Corporate Social Responsibility And The Employee Stakeholder Management Essay

August 25, 2017 Management

The context for the argument on corporate societal duty can be loosely separated into two traditions: stakeholder theory and stockholder theory. ( 1 ) Royle ‘s 10 twelvemonth survey took topographic point against the background of most concern corporations already implementing CSR codifications in the field of corporate citizenship, responsible concern and sustainable concern development ( 2 ) . Royle adopts an univocal stakeholder theory attack to employee patterns ( 3 ) Royle does non divert at any clip from his core cardinal subject that: MacDonald ‘s have failed to to the full implement CSR patterns because the concern theoretical account is based on a direction manner where the work force is devalued at every phase of the production procedure. Royle cites the refusal of MacDonald ‘s to allow widespread brotherhood rank as supplying cardinal cogent evidence for his nucleus thesis ( 4 ) . The absence of alternate independent research on the academic database to rebut Royle ‘s findings, add farther weight to the dependability of his research. Though some failings exist in informations aggregation methods and Royle does non see cultural diverseness and societal inequality issues, these do non annul his overall findings.

That Royle ‘s survey is empirical-based, comparative, appears in an academic diary, entitled Business Ethics, and encompasses a 10 twelvemonth clip frame all add credibleness to his survey. ( 5 ) A cardinal strength besides is the manner that Royle, draws on a wealth of comparative informations and is able to summarize briefly the cardinal characteristics of the MacDonald ‘s concern theoretical account where “ Work at Macdonald ‘s is low skilled, difficult and frequently grim… . , low rewards are a relentless characteristic and labour turnover for the bulk of the work force is really high ( between 100 and 300 per cent ) ” , ( Royle 2005, p45 ) . Pulling attending to a low route scheme where workers are undermined at every point in the production procedure ; failure to protect workers ‘ rights even in mainland Europe states which have traditionally strong brotherhood motions ; a concern theoretical account based on high staff turnover degrees ; the employment of a low skilled work force which is made up of the most marginalised members of society ( migratory workers, cultural minorities, adult females, and the ill educated ) ; and eventually the collusion of direction who pattern, “ moral mutism ” and an, “ excessively aggressive direction manner ” , validates Royle ‘s nucleus thesis ( 6 ) . depict aggressive direction tactics as that which “ seem to be reserved for those employees seeking to organize a brotherhood ” . ( Royle 2005, p47 ) . Royle reinforces this nucleus thesis throughout which gives his survey a certain logical coherency. The degree of item provided in the Royle survey makes it difficult to challenge the position that the concern theoretical account is non contributing to execution of CSR codifications.

A farther strength of the survey is how Royle makes usage of secondary beginnings to endorse up his nucleus thesis and develop the non conformity of CSR statement, which he has systematically applied throughout. Royle applies stakeholder theories on CSR in order to analyze working patterns at MacDonald ‘s in order to show failure of the concern theoretical account. Royle provides cogent evidence for the nucleus thesis by pulling attending to high employee turnover rates. Royle is perfectly right to asseverate that Macdonald ‘s fail to value their employees as this is borne out by the wealth of informations on high staff turnover degrees, a tendency which continues to this twenty-four hours ( 7 ) . The analytical consistence shown by Royle add credibleness to his overall findings

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Like other transnational corporations, Macdonald ‘s has made some advancement on sustainability, outsourcing etc. However in the particular are of employee patterns little much has changed. Apart from the assorted CSR studies complied by MacDonald ‘s, there is no other broad runing independent survey in being. Furnhams ‘ survey is non broad ranging, and looked merely at employee satisfaction in the country of future occupation prospects. ( 8 ) . Neither can the survey be considered independent because the study was commissioned by Macdonald ‘s. In contrast, Royle ‘s choice of a 10 twelvemonth research clip frame which permits observation of underlying tendencies in employee dealingss contains far more elaborate information. The Worldwide Corporate Social Responsibility 2010 Report compiled by MacDonald ‘s is barely independent and does paradoxically corroborate what Royle was reasoning in 2005 ; viz. that employee patterns have non much changed because of the failure to allow nonionized labor which persist to this twenty-four hours, despite minor accommodations to the employee preparation programme ( 9 ) .

Royle uses two informations aggregation techniques: direct observation and interviews ( 10 ) . Staff were observed in the work environment ; and staff, trade brotherhoods and national employer associations, were capable to 30-120 minute interviews. It is possible to place some failings in primary informations aggregation methods. The sample of 300 face to confront interviews is statistically little sing the fact the MacDonald ‘s employs 1000000s of employees. This does raise the inquiry of whether Royle ‘s findings are statistically representative of the full work force. In my sentiment, the sample should hold been larger to include a thousand or more interviews. It is besides non made clear from the survey, the ratio of employee/ direction interviews. We have no manner of cognizing how many directors were interviewed in relation to other work employees. Indeed over trust on low skilled employees could skew the overall consequences.

Royle ‘s article was written at a clip when cultural diverseness and societal inequality issues were non widely discussed because the argument was dominated by an Anglo/ American narration. ( 11 ) Royle ‘s survey is rendered non up to day of the month as he does non turn to these issues in any great deepness which does in consequence weaken his findings to some extent. With increasing globalization, the CSR theoretical account has come under examination for the failure to turn to cultural diverseness issues and societal inequalities ( 12 ) . Royle makes the error of blending Euro/ Anglo work patterns and Russian/ Chinese working patterns which consequences in deficiency of apprehension of employment patterns in the two diverse civilizations. Royle ‘s survey besides fails to turn to societal inequalities and why high degrees of migratory workers are employed at MacDonald ‘s. Royle fails to separate ethnically diverse communities and the autochthonal host communities. Consequently there is small treatment of the extra inequalities that migrant workers face because of their ethnicity, which lead to taking up low skilled occupations, as documented in a European Union Report. ( 13 ) .

Additional research in this country is needed so that a comparing could be made with other fast nutrient ironss, every bit good as other transnational corporations. Royle already alludes to the fact that the MacDonald ‘s employment theoretical account is low skilled therefore bring forthing a high turnover of staff. Indeed it is more likely to be the instance that the cardinal factor here is non so much the fast nutrient industry per Se, but instead that that all industries which employ low skilled work forces are likely to endure from a high turnover of staff. There already exists ample grounds in the UK that occupations such as nutrient industry and wellness attention helpers have high staff turnover rates. ( 14 ) . Royle alludes to the inquiry of homogenization of labors but does non research this construct in any great deepness.

To summarize, Royle ‘s article is good researched, cogently argued and backed up by scientific informations aggregation methods. Though some failings exist in the informations aggregation methods, these do non annul the overall findings. Despite the littleness of the sample, and failure to unwrap the figure of directors interviewed, it is difficult to challenge the chief decision drawn by Royle ; viz. that MacDonald ‘s have worked actively to forestall meaningful execution of CSR every bit far as nonionized labor is concerned. That the findings of Royle have non been disputed within the academic community since 2005, lends farther credibleness and cogency to his survey. However, Royle has failed to turn to the issue of cultural diverseness and societal inequalities. There is small apprehension of how different cultural groups are impacted adversely in the labor market. In general there is the demand to recognize how the concern theoretical account which relies on low skilled, mechanised, humdrum work is likely to see high staff turnover, irrespective of the industry.

Word Count: 1,314

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