries experience and knowledge in

the area, the author intends to conduct structured interviews through the qualitative

research approach.

3.5 Qualitative Research - Structured Interviews

This approach of research has special value for investigating complex and

sensitive issues. It can be used to achieve a deep understanding of how people think

about particular topics. This can be achieved using an in depth interview (Kothari,

2008). Suitable qualitative data is likely to lead to serendipitous conclusions especially

in a subject not widely known or acknowledged. It helps researchers excel beyond

initial conceptions and generate abstract frameworks, in an ‘undeniable’ quality of

reliability (Miles & Huberman, 1994).


Page | 44

Interviews can be categorised into a number of specific types, as described by

Goodwin & Goodwin (1996) there are four general types: structured, semi structured,

informal and retrospective, for the purpose of this dissertation the author feels a

structured interview would be best.

Structured interviews incorporate predetermined illustrated questions that will be

asked in a pre-established sequence. In relation to the qualitative approach the

structured interview emphasises open ended questions that are more complex than

one worded or scaled answers as such in a quantitative approach (Goodwin &

Goodwin 1996). The author believes giving the interviewed person the opportunity to

express their opinions easily and freely will provide a more informative and personal

response. It is important for the interviewer not to improvise or influence the answers

or deviate from the sequence of questions.

The questions can be categorised into six types of classifications:

experience/behaviours question, opinion/values questions, feeling questions,

knowledge questions, sensory questions and background demographic questions

(Miles & Huberman, 1994). The author aims to incorporate this framework of

behavioural responses into the interview questions, as it is felt that collectively they

will produce optimum and informed answers.

3.5.1 Interview Participants

To obtain a substantial understanding of the subject the author intents to initially

undertake interviews with experienced business professionals who have worked in the

area of CSR through consultancy, research or individuals who demonstrate a

respectable understanding and knowledge of the topic. This will be conducted to

primarily attain a general appreciative perception of CSR in the business environment

and additionally assist in the preparation of the construction based interviews. It is the

aspiration of the author to administer construction based interviews with the

organisations mentioned in the secondary research phase and in addition to this

interview other experienced and commendable companies from medium size

organisations to large global contractors. This will allow a comparison between the

distinctive companies and generate productive recommendations for the smaller


Page | 45

companies who aspire to become more socially aware.

3.6 Research Limitations

As CSR is a relatively new concept in the Irish Construction Industry it can be an

arduous task obtaining personnel for the construction based interviews. To overcome

this impediment interviews will be organised in collaboration with practiced UK based

contractors, with the hopeful possibility of some larger Irish contractors participating.

Interviews are time consuming and in many cases expensive to conduct due to travel

constraints and other issues, for this reason some interviews may be conducted

through information technology systems such as ‘Skype’ and or via recorded telephone

communication.

3.7 Chapter Summary

Chapter 4 outlines the basic methods used in obtaining the information required

for successfully achieving and accomplishing the final results and concluding main

statement of the dissertation: “The preference and prosperity of evolving Corporate

Social Responsibilities as a dynamic policy in the development of construction

company’s central objectives and strategies towards enhancing corporate reputation,

increasing efficiency and enriching profitability”. It is hoped the personal interviews

will achieve an experienced opinion on this subject highlighting the major influences

and propositions behind the change.

The chapter also evaluates the beneficial evidence of using numerous methodologies

both primary and secondary, focusing on interviews, questionnaires and academic

literary research to conceive a pronounced supposition based around the hypothesis

of this dissertation. The qualitative and quantitative processes of investigational

research methods outline the pre-eminent approach the researcher intends to

instigate. It is the hope of the author that the selected methods will effectively achieve

and conclude the central assumption of the dissertation. The Research findings will be

illustrated in the proceeding chapter.

Chapter 4 Findings and Discussion Part One - Qualitative Research

Page | 46

Chapter 4

Findings and Discussions

Part One - Qualitative Research


Page | 47


The initial of two findings and discussions chapters focuses on the qualitative

research approaches selected. It outlines the selected candidates for the structured

interviews, all of which are construction related professionals working for some of the

biggest companies in the world. To primarily understand CSR in the business

environment, the author conducted a series of interviews with consultancy

professionals, prior to initiating with the industry based interviews, (full

comprehensive interview responses are attached in Appendix B), which was primarily

focused on their knowledge regarding CSR aspects and environmental issues within the

comprehensive business environ. This provided a foundation to develop suitable

questions for the construction related interviews and it presented the author with

personal, direct and experienced interpretations of CSR.

This chapter summarises the candidates valued and learned opinions, on a carefully

selected range of questions facilitating the preceding aims and objectives presented by

the author.

4.2 Interview Structure

The author projected a respectable number of interviewees to achieve optimum

sentiments on the subject of CSR and to allow for commendable responses to which

the author can appraise and evaluate. The interviewees were interviewed during the

primary research stage of this dissertation on numerous questions surrounding CSR in

the construction industry. The questions were subsequently divided into four initial

sections in order to gain the best possible outlook for the research:

1. Company experience and attitude towards CSR in construction.

2. Influential factors and remunerations gained.

3. Methods of assessing and controlling CSR in the Company.

4. Personal opinions and views on CSR in the Industry.

Evaluating the findings of professionals working in the construction industry will

provide comprehensive understandings and viewpoints to fully appreciate or

depreciate the aim of the research. Each of the questions responses have been


Page | 48

informatively summarised to reduce the volume of word count. The interview

manuscripts for each respondent have been collated and can be observed in the

Appendix A.

4.3 Structured Interview Respondents

The following is a list of key personnel that appreciatively participated in the

structured interview process.

Dawn Watson – Environmental Manager, VINCI Construction

Dawn Watson has been an Environmental Manager with VINCI Construction the world’s largest construction company for the past three years. Her responsibilities within the company include environmental audits, ensuring all sites are complying with Environmental Management Systems (EMS), liaising with external bodies such as CCS, ISO, GRI and consistently reviewing strategies and KPI’s which have been set by VINCI.

Peter Scanlon – Environmental Manager, Skanska

Peter Scanlon has been working for Skanska for the past two years and has developed his interest in sustainability after obtaining a degree in forestry from NUI Galway. His main roles within the organisation include organising and implementing new strategies relating to sustainability and environmental issues. Liaise with the sites and aid them with any issues they may have, review progress regarding benchmarking and help increase and better their results.

Nick Drake – Sustainability Advisor, Carillion PLC

After completing a Masters in Climate Change, Nick Drakes interest in sustainability and CSR grew from there and he has been a keen part of Carillion’s Sustainability team for the past three years. Nick spent the first year with Carillion planning and preparing with colleagues on sustainable solutions that can be achieved with the Heathrow Terminal 5 C project. He has opened relationships with BITC and other groups, and also written management documents for the company.

Tom van Beek – CSR Director, Royal BAM Group

Tom joined the Royal BAM Group in 1988 and became Corporate HR Director in 1998 and was given the responsibility of CSR Director in 2008. He has always been interested in CSR activities from early on in his career and is now responsible for the coordination and implementation of The Royal BAM’s Sustainability and CSR policies, particularly the sections for which are developed for the group’s worldwide policies.

Mairead Dennehy – Health Safety and Environmental (HSE) Manager, Laing O’ Rourke

Mairead is a knowledgeable and experienced professional and has worked for Laing O’Rourke for the preceding three years. Working with Laing O’Rourke, Mairead provides guidance on all aspects of health and safety and the environment within the company and ensuring all staff are trained and competent in their roles and responsibilities. She reviews processes and procedures and provides initiatives to improve on HSE standards.


Page | 49

Andrew Kinsey – Senior Sustainability Manager, Bovis Lend Lease

Andrew has spent his entire career focusing on sustainability and has been working for Bovis Lend Lease (BLL) for the past 12 years. He helped initiate the environmental department of Bovis Lend Lease in the late 90's and have helped the UK division achieve certification of their EMS. Andrew has also introduced policies, processes and procedures on environmental reporting and the CCS and won recognition for BLL at several industry and environmental events. His previous work was delivering BLL’s sustainability programme at the Athletes Village in London.

Ian Brooks – Business Improvement Manager, Kier Group

Ian is a Business Improvement Manager for Kier Eastern and Kier Regional in the UK and has been associated with the company for the past 3 years. He is responsible for capturing and sharing best practice, and monitoring and improving benchmarking. He Manages change and is consistently driving continuous improvement in all areas of the business, including some of the aspects and elements of CSR, monitoring the effectiveness of current strategies and liaising with organisation’s such as BITC to help improve their relationship and reputation.

Jim Peters – Services Manager, PJ Hegarty

Jim has been a services manager with PJ Hegarty for the past 3 years and although he is not directly associated with CSR in the company he has an ample appreciation and knowledge of PJ Hegarty’s views and fundamental policies and aspects they have incorporated over the past few years. Jim is a well-educated and experienced professional and has worked as a lecturer in DIT and Project manager for RPS Group. His role as a service manager essentially involves the effective and efficient running of projects throughout Ireland, ensuring they on time, to specification and within budget.

Cyril Keegan –HR and Environmental Health and Safety Director, P. Elliott

Cyril Keegan joined the company in 2002 as Safety Manager. In 2004 he became the Company's first Human Resources Manager prior to joining the Board as HR Director in 2009. Cyril deals with all areas of human resources in the company, customer relations, employing and resourcing personnel, but more recently he has become involved in resolving all safety and environmental issues from each of P. Elliott’s sites.

Anne Buttfield – Marketing and PR Manager, Mott MacDonald

Anne is an extensive member of the Mott MacDonald team and has been working for this prestigious company for the preceding 21 years. She has developed her interest in CSR through marketing campaigns and organising community related projects for the organisation.

Jane Grant – Associate Director, WSP

Jane has been an associate member of the WSP group for the last 9 years. Her current remits are two-fold. Jane is the learning and development manager for one specific part of the UK Business, concentrating on technical learning, professional development (helping staff achieve professional qualifications) and also university contact such as scholarships. Her second role is with the UK Sustainability team, co-ordinating and helping to promote CSR and Volunteering activities.


Page | 50

This compilation of extensive industry experience and knowledge will confidently

stipulate inclusive intellects on the subject matter. As each respondent is a

representative of their company they will be respectively referred to by the

organisation in which they work.

4.4 Corporate Social Responsibility in the Company

Question 1 - What is the history behind the CSR activities in your Organisation?

Contemplative Summary

All respondent companies evidently understand the concept of CSR and its importance

in society and within the organisation. The larger companies such as Skanska and

Carillion have exhausted huge efforts in its implementation and growth over the past

decade. SME’s (Small, Medium Enterprises) such as P. Elliott and PJ Hegarty who have

recently implemented CSR activities as a formal business model in the organisation,

dictate strong encouragement for its development which over the impending years will

materialise as they become more experienced. The ISO management systems,

sustainability indexes, CSR reporting, community engagement, H&S, and stimulus from

external bodies appear to have had the greatest influence on this transition which

have been evidently described by literature of Leipziger (2003) cited in Isaksson and

Steimle (2009), CIOB (2010); Fuller (2008) & Woodside et al (1998).

Gratifyingly some of the global companies informally began their CSR activities in the

1970’s influenced by internal management and the moral obligations within the

company. BLL for instance has understandably become market leaders in this area of

the industry and reportedly increased their reputation as a result of their experience.

In conclusion each of the companies have been proactively and perceptibly

harmonizing their growth in recent years, and it is considered that their progression

will be in proportion to the size and experience of the organisation.

Question 2 - How was CSR implemented into the company structure?


Summarising and evaluating the various methods of implementation, the author felt

that generally motivation of top management emerges as the main influencing factor


Page | 51

of CSR within the respected companies. Organisational executives and directors would

primarily be influenced by markets trends and external encouragements, such as the

sustainability indexes, SRI, and GRI, thus form the interview outcomes, realising that

CSR is prominent and imperative activity in the construction industry. As defined in the

literature review, outside bodies such as BITC, CCS and ISO systems along with the

ethical behaviour of employees and other stakeholders also seem to have a significant

influence on its employment in the organisation.

The preceding question queried the historical development of CSR in the company,

which prominently argued that CSR has industrialised through the virtuous

responsiveness of various stakeholders. Uniting the interview responses, the substance

of employee engagement has also subjectively influenced its implementation. Brady

(2005) and Tonn (1999) designate the sustainable development as a process that is

perceived as difficult transition and societal challenge which can only be achievable

through the cooperation, support, and partnerships of all stakeholders’ education of

uninformed staff and supporting CSR reports have inspired its awareness in the

organisations influenced predominantly by management.

Question 3 - What forms of CSR activities and policies have been implemented into

the company’s structure?


Initially when comparing the responses from Skanska, Carillion, BAM, Laing O’ Rourke,

Mott Mac Donald, and BLL you can understand the extent some companies exert on

their CSR activities and the relevance it has to their company policies. It is an extensive

aspect to many who appreciate its substance and apprehend its significance in the

construction industry. Leading by these admirable companies, other less

commendable organisations, can extensively improve their reputations through

schemes and policies such as Skanska’s extensively inspiring and beneficial 5 Zero’s

campaign, BLL’s ‘BeOnSite’ campaign, and also P. Elliott’s loyal sponsorship days and

donations. The secondary research stage also detailed some of these methods which

can be unified with the response of the interviewees, influencing that all companies

can implement these activities in an ethically driven business model. The policies and

activities range from community engagement, environmental awareness and


Page | 52

protection to philanthropic activities and guidance from external bodies such as ISO

management systems, Low Carbon Transition Plan which Skanska affiliate with, and

accreditation with organisations such as BITC, EFQM (European Foundation for Quality

Management), and the UKGBC among others (Mullerat, 2009).

Question 4 - What are the main influences and reasons behind your company’s

involvement in CSR?


Influences change depending on the type and structure of the company. Where

organisations are publicly owned shareholders influences can dramatically change the

structure and outlook of the business. Companies such as Skanska, Kier and Carillion

focus their efforts to increase their moral responsibilities in the industry and

surrounding communities, creating a reasonable reputation for the company. Relating

to the true statement and foundations of CSR, companies should be influenced by

their own ethical obligations set out by the fundamental aspects of moral business

practices and internal categorisations (Garriga & Mele 2004; & Lantos, 2001).

Evidently all the companies interviewed are influenced by the honourable compulsions

of their employees and management; correspondingly significant to the aim of this

dissertation the client’s ambitions and statute regulations are necessitating its

integration within the indentures of the contract. As exemplified in the secondary

research CSR has stipulated extensive opportunities for the preceding companies

including new market prospects, employee motivation, increased reputation, business

efficiency and community awareness, which have primarily been driven by

commendable ambitions of the internal bodies (Mullerat, 2009; & Hopkins, 2007).

Question 5 - What benefits has the company gained from incorporating CSR

strategies?


Through extensive research of academic literature during the secondary research stage

(Mullerat & Brennan, 2005; & Hopkins, 2007) the author concluded there to be

copious expanses of CSR remunerations. It can be manifestly understood by the


Page | 53

responses of the organisations that the benefits gained vary depending on the level of

implementation, size of the organisation and employee attitudes towards social

responsibilities.

Achieving the TBL in construction is the paramount activity generated by all

companies, which has been illuminated by the responses of the interviewees. CSR

practices can emphatically influence this realisation, through environmental

awareness, H&S improvements, financial savings through Life Cycle Analysis (LCA) and

Whole Life Costing (WLC) and carbon reduction, increased moral and motivation,

entrance to new markets and increased reputation within communities. Paramount to

the hypothesis and as exemplified by Kier’s Ian Brooks CSR contributes to the potential

proliferation of clientele and as definitively illuminated by BLL it provides competitive

advantage over unaware counterparts.

Question 6 - Have any contracts been won based on your CSR accomplishments?


This question is comparable to the aforementioned, but specific to the type of

remuneration that hypothetically can be achieved. With the exception of the Royal

BAM Group who expressible succeeded in the accomplishment of contracts based on

their CSR achievements, the awarding of contracts is not a certain subsidy of virtuous

CSR accomplishments. As identified by Constructing Excellence (2004) and Van Tulder

& Van der Zwart, (2006) in the literature review, enhanced reputation is a huge

element to the reason behind CSR integration, grounded on the responses of the

interviewees; CSR reputably increases the company’s awareness among prospective

clients through the organisations activities and virtuous work ethos. Exercising the

KPI’s depicted previously in the literature review and uniting the professional

responses obtained, CSR prominently exerts the requirements to successfully initiate

with the contractual prerequisites set out by clientele, as discussed by Andrew Kinsey

of BLL whereby they were invited to tender for based on their achievements and

reputation in the area of CSR. The responses predominantly exposed that CSR has

emphatically facilitated the named companies in attracting and attaining new work,

while accumulatively increasing the consciousness of the organisation.


Page | 54

Question 7 – Composed selectively of Strategic Management, Assessment &

Objective Setting in the Organisation


Comprising the Strategic Management, Assessment and Objective Setting responses

allowed to author to evaluate these specific elements in a central supposition,

consenting the reader to appreciate the organisational management of CSR through

the various interpretations.

Reviewing the intellectual responses, one exerts an understanding that there are

similar management and controlling techniques among the diverse companies. The

secondary research stage did not proficiently cover the strategic management aspects

of CSR, as the author sensed it would provide a better outcome to receive professional

and practiced thoughts. Objectives and strategies appear to conceive similar results,

mainly focusing on benchmarking, yearly, monthly, and result based strategies,

converging on areas such as carbon reduction, staff education, philanthropic activities,

and community engrossment. Interestingly Mott MacDonald has introduced a survey

based assessment method which would provide excellent opinions from the

employees within the company. In contrast to the larger organisation, P. Elliott

seemingly expresses a lot of their CSR activities on employee relations, as they feel

employee interaction and involvement will predominantly and organically increase

their CSR ethos.

Using a number of the KPI’s academically illustrated, certain companies incorporate

these systems as assessment tools which include EMS’s, CEMARS, BITC, and inclusion

in sustainability indexes. This further illustrates the aforementioned KPI’s paramount

influence in the construction industry and portrays their knowledgeable importance in

successful implementation and management. Examining this thought through the

Altruistic theory described in the literature review, it observes how the organisation

integrates the societal necessities, influenced and dependent on peripheral

organisations for social success, expansion and economic wealth (Garriga & Mele,

2004).


Page | 55

As indicated in the broad sense, the financial implications of CSR are varied between

the companies, but predominantly CSR is not seen as an expense to the company, and

will always prove cost neutral and most cases profitable depending on its severity of

application.

Question 8 - What are the key performance indicators influencing your activities?


KPI’s are essentially benchmarks for the organisation to consistently monitor and

improve on targets and results. Although not thoroughly examined, the responses

profoundly comprise the inclusive areas in which the KPI’s are set. The Influencing

Factors and KPI’s section of the literature review, covered international bodies that

enable the implementation, monitoring and controlling of different managing systems

ranging from carbon calculating to Social Responsible Investment, as well as the

influencing external organisations such the WBCSD and WGBC.

Concentrating more on internal systems, the responses indicate a similarity between

all organisations. Though some of the grander companies such as Skanska, Mott

MacDonald, and WSP already incorporate some of the management systems indicated

in Chapter 3, the responses strongly indicate a dominant focus on carbon initiatives,

waste management, environmental awareness, community interaction and employee

awareness and education. The author believes unacquainted corporations should

embrace the previously outlined programmes such as CEMARS, GRI, and ISO systems in

order to improve results, educate stakeholders and increase productivity.

Question 9 - Have there been any barriers that have prevented the performance of

the company?


According to BITC (2010), for CSR to actively and beneficially implement CSR in the

long term goals of the establishment, essential all stakeholders need to understand the

procedures and processes, and enthusiastically manage the continual fluctuating

process to proactively achieve the long term objectives of the organisation. Reflecting


Page | 56

on this opinion and combining the responses it is definite that CSR needs to be strongly

prompted by management and the moral behaviours and attitudes of the employees.

The uncontrollable factors such as the economic downturn has dented some of the

organisations progression, but generalising the responses, the barriers of CSR

implementation are minimal, with the exception of some of the geographical locations

of the larger companies, and reluctant and apathetic staff. The responses of Kier, BAM

and Skanska and the academic opinion of Hopkins (2007) illustrate a comfortable

approach to CSR influenced by perceptive nature of the employees and the

undemanding and non-judgemental approach to its implementation.

Question 10 - What are the next steps for your Organisation in the construction

excellence program?


The market perception of CSR and globalising ethical business practices has

predominantly affected the attitudes of the above organisations. Undoubtedly all the

responses conceal ambitious prospects for the future development of CSR, focusing

primarily on carbon reduction through schemes such as the UK Carbon Reduction

Commitment (CRC), which is an obligatory trading scheme covering large non-energy

intensive businesses and public sector organisations. Further analysing this scheme, it

is designed to provide the organisations involved with a financial incentive to reduce

their emissions in the most efficient way and fundamentally raise the corporate profile

of energy and carbon management (Great Britain; Committee on Climate Change,

2008).

A consistency between all interviewees is the ambition to effectively improve on

current results with some organisation warranting zero carbon desires, enhanced site

communication using internally developed systems, with Skanska and PJ Hegarty

aiming to progress on current results and be recognised as market leaders in the

respect to green initiatives. Analysing the SME P. Elliot in particular, it is worthy to

perceive their motivations to publish environmental and CSR reports in the coming

years, supplementary asserting their CSR objectives in relation to the recompenses of

the GRI.


Page | 57

4.5 Subjective Opinions and Interpretations

Question 1 - What is your view on CSR in the industry today and do you think it is

important for company performance?


The construction industry generates a huge impact to the economy, to the social fabric

of associated countries and to the formation of innovative environments (Halliday,

2002). The interview responses significantly express for themselves, the absolute

importance of CSR incorporation, not only demonstrating its benefits but also in a

responsible business intellect. Relating the responses with the inclusive aim of the

research, one would feel a definite attraction to its importance of implementation.

The organisations all exhibit an understanding of CSR as being a predominantly

important aspect in the construction industry. Some of the responses demonstrate

more dominant relations to its prominence. BLL definitively state CSR should be part of

a company’s ‘licence to operate’ with Kier illustrating that businesses in the industry

cannot survive without it, and the Royal BAM Group defining that substandard

sustainable performance could result in loosing you licence to operate. These are

extreme but effective fortitudes of its relevance to the industry.

Question 2 – Do you think CSR has Economic Remunerations?


Looking at the bottom line of all business activities is the inclusive aspect of economic

viability. The general purpose of this question was not just to reference economic in a

financial facet, but rather in an undefined expression, which was gathered by some of

the respondents. Agreeing with the opinion of Friedman (1970) in the secondary

research stage, P. Elliott and Skanska also strongly implement that it has economic

benefits in the financial terms. However it is over time that it will be perceived and not

in immediate succession as some believe. Interestingly looking at the breakdown of

the elements by Carillion’s Nick Drake it gives the reader a clear understanding of the

where the savings can be made in relation CSR policies through efficient management

and execution of the tasks.


Page | 58

All respondents believe CSR development creates higher standards of living while

preserving the profitability of the organisation for people within and external to the

organisation. This is due to the fact that customarily CSR concerns centre on how the

construction business might affect people and environment, while, improving effective

management and reputation which evidently collates with the views of (Hopkins,

2007) in the literature review.

Admiringly none of the respondents show condemnation against the economic

benefits, effectively all illustrating positively to some form of benefits from financial to

stakeholder improvements to enhanced reputation. Concluding in the words of Bovis

Lend Lease’s Andrew Kinsey ‘what goes around comes around’.

Question 3 - Do you feel the Governments should imply legislation to ensure

companies are more responsible?


With the governments setting targets such as the UK’s 2020 strategy and the

government white papers in conjunction with the Kyoto protocol described in the

literature review, it is inevitable that in some way or form the governments will

introduce legislation such as the recently discussed carbon tax impediment, to ensure

companies are being more responsible. All the respondents recognise these concerns

but the overall unanimity is that government driven policies and legislation will provide

only a benchmark for CSR recommendations, and the socially responsible companies

should exceed these standards through conformity of their own initiatives.

As with the previous response’s regarding its implementation methods, a number of

the interviewees believe government policies will only force people to instigate the

programs resulting in retaliation and non-conformance. The policies should be driven

by employee motivation and ambitions as predominantly recommended in the

preceding responses.

Conversely in full agreement with the responses of Laing O’Rourke’s Mairead Dennehy

and P. Elliott’s Cyril Keegan, looking at the concept of implementing a similar scheme

to the CCS instigated by the CIF (Construction Industry Federation), not necessarily

introduced by the government but certainly backed by the state as it is in the UK, this


Page | 59

would certainly help introduce the Irish industry to CSR on an informative and practical

scale.

Finally resolving the issue with a paragraph from the Harvard Business Review written

by professors Michael E. Porter and Mark R. Kramer (2011) stating,

“Governments, for their part, have often regulated in a way that makes shared value

more difficult to achieve. Implicitly, each side has assumed that the other is an obstacle

to pursuing its goals and acted accordingly”

Question 4 - How would you rank your company’s performance in social and

environmental aspects of the industry?


Appraising the copious organisations that have instigated CSR practices from an early

stage, the author believes their achievements are administrated through local and

international accolades, dictated by recognised bodies such as inclusion in

sustainability indexes (FTSE4GOOD, and Ethibel), CCS gold, silver and bronze awards,

BITC honours, and the illustrious ‘Sunday Times Best Green Company’ list.

There are numerous methods of valuing company performance, from employee

motivation and productivity to achievement of reputable accolades from renowned

organisations. It is important to note that although performance indicators change

depending on the structure and size of the business all accomplishments should be

documented as a respectable and honoured attribute to the consequences of CSR

applications.

Question 5 - In your opinion what is the main influences of your organisations CSR

activities through the following - Philanthropic responsibility, Economic

responsibility, Ethical responsibility and Legal responsibility


The literature section expressly depicts the stated classifications of responsibilities and

comprehensively dictates the various natures of each specified characteristic. The

defiant relative theory described in chapter 3 was the ethical philosophy, as illustrated


Page | 60

by Mulleret (2009). It is the responsibility to exceed legal and financial requirements,

primarily influenced by the moral obligation of the organisation. Contrasting to initial

thoughts of the author, all the responses quantify that it is in fact a combining theory

representing all of the concepts in some way. However, influenced by the nature of the

answers it can be speculated that the ethical theory is a primary influence of CSR

policies, followed by general legal requirements, philanthropic activities and economic

through the obligations of the shareholders.

The structural criteria for successful implementation in terms of the above sections, is

to surpass the obligations set out by the statutory bodies (shareholders, stakeholders,

governments), thus consequently transcending past the preceding philosophies in a

socially responsible approach.

Question 6 – What do you feel the main aspects of CSR present?


CSR is a broad concept involving countless aspects which inevitably improve the social

appearance and reputation of an organisation (Mullerat & Brennan, 2005). The

purpose of this question was to understand from a construction professional attitude

the central characteristics of CSR in the industry. Exposing the principle opinions

suggested community interaction and engagement, environmental consciousness and

protection, and employee relations through education and integration in the

community. Dawn Watson of VINCI Construction keenly expressed its relevance to the

previously noted ‘Triple Bottom Line’ by John Elkington (1998), uniting an equal

relationship between the social aspects, the environmental aspects and the economic

aspects, which when subdivided relate to the prominent tasks revealed by the other

interviewees.

Principally delineated by Cyril Keegan of P. Elliot and Kier’s Ian Brooks, the

employment of the local community plays a major part in their CSR activities. This

particular has not been defined in the secondary research stage and perceptibly

outlines an important aspect to CSR policies in the construction industry.


Page | 61

Question 7 - Do you think CSR will become more prominent over the coming years

within all companies in the industry?


Conclusively contemplating on the various questions examined, combining the

revelation of this query and the preceding question number 5 in the initial section

relating to the obtained benefits, the author regards these as the paramount to the

final concluding chapter. This is reflected due to the influencing parameters of the

responses and their importance to the hypothesis and research aim. Unreservedly the

opinions of all the established organisations reveal the irrefutable prominence of CSR

in the Industry. Supportive in the revelations of the academic literature in the

secondary research stage on the magnitude of CSR (Kotler & Lee, 2005; Morris, 2004;

Allouche, 2006 & Mullerat, 2009) the imperative responses unite the learned

sentiments in a form that represents an undeniable substance of reality in the

construction industry.

Peter Scanlon of Skanska summarises the extent of this intricate question in a simple

and formidable statement,

“If a company does not adapt they will not survive in the industry”

This statement copiously corresponds with the other interviewees in different forms

but the general consensus is that all companies will have to adopt some aspect of CSR

over the next few years if they want to compete in the growing markets where

increasing competition is undeniable resulting new market strategies and innovative

policies.

4.6 Qualitative Research Summary

The opening secondary research stage analysed the potentials of CSR not only

in the construction industry but also on a historical development progression in the

business environment, focusing on KPI’s and remunerations through theoretical

literature and case studies. The literature chapter did not provide a comprehensive

perception of CSR in the construction industry due to the comparatively modernistic

concept, which has not been broadly covered by academics to date. Thus it was


Page | 62

concluded by the author to embrace this predicament specifically through the primary

research stages. This qualitative investigation of the primary research chapter provided

the author with an unambiguous foundation to successfully achieve an appropriate

and precise conclusion to the objectives and hypothesis, formally set out in the

introductory chapter. The questions were developed in a format to unite the findings

of the secondary research stage fundamentally adding to the overall conclusion of the

dissertation. Using the structured interview format it allowed the author to collate and

organise the responses in a reasonable unpretentious method, comparing any diverse

reactions in a reflective summary.

Upon reflecting and evaluating on the inclusive responses of the various organisations,

evidently it is clear there is a vibrant understanding of the concepts of Corporate Social

Responsibilities between all those interviewed. Predominantly presenting a categorical

similarity amongst the responses in all questions asked, however some respondents

illustrated more precise answers than others, but all demonstrated an impressive

understanding of CSR and all its internal aspects and features. This qualitative

approach will be further projected through the results of the quantitative data which is

statistical evaluated in the second part of the primary research stage. Summarising the

relative objective of the qualitative research undertaking can be accomplished through

the imperative appraisal from Nick Drake of Carillion, asserting that:

“Companies cannot afford to oversee CSR in business society, it is far too important in

this competitive industry”

In conclusion, this principal portion of primary research has provided exceptional

developments in the author’s perceptions towards concluding the dissertation.

Appraising the responses of the interviews in collation with the secondary research

stage unites the direct attraction between the two research methodologies. From the

information obtained thus far in the exploration of studies patently clarifies the

significance of the research project commenced. The subsequent chapter details the

statistical analysis of the quantitative research undertaking. In the conclusion of the

following chapter the author will unite the dispersed research approaches in a

definitively annalistic manner.

Chapter 5 Findings and Discussions Part Two - Quantitative Research

Page | 63

Chapter 5

Findings and Discussions

Part Two - Quantitative Research


Page | 64


As initially described in the research methodology chapter, the author felt it

was paramount to conduct the two stated methods of research to fully comprehend

the complexities of the research proposed. The online survey was proposed as a

generic research approach, focusing on all business professionals and academics who

demonstrate an acute understanding of CSR in the business environment. The

questionnaires are a vital aspect of the investigation stage of this dissertation and will

stipulate a substantial influence upon which the findings and recommendations will be

grounded. To counteract the palpable issue surrounding the response rate of the

questionnaires, the author took the initiative to join social networking sites relating to

business development and professional interaction, some of which included:

LinkedIn

Yahoo Forum CSR ‘Blokes’ and ‘Chicks’

CSR International

Sustainability Online and

GreenCollarWoman

These provided the author with a comprehensive address list of business professionals

in the area of sustainability and business improvement. To ensure a healthy response

rate, the questionnaires were issued in a personal manner and addressing the

respondent through their first and or second name provided an individual experience

and did not breach any privacy injunctions, as some publicly directed emails would.

This concluding chapter of the primary research undertaking incorporates the

quantitative results which have been evaluated through statistical analysis

systematised into charts and graphs. In the final summary of this chapter the author

accumulates and appraises the two methods of research undertaken by comparing any

dissimilarities or correspondences where appropriate to help encourage the

informative decisions of the closing chapter.


Page | 65

5.2 Online Questionnaire Structure

The online questionnaires were designed to deliver a user friendly approach

which exhibits a prompt completion time, through structured and stimulated

selections for the majority of the questions. The questions were premeditated to

outline the prominence of CSR activities, attitudes of professionals and where relevant

to the respondent, organisational implementations. The online survey was conducted

through a system called ‘SurveyMonkey’ (www.surveymonkey.com) which allowed the

author to develop the questionnaire using his own format and layout prompted by

examples and tutorials. The survey was developed in three sections and included 28

relevant questions in the area of CSR. These sections encompassed:

1. Background Information

2. Personal Opinion and Views

3. CSR in your Company

The survey received a healthy response count of just under 100 replies, allowing

comprehensive results to be developed by the author. Upon extensive reviewing the

author felt that not all of the questions primarily related to the aim of this research,

thus are not included in the main document. A full illustration of the questionnaire is

included in the Appendix C, which includes all questions originally delineated.

5.3 Respondent Profile and Background

Question 1 – Respondent Information

The ample list of respondents did not signify any trend in business qualifications,

supplying the author with an inclusive catalogue of experienced attitudes,

interpretations, and evaluations on the generalisation of the topics solicited. The

respondent’s backgrounds varied from education to construction to consultancy and

even local governments participated in research. With professional credentials

including CEO’s, Directors, Community Affairs Executives, Directors of Corporate

Responsibility, Civil Engineers, and Corporate Governance Managers. For privacy

compliance no designations will be cited from the participants of this research.

http://www.surveymonkey.com/


Page | 66

5.4 Personal Opinions and Views

Question 1 – Personal understanding of CSR

This question contributed to extensive reviewing and evaluation in order to select the

most relevant response for this dissertation. It is not an extensively in-depth

explanation but involves what the author and the literature such as Hopkins (2007)

have illuminated over the course of this research:

“Combining sustainable communities and workforce, natural resource protection and

environmental enhancement, climate change and energy, sustainable consumption and

production to achieve corporate governance”

Or very simple put by another response:

“Going beyond the statutory requirement and cover all areas of the triple bottom line”

Question 2 – Defining CSR

Figure 10 - Defining CSR

In agreement with the authors perception and the discernments of the academics in

the secondary research stage (The European Commission, 2005; WBCD, 2010; &

Lantos, 2001) 92% of the respondents believe that CSR is about promoting corporate

fairness, transparency and accountability through a set of internal rules or processes

by which businesses are operated, regulated and controlled. The reactions to this

question evidently focus on the core values of CSR, illustrating CSR as the way in which

a company manages the triple bottom line, and the way it engages with its

5%

3%

92%

How would you describe CSR under the following Headings

CSR is a set of philanthropicactivities a company carries outvoluntarily on a sporadic basis inthe local community

CSR is the commitment of acompany to strictly abide tonational labour and environmentallaws

CSR is about promotingcorporate fairness, transparencyand accountability through a setof internal rules or processes bywhich businesses are operated,regulated and controlled


Page | 67

stakeholders rather than a set of policies or obligatory laws, which has previously been

argued by some interviewees as forceful method of implementation (Skanska,

Carillion, & Kier).

Question 3 – Future prominence of CSR in the business environment

Figure 11- Future prominence of CSR in the business environment

Appraising these responses indicates the relevance of significance that CSR has and will

have on businesses in the future, with 80% strongly believing it will become a global

business strategy, additionally exhibiting its certain existence in future society and

business.

Question 4 – Government Involvement

Figure 12 - Government Involvement

Relating these responses to that of the industry based interviews, there is a definite

differentiation between the two types of research undertaking. Contradicting to the

qualitative research where generally the respondents believed the governments

should not introduce legislation, 66% of the quantitative responses trust the

80%

17%

2% 0% 1%

Do you think CSR will become more prominant over the coming years in all business environments

Definitely Maybe Doubtful No Unsure

66%

17%

17%

Do you feel Governments should imply legislation to ensure compnaies are more repsonsible

Yes No Not sure


Page | 68

government should imply legislation. The author contemplates this to be because of

the various business professionals who completed the survey and in-sight of their

industry it may facilitate CSR development and awareness.

Question 5 – Importance of Sustainability

Figure 13 - Importance of Sustainability

Information taken for the chart demonstrates the substantial importance of

sustainability in all the respondent business organisational environments, indicating

84% relevance. Sustainability is of course a subsidiary of the CSR practices and

furthermore was comprehensively examined by Carillion’s Nick Drake during the

interview process, who partially perceived sustainability as the main definition and

aspect of CSR practices.

Question 6 – Strategic Relevance

Figure 14 - Strategic Relevance

The concluding question of this section combines the previously inquired responses in

a definite illustration of CSR substance as a core business model in an organisation. A

commanding and influential 99% of respondents believe CSR should be incorporated

84%

13% 1% 2%

How Important do you think Sustainability Issues are currently to your business environment

More important Less important Not relevant No opinion

99%

0% 1%

Do you feel CSR is an important policy to incorporate as a business strategy

Yes No Not sure


Page | 69

as a business strategy. This further demonstrates its prevailing relevance and global

recognition as a dominant underlying concept that will conceivably be addressed as a

prerequisite in the accommodating future and in many cases present environments.

5.5 CSR in your Organisation

Question 1 – How was CSR implemented into your Organisation?

This question was open ended, meaning the author did not provide relevant options to

the respondents. This process was preferred as to provide profusion in the answers,

further analysing the various business implementation methods. Evaluating the

responses the author discovered the principle method of implementation was a

combination of personal/employee pride and motivation and company ethos educated

through the company by top management. These two methods positively collate with

the interview responses and furthermore with the literates in the initial research

chapter.

Question 2 – Implementation Period

Figure 15 - Implementation Period

Contemplating on the limitations of CSR implementation in the literature review

section, Hopkins (2007), Brady, (2005) and BITC (2010) all exert the conceptions that

CSR is not a simple concept to instigate, it takes time and requires a ‘radical rethink’ of

the organisations philosophies and strategies to be successful. As defined by Jim O’


Page | 70

Brien, an independent CSR consultant during my initial interview stage and in

agreement with the 48% of respondents:

“CSR would take at least a year, and for a bigger company like John Sisk and Son it

could take over a decade in being properly developed. There is a huge amount of work

in developing these strategies and also the reporting would take years to properly

achieve sustainable GRI standards”

Question 3 – Complications of Implementation

Figure 16 - Complications of Implementation

This question was left to a multiple choice selection to allow for a full understanding of

the subsequent problems associated with implementation and the external

environment difficulties. Evaluating the comparable literature in respect to Friedman

(1970) who cited the financial benefits being ‘separated in time’, 31.4% believe CSR

benefits are not immediate, but fundamentally the main complication of

implementation is the lack of knowledge on the subject with 44.2% considering it as

the main complication. BITC (2010) advocate that focus should be on continuous

education of staff, which will facilitate the long term effects and successful

implementation of CSR.


Page | 71

Question 4 – Influential factors of CSR

Figure 17 - Influences of Acquisition

Comparing the respondents of the quantitative and qualitative research, the prevailing

trend of the responses indicates the ethical motivation of top management as the

main motivating justifications at 36.8%. The interviews sustained that executive boards

and the enthusiasm of employees proved the paramount impelling stimulations of CSR

growth in the organisation in question (Carillion, BAM, and PJ Hegarty). Some of other

responses included ‘all of the above’, with two of the respondents indicating CSR as

their core business driver.

Question 5 – Reporting

Figure 18 - CSR Reporting

What are the main influences and reasons behind your company’s involvement in CSR?


Page | 72

This question proved in unanimous favour that 50.6% of the respondents do not

incorporate reporting guidelines or initiatives. But the author felt there were some

interesting reports which were not covered in the literature review section.

Interestingly they include a CDP report (Carbon Disclosure Project) which indicates

carbon output of an organisation, and interestingly the UNPRI, as described by Sanders

(2008) is the United Nations backed guidelines on the Principles for Responsible

Investment, which is also similar to the SRI and GRI as dictated in the secondary

research stage. Fundamentally, the main report concluded to be the GRI which has

been conceived by nine of the respondent’s organisations.

Question 6 – Environmental Management Systems (EMS)

Figure 19 - Environmental Management Systems

As suspected through the variety of respondents to this survey, the author conceived

the perception that many of the organisations due to their irrelevant working

environments would not incorporate an EMS. However 26.2% of the responses

indicated the use ISO 14000, an EMS which has been portrayed in the literature

review. As with the preceding question this allowed for other specific responses not

listed, which included ISO 65 which a general accreditation scheme for product

certification (ISO, 2011) and Organisation for Responsible Businesses (ORB) which has

been designing polices for SME’s to achieve the set requirements for responsible

business practice (ORDUK, 2011).


Page | 73

Question 7 – Economic Benefits of CSR

Figure 20 - Economic Benefits

Collectively between all the research implemented and appraised by the author, the

fundamental economic ‘bottom line’ of business has been mutually conceived to be an

established consequence of CSR practices. An inspiring 87.8% of the survey

respondents and 100% of the interviews highlighted that CSR has economic benefits

both financially and through productivity and employee satisfaction. This is further

demonstrated in research carried out by KPMG (2005) and the literature of Hopkins,

2007 and Mullerat (2009), who all illustrate the ‘bottom line’ benefits.

Question 8 – Company Benefits

Figure 21 - Company Benefits

This multiple choice question has substantiated the internal and external benefits in

which a company can gain once CSR has been implemented. These benefits not only


Page | 74

demonstrate the paramount reasons for employing CSR practices but also a

professional view on the understanding of CSR in a global context. The literature

extensively covered a trivial list of the benefits (Mullerat, 2009, Talbot, 2010; &

Business and Leadership, 2010), which are predominantly common to the primary

research findings, further ensuring their relevance in business society and the

beneficial conclusions of CSR practices.

Question 9 – Company Performance

Figure 22 - Company Performance

This question provided a personal answer on the respondent’s organisation. It is a

difficult question to evaluate and analyse, based on the variability of the organisations

that completed the survey. The term excellent demonstrates companies such as BAM,

Skanska, Carillion, Vinci, Mott Mac Donald, Kier, WSP and Bovis Lend Lease, who all

exert their excellence through GRI and CSR reporting and EMS, and also the

community related work they have completed.

5.6 Quantitative Research Summary

The preceding chapter outlined the CSR accountabilities of construction based

professionals, demonstrating company theory, knowledge, opinions and learned

experiences. The principal purpose of the survey responses was to gather a global

business perspective, but evidently they reinforced the dominant primary research

undertaking, fully comprehending the importance and inevitable development of CSR


Page | 75

in the current fragmented construction industry. The survey definitively presented

comprehensive results which are palpably comparable to the dominant research

already undertaken.

The quantitative and qualitative stages of research were essentially developed on the

back of the secondary research and the CSR professional interviews, which enabled the

author to equate, evaluate and assess any patently contrasting views or results

throughout the primary research stage. The various phases and varieties of research

allows any contrasting views to be assessed and appraised based on the prevailing

opinions of the literature, interviews, and survey responses, resulting in attaining the

veracious and respectable supposition and conclusions. This meant the responses were

expansively substantiated or contradicted in the summarisation of each question. It is

the developed opinion of the author that this ancillary research stage provided uniting

thoughts with the aforementioned research and will indisputably facilitate the final

subsequent chapters of concluding the predetermined aims and objectives of the

dissertation.

5.7 Primary Research Conclusion

Appraising and analytically evaluating the collation of explorations into the

development and subsidiaries of CSR implementation through the various

investigation methodologies undertaken by the author has positively proved the

expressive thoughts of the research in respect to the hypothesis and objectives stated.

Effectively all the preconceptions of the research have been commendably delineated

through selected methods of analysis and examination of both academic and practical

exploration. The author aspires to influence and encourage the growth and realisations

of CSR in the construction industry justifying this by portraying revolutionary examples

of accomplished companies such as the corporations enumerated previously in the

interviews and the literature presented. The results thus far predominantly

exemplified the predetermined considerations and have unquestionably provided a

stern basis for the author to formulate the recommendations as to the research in

practice in the subsequent concluding chapters. The author will also make

considerations to the further research that can be conducted in this area to further

demonstrate the principle objectives of the research undertaken.

Chapter 6 Conclusions and Recommendations

Page | 76

Chapter 6

Conclusions and Recommendations

“be the change you want to see in the world”

- M.K Gandhi (1869 – 1948)


Page | 77


Amalgamating the ample information obtained in the multiplicity of research

completed over the previous chapters, the author can present the subsequent

informative conclusions regarding the objectives stated in the introductory chapter

along with recommendations to improve CSR activities in the construction industry. To

fully comprehend the instructive objectives presented, the author consumes the

attitude to isolate each of the five objectives into distinctive conclusions. The principle

intention of this method of evaluation is to independently assess each of the

objectives, ensuring they are adequately appraised through the utilisation of the

previously obtained research methodologies.

6.2 Research Aim and Objectives

6.2.1 Research Aim

The subsequent aim will be tested through the conclusion of the predetermined

objectives.

“Illuminating the prominence of incorporating CSR as an imminent organisational

feature to succeed in the future markets of the construction industry”.

6.2.2 Research Objectives

1) To literate the prominence and connotation of Corporate Social Responsibilities in

the Construction Industry through its historic development and characteristics.

The initial contention of the research objectives sets the elementary foundation for

which the author can acknowledge and develop the research undertaking in a manner

that articulates the successive research fluently. Observing and envisaging the

historical development of CSR is a difficult area to comprehend, especially in respect to

the construction industry, where many organisations traditionally exerted CSR aspects

through their ethically obligated internal objectives which are not associated with any

of the modern programmes or external organisations. This conception has been

intentionally established throughout the research stages, with personal observations

during the primary research stages. Through subsequent literature the author

compiled a list of classifications of CSR that through numerous defined motives have


Page | 78

industrialised over the years. The practical research concluded a dominant combined

illustration of the various categorisations achieving an appreciative understanding of

the internal obligations of CSR. The multiplicity of research undertaken has established

a refined collection of historical development patterns from a collective business

perspective as well as construction related maturities. Uniting both perceptions the

author has fostered a number of appraised and evaluated CSR progression precedents

in the business environment with emphasis on the construction industry. These

expansions encompass the following:

1. Globalisation

2. Influential Sustainable Reports, Movements and Frameworks

3. Historic Reputational Characteristics

4. Internal Ethical Compulsions

This reviewed compilation has been accumulated to establish the focal influential

factors regarding the development and incorporation dynamics behind CSR practices in

the construction industry. It is the thought of the author that this initial objective sets a

precedent for the subsequent objectives in a manner that represents a basis for its

theoretical and applied understanding.

2) To appraise the research developments concerning the motives, drivers and market

influences for company change towards social, sustainable and environmental

strategies.

Throughout the investigation of this dissertation numerous authors described their

definitive and valued opinions on the various aspects of CSR in its integrity as a

business concept. These academic sentiments in most instances were reinforced

through the quantitative and qualitative methodologies of learned professionals. As

one of the main paradigms, the literates considered the compulsions of the

organisations as the foremost stimulating strategy. Underlining the ethical motives is

the influential contributories of external organisations, focusing on the social,

environmental and sustainable perspectives, providing guidelines and assessment

tools facilitating businesses to implement accomplished CSR systems. These schemes

have provided the industry which a benchmarking apparatus to assess strategies and

targets through comprehensive external analysing and evaluations. Not only will these


Page | 79

external organisations provide inclusive results, but will influence the selective

opinions and performance observations of stakeholders and essentially regarding the

bottom line, shareholders.

Evaluating the various research contributions throughout the dissertation the author

compiled a list of the diverse factors that have provided a baseline for efficacious

implementation in the construction industry.

1. Economic Marketing Permeations (CRM, SRI, GRI, & EMS’s,)

2. Instrumental Administrations (ISO, CEMARS, BITC)

3. Stakeholder Revelations

4. Client Pre-Requisites

5. Achieving the ‘triple bottom line’

This list encompasses the external instigations correspondingly to the internal drivers

such as employee enthusiasm, community relations, and client requirements. It is a

comprehensive list derived from the literature and primary research indicating the

paramount activities in which an organisation is influenced and can subsequently

through successful and ambitious instigations illuminate the organisations aspirations

in a national and international context.

3) To establish the justifications and prominence behind changes and adaptations to

innovative market opportunities.

CSR should not be thought of as doing the right thing because it’s right, but rather a

moral commitment of the organisation, not focusing on the economic benefits it

creates. Through the varied research the author has evaluated many aspects of CSR

from environmental to social to economic; all of which portray their central

compulsions for the organisation. Appraising the internal and external benefits and

competitive recompenses it generates, the author has developed a comprehensive list

of the focal remunerations from the preceding investigations undertaken. The list

which has been similarly fostered from the thoughts of Mullerat (2009), an author that

has been numerously depicted during this dissertation based on his CSR attributes

through practical and theoretical knowledge, embraces the following:

1. Client Loyalty and Dependability


Page | 80

2. Acquisition of Legitimacy and New Market Penetration

3. Competitive Advantage

4. Less Litigation

5. Employee Commitment, Retention and Productivity

6. Increased Quality of Services

7. Amplified Health & Safety Awareness and Decreased Liability

8. Reduced Carbon and Environmental Impacts

9. Better Access to Credit

10. Bolstering Public Image, Reputation and Brand Value

This list depicts a short comprehension of what is seen as Company, Community and

Environmental benefits transcending from the instigation of CSR practices in an

organisation.

Evidently the prosperity of CSR transcends the tangible resources in which it

consumes. The preeminent justification in its implementation has been demonstrated

by professionals and academics alike during the research stage. Portraying the concept

of John Elkington’s TBL in respect to CSR throughout this dissertation significantly

justifies its dominant qualifications as a successful business policy to instigate in the

construction industry. CSR strategies stipulate a competent equilibrium of the internal

characteristics of the TBL philosophy which incorporates Environmental, Sustainable

and Economic integers. This is achieved through an obligatory comportment of

commitment through responsible and virtuous behaviour of the organisation.

The projections of the benefits that justify its implementation have been vindicated

meticulously throughout this dissertation from the various accolades of academia and

professionals in a comparable manner, further demonstrating its importance to society

and the internals of the organisation. A concluding factor which indefinitely

substantiates its importance in the construction industry is the dynamic element of

client prerequisites, which was demonstrated in the literature review, especially for

companies involved in public works for government authorities and ethically

orientated organisations. These organisations have relentless buying power exceeding

billions and through the Green Public Procurement initiative illustrated in the literature


Page | 81

review, will only select companies that express their commitment to CSR aspects and

policies in everyday business exertions.

4) To investigate the Key Performance Indicators and influencing factors shaping the

imminent markets.

Organisations must not only consider the numerous policies they incorporate, but also

the methods of measuring and controlling the strategies through benchmarking and

utilisation of internally and externally controlled Key Performance Indicators. Actions

must be taken to ensure their KPI’s on CSR activities are met in terms of measurable

CSR initiatives across the business operations. CSR stratagems should be set and

managed in a manner that suits the company and range from short, medium and long

term strategies depending on the size of the organisation. The research indicated that

strategies are managed on a daily, monthly, quarterly and yearly basis also with certain

organisation the strategies are consistently monitored and managed based on results

and productivity.

Observing the revelations of Skanska for explanatory purposes, they have focused

strategies and benchmarking on four key areas where they feel they can improve in

relation to CSR aspects. These include:

Competences: Training and Awareness; 100% of Employees trained in Environmental

Awareness by the end of 2010.

Energy and Climate: Reduction of Energy use and CO2 Emissions; 50% of cars in class 1

and 2 of green class policy, all site offices with energy efficiency programs, and

adaption to new products using Life Cycle Costing Analysis.

Materials: 100% of offices with proactive waste reduction and management plans and

10% of project waste gong to landfill by the end of 2010.

Flora, Fauna, and Ecosystems: 100% of prioritized materials affecting Flora, Fauna, and

Ecosystems that can show a clear chain of custody.

External organisations have predominantly helped the growth and development of

CSR, recent advances of outside monitoring contingents such as BITC, WGBC,

CEEQUAL, ISO and other sustainability groups. The construction companies

interviewed in the primary research stage all demonstrated a reliance on a number of


Page | 82

these external organisations, believing they will portray a responsible reputation while

also facilitating with the monitoring and controlling of the relevant CSR activity. The

importance of these organisations is evident in their global recognition and

reputations in society. They provide unsurpassed help and guidance for businesses,

which improves the reputation of the recently tarnished industry in the community,

environment and within the internals of company. The objectives for mainstreaming

and efficaciously implementing a CSR strategy are to combine and interplay between

the organisations peculiar policies and the external administrations of the outside

institutes. This would provide an internal knowledge utilising the known objectives and

abilities of the company while also receiving guidance on national and international

compliances and standards.

5) To identify the challenges strongly associated with company adjustments and


Assessing the complexity and challenges associated with CSR, the embracing

businesses must not only define and develop an incorporation strategy to educate

staff, but also a strategy that delineates an optimum balance among social,

environmental and economic factors for the organisation. Further delineated by Urip

(2010 pp.8):

“Corporate governance and CSR policies should be embedded into the company’s

culture and become an integral part of the short - and long term strategy of the

company”.

Jim O’ Brien a CSR consultant during initial interviews considered the main problem is

the lack of appreciation of what it is really about, therefore not seeing the need for it

nor the benefits that it can bring. Further illustrating that education is a very important

aspect when firstly introducing CSR. Agreeing with above point Jenny Todd of BITC

during an interview organised with the author stated that:

“Implementing anything new is always a challenge and is met with obstacles. Getting

the support from top level management and senior staff is the key to success but can

be tricky. Getting the measurement aspect right can be challenging, one must be able


Page | 83

to prove the worth of the strategies you are implementing and make sure that they can

continually be improved upon”

These professional opinions fundamentally outline the limitations and challenges

associated with this transition to achieve corporate governance.

A company can only expect to practice sustainable CSR successfully only when it is able

to exert the high degree of control required to ensure good corporate governance

within its core business operations. Companies need to be proactive in their solutions

to create a positive reputation in social, economic and environmental aspects

(Hopkins, 2007). A pertinent business must develop uniting objectives between the

societal understanding and on-going interchange and engagement amongst the

company and its stakeholders, preserving and maintaining relevant competences at

the various levels in the company. Figure 23 below is an explanatory industrial example

of what Skanska have adopted as their main focus in their Sustainability Agenda 2010.

Figure 23 - Skanska Sustainability Agenda, (Scanlon, 2010)

The initial problem when involving and educating the organisation is the belief and

acceptance of CSR in the company’s structure. Many employees do not understand the

exertions CSR has and for this reason choose not to except or believe in it as a

beneficial strategy. The organisation must listen to these employees and educate them

in a manner that will ensure compliance and competency among all staff members.

In conclusion perceiving the author felt the statement by Elkington (1998 pp. 24)

demonstrates the fundamentals of successful implementation:


Page | 84

“A commitment of sustainability will only reap maximum benefits when it is fully

incorporated in a company’s core business models”.

6.2.3 Objective Summary

The objectives fundamentally outline five key areas of research which have been

established over the duration of this dissertation through various methodologies of

research incorporating:

1. Historic Development

2. Motives and Drivers

3. Organisational Benefits

4. Key Performance Indicators

5. Integration Challenges

CSR has been described as a basic philosophy that through an understanding of its

principles should be a fundamental and integral part of the operation of every business

enterprise (Urip, 2010). CSR results in substantial growth opportunities for the

companies that fully embrace its principles and instigate compliance as a trusted

comprehensive model of business ethics.

A competent company will develop short (day to day), medium (6 - 12 months) and

Long (2 - 5 years) strategies which should ultimately merge these activities and the

ones expressed previously, to cultivate their ambitions and become more

conscientious and exceed fundamental legal requirements set by governments and

other authorities. An articulate CSR strategy is based on integrity, sound values, and a

long-term approach which stipulates clear business benefits to the company and

portrays positive contributions to the well-being of society (Timberlake, 2006).

6.3 Hypotheses Appraisal

The dissertation has provided insight into the concept of CSR in the business

environment and more importantly in the construction industry. The hypothesis in

chapter one stated:

“The preference and prosperity of evolving Corporate Social Responsibilities as a

dynamic policy in the development of construction companies central objectives and


Page | 85

strategies towards enhancing corporate reputation, increasing efficiency and enriching

profitability”.

This tentative statement was profoundly tested in this research, and it is the concluded

belief of the author that through the various literature and practical research

presented in the preceding chapters of this dissertation that the hypothesis has been

tested and proven to be accurate.

6.4 Recommendations for the Construction Industry

CSR in the construction industry is a modern theory of responsible business

practices, and in most cases only adapted by the larger multi-national organisations.

Resulting from the informative research presented in this dissertation, the author has

acknowledged the importance to conceive the following recommendations based on

the findings of the preceding research and conclusions attained. It is the thought of the

author that these findings will help progressively improve CSR’s awareness in the

industry in a manner that relates to all organisational sizes. Corroborated from this the

following recommendations are being put forward.

6.4.1 Awareness in the Global Environment

Appraising CSR on an international basis perceives the barrier that it does not excel

outside the corporate world. CSR is delivering fertile ground for think-tanks,

multinationals and consultancies. However government authorities are becoming

strikingly aware of the corporate responsibilities and are taking an ever profounder

interest. For example in 2006 the British Government introduced a Companies Act

which required all public companies to report on social and environmental matters. On

a global scale measures are being taken to promote corporate responsibility around

the world through a New York-based group called the Global Compact which has been

developed by the United Nations (Franklin, 2008). More needs to be done in this area

through local authorities, colleges and international bodies. It’s an emergent concern

and needs to be addressed, this cannot be done unless it is acknowledged and

accepted.


Page | 86

6.4.2 Staff Inclusion

The general theme of the construction interviews was industry professionals related to

some aspect of CSR in the organisation. This was not the ambition of the author but

rather an uncontrolled certainty. The author conducted interviews with other persons

not necessarily related to CSR i.e. Senior Engineer, Contracts Manager, but

inopportunely the questions asked were not applicable to their knowledge in that area

of the organisation and thus were not apposite to include in the research. One of the

concluding thoughts of the research was the fundamentals to include and educate all

staff on the reasons and importance of the strategies being CSR implemented. For CSR

to be successful you must establish an intricate system of staff inclusion from

inception.

6.4.3 Better Responsiveness in the Irish Construction Industry

The Irish construction industry by nature does not instigate the term CSR in practice,

but many of the organisations would execute CSR activities. The international

organisations working in Ireland generally implement CSR activities, but it is the SME’s

that need to be more aware of its presence in the industry. Stakeholders should

become more responsive through GPP initiatives to promote CSR and establish

awareness in Ireland of its contributions to society and benefits to the organisation. A

motivating suggestion was presented during the interview process, whereby the

Construction Industry Federation should instigate a system such as the CCS in the UK.

This would present a national awareness of CSR activities through personal ambitions

of the company to excel in this scheme and be recognised as an ethical business based

on the results of the CCS structure.

6.4.4 Potential ICT Developments

With any modern concept or business model the potential to development an ICT

(Information Collaboration Technologies) system which will help manage and control

the new policies and schemes being implemented. There are many theoretical

organisations that provide guidance and measures on CSR activities such as the

associations enumerated in the literature review, but there are few IT systems

developed to assess, monitor and guide the associate company on CSR undertakings.


Page | 87

Evident in the literature, the Royal BAM Group have developed carbon calculation tool

called PCC and through the interviews the author established other companies have

created internal management systems such as Kier’s ‘Connecting’ software. There will

always be room for improvement in ICT, certainly in admiration to CSR enhancements

where companies should share their knowledge and experiences with other less

informed businesses as a standard moral practice.

As an example of future ICT systems, evaluating the potential of using BIM (Building

Information Modelling) as a Green initiative, Skanska were able to reduce costs and

implement better strategies and initiatives from the preliminary procurement stages.

Figure 24 demonstrates the model Skanska used to ensure they instigated sustainable

systems from project commencement, which through BIM technology subsequently

reduces cost of change and demonstrates the ability to change during the various

stages of the project.

Figure 24 – Green BIM, (Scanlon, 2010)

6.4.5 Supplementary Acknowledgement of External Accomplishments

Organisations achievements should be acknowledged by more than just external

accolades, governments and other clients should recognise the importance of these

responsible practices, and focus more on awarding contracts to ethical companies

rather than the ‘lowest’ tender. The accomplishments should be globally recognised

and locally appreciated.


Page | 88

6.4.6 Incentives for SME’s

Assessing the general information obtained in this research the theme being projected

is one that is dominated by multinational companies as outlined previously. The

incentives do not seem to be present for SME’s to incorporate CSR policies. Its

dominance by larger companies needs to be addressed and incentives need to put in

place to encourage these organisations to adopt social and responsible policies.

Although this dissertation outlines the remunerations and importance of CSR

implementation, many SME’s do not feel it’s relevant or appropriate to their size or

structure. The underlying thought of the author is that governments or external

organisations should encourage and incentivise the smaller businesses to implement

these policies through financial or contractual inducements to animate its growth

among local and national companies.

6.4.7 Instigation of ISO 26000 as a Documented Business Policy

As delineated in the literature review the ISO 26000 is a standard giving guidance in

the area of Social Responsibility, but to date is not a documented requirement for

organisation but rather a voluntary guidance on social responsible aspects. Evaluating

the global successes of ISO 14000, the author believes the ISO 26000 series could

potentially deliver similar success if implemented as a documented policy of

requirements, which would additional exhibit the awareness of CSR in the global

environment and portray the importance of CSR as a business strategy.

6.4.8 Contractual Obligations

As a concluding and observable recommendation, the author proposes the prospect of

an obligatory application of responsible practices particularly on public contracts

where governments and local authorities have the influence and responsibility as

public body to showcase their own CSR ambitions before any contract is even

awarded.

6.5 Avenues for Further Research

While researchers continue to debate upon the ‘true’ nature of CSR to produce

clear definitions and concepts, this research suggests that the CSR notion and any


Page | 89

frameworks are likely to evolve further in the construction industry. CSR policies are

seen as being industry-specific in nature with complex process, strategies and

procedures. This dissertation focused on the broad sense of CSR through its

developments, remunerations and implementations, with positive emphasis on

accomplished construction companies in respect to CSR procedures and intelligences,

to outline its fundamental presence in the industry. Therefore, as a first extension on

the theoretical side, future researchers should enhance the investigation scope by

focusing on a specific area of CSR to fully alleviate specific fundamentals. The

subsequent concentrated research would offer a more complete picture of CSR

specifics in construction, providing a more complex perspective on a definitive

strategy. Testing the applicability of such a framework in a specific manner such as

paramount implementation methods from an emerging market perspective or

emerging market setting would be valuable to compare and contrast the CSR picture in

an increasing ethically orientated industry.

This dissertation was the author’s initial attempt to endeavour the research of

Corporate Social Responsibilities in the construction industry. As mentioned

previously, the selected subject was explored in an expansive approach and the aim of

the author was to provide a wide scope of CSR in the industry with initial focus on the

importance and prosperity in which it consumes. The author hopes this initial study

will act as a catalyst and inspire further investigation to sociological, environmental

and sustainable aspects in the construction industry and provide a fundamental basis

for future research or reference by undergraduates and construction organisations

alike.

6.6 Research Limitations

This undergraduate dissertation proved successful in the respect that the author

achieved compliance with the hypothesis, aim, and objectives stated. In addition to

this there are some limitations which subsequently hindered the research undertaken.

The main problem was the limitation of time specifically set for this research, meaning

survey responses and gathering of literature was restricted and resulted in less

responses and time dedicated to researching. This delimited the author from analysing

profoundly in to different theories and philosophies of the various academics of CSR.


Page | 90

As CSR is a relatively new term in the construction industry the author was restricted

to the literature available in the specific industry so unfortunately was constrained to

using internet references and general CSR narratives to portray thoughts, attitudes

and philosophies on the subject in matter.

A final obstacle was the Irish presence and understanding of CSR for interviews. The

author tried to obtain Irish organisations for the interviews but was unfortunate to

only conduct two interviews with Irish Contractors. The author had to conduct

interviews with UK and Global based Contractors to obtain respectable results, a

number of which were conducted via ‘Skype’ which presented an impersonal

affiliation between the interviewer and the interviewee, but regrettably this could not

be avoided due to the time constraints and cost of international travel. Conversely

acknowledging the preceding limitations the author believes the research produced

was an inclusive success.

Chapter 7 References and Bibliography

Page | 91

Chapter 7

References & Bibliography


Page | 92

7.1 References & Bibliography

1. Ackermann, R., & Bauer, R. (1976). Corporate Social Performance: The Modern

Dilemma, Reston Publishing Co, Reston.

2. Allison, B. (1996), Research Skills for Students, Kogan Page Limited, London.

3. Allouche, J. (2006), Corporate Social Responsibilities, Concepts, Accountability and

Reporting, Palgrave Macmillan, Hampshire.

4. Arksustainability (2009), Sustainability Management. Available from: Arksustainability

Web site: http://www.arksustainability.com/sustainability_management.aspx

[Accessed: February 25, 2011].

5. Arnold, B. & De Lange, P. (2004), "Enron: an examination of agency problems", Critical

Perspectives on Accounting, Vol. 15, no. pp. 751 - 765.

6. Ascoli K. and Benzaken T. (2009), Public Policy and the Promotion of Corporate Social

Responsibility. School of International Relations and Pacific Studies, University of

California.

7. Asongu, J. J. (2007), Strategic Corporate Social Responsibility in Practice, Greenview

Publishing Company, Georgia.

8. Baker Hughes (2010), Corporate Social Responsibility. Available from: Baker Hughes,

Web site:http://www.bakerhughes.com/company/corporate-social-

responsibility/message-from-the-vp-security [Accessed: November 4, 2010].

9. Banerjee, S. B. (2007), Corporate social responsibility: the good, the bad and the ugly,

Edward Elgar Publishing, Glos.

10. Bhattacharya, C. B., Smith, N. C., & Vogel, D. 2004. Integrating Social Responsibility and

Marketing Strategy: An Introduction. California Management Review, Vol. 47, Issue 1,

pp. 6-8.

11. BITC (2010), BITCI White Paper. Corporate Responsibility Policy and Task-force.

Available from: BITC, Web site: http://www.bitc.ie/docs/BITC_definition_case_cr.pdf

[Accessed: September 15, 2010].


Page | 93

12. BITC (2010). The win/win of cause related marketing Available from: Business in the

Community Web site:

http://www.bitc.org.uk/community/community_investment/consumers/business_cas

e_3.html [Accessed: October 27, 2010].

13. Blaikie, N. (2003), Analyzing Quantitative Date, SAGE Publications, London.

14. Bragança, L. (2007), Portugal SB07 Sustainable Construction, Materials and Practices:

Challenge of the Industry for the New Millennium, IOS Press, Amsterdam.

15. Brown, J.D. (2001). Using surveys in Language Programs, Cambridge University Press.

Cambridge.

16. Brown, T P. (1991) “Internal research Helps to Define Service Quality”, Marketing

News, Vol. 25, Issue 3, pp. 11.

17. Brundtland, G. H. & (1987), World Commission on environment and development: our

common future, Oxford University Press, Oxford.

18. Business and Leadership (2010), CSR can help restore Ireland’s tarnished reputation.

Business and Leadership. Available from:

http://www.businessandleadership.com/leadership/item/20765-CSR-can-help-

restore-irelan [Accessed: January 3, 2011].

19. Canniffe, M. (2005), Corporate Social Responsibility. Available from: Charted

Accountants Ireland, Web site:

http://www.accountancyireland.ie/Archive/2005/February-2005/Corporate-Social-

Responsibility/ [Accessed: January 3, 2011].

20. CarboNZero (2010),. Available from:, carboNZero Web site:

http://www.carbonzero.co.nz/about/index.asp [Accessed: October 28, 2010].

21. Carillion Plc (2010), A decade of responsible business, Sustainability Report 2009, Flag,

London.


Page | 94

22. Carillion Plc (2010), Stakeholder Engagement. Available from:

http://www.carillionplc.com/sustainability10/stakeholder-engagement.asp [Accessed:

November 1, 2010].

23. Carillion Plc (2010), Stakeholder Engagement: Our Stakeholders. Available from:,

Carillion Plc Web site: http://www.carillionplc.com/sustain/pol_8.htm [Accessed:

November 3, 2010].

24. Carroll, A. (1979), A Three-Dimensional Conceptual Model of Corporate Performance.

Academy of Management Review, Issue 4. No, pp. 497-505.

25. Carroll, A.B. (1991), "The pyramid of Corporate Social Reprehensibility: Towards the

Moral Management of Organizational Stakeholders", Business Horizons, Vol. 34, Issue.

4, pp. 5.

26. Chand, M. (2006), The relationship between corporate social performance and

corporate financial performance, The Business Review, Vol.5, Issue 1, pp. 240.

27. CIOB (2010), CORPORATE SOCIAL RESPONSIBILITY AND CONSTRUCTION Summary.

Available from: CIOB, Web site: http://www.ciob.org.uk/sites/ciob.org.uk/files/WEB-

INF/files/documents/corporate_social_responsibility_revised.pdf [Accessed: March 17,

2011].

28. Commission of the European Communities (2002), Corporate Social Responsibility: A

business contribution to Sustainable Development. Available from: European

Commission, Web site:

http://trade.ec.europa.eu/doclib/docs/2006/february/tradoc_127374.pdf Accessed:

September 22, 2010].

29. Commission of the European Communities (2004), Buying green! A handbook on

environmental public procurement. Available from: COMMISSION OF THE EUROPEAN

COMMUNITIES, Web site: http://www.ucd.ie/procure/resources/buyinggreen.pdf

[Accessed: January 16, 2011].

30. Considerate Constructors Scheme (2010), Company Registration brings with it the

following benefits. Available from:, CCS Web site:


Page | 95

http://www.ccscheme.org.uk/index.php/company-registration/benefits [Accessed:

November 2, 2010].

31. Considerate Constructors Scheme (2010), What we do?. Available from:, CCS Web site:

http://www.ccscheme.org.uk/index.php/ccs-ltd-ccsltd/what-is-the-ccs2/what-we-do-

css-ltd [Accessed: November 2, 2010].

32. Constructing Excellence (2004), Corporate Social Responsibilities. Available from:,

Constructing Excellence Web site:

http://www.constructingexcellence.org.uk//resources/publications/view.jsp?id=3384

[Accessed: November 3, 2010].

33. Construction Industry Board (1996), Constructing a Better Image, Tomas Telford

Publishing, London.

34. Creswell, J. W. (2003), Research design: qualitative, quantitative, and mixed method

approaches, 2nd ed, SAGE Publications, London.

35. Davis, K. (1960), Can Business Afford to Ignore Corporate Social Responsibilities?,

California Management Review Vol 2 Issue 1, pp. 70–76.

36. Demos, T. (2006), Beyond the bottom Line. Available from: Fortune Magazine, Web

site:

http://money.cnn.com/magazines/fortune/fortune_archive/2006/10/30/8391850/


37. Dornyei, Z. (2003), Questionnaires in Second Language Research: Construction,

Administration and Processing, Lawrence Erlbaum Associates, USA.

38. Economist Intelligence Unit (2005), The Importance of Corporate Responsibilities, The

Economist, London.

39. Elkington, J. (1998), cannibals with forks: the triple bottom line of the 21st century,

Capstone Publishing, Oxford.

40. European Commission (2006), Promoting corporate social responsibilities. Available

from: European Union, Web site:


Page | 96

http://europa.eu/legislation_summaries/external_trade/c00019_en.htm [Accessed:

September 15, 2010].

41. Fisher, D. C., & (2009), Corporate Sustainability Planning Assessment Guide: A

comprehensive organisational assessment, American Society for Quality, Milwaukee.

42. Franklin, D. (2008), Just Good Business. The Economist. Available from: The Economist,

Web site: http://www.economist.com/node/10491077 [Accessed: February 18, 2011].

43. Friedman, M. (1970), “The social responsibility of business is to increase its profits,”

New York Times Magazine, 13 September 1970, pp. 122-126.

44. Fuller, C. (2008), Sustainable work place 2008: Special report, Workplace Law

Publishing, Cambridge.

45. Global Reporting Initiative (2010), History. Available from: Global Reporting Initiative,

Web site:

http://www.globalreporting.org/AboutGRI/WhatIsGRI/History/OurHistory.htm

[Accessed: October 25, 2010].

46. Global Reporting Initiative (2010), What is GRI?. Available from: Global Reporting

Initiative, Web site: http://www.globalreporting.org/AboutGRI/WhatIsGRI/ [Accessed:

October 25, 2010].

47. GM (2010), Supplier Diversity Program Highlights. Available from:, General Motors

Web site: http://www.gm.com/corporate/dealers/diversity/index.jsp [Accessed:

October 10, 2010].

48. Goodwin, W. L. & Goodwin, L. D. (1996), Understanding quantitative and qualitative

research in early childhood education, Teachers College Press, New York.

49. Gormley, J. (2010) “Green firms to get priority in contracts, says Gormley”, The Irish

Times, 22 May 2010, pp. 22.

50. Great Britain: Committee On Climate Change (2008), Building a Low-carbon Economy:

The UK's Contribution to Tackling Climate Change; the First Report of the Committee

on Climate Change, The Stationery Office, Norwich.


Page | 97

51. GRI (2010), Global Reporting Initiative, Beyond voluntary laissez‐faire reporting:

towards a European ESG disclosure framework. Available from: Global Reporting

Initiative, Web site: http://www.globalreporting.org/NR/rdonlyres/BA446A5C-613C-

4717-B79E FB5067D87EC9/3924/2010GRIEUNote.pdf [Accessed: October 25, 2010].

52. GRI (2010), What is GRI. Available from:, GRI Web site:

http://www.globalreporting.org/AboutGRI/WhatIsGRI/ [Accessed: October 27, 2010].

53. Halliday, J. E. (2002), Sustainable concrete construction, Tomas Telford, London.

54. Haselbach,L. (2008) Guide To LEED New Construction Sustainable Construction For

Engineers, U.S.A. : McGraw Hill Publications, London.

55. Heald, M. (1970), The Social Responsibilities of Business: Company and Community,

1900-1960, Case Western Reserve University Press, Cleveland.

56. Herron, D., & Garmus, D. (2004) “Identifying your Companies Best Practices”, Methods

and Tools, Vol 12, Issue 4, pp. 3.

57. Holliday, C. O., Schmidheiny, S. & Watts, P.(2002), Walking the talk: the business case

for sustainable development, Greenleaf Publishing Ltd, Sheffield,

58. Hopkins, M. (2007), Corporate social responsibility and international development: is

business the solution? Bath Press, Bath.

59. Idowu, S. O. & Filho, W. L. (2009), Global Practices of Corporate Social Responsibility,

Springer, Heidleberg.

60. Isaksson, R, and Steimle, U. (2009), What does GRI-reporting tell us about corporate

sustainability? TQM Journal, Vol. 21, Issue 2, pp. 168-18.

61. ISO (2004), ISO 26000 – Social responsibility. Available from: International Organization

Standardization, Web site:

http://www.iso.org/iso/iso_catalogue/management_and_leadership_standards/social

_responsibility/sr_iso26000_overview.htm#sr-2 [Accessed: January 3, 2011].


Page | 98

62. ISO (2011), ISO/IEC Guide 65:1996. Available from: ISO, Web site:

http://www.iso.org/iso/catalogue_detail.htm?csnumber=26796 [Accessed: February

11, 2011].

63. Jenkins, K. & Plowden, W. (2006), Governance and nationbuilding: the failure of

international intervention, Edward Elgar Publishing, Glos

64. John Sisk and Son (2009), Sisk Brochure. Available from:, John Sisk and Son Web site:

http://www.sisk.co.uk/sisk/sisk/www/default.asp?magpage=9&site_id=3 [Accessed:

October 10, 2010].

65. Jones, P., Comfort, D., & Hillier. (2005) "Corporate social responsibility and the UK's

top ten retailers", International Journal of Retail & Distribution Management, Vol. 33

Issue 12, pp.882 – 892.

66. Kapstein, E. B. 2001. The Corporate Ethics Crusade. Foreign Affairs, Vol 80, Issue 5, pp.

105-119.

67. Karliner, J. (1997), The Corporate Planet, Ecology and Politics in the Age of

Globalization, The Sierra Book Club, San Francisco.

68. Kehal, H. S. & Singh, V. P. (2006), Outsourcing and offshoring in the 21st century: a

socio-economic perspective, Idea Group Inc, Philadelphia.

69. Keinert, C. (2008), Corporate social responsibility as an international strategy, Physica-

Verlag, Heidelberg.

70. Kim, H.J., Kim, J. & Han, W.H. (2005), The Effects of Cause-Related Marketing on

Company and Brand Attitudes, Seoul Journal of Business, Vol. 11, Issue. 2, pp. 89.

71. Kothari, C R. (2008) Research Methodology: Methods and Techniques, 2nd Edition,

New age Publishing, India.

72. Kotler, P. & Lee, N. (2005), Corporate Social Responsibility: Doing the most good for

you company and your cause, John Wiley & Sons, New Jersey.


Page | 99

73. Kotler, P. (2003), Marketing Insights A to Z, 80 concepts every manager needs to know,

John Wiley and Son Inc, New Jersey.

74. KPMG (2010), Corporate Social Responsibilities: CSR. Available from:, KPMG Web site:

http://www.in.kpmg.com/services/tax/ads/ads_CSR.asp [Accessed: October 29, 2010].

75. Lantos, G. (2001), The boundaries of strategic corporate social responsibility, Journal of

Consumer Marketing, Vol. 18, Issue 7, pp. 595-640

76. Leadership Champions (2008), What is Stakeholder Analysis? – Part 1. Available from:

http://leadershipchamps.wordpress.com/category/stakeholder-management/

[Accessed: November 1, 2010].

77. Leipziger, D. (2003), The Corporate Sustainability Code Book, Greenleaf, Sheffield.

78. Maignan, I. & Ferrell, O.C., 2004. Corporate Social Responsibility and Marketing: “An

integrative framework” Journal of the Academy of Marketing Science Vol 32 Issue 1,

pp. 3-19.

79. Miles, M. B. & Huberman, A. M. (1994), Qualitative data Analysis, 2nd ed, SAGE

Publications, London.

80. Morris, N. (2004) “Sustainability: What is it?”, IEE Power Engineering Journal, Vol. 21,

Issue 6, pp. 11.

81. Mullerat, R. & Brennan, D.(2005), Corporate social responsibility: the corporate

governance of the 21st century, Kluwer Law International, Hague.

82. Mullerat, R. (2009), International Corporate Social Responsibility: The Role of

Corporations in the Economic Order of the 21st Century, Kluwer Law International,

Alphen aan den Rijn.

83. Naoum, S. G. (2007), Dissertation research and writing for construction students, 2nd

ed, Butterworth-Heinemann, Oxford.


Page | 100

84. Ngowi, A.B., Pienaar, E., Talikhaba, A. & Mbachu, J. (2004), The globalisation of the

construction industry - a review, Building and Environment, Vol. 40, Issue. 1, pp. 135-

141.

85. O.Brady, A. K. (2005), The Sustainability Effect, Rethinking Corporate Reputation in the

21st Century, Palgrave Macmillin, Hampshire.

86. OECD (2001), Corporate Social Responsibility: Partners for Progress, OECD Publishing,

Paris.

87. ORB (2011), About the Organisation for Responsible Businesses (ORB). Available from:

ORBUK, Web site: http://www.orbuk.org.uk/about-ORB.php [Accessed: February 11,

2011].

88. Pajunen, K. (2006), "Stakeholder Influences in Organizational Survival", Journal of

Management Studies, Vol. 43, Issue. 6, pp. 1261-1288.

89. Paloviita, A. & Luoma-ah, V. (2010), "Recognizing definitive stakeholders in corporate

environmental management", Management Research Review, Vol. 33, Issue. 4, pp.

306-316.

90. Porter, M.E. & Kramer, M.R. (2011), Creating Shared Value. Harvard Business Review.

Available from: Harvard Business Review, Web site:

https://archive.harvardbusiness.org/cla/web/pl/product.seam

c=8062&i=8064&cs=1b64dfac8e4d2ef4da5976b5665c5540 [Accessed: February 6,

2011].

91. PricewaterhouseCoopers (2008), Socially Responsible Investment (SRI) – Lets think

long-term. Available from:, PwC Web site:

http://download.pwc.com/ie/pubs/socially_responsible_investment_lets_think_long_t

erm.pdf [Accessed: October 22, 2010].

92. Pulse (2010), Construction industry waste and reuse. Available from:, Pulse Web site:

http://www.pulse.buildingcommission.com.au/www/html/2025-measure-

details.asp?cid=6&per=fy&mid=1213 [Accessed: November 4, 2010].


Page | 101

93. Sanders, T. (2008), Saving the World at Work: What Companies and Individuals Can Do

to Go Beyond Making a Profit to Making a Difference, Doubleday, New York.,

94. Scanlon, P. (2010), Skanska PowerPoint Presentation Document, Skanska Head Office,

Hertfordshire.

95. Schaltegger, S., Bennett, M. & Burritt, R. (2006), Sustainability accounting and

reporting, Springer, Dordrecht.

96. Shah, S. (2007), Sustainable practice for the facilities manager, Replica press, Chennai.

97. Skanska (2009), 2009 Sustainability Report, In House Publishing, Solna.

98. Skanska (2010), Sustainability in Skanska worldwide. Available from:, Skanska UK Web

site: http://www.skanska.co.uk/en/About-Skanska/Sustainability/Skanska-global-

sustainability/ [Accessed: November 1, 2010].

99. Sparkes, R. & Cowton, C.J. (2004), The Maturing of Socially Responsible Investment: A

Review of the Developing Link with Corporate Social Responsibility, Journal of Business

Ethics, Vol. 51, Issue. 1, pp. 45-57.

100. Strong, A. & Hemphill, L. A. (2006), Sustainable development policy directory,

Blackwell Publishing, Oxford.

101. Sustainable Development International, United Nations Environment Programme

(2007), Climate Action, UNEP/Earthprint, Nairobi.

102. Royal BAM Group (2009), 2009 Sustainability Report, RotoSmeets GrafiServices,

Zutphen.

103. Royal BAM Group (2010), Bam 2009 Carbon footprint summary. Available from:, Bam

Web site:

http://www.bam.co.uk/brochure/BAM%20Construct%20UK_CO2_summary_2009%20

(1).pdf [Accessed: November 2, 2010].


Page | 102

104. Royal BAM Group (2010), Objective of the BAM CO₂ Desk. Available from:, BAM Web

site: http://www.bam.nl/baminternet/baminternet/index.jsp [Accessed: November 2,

2010].

105. Timberlake, L. (2002), The Business Case of Sustainable Development. Available from:

WBCSD, Web site: http://www.wbcsd.org/web/publications/business-case.pdf


106. Tolhurst, N., Pohl, M., Matten, D., & Visser, W. (2010), The A to Z of Corporate Social

Responsibility, 2nd ed, John Wiley and Sons, New Jersey.

107. UNDP. British Council. PwC. (2002), Corporate Social Responsibility Survey 2002 -

India.

108. Urip, S. (2010), CSR Strategies: Corporate Social Responsibility for a Competitive Edge

in Emerging Markets, John Wiley and Sons, Singapore.

109. Van Tudler, R. & Van Der Zwart, A.(2006), International business-society

management: linking corporate responsibility and Globalization, Routledge, Oxon.

110. Von Schantz, C. & Herbert, C.M. (2005), Communicating CSR. Available from:,

Business Strategy and the Environment Web site:

http://www.crrconference.org/downloads/schantz.pdf [Accessed: November 4, 2010].

111. Von Schantz, C. 2005. Communication of Corporate Social Responsibility. The case of

Skanska AB. Dep. of Economics, SLU, Master’s thesis Vol. 304, available at.

http://www.ex-epsilon.slu.se/archive/00000573 [Accessed: October 28, 2010].

112. WBCSD (2010), About the WBCSD. Available from:, WBCSD Web site:

http://www.wbcsd.org/templates/TemplateWBCSD5/layout.asp?type=p&MenuId=NjA

&doOpen=1&ClickMenu=LeftMenu [Accessed: October 27, 2010].

113. WCED. (1987), Report of the World Commission on Environment and Development:

Our Common Future, United Nations.

114. Woodside, G., Aurrichio, P. & Yturri, J. (1998), ISO14001 Implementation Manual,

McGraw-Hill Professional, New York.


Page | 103

115. Yang, J., Brandon, P. S., Sidwell, A C. (2005) Smart and Sustainable Built Environment,

Blackwell Publishing, Oxford.

116. Yin, R. (1994) Case Study Research: Design and Methods. Sage Publishing, London.

Appendices Construction Interview Manuscripts

xiii

Appendix A

Construction Interview Manuscripts

Dawn Watson – Environmental Manager, VINCI Construction

Peter Scanlon – Environmental Manager, Skanska

Nick Drake – Sustainability Advisor, Carillion PLC

Tom van Beek – CSR Director, the Royal BAM Group

Mairead Dennehy – HSE Manager, Laing O’ Rourke

Andrew Kinsey – Senior Sustainability Manager, Bovis Lend Lease

Ian Brooks – Business Improvement Manager, Kier Group

Jim Peters – Services Manager, PJ Hegarty

Cyril Keegan –HR and Environmental Health and Safety Director, P. Elliott

Anne Buttfield – Marketing and PR Manager, Mott MacDonald

Jane Grant – Associate Director, WSP

Appendices CSR Professional Interview Manuscripts

xiv

Appendix B

CSR Professional Interview Manuscripts

Douglas B. Johnson – ‘Environmental Intelligence Inc.’

Jim O’ Brien – ‘Jim O’ Brien CSR Consultancy’

Jenny Todd – ‘BITC’

Appendices Online Questionnaire Results

xv

Appendix C

Online Questionnaire Results

Appendices Questionnaire Cover Letter

xvi

Appendix D

Questionnaire Cover Letter

Appendices Sample Dissertation Review

xvii

Appendix E

Sample Dissertation Review Meeting

- Sample Minutes of Meeting

- Sample Progress Review

Appendices Carillion Plc Strategy Model

xviii

Appendix F

Carillion Plc Strategy Model

CSR in the Construction Industry

Documents

Transcript of CSR in the Construction Industry