Cognitive mapping the topic of corporate social responsibility

Cognitive mapping the topic of corporate social responsibility

Joseph Kim-keung Ho

Independent Trainer

Hong Kong, China

Abstract: The topic of corporate social responsibility (CSR) in the subject of business management is complex. By making use of the cognitive mapping technique to conduct a brief literature review on the corporate social responsibility topic, the writer renders a systemic image on the topic of corporate social responsibility. The result of the study, in the form of a cognitive map on corporate social responsibility, should be useful to those who are interested in the topics of cognitive mapping, literature review and corporate social responsibility.

Key words: corporate social responsibility, cognitive mapping, literature review

Introduction

As a topic in business management, corporate social responsibility (CSR) is complex. It is thus useful to employ some learning tool to conduct its study, notably for literature review purpose. For a teacher in research methods, systems thinking and management, including tourism management, the writer is specifically interested in finding out how the cognitive mapping technique can be employed to go through a literature review on  corporate social responsibility. This literature review exercise is taken up and reported in this article.

On the cognitive mapping exercise for literature review

Literature review is an important intellectual learning exercise, and not just for doing final year dissertation projects for tertiary education students. On these two topics of intellectual learning and literature review, the writer has compiled some e-learning resources. They are the Managerial intellectual learning Facebook page and the Literature on literature review Facebook page. Conducting literature review with the cognitive mapping technique is not novel in the cognitive mapping literature, see Eden and Simpson (1989), Eden, Jones and Sims (1983), Open University (n.d) and the Literature on cognitive mapping Facebook page. In this article, the specific steps involved in the cognitive mapping exercise are as follows:

Step 1: gather some main points from a number of academic journal articles on corporate social responsibility. This result in the production of a table (Table 1) with the main points and associated references.

Step 2: consolidate  the main points from Table 1 to come up with a table listing the cognitive map variables (re: Table 2).

Step 3: link up the cognitive  map variables in a plausible way to produce a cognitive map (re: Figure 1) on the topic under review.

The next section applies these three steps to produce a cognitive map on corporate social responsibility.

Descriptions of cognitive map variables on the corporate social responsibility topic

From the reading of some academic articles on corporate social responsibility, a number of main points (e.g., viewpoints, concepts and empirical findings) were gathered by the  writer. They are shown in Table 1 with explicit referencing on the points.

Table 1: Main points from the corporate social responsibility literature and referencing

Main points from the corporate social responsibility literature	Referencing
Point 1: "To some it [corporate social responsibility] conveys the idea of legal responsibility or liability; to others, it means socially responsible behavior in the ethical sense; to still others, the meaning transmitted is that of 'responsible for' in a causal mode; many simply equate it with a charitable contribution; some take it to mean socially conscious; many of those who embrace it most fervently use it as a mere synonym for legitimacy in the context of belonging or being proper or valid; a few see a sort of fiduciary duty imposing higher standards of behavior on businessmen than on citizens at large".	Garriga, E. and D. Melé. 2004. "Corporate Social Responsibility Theories: Mapping the Territory" Journal of Business Ethics 53, Klumer Academic Publishers: 51-71.
Point 2: "..the most relevant CSR theories and related approaches are focused on one of the following aspects of social reality: economics, politics, social integration and ethics".	Garriga, E. and D. Melé. 2004. "Corporate Social Responsibility Theories: Mapping the Territory" Journal of Business Ethics 53, Klumer Academic Publishers: 51-71.
Point 3: "In recent times, corporations have been pressured by non-governmental organizations (NGOs), activists, communities, governments, media and other institutional forces. These groups demand what they consider to be responsible corporate practices".	Garriga, E. and D. Melé. 2004. "Corporate Social Responsibility Theories: Mapping the Territory" Journal of Business Ethics 53, Klumer Academic Publishers: 51-71.
Point 4: "...business organizations are faced with the contradictory situation of having to engage in social problems on the one hand and maintaining profits on the other".	Ramachandran, V. 2011. "Strategic Corporate Social Responsibility:  A 'Dynamic Capability' Perspective" Corporate Social Responsibility and Environmental Management 18, Wiley: 285-293.
Point 5: CSR is  defined as "firm behaviors that are not mandated by law and are designed to benefit one or more social stakeholders'. The term 'social stakeholder' include the physical environment".	Ramachandran, V. 2011. "Strategic Corporate Social Responsibility:  A 'Dynamic Capability' Perspective" Corporate Social Responsibility and Environmental Management 18, Wiley: 285-293.
Point 6: "CSR behaviors can be termed as 'strategic' when they are aimed at simultaneously improving a firm's relative cost or price position on the one hand and a social or environmental condition on the other".	Ramachandran, V. 2011. "Strategic Corporate Social Responsibility:  A 'Dynamic Capability' Perspective" Corporate Social Responsibility and Environmental Management 18, Wiley: 285-293.
Point 7: "...strategic CSR actions could be aimed  at creating a capability (e.g. environmental management capability) that could lead to competitive advantage".	Ramachandran, V. 2011. "Strategic Corporate Social Responsibility:  A 'Dynamic Capability' Perspective" Corporate Social Responsibility and Environmental Management 18, Wiley: 285-293.
Point 8: "CSR initiatives can positively affect consumer attitudes towards a firm and its offerings,  which reflect the core competency of the company... However, mixed findings have been reported in respect of this relationship".	Mandhachitara, R. and Y. Poothong. 2011. "A model of customer loyalty and corporate social responsibility" Journal of Services Marketing 25(2) , Emerald: 122-133.
Point 9: "For CSR to be accepted by a conscientious business person, it should be framed in such a way that the entire range of business responsibilities are  embraced. It is suggested here that four kinds of social responsibilities constitute total CSR: economic, legal, ethical, and philanthropic. Furthermore, these four categories or components of CSR might be depicted as a pyramid".	Carroll, A.B. 1991. "The Pyramid of Corporate Social Responsibility: Toward the Moral Management of Organizational Stakeholders" Business Horizon 34(4) July-August: 39-48.
Point 10: "Philanthropy compasses those corporate actions that are in response to society's expectation that businesses be good corporate citizens. This includes actively engaging in acts or programs to promote human welfare or goodwill".	Carroll, A.B. 1991. "The Pyramid of Corporate Social Responsibility: Toward the Moral Management of Organizational Stakeholders" Business Horizon 34(4) July-August: 39-48.
Point 11: "...ethical responsibilities embrace those activities and practices that are expected or prohibited by societal members even though they are not codified into law. Ethical responsibilities embody those standards, norms, or expectations that reflect a concern for  what consumers, employees, shareholders, and the community regard as fair".	Carroll, A.B. 1991. "The Pyramid of Corporate Social Responsibility: Toward the Moral Management of Organizational Stakeholders" Business Horizon 34(4) July-August: 39-48.
Point 12: "... firms may have altruistic intention: they simply believe their CSR efforts are part and parcel of being a good global citizen".	Sprinkle, G.B. and L.A. Mines 2010. "The benefits and costs of corporate social responsibility" Business Horizons 53, Elsevier; 445-453.
Point 13: "...organizations may engage in CSR activities as "window dressing" to appease various stakeholder groups, such as nongovernmental organizations (NGOs)".	Sprinkle, G.B. and L.A. Mines 2010. "The benefits and costs of corporate social responsibility" Business Horizons 53, Elsevier; 445-453.
Point 14: "..firms believe that CSR helps recruit, motivate, and retain employees".	Sprinkle, G.B. and L.A. Mines 2010. "The benefits and costs of corporate social responsibility" Business Horizons 53, Elsevier; 445-453.
Point 15: "CSR may entice consumers to buy a company's products or services. As such, firms may reap price premiums or garner increases in market share".	Sprinkle, G.B. and L.A. Mines 2010. "The benefits and costs of corporate social responsibility" Business Horizons 53, Elsevier; 445-453.
Point 16: ".... companies' focus on environmental concerns can lead to reductions in production costs".	Sprinkle, G.B. and L.A. Mines 2010. "The benefits and costs of corporate social responsibility" Business Horizons 53, Elsevier; 445-453.
Point 17: "CSR can be viewed as an integral part of a company's risk management efforts. To this end, CSR may be an effective lever for easing legal or regulatory constraints".	Sprinkle, G.B. and L.A. Mines 2010. "The benefits and costs of corporate social responsibility" Business Horizons 53, Elsevier; 445-453.
Point 18: "The costs associated with CSR can be measured by identifying the activities associated with CSR... as well as the activities the company was unable to undertake due to engaging in CSR activities (i.e., opportunity costs)".	Sprinkle, G.B. and L.A. Mines 2010. "The benefits and costs of corporate social responsibility" Business Horizons 53, Elsevier; 445-453.
Point 19: "because CSR ultimately lies within the framework of markets, and requires market-based incentives for companies to  invest in such programmes, it ultimately falls prey to the vagaries of the market".	Doane, D. 2005. "Beyond corporate social responsibility: minnows, mammoths and markets" Futures 37, Elsevier: 215-229.
Point 20: "CSR, as a prescription for 'ethical business', has taken on a life of its own over the past few years and seems unlikely to disappear at any point in the near future".	Doane, D. 2005. "Beyond corporate social responsibility: minnows, mammoths and markets" Futures 37, Elsevier: 215-229.
Point 21: "There is no single accepted definition of CSR, although most assume that there is an inherent compatibility with profit-making and fulfilling the needs of society".	Doane, D. 2005. "Beyond corporate social responsibility: minnows, mammoths and markets" Futures 37, Elsevier: 215-229.
Point 22: There is the implicit expectation that "if business aims to deliver better social and environmental outcomes, governments would not regulate".	Doane, D. 2005. "Beyond corporate social responsibility: minnows, mammoths and markets" Futures 37, Elsevier: 215-229.
Point 23: "There are four key drivers that would impel a company to adopt a CSR programme: managing risk and reputation; protecting human capital assets; responding to consumer demands, and avoiding regulation".	Doane, D. 2005. "Beyond corporate social responsibility: minnows, mammoths and markets" Futures 37, Elsevier: 215-229.
Point 24: "...there is ... a superficial side of CSR where, driven by profits, the outcomes of a  CSR programme are less than one might have expected".	Doane, D. 2005. "Beyond corporate social responsibility: minnows, mammoths and markets" Futures 37, Elsevier: 215-229.
Point 25: "The current  business environment requires firms to construct their own CSR strategies. However, despite the heightened  emphasis on CSR in general business culture, in practice, not every corporation takes the message to heart".	Lee, M.D.P. 2011. "Configuration of External Influences: The Combined Effects of Institutions and Stakeholders on Corporate Social Responsibility Strategies" Journal of Business Ethics 102, Springer: 281-298.
Point 26: "In explaining corporate social behavior, organizational scholars often focused on external influences rather than internal motivations".	Lee, M.D.P. 2011. "Configuration of External Influences: The Combined Effects of Institutions and Stakeholders on Corporate Social Responsibility Strategies" Journal of Business Ethics 102, Springer: 281-298.
Point 27: "Academic research on CSR emerged in the 1950s and proliferated during the last three decades".	Lee, M.D.P. 2011. "Configuration of External Influences: The Combined Effects of Institutions and Stakeholders on Corporate Social Responsibility Strategies" Journal of Business Ethics 102, Springer: 281-298.

With a set of main points collected, the writer produces a set of cognitive map variables. These variables are informed by the set of main points from Table 1. These variables are presented in Table 2.

Table 2: Cognitive map variables based on Table 1

Cognitive map variables	Literature review points
Variable 1: Factors that promote CSR adoption	Point 3: "In recent times, corporations have been pressured by non-governmental organizations (NGOs), activists, communities, governments, media and other institutional forces. These groups demand what they consider to be responsible corporate practices". Point 9: "For CSR to be accepted by a conscientious business person, it should be framed in such a way that the entire range of business responsibilities are  embraced. It is suggested here that four kinds of social responsibilities constitute total CSR: economic, legal, ethical, and philanthropic. Furthermore, these four categories or components of CSR might be depicted as a pyramid". Point 12: "... firms may have altruistic intention: they simply believe their CSR efforts are part and parcel of being a good global citizen". Point 20: "CSR, as a prescription for 'ethical business', has taken on a life of its own over the past few years and seems unlikely to disappear at any point in the near future". Point 23: "There are four key drivers that would impel a company to adopt a CSR programme: managing risk and reputation; protecting human capital assets; responding to consumer demands, and avoiding regulation". Point 25: "The current  business environment requires firms to construct their own CSR strategies. However, despite the heightened  emphasis on CSR in general business culture, in practice, not every corporation takes the message to heart". Point 26: "In explaining corporate social behavior, organizational scholars often focused on external influences rather than internal motivations".
Variable 2: Better understanding on the underlying views on CSR	Point 1: "To some it [corporate social responsibility] conveys the idea of legal responsibility or liability; to others, it means socially responsible behavior in the ethical sense; to still others, the meaning transmitted is that of 'responsible for' in a causal mode; many simply equate it with a charitable contribution; some take it to mean socially conscious; many of those who embrace it most fervently use it as a mere synonym for legitimacy in the context of belonging or being proper or valid; a few see a sort of fiduciary duty imposing higher standards of behavior on businessmen than on citizens at large". Point 5: CSR is  defined as "firm behaviors that are not mandated by law and are designed to benefit one or more social stakeholders'. The term 'social stakeholder' include the physical environment". Point 21: "There is no single accepted definition of CSR, although most assume that there is an inherent compatibility with profit-making and fulfilling the needs of society".
Variable 3: Advancement on CSR theories	Point 2: "..the most relevant CSR theories and related approaches are focused on one of the following aspects of social reality: economics, politics, social integration and ethics". Point 27: "Academic research on CSR emerged in the 1950s and proliferated during the last three decades".
Variable 4: Effective CSR practices	Point 4: "...business organizations are faced with the contradictory situation of having to engage in social problems on the one hand and maintaining profits on the other". Point 6: "CSR behaviors can be termed as 'strategic' when they are aimed at simultaneously improving a firm's relative cost or price position on the one hand and a social or environmental condition on the other". Point 10: "Philanthropy compasses those corporate actions that are in response to society's expectation that businesses be good corporate citizens. This includes actively engaging in acts or programs to promote human welfare or goodwill". Point 11: "...ethical responsibilities embrace those activities and practices that are expected or prohibited by societal members even though they are not codified into law. Ethical responsibilities embody those standards, norms, or expectations that reflect a concern for  what consumers, employees, shareholders, and the community regard as fair". Point 19: "because CSR ultimately lies within the framework of markets, and requires market-based incentives for companies to  invest in such programmes, it ultimately falls prey to the vagaries of the market".
Variable 5: Positive CSR impacts	Point 7: "...strategic CSR actions could be aimed  at creating a capability (e.g. environmental management capability) that could lead to competitive advantage". Point 8: "CSR initiatives can positively affect consumer attitudes towards a firm and its offerings,  which reflect the core competency of the company... However, mixed findings have been reported in respect of this relationship". Point 13: "...organizations may engage in CSR activities as "window dressing" to appease various stakeholder groups, such as nongovernmental organizations (NGOs)". Point 14: "..firms believe that CSR helps recruit, motivate, and retain employees". Point 15: "CSR may entice consumers to buy a company's products or services. As such, firms may reap price premiums or garner increases in market share". Point 16: ".... companies' focus on environmental concerns can lead to reductions in production costs". Point 17: "CSR can be viewed as an integral part of a company's risk management efforts. To this end, CSR may be an effective lever for easing legal or regulatory constraints". Point 22: There is the implicit expectation that "if business aims to deliver better social and environmental outcomes, governments would not regulate".
Variable 6: Effective learning from CSR practices	Point 18:"The costs associated with CSR can be measured by identifying the activities associated with CSR... as well as the activities the company was unable to undertake due to engaging in CSR activities (i.e., opportunity costs)". Point 24: "...there is ... a superficial side of CSR where, driven by profits, the outcomes of a  CSR programme are less than one might have expected".

The next step is to relate the cognitive map variables to make up a cognitive map on corporate social responsibility. The cognitive map and its explanation are presented in the next section.

A cognitive map on corporate social responsibility and its interpretation

By relating the variables identified in Table 2, the writer comes up with a cognitive map on corporate social responsibility, as shown in Figure 1.

There are three groups of variables:

CSR influencers: They are variable 1 (factors that promote CSR adoption), variable 2 (better understanding on the underlying views on CSR) and variable 3 (advancement on CSR theories).

CSR practices: They include variable 4 (effective CSR practices) and variable 5 (positive CSR impacts).

CSR learning: There is one variable here, i.e., variable 6 (effective learning from CSR practices).

These cognitive  map variables, six of them altogether, are related to constitute a systemic image of corporate social responsibility. The links in the cognitive map (re: Figure 1) indicate direction of influences between variables. The + sign shows that an increase in one variable leads to an increase in another variable while a -ve sign tells us that in increase in one variable leads to a decrease in another variable.  If there no signs shown on the arrows, that means the influences can be positive or negative.

Concluding remarks

The cognitive mapping exercise captures in one diagram some of the main variables involved in corporate social responsibility. The resultant cognitive map promotes an exploratory way to study corporate social responsibility in a holistic tone. The experience of the cognitive mapping exercise is that it can be a quick, efficient and entertaining way to explore a complex topic such as corporate social responsibility in business management. Readers are also referred to the Literature on business ethics and corporate social responsibility Facebook page for additional  information CSR. Finally, readers who are interested in cognitive mapping should also find the article informative on this mapping topic.

Bibliography

1.      Carroll, A.B. 1991. "The Pyramid of Corporate Social Responsibility: Toward the Moral Management of Organizational Stakeholders" Business Horizon 34(4) July-August: 39-48.

2.      Doane, D. 2005. "Beyond corporate social responsibility: minnows, mammoths and markets" Futures 37, Elsevier: 215-229.

3.      Eden, C. and P. Simpson. 1989. "SODA and cognitive mapping in practice", pp. 43-70, in Rosenhead, J. (editor) Rational Analysis for a Problematic World, Wiley, Chichester.

4.      Eden, C., C. Jones and D. Sims. 1983. Messing about in Problems: An informal structured approach to their identification and management, Pergamon Press, Oxford.

5.      Garriga, E. and D. Melé. 2004. "Corporate Social Responsibility Theories: Mapping the Territory" Journal of Business Ethics 53, Klumer Academic Publishers: 51-71.

6.      Lee, M.D.P. 2011. "Configuration of External Influences: The Combined Effects of Institutions and Stakeholders on Corporate Social Responsibility Strategies" Journal of Business Ethics 102, Springer: 281-298.

7.      Literature on business ethics and corporate social responsibility Facebook page, maintained by Joseph, K.K. Ho (https://www.facebook.com/Literature-on-business-ethics-and-corporate-social-responsibility-studies-553394598132432/).

8.      Literature on cognitive mapping Facebook page, maintained by Joseph, K.K. Ho (url address: https://www.facebook.com/Literature-on-cognitive-mapping-800894476751355/).

9.      Literature on literature review Facebook page, maintained by Joseph, K.K. Ho (url address: https://www.facebook.com/literature.literaturereview/).

10. Managerial intellectual learning Facebook page, maintained by Joseph, K.K. Ho (url address: https://www.facebook.com/managerial.intellectual.learning/).

11. Mandhachitara, R. and Y. Poothong. 2011. "A model of customer loyalty and corporate social responsibility" Journal of Services Marketing 25(2) , Emerald: 122-133.

12. Open University. n.d. "Sign graph" Systems Thinking and Practice (T552): Diagramming, Open University, U.K. (url address: http://systems.open.ac.uk/materials/T552/) [visited at April 10, 2017].

13. Ramachandran, V. 2011. "Strategic Corporate Social Responsibility:  A 'Dynamic Capability' Perspective" Corporate Social Responsibility and Environmental Management 18, Wiley: 285-293.

14. Sprinkle, G.B. and L.A. Mines 2010. "The benefits and costs of corporate social responsibility" Business Horizons 53, Elsevier; 445-453.