KWAME NKRUMAH UNIVERSITY OF SCIENCE AND TECHNOLOGY

COLLEGE OF ART AND BUILT ENVIRONMENT

DEPARTMENT OF BUILDING TECHNOLOGY

TOPIC:

CORPORATE SOCIAL RESPONSIBILITY ENGAGEMENT IN HYBRID

CONSTRUCTION COMPANIES IN GHANA

A Dissertation submitted to the Department of Building Technology of the Kwame

Nkrumah University of Science and Technology in partial fulfillment of the

requirements for the award of a Bachelor of Science (BSc.) in Quantity Surveying

and Construction Economics and Construction Technology Management

GOH MAWUENA JOJO

NELSON-ADDY CHRIS

BOATENG NOEL FREDRICK

ASARE KWAME BEDIAKO

April, 2015

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DECLARATION

I hereby declare that this work is the result of my own original research and has neither in

whole nor in part been prescribed by another degree elsewhere. References to other

people‟s work have been duly cited.

..

Goh Mawuena Jojo …………………………… ………………………

Signature Date

Nelson-Addy Chris …………………………… ………………………

Signature Date

Boateng Noel Fredrick …………………………… ………………………

Signature Date

Asare Kwame Bediako …………………………… ………………………

Signature Date

Certified by:

DR. B. K. BAIDEN …………………………… ………………………

(Supervisor ) Signature Date

DR. B. K. BAIDEN …………………………… ………………………

(Head of Department) Signature Date

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ABSTRACT

In the last two decades, business managers have come under pressure to allocate

scarce corporate resources to the environment that is continually mounting pressure

on them. This concept of allocating scarce resources has gained much awareness

recently, although its existence can be traced some late decades. However, to the

increasing consternation of construction companies their efforts to affect communities

positively are not appreciated by the public. The aim of this study was to explore the

extent of corporate social responsibility engagement by hybrid contracting firms in

the Ghanaian Construction Industry. The study adopted quantitative research strategy.

Subsequently, survey questionnaire was used to elicit response from the target

population. The data gathered was subjected to rigorous analysis involving one

sample t-test and relative importance index. It was found out that CSR is being

practiced by hybrid contracting firms to some extent but challenges such as lack of

resources, communication and a lack of coherent strategy are a drawback. It is

recommended that central regulatory body to oversee the CSR activities be set up,

rating agencies and rewarding structures must be put in place and ultimately,

companies must develop coherent strategies to address CSR engagement. The study is

an epitome of CSR in the Ghanaian construction industry.

Keywords: Corporate Social Responsibility, Engagement, hybrid contractors,

Ghanaian Construction Industry, Core business.

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TABLE OF CONTENTS

DECLARATION......................................................................................................... II

ABSTRACT .................................................................................................................. I

TABLE OF CONTENTS ........................................................................................... II

LIST OF TABLES ...................................................................................................... V

LIST OF FIGURES .................................................................................................. VI

CHAPTER ONE .......................................................................................................... 1

GENERAL INTRODUCTION TO RESEARCH ..................................................... 1

1.1 Introduction .......................................................................................................... 1

1.2 Problem Statement ............................................................................................... 2

1.3 Aim of Research and objectives ........................................................................... 3

1.3.1 Research Objectives ..................................................................................... 3

1.4 Research Questions .............................................................................................. 3

1.5 Methodology ........................................................................................................ 3

1.6 Scope of Study ..................................................................................................... 4

1.7 Significance of Study ........................................................................................... 4

CHAPTER TWO ......................................................................................................... 5

LITERATURE REVIEW ........................................................................................... 5

2.1 Definition and Evolution of Corporate Social Responsibility ............................. 5

2.1.1 Definition of Corporate Social Responsibility ............................................. 5

2.1.2 Evolution Of Corporate Social Responsibility .............................................. 7

2.2 The Building and Construction Industry and Corporate Social Responsibility ... 9

2.2.1 Definition of Construction Industry .............................................................. 9

2.2.2 Contribution of the Construction Industry to Economic Development ......... 9

2.2.3 Evolution of the Construction Industry in Ghana ........................................ 10

2.3 Ghanaian Construction Industry and Corporate Social Responsibility .............. 11

2.4 Relevance of CSR in the Ghanaian Construction Industry ................................ 13

2.5 Drivers of Corporate Social Responsibility ....................................................... 15

2.5.1 Brand Name/Image ...................................................................................... 15

2.5.2 Company Culture/Value .............................................................................. 16

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2.5.3 Globalisation ............................................................................................... 16

2.5.4 Free flow of information.............................................................................. 17

2.5.5 Competitive advantage ................................................................................ 17

2.5.6 Ecological Sustainability ............................................................................. 18

2.6 Benefits of Corporate social Responsibility Engagement .................................. 18

2.6.1 Improved Brand Image ................................................................................ 19

2.6.2 Attracting good and quality staff ................................................................. 19

2.6.3 Competitive Advantage ............................................................................... 19

2.6.4 Higher staff retention ................................................................................... 20

2.6.5 Reduced regulatory oversight ...................................................................... 20

2.7 Challenges of CSR Engagement ........................................................................ 20

2.7.1 Time consuming .......................................................................................... 20

2.7.2 Communication ........................................................................................... 21

2.7.3 Lack of resources ......................................................................................... 21

2.8 Challenges of CSR Engagement in the Ghanaian Construction Industry .......... 21

CHAPTER THREE ................................................................................................... 23

RESEARCH METHODOLOGY ............................................................................. 23

3.1 Introduction ........................................................................................................ 23

3.2 Research Strategy and Design ............................................................................ 23

3.3 Sampling and Population ................................................................................... 24

3.4 Sampling Technique ........................................................................................... 24

3.5 Sources of data and data collection .................................................................... 24

3.6 Data Presentation and Analysis .......................................................................... 25

CHAPTER FOUR ...................................................................................................... 26

DATA ANALYSIS AND DISCUSSION OF RESULTS ........................................ 26

4.1 Introduction ........................................................................................................ 26

4.2 Analysis of Demographic Variables .................................................................. 26

4.2.1 Position in Establishment ............................................................................ 27

4.2.2 Annual Turnover of Company ..................................................................... 28

4.2.3 Size of Company in terms of number of employees ................................... 28

4.2.4 Years of Experience in CSR Engagement ................................................... 29

4.2.5 Integration of CSR into Core objectives of the Company ........................... 30

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4.3 Analysis of Dependent Variables ....................................................................... 31

4.3.1 CSR Activities of the Hybrid Companies.................................................... 31

4.3.2 Challenges of CSR Engagement by Hybrid Construction Firms ................ 33

CHAPTER FIVE ....................................................................................................... 35

CONCLUSION AND RECOMMENDATION ....................................................... 35

5.1 Introduction ........................................................................................................ 35

5.2 Attaining the Research Objectives ..................................................................... 35

5.3 Practical Implication of the Study ...................................................................... 38

REFERENCES ........................................................................................................... 39

APPENDICES ............................................................................................................ 43

APPENDIX : RESEARCH QUESTIONNAIRE .................................................... 43

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LIST OF TABLES

Table 4.1 Annual Turnover of Company ..................................................................... 28

Table 4.2 Years of Experience in CSR Engagement ................................................... 29

Table 4.3 Descriptive Statistics of CSR activities ....................................................... 32

Table 4.4 Descriptive Statistics of Challenges of CSR engagement ........................... 34

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LIST OF FIGURES

Figure 4.1 Position of respondents............................................................................... 27

Figure 4.2 Size of company ......................................................................................... 29

Figure 4.3 CSR as core business objective. ................................................................. 30

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CHAPTER ONE

GENERAL INTRODUCTION TO RESEARCH

1.1 Introduction

Corporate social responsibility (CSR) in recent times has gained much attention in its

implementation among corporations, which are critical actors in the political,

economic, social, cultural and environmental development of all countries. Consistent

with McWilliams and Siegel (2001), we define CSR as situations where the firm goes

beyond compliance and engages in “actions that appear to further some social good,

beyond the interests of the firm and that which is required by law.”

However, this is just one interpretation of CSR. Numerous definitions of CSR have

been proposed and often no clear definition is given, making theoretical development

and measurement difficult.

That notwithstanding, construction companies are being called upon to take

responsibility for the ways their operations impact societies and the natural

environment

Corporate social responsibility in the construction industry extends in many

directions. Like firms in other industries, construction companies can promote

corporate philanthropy through a variety of causes. Hybrid Construction companies

(comprising of a combination of a local outfit and a foreign firm) have a significant

impact on the communities they build like all others. Well-designed houses can

improve quality of life, which in turn promotes good health. Community design and

construction affect the social life of the residents and can even lower crime rates.

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Well-lite roads, bike trails and jogging paths with good visibility and limited access

from shopping areas that attract a wider customer base all reduce crime. Responsible

design and construction affects all stakeholders -- employees, suppliers, homebuyers,

communities and even the government.

That notwithstanding, CSR activities comprises of three basic principles which are

sustainability, Accountability and transparency. (Crowther & Günter, 2008)

1.2 Problem Statement

In the wake of the surge in Ghana‟s real estate and construction industry in recent

times; several hybrid construction companies are in operation, offering construction

businesses to meet local demands. This study is to find the position these hybrids do

take in the account of the economic, social and environmental concerns; whilst acting

proactively to address the key sustainable development challenges based on their core

competences.

The Ghanaian construction industry (GCI) is still lacking in the CSR strategic

direction and hybrids are not left out. Despite, the increasingly importance of

corporate social responsibility in community development, very little studies have

been conducted in Ghana to examine the subject in the context of hybrid construction

organizations. (Badu, E., Owusu-Manu, D., Edwards, D.J., and Holt, G. D. 2013).

Thus, the very nature of the hybrid companies inevitably leads to the issues being

raised which must be dealt with by addressing pressing issues hindering corporate

social responsibility in the context of the Ghanaian construction industry (GCI).

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1.3 Aim of Research and objectives

The main aim of this research is to identify the hybrid construction firms in Ghana

and find out their knowledge and understanding of Corporate Social Responsibility.

1.3.1 Research Objectives

To find out if Corporate Social Responsibility exists among the construction

industry

To find out if it is being practiced

To know if it is not practiced and what is causing it not to be practiced

1.4 Research Questions

Are the hybrid construction firms aware of the existence of Corporate Social

Responsibility?

What benefits can be derived from the practice to both the company and the

society?

How can CSR be sustained within the hybrid construction firms?

1.5 Methodology

The research method of approach that would be used in the study includes:

The use of questionnaires

Sourcing of information from the internet

Relevant articles of interest

In depth analysis of published or unpublished data from books, journals,

unpublished student dissertations

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1.6 Scope of Study

Though the study indicates coverage of Ghana, it will be restricted to two regions of

Ghana, the Greater Accra and Ashanti regions.

1.7 Significance of Study

A wide range of corporations practices corporate Social Responsibility. It is through

this that the companies or corporations say thank you to the societies that helped their

businesses thrive and grow.

The research work will find whether CSR is being practiced among the hybrid

construction firms or not. This will prepare the ground for progress in the hybrid

construction firm or industry with respect to CSR; that is, how it can be implemented

in the hybrid construction industry given the situation that it is non-existent or how it

will be improved or encouraged if it is already being practiced.

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CHAPTER TWO

LITERATURE REVIEW

2.1 Definition and Evolution of Corporate Social Responsibility

2.1.1 Definition of Corporate Social Responsibility

The definition of Corporate Social Responsibility (CSR) has expanded and changed

over the years. One of the earlier definitions was by Howard Bowen who defined it in

1953 as “the obligations of business to pursue those policies, to make those decisions

or to follow those lines of action which are desirable in terms of the objectives and

values of our society.”

In 1970, the Committee for Economic Development commissioned a study that

introduced an interesting new dimension to the CSR debate. This study, in a paradigm

shift, held that there needed to be a balance between social and economic interests.

Although, a theoretical model had not been as yet accepted, there was a change when

in 1979, Carroll developed the Corporate Social Performance (CSP) model, in which

CSR, social issues and corporate social responsiveness were considered the leading

philosophy were considered prime examples of socially acceptable behavior for

corporations. While the CSP model bettered the CSR philosophies, it did not gain

popular application, because there was no way to measure and test the model.

Although the CSP model advanced CSR philosophies, it was not able to gain

widespread application because it lacked the ability to measure and test the model.

In 1999, Archie Carroll added more dimensions to the meaning of CSR .He explained

that “the term social responsibility is a brilliant one; it means something, but not

always the same thing, to everybody. To some it conveys the idea of legal

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responsibility or liability; to others, it means socially responsible behavior in an

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 see it as a

mere synonym for “legitimacy,” in the context of “belonging” or being proper or

valid; a few see it as a sort of fiduciary duty imposing higher standards of behavior on

businessmen than on citizens at large.”

William Frederick, a respected authority on the subject, has, himself, said that it

would be impossible to adequately conceptualize CSR in a single definition

(Frederick, 2006).

The failure to have a universal definition has been reviewed and debated by scholars.

There is a compelling research paper regarding the lack of a definition for CSR,

which analyzed as many as 37 of the most popular definitions, available through an

intensive examination of relevant journal articles and websites, analysis of the five

facets of CSR, and significantly, the calculation of the relative frequency of usage per

dimension. The analysis contended that while there were undeniable similarities

amongst the definitions, these definitions do not provide any solutions to the problem

of balancing the dimensions against one another for the purposes of decision making

(Dahlsrud, 2006). The corollary of this is that, business are less concerned with what

definition to follow, and more pressed with finding a universally applicable definition.

The International Standards Organization (ISO) has created an international standard

for the social responsibility of private (corporate) and public sector organizations. ISO

26000 establishes seven core subjects of social responsibility, all of which are parts of

most current CSR definitions:

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· Organizational governance

· Community involvement and development

· Human rights

· Labor practices

· The environment

· Fair operating practices

· Consumer issues

2.1.2 Evolution Of Corporate Social Responsibility

In the 1980s, the focus on developing new or refined definitions of CSR swayed

paving way for the splintering of writings on alternative or complementary concepts

and themes such as corporate social responsiveness, corporate social performance,

public policy, business ethics, and stakeholder theory/management, just to mention a

few (Carroll, 2008).

This era saw Jones (1980) entering CSR discussions with a definition Carroll (2008)

describes as an „interesting perspective‟. This perspective described CSR as:

„Corporate social responsibility is the notion that corporations have an obligation to

constituent groups in society other than stockholders and beyond that prescribed by

law and union contract. Two facets of this definition are critical. First, the obligation

must be voluntarily adopted; behavior influenced by the coercive forces of law or

union contract is not voluntary. Second, the obligation is a broad one, extending

beyond the traditional duty to shareholders to other societal groups such as customers,

employees, suppliers, and neighboring communities‟ (Jones, 1980 in Carroll, 2008).

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A notable example of alternative approaches of stakeholder theories that emerged in

the 1980s is Freeman‟s (1984) publication, which focused on stakeholder theories and

business ethics (Abe and Ruanglikhitkul, 2013 and Carroll, 2008).

Abe and Ruanglikhitkul (2013) stated that Wartick and Cochran‟s (1985) „Three-

dimensional model of principles, policies and processes‟ was also developed in the

1980s. Wartick and Cochran‟s (1985) concept focused on integration of the principles

of corporate responsibility, the policies of social issue management and the process of

action into an evolving system (Abe and Ruanglikhitkul, 2013).

Carroll (2008) stated that Epstein (1987) provided an explanation of CSR in his quest

to relate social responsibility, responsiveness, and business ethics. Epstein (1987) in

Carroll (2008) pointed out that these three concepts dealt with closely related, even

overlapping, themes and concerns. He is quoted to have said: „Corporate social

responsibility relates primarily to achieving outcomes from organizational decisions

concerning specific issues or problems which (by some normative standard) have

beneficial rather than adverse effects upon pertinent corporate stakeholders. The

normative correctness of the products of corporate action have been the main focus of

corporate social responsibility‟ (Epstein, 1987 in Carroll, 2008).

Generally, a very few unique contributions to the concept of CSR occurred in the

1990s. More than anything else, the CSR concept served as the base point, building

block, or point-of-departure for other complementary concepts and themes, many of

which embraced CSR thinking and were quite compatible with CSR. The prominent

themes which continued to grow and take center stage in the 1990s included the;

corporate social performance (CSP), stakeholder theory, business ethics,

sustainability, and corporate citizenship (Carroll, 2008).

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Abe and Ruanglikhitkul (2013) stated that Wood (1991) the concept of „Institutional

framework and extended corporate actions‟ which posited that four types of corporate

responsibilities (i.e., economic, legal, ethical and philanthropic) were linked to three

institutional levels (i.e., legal, organizational and individual), while corporate actions

are extended to assessment, stockholder management and implementation

management.

During the same period, the focus on developing new or refined concepts of CSR

gradually gave way to alternative approaches such as corporate citizenship (Pinkston

and Carroll, 1994), business ethics (Shapiro)

2.2 The Building and Construction Industry and Corporate Social Responsibility

2.2.1 Definition of Construction Industry

Construction is a term that covers a wide range of activities in civil engineering and

building which includes both new workers, repairs and maintenance (Oladapo, 1974).

Ogunpola (1974) has also said that the construction industry could be divided into two

main branches, namely building and civil engineering. He went further to say that

though a close structural relationship exists between the two branches, they are so

sufficiently distinguished that the building component can be successfully and

usefully studied independently of civil engineering branch of the industry. Anaman &

Osei-Amponsah, 2007 also described the construction industry as dealing with the

creation renovation, extension or repairs of building and other engineering

construction such as roads, bridges, dams, etc .

2.2.2 Contribution of the Construction Industry to Economic Development

A United Nations Environment Programme (UNEP) report noted that 10% of the

world economy is geared towards the construction and operation of homes and

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offices. The report continued, stating that between 16.67% to 50% of the world‟s

wood, minerals, water and energy is consumed by the industry. In return, the industry

employs roughly 7%, 8% and 5.5% of Europe, United States and Turkey respectively

(Kazaz et al., 2008). Because the African market for construction is saturated with

foreign contractors (Adinyira & Ayarkwa, 2010), the construction market has gained

a reputation for intense competition and market volatility.(Chang et al., 2007).

The importance of the construction industry in Ghana cannot be overestimated, as it

has overtaken the manufacturing sector as the third largest contributor to Ghana‟s

GDP (Anaman & Osei-Amponsah, 2007). Moreover, the construction industry

recorded 11.2% growth rate in the industry sector in 2012 (GNA, 2013) ahead of

other sub sectors in the Industry. The 2000 Population and Housing Census estimated

that 2.3% of Ghana‟s nine million economically active population were employed by

the construction industry, placing it 9th

out of 17th

industries that offer employment

(Population and Housing Census Report, 2001; Amankwa, 2003 cited from Fugar &

Agyakwah-Baah, 2010). This estimation has since risen to 3.8% of an economically

active population of 13 million in 2007 (Ghana Statistical Service).

2.2.3 Evolution of the Construction Industry in Ghana

The pre-and-post independence eras saw the domination of Ghana‟s construction

industry by industry giants, such as the Taylor Woodrow Company and the A Lang

Company, among expatriate firms operating in the country. Although the government

set up the State Construction Corporation in 1961 to undertake the construction of

vital infrastructure such as highways, feeder roads, urban roads and the like, in the

most cost efficient manner possible, the ineptitude of the corporation, in ways such as

under-estimation of projects, and an appalling inability to meet performance targets,

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led to agency becoming a public liability. This benefited the expatriate firms, because

their sheer size and better machinery and equipment among other assets, gave them a

stronger negotiation position with respect to contracts, at the expense of the

indigenous Ghanaian constructing. The result of this was that, with no lucrative

contracts, Ghanaian construction companies gradually lost their ability to expand, and

thus compete for more lucrative contracts.

Meanwhile, indigenous companies kept sprouting in the various regions, competing

for lucrative government contracts. However, these indigenous companies operated

unethically, adopting the practice of seeking 10% of the contractually agreed sum, and

then proceeding to drag their feet, as far as the completion of the projects were

concerned. Given this problem, the government continued to turn to the larger,

expatriate firms, for their construction needs. With the state owned SCC continuing to

be a liability, the government divested it in 1998-1999, further worsening the plight of

indigenous construction firms that have to compete unsuccessfully for contracts, with

the larger, more professional expatriate firms.

2.3 Ghanaian Construction Industry and Corporate Social Responsibility

The construction industry supply chain comprises numerous diverse players

embracing a wide range of businesses (Petrovic-Lazarevic and Violet, 2009; Satija

Kalpana, 2009). The industry can therefore, influence economic growth for three

reasons (Hillebrandt, 2000). First, because it contributes significantly to gross

domestic product (GDP) (DTI, 2004). For instance, between the period 2001-2007,

the GCI achieved average annual GDP of 8.2 per cent (Ghana Statistical Service,

2007) which is comparable to that of the UK (DTI, 2004). Badiane (2001) estimated

that developing countries‟ investments in housing alone, constitute 2-8 per cent of

GNP; 10-30 per cent of gross capital formation; 20-50 per cent of accumulated

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wealth; and 10-40 per cent of household expenditure. Second, because construction

interacts with other industries in a way that accelerates economic growth (Hillebrandt,

2000). Finally, because the industry employs a multi-skilled labour force, it positively

influences employment.

A recent study by Abugre and Nyuur, 2015 has shown that most public and private

firms in Ghana are committed to CSR however the extent of their contribution was

not investigated in this study. Lichtenstein et al, 2013 studied the CSR performance

by the construction sector and found that, approximately 43% of firms made a high or

very high contribution to CSR. In addition the study explored the contribution of CSR

as a percentage of company‟s annual turn-over and found that none of the companies

under consideration contributed more than 30% of their annual turn-over to CSR

suggesting that although construction companies may be committed to CSR, they do

so with a lot of financial prudence.

In regards to the policy direction with respect to CSR, a study conducted in Ghana by

Ofori and Hinson, 2007 has shown that corporate strategy of about half of the

internationally connected companies is determined outside the country, while 42%

determine their corporate strategy locally. On the other hand, 75% of the

internationally connected companies claim that their CSR strategy is determined

locally, contrasting with 85% for the general population. Thus, it would seem that the

operations of SMEs (local companies receive little strategic input from external

sources and even in the case of internationally connected firms, there is a tilt towards

local CSR strategy formulation.

Additionally with respect to specific activities undertaken under CSR, the study found

that both internationally connected companies and SMEs choose education as their

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most preferred choice vis-à-vis socially responsible action, with philanthropy

languishing at the bottom of that list. Internationally connected companies tend to

execute their social responsibility actions in the following order; safety,

environmental protection, healthcare, consumer protection and philanthropy. The

SMEs, on the other hand, rank their social responsibility activities in the following

order of importance; healthcare, safety, consumer protection and environmental

protection. Furthermore, as far as philanthropy is concerned, the internationally

connected companies would often prefer to rank sponsorship of events with their own

goods and services first, before cash donations, whereas the opposite is true for SMEs.

In socially responsible action, it would seem that SMEs (local companies) are more

inclined to resort to cash donations as a form of CSR activity.

2.4 Relevance of CSR in the Ghanaian Construction Industry

There is very limited literature on the importance of CSR on the construction industry

in Ghana however it is encouraging that available research shows a positive

relationship between a company's CSR actions and consumers' attitudes toward that

company and its products (Brown and Dacin 1997; Ellen, Mohr, and Webb 2006).

CSR in the construction industry is highly needed because the problems of wrong

material storage, poor materials handling, poor quality of materials, ordering errors,

mistakes in quantity surveys, poor attitudes of workers, poor supervision and the lack

of waste management plans (Nagapan et. al.,2013). Though CSR may not necessarily

address all these problems, the problems that impact negatively on the society and the

environment can be mitigated by carefully planned CSR projects.

There are several arguments supporting the possible benefits that companies, workers

and members of the community will get, because of their engagement in CSR

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initiatives (Hopkins,2003), however it is still imperative to gather more comparative

evidence on the environmental and social impacts of such initiatives ( Jeppesen

,2004). There are also several qualitative case-studies that have focused their

attentions on how these CSR initiatives have fared in the field of eradicating child

labour, improving the rights of labour and ensuring a reduction in pollution and

environmental degradation that affects workers and the communities of LDCs at

large.

In the case of telecommunication industry, for example, a lot has been done in Ghana

to win the affection of community members and dispel the belief that big co-

operations are just about profits. Health programmes and community outreaches have

made some of these brands seem like saviours to community members. There have

been ongoing case studies, for instance, in the international oil industry, of the

community development initiatives undertaken by the multinational corporations in

countries such as Sudan, Nigerian and Peru (Idemudia and Ite, 2006; Szablowski

2002; Idahosa 2002).

Although, there are small efforts being made as far as examining the impact of the

various types of CSR initiatives is concerned, it should be noted that CSR as a

discipline does not have adequately explicated methodologies that fully encapsulate

its effects (Barrientos, 2005). There is a clear dichotomy, however, between

methodologies designed to weigh compliance with procedure (e.g. with codes of

conduct) and those designed to examine the impact of such codes and their

commitment to ideals such as environmental degradation, reduction of poverty qnd

working conditions (Nelson et. al).

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2.5 Drivers of Corporate Social Responsibility

Corporate social responsibility (CSR) provides the challenge of enhancing the

conditions in the society and the environment, in order to put profit and economic

development and cost of natural depletion of the system at an equilibrium. The

obligation of a corporate entity to succeed i.e. achieving its economic goals (Dos,

2011) further makes this CSR a more challenging one. Corporate entities have also

come under incessant pressure to engage in CSR (Jenkins, 2009).

Notwithstanding, there are empirical evidences on the factors that lead to CSR

engagement in corporate entities despite these challenges. There have been a lot of

arguments that CSR has reached its tipping point (see for instance Back, 2011).

Tipping point as defined by Malcolm Gladwell is “the point of critical mass after

which an idea spreads widely and becomes generally accepted and broadly

implemented” (Back, 2011). Back (2011) explained that CSR has reached that point

because of five main factors – Increased Affluence, Ecological Sustainability,

Globalisation, Free Flow of Information and the Power of Brand. However, another

perspective was also looked at, and the main drivers identified as Consumer demands,

Investors, Government and public pressures (www.csrquest.net). This section

highlights the drivers of CSR engagement.

2.5.1 Brand Name/Image

Brands represent the main point of corporate success (Back, 2011). Brand name is

very significant in relation to marketing of products and services as well as winning of

contracts. Positive effects of a good brand boil down to increase in profits in corporate

entities. Company brand thrives on the public view of the corporation Back (2011). If

there is a loss of public confidence in corporate entities worldwide the effect is a

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decline in market which stifles the potential growth of corporate entities (www.

csrquest.net). Thus, CSR that is transparent is the only way to protect the image of

corporate entities and therefore the brand Back (2011).In addition to this, the ability

of corporate entities to attract quality staff would come from public knowledge of

their good deeds in CSR with respect to people and the natural environment (Green

Capital and CSR Sydney, 2008). Therefore Brand Name was seen a major cause of

CSR engagement in a research conducted by Green Capital and CSR Sydney (2008).

2.5.2 Company Culture/Value

Change is cultivated over a long period of time. The ability of a corporate entity to

practice CSR depends largely on company policy requiring the corporate entity to do

so. There should be a moral obligation that the companies have a duty to do good to

the community (Porter and Kramer, 2006). Therefore people in the company have

been identified as major drivers of change (Green Capital and CSR Sydney, 2008).

However, possibly the main driving force is the awareness of an increasing number of

our population that it is time for a fundamental change in the duties that businesses

play in a world that has to develop in a sustainable manner considering what they

gain. As a result companies join the relatively few companies that have adopted

corporate responsibility and sustainability as a business philosophy and strategy. And

this factor was identified as major driver of CSR engagement (Green Capital and CSR

Sydney, 2008)

2.5.3 Globalisation

The enormous significance of globalisation to CSR engagement cannot be overrated

(Back, 2011). Global activism and the increasing number of advocates are making

demands on corporate entities to act in a socially responsive way in order to earn their

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legitimacy (Juholin, 2004). Currently, Multinationals have come under severe attacks

and scrutiny from different organisations (Juholin, 2004). The core of the matter is the

increased wealth and power of multinational corporations which have led to a decline

in authority in nation-state, especially in developing countries (Back, 2011). He

further argued that increased wealth is directly proportional to increased responsibility

and globalisation has fueled the need to filter all strategic decisions through a CSR

lens to ensure optimal outcomes for diverse stakeholders.

2.5.4 Free flow of information

The new procedure is that numerous corporate entities now rank their performance of

CSR and these rankings attract public interest (Porter and Kramer, 2006). This means

only authentic and transparent corporate entities can benefit in the long term (Back,

2011). CSR has become a priority for business leaders worldwide as a result (Porter

and Kramer, 2006).

2.5.5 Competitive advantage

No matter how hard corporate entities try to engage in CSR their approaches remain

separated from business strategy making it less productive as compared to their core

goals (Porter and Kramer, 2006). This situation would however be different if

corporate entities make CSR a core goal and follow a strategic structure. CSR will

cease to be just philanthropy and become competitive advantage, which also, is good

for corporations (Porter and Kramer, 2006). Corporate entities that engage in CSR

automatically improve their business by gaining popularity and thus demand.

However, a good number of companies have gained competitive advantage having

understood the significance of CSR.

18

2.5.6 Ecological Sustainability

Probably the most obvious and talked about issue fueling CSR engagement is

concerned with pollution, waste, depletion of natural resources, climate change and

similar matters (Back, 2011). Clearly, it will be in the best interest of the corporate

entities to protect and sustain the environment they thrive on. The Norwegian Prime

Minister, Gro Harlem Brundtland, defined sustainability excellently as “meeting the

needs of present without compromising the ability of future generations to meet their

needs” (Porter and Kramer, 2006). Therefore, actions by corporate entities that are

socially detrimental and environmentally wasteful should be avoided as much as

possible, and at worst, controlled (Porter and Kramer, 2006). Thus many movements

have sprung up advocating that corporate entities should achieve commercial success

without depleting our natural resources. This advancement is the outstanding goal of

the leading nonprofit CSR business organization in the United States – Business for

Social Responsibility (Porter and Kramer, 2006).

2.6 Benefits of Corporate social Responsibility Engagement

The benefits derived from CSR have been studied by different authors (for instance

Sun and Yuan, 2010; Green Capital and CSR Sydney, 2008; Jones et al., 2006;

Morsing and Schultz, 2006; Welford and Frost, 2006; Dawkins, 2004; Leonard and

McAdam, 2003). The benefits were found to be both financial and non-financial

(Green Capital and CSR Sydney, 2008). CSR is becoming rapidly more important in

the corporate business world (Leonard and McAdam, 2003). Moreover, in times of

business scandal, the only way to attain or secure public (consumers) assurance is by

engaging in CSR. However, Porter and Kramer (2006) argued that CSR should not

only be about what businesses have done that is wrong.

19

CSR can be viewed at from two different contexts – internal and external. Engaging

in CSR brings certain gains to the corporate business world (internal benefits), while

society or the environment benefits from CSR (external). This section throws more

light on the benefits or gains derived from CSR engagement.

2.6.1 Improved Brand Image

The apparent benefit of CSR engagement by businesses is the unlimited spread of the

firm‟s name (Green Capital and CSR Sydney, 2008) and the protection of brand

image (Leonard and McAdam, 2003). Although, this benefit is non-financial (Green

Capital and CSR Sydney, 2008) given the importance of brand name or image in the

corporate business world; there would be increase in profit margins. Furthermore, all

the benefits that are associated with brand image would increase because of the

improvement in brand image as a result of the CSR engagement.

2.6.2 Attracting good and quality staff

The success in businesses of companies is vested in many factors one of which is

good and quality staff or workers. Partaking in CSR has been found to attract good

and quality staff (Green Capital and CSR Sydney, 2008). Safe products and good

working conditions do not only attract good and quality workers; but also attract

customers (Porter and Kramer, 2006). The attraction of good and quality staff results

in increased output and hence assist in business growth.

2.6.3 Competitive Advantage

A definition of competitive advantage is the ability of firms to dominate their

counterparts as a result of a unique advantage they enjoy. Companies that engage in

CSR do not only help the society, but also gain competitive advantage in return, even

in the attraction and retention of workers (Cochran, 2007).

20

2.6.4 Higher staff retention

“The action that the enterprise performs its responsibility for the employees can help

to improve their loyalty, make them work efficiency and reduce the cost of human

resources, so as to improve the corporate value” (Sun and Yuan, 2010). Many authors

have studied this benefit. Green Capital and CSR Sydney (2008) identified it as a

major or significant benefit. A company‟s engagement in CSR exposes it to having

many people applying to be part of the company. These employees are likely to be

more eager and their attitude towards works increase and hence increase in

productivity. All these may provide the company with competitive advantage.

2.6.5 Reduced regulatory oversight

Companies that partake in the engagement of CSR face less audit by local and

national government. Such companies are also in higher positions to fully enjoy

2.7 Challenges of CSR Engagement

Regardless of the attempts by corporate bodies to engage in CSR, these efforts are

come with numerous challenges. Among the challenges is the argument of making the

public aware of CSR. This section highlights on the challenges of CSR engagement.

2.7.1 Time consuming

CSR engagement can be very time consuming. What is more disturbing is its

competition with core business objectives, especially in the wake of corporate

business competition. More so, companies thrive on competition and market forces

(Frankental, 2001). Consequently, businesses find it difficult to grant time to CSR

objectives (Green Capital and CSR Sydney, 2008).

21

2.7.2 Communication

Despite the increasing recognition of the need for companies to be socially

responsible, communication of such responsibilities often remains a missing link in

the practice of corporate responsibilities (Dawkins, 2004). Apparently, companies are

not credited or given credits for their responsible corporate behaviours. Moreover,

there is no overwhelming evidence that a company loses substantially, share profits

when failed to engage in CSR (Frankental, 2001). As a result most companies fail to

be socially responsible. That is to say there‟s no incentive for companies to engage in

CSR since those social engagements do not feed into the companies‟ share profit

(Frankental, 2001).

2.7.3 Lack of resources

To engage in sustainable practices requires resources (Green Capital and CSR

Sydney, 2008). Usually CSR engagement is seen as a waste of company‟s resources

since it is regarded as not part of the company‟s core business (Porter and Kramer,

2006). Hence, all resources are directed towards the core objectives of companies

often at the neglect of social responsible behaviours (Green Capital and CSR Sydney,

2008).

2.8 Challenges of CSR Engagement in the Ghanaian Construction Industry

Most construction firms in developing countries do not have the capacity to meet the

demands of high quality construction work (Didibhuku and Mvubu, 2008). As a

consequence of this, there is a palpable disinclination to innovation, where otherwise

would have allowed them to compete with the wealthier, more powerful construction

firms in the developed countries. Besides, most of construction firms in developing

countries have no requisite experience and are small which make it difficult for them

22

to compete effectively (Adnan et al., 2006). Weak organaizational and institutional

conditions, for instance, continue to inhibit and thwart efforts at growth by the small

construction firms. (Ligny and Erkelens, 2008).

23

CHAPTER THREE

RESEARCH METHODOLOGY

3.1 Introduction

The research was undertaken on the observation that CSR has recently gained

substantial ground and there is much propagation for it to be inculcated into the crux

of construction companies businesses. The imparity between current needs of society

and the available resources; and also the threat the construction industry poses, makes

it more essential to study the degree of CSR engagement among Ghanaian hybrid-

Construction companies. To achieve the research aim and objective, this chapter

presents the research strategy, research design and development process that were

used before administering of the questionnaires. The chapter threw more light on the

sampling technique and characteristics of the sample size; also the statistical tool

adopted for the data analysis is discussed.

3.2 Research Strategy and Design

In order to find solution to the research problem, it is essential to technically resolve

relationships between variables in a situation and analyze the relationship and

additional connections (Nenty 2009). The research design is a master plan that shows

how the research is to be conducted. However, this research adopts a questionnaire

survey in an attempt to explore the degree of CSR engagement of hybrid-contracting

firms. Naoum (1998) defines research strategy as the enquiry of research objectives.

A quantitative approach is adopted for this research. Quantitative research methods

lay emphasis on statistics and data that can be generalised.

24

3.3 Sampling and Population

Population refers to a unit or group of interests located in a geographic area of interest

during the time of interest (Taylor-Powell, 1998). The research is focused on hybrid-

contractors in the Accra and Kumasi Metropolis. The choice of the location was

influenced by the new developments springing up in these regions and also the

highest population of consultants and contractors.

The population targeted in this study was hybrid-contractors in the construction

industry within the Accra and Kumasi Metropolis. Sample can be described as using a

part to represent a whole. Information obtained from the sample can be used to

generalize, only to the population from which the sample was taken (Taylor-Powell,

1998).

3.4 Sampling Technique

The sampling technique employed in this study was the purposive sampling.

Purposive Sampling is a sampling technique where the researcher decides who to

engage in the research. This technique is selected because it allows information that is

important to the study to be added and also specifics are dealt with rather than

general.

3.5 Sources of data and data collection

Both primary (field survey) and secondary (literature review) data were employed in

this research. The primary and secondary data were collected to cover every aspect of

the research. The primary data sources in this research include contractors in the

construction industry.

The questionnaire sought to establish, the degree of CSR engagement of hybrid

contactors in the Ghanaian construction industry. The questionnaire is divided into

25

two main parts, with Section A relating to the general information and background of

the respondent. Section B included questions on the barriers, challenges and drivers of

CSR in the Ghanaian construction industry.

3.6 Data Presentation and Analysis

The retrieved questionnaires were coded and analyzed using simple statistical tools

such as the Statistical Package for Social Sciences (SPSS) 20.0 and Microsoft Excel.

To clarify the discussion in this exercise, the data obtained are presented graphically

and in tabular form. Information involving the background of respondents was

presented in pie charts and bar graphs. The outcome of the study was assessed with

the research objectives and questions.

26

CHAPTER FOUR

DATA ANALYSIS AND DISCUSSION OF RESULTS

4.1 Introduction

The chapter presents analysis on the data collected from the various respondents in

the construction industry. Respondents were purposively sampled from the hybrid

construction companies. This chapter provides overview on the analysis and

discussion of results of the data collected in order to explore the extent of CSR

engagement by hybrid construction companies in the Ghanaian construction industry

in their region of operation.

The study employed the use of Statistical Package for Social Sciences (SPSS) and

Microsoft Excel for the data presentation, description and analysis. The statistical

tools used for the analysis were the Factor Analysis, Relative Importance Index (RII),

Mean Score rankings, Standard deviations and one sample t-test to analyse the

dependent variables. This chapter also presents the results of the analysis and

discussions in the form of texts, figures and Tables. The chapter is organized as

follows; Background information of Respondents and analysis of dependent variable.

The analysis is based on the number of questionnaires retrieved – 80%. Out of the

sixty (60) questionnaires administered, twenty (34) were completed and returned.

4.2 Analysis of Demographic Variables

The section is dedicated to the analysis of the background of the respondents and

covered among other things position, annual turnover of the company, size of

company, and their involvement in corporate social responsibility. Such analyses are

27

necessary because the background of the respondents is to give credibility of data

collected; and thus the findings of the study.

4.2.1 Position in Establishment

The intention of the question was to establish the position of respondents in their

respective companies. It considered that such analysis is imperative as the position in

the company influences things such as company policies which include the integration

of CSR in company strategic plans. The findings (refer to Fig. 4.1) revealed the

following: Managing Director – 5, Quality Assurance Officer – 7, Human Resource

Manager – 6, Public Relations – 4 and Environmental Manager – 4, Contracts

Manager – 2, Quantity Surveyor – 6 .

Figure 4.1 Position of respondents

28

4.2.2 Annual Turnover of Company

Annual turnover of a company refers to the percentage rate at which a mutual fund or

exchange-traded fund replaces its investment holdings on an annual basis. Turnover is

meant to adjust for the inflows and outflows of cash and report on the level of trading

activity in the fund. Annual turnover invariably determines areas of company

investment. Hence, the question was to establish the level of annual turnover of

companies involved in the survey. From the Table 4.1 below, 17.6% had annual

turnover of between GhC 1 - 5 million and the remaining 82.4% experience annual

turnover of above GhC 5 million. This shows that the companies receive much from

the society and should therefore also give back to the society.

Table 4.1 Annual Turnover of Company

Annual Turnover Frequency Valid Percent Cumulative Percent

Between GhC 1 - 5 million 6 17.6 17.6

Above GhC 5 million 28 82.4 100.0

Total 34 100.0

4.2.3 Size of Company in terms of number of employees

The study already focused on hybrid construction companies which most belong to

D1K1; and per the classification of Ministry of works and housing are large

construction companies. However, the study also sought to know the sizes of the

company in terms of the number of employees. Consequently, the respondents were

asked to indicate the number of employees. The question was of the view that

companies that engage in CSR activities or have CSR activities integrated in their

companies‟ core objectives are likely to have higher number of employees. Figure 4.2

presents a graphical view of the results. It is apparent from the results that most of the

companies have employees more than forty (40) i.e. representing 97.1%%, whereas

29

2.9% have employees in the range 20-40. This findings also reveal that most hybrid

contractors (97.1+2.9=100%) lie in the bracket of medium enterprises (see for

instance Dalitso and Joshua, 2010). And therefore

Figure 4.2 Size of company

4.2.4 Years of Experience in CSR Engagement

Common sense has it that all things being equal, the years of experience in a

particular discipline or engagement influence inter alia the challenges and benefits.

Hence, this subsection was intended to establish the years of experience in CSR

Engagement of the companies. Table 4.2 shows that the average experience in CSR

engagement is 2.94 years. The maximum and minimum number of experience in CSR

engagement is 4years and 1 year respectively. This shows that the respondents have

relatively good experience in CSR and their responses would thus be credible.

Table 4.2 Years of Experience in CSR Engagement

30

N Minimum Maximum Mean Std. Deviation

experience in

corporate social

responsibility

engagement

34 1.00 4.00 2.9412 1.07142

4.2.5 Integration of CSR into Core objectives of the Company

The significance of CSR can be gleaned from how companies treat CSR activities.

Here the emphasis was on whether CSR activities are treated as core business

objectives in hybrid construction companies. From Figure 4.3 below, 23 of the

respondents perceived that CSR formed part of their core business objectives, whereas

the remaining 11 perceived that CSR was not part of their core business objective.

This shows that majority of the Hybrid companies treat CSR as part of their core

business objectives and as such their responses are valid for this study.

Figure 4.3 CSR as core business objective.

31

4.3 Analysis of Dependent Variables

Under this section, questions relating to the key objectives of the study are analysed

and discussed. These include the activities practiced by the hybrid firms as CSR

activities and the challenges they face in practicing CSR activities. The succeeding

sub-sections presents in details the analysis and discussion of the dependent variables.

4.3.1 CSR Activities of the Hybrid Companies

Table 4.3 indicates a summary of the CSR activities engaged by the Hybrid firms. For

each of the activities the ratings by the respondents ranged from 1 (Never considered

in business) to 5 (i.e. always considered). The aggregated ratings by the individual

respondents (i.e. mean ratings) indicate that restoring the environment as the main

CSR activity with mean of 3.97 (with Std. Dev. = 0.99). Reducing natural resources

consumption with a mean rating of 2.3235 (with Std. Dev. = 1.14734) was ranked the

least activity.

From Table 4.3, the standard deviations are relatively large compared to the mean

ratings and this indicates that there is variability in the data. These generally mean

that the mean ratings are a good fit of the data (Field, 2005). The standard error is the

standard deviation of sample means and is a measure of how well a sample represents

a population (Field, 2005). A large standard error (relative to the sample mean)

suggests that there is a lot of variability between means of different samples. A small

standard error suggests that most sample means are similar to the population mean

and so the sample is likely to be an accurate reflection of the population (Field, 2005).

The standard error values associated with all the means are relatively close to zero

suggesting that the sample chosen is an accurate reflection of the population.

32

From the Table 4.3, 50% of the underlisted activities are considered in business by the

Hybrid firms, whereas the remaining activities are rarely considered in business.

Table 4.3 Descriptive Statistics of CSR activities

N Mean Std. Deviation

CSR Activities Statistic Statistic Std. Error Statistic

Restoring the environment 34 3.9706 .17142 .99955

Reducing adverse impacts on

consumers 34 3.5588 .17505 1.02073

Using sustainable technologies 34 3.4412 .20766 1.21084

Linking community engagement

and business success 34 3.4118 .15864 .92499

Developing green products 34 3.2941 .20480 1.19416

Developing donations to charity 34 2.8235 .20014 1.16698

Using CSR as a source of

commercial innovation 34 2.7059 .19130 1.11544

Measuring and reporting on CSR

impact issues 34 2.5882 .17468 1.01854

Developing volunteer program 34 2.4118 .19402 1.13131

Reducing natural resources

consumption 34 2.3235 .19677 1.14734

As indicated in Table 4.3, restoring the environment is the mostly practiced CSR

activity by Hybrid construction firms in Ghana. The activity obtained a mean value of

3.97 and a standard deviation of 0.9996. Consequently, the activity was ranked first

by the respondents altogether. The probable explanation is that construction activities

endangers the environment through the core activities of construction such as blasting,

excavation, etc. It was therefore not surprising that the first CSR activity engaged by

Hybrid firms is restoring the environment.

Restoring the environment was followed by reducing adverse impacts on consumers.

The two activities are closely related, in that restoring the environment would result in

reducing adverse impacts on consumers. The activity ranked second and obtained a

33

mean value of 3.56. However, it obtained a Std. Dev. above 1.00 suggesting

inconsistency in the level of agreements among the respondents.

Surprisingly, reducing natural resources consumption was the least practiced CSR

activity. The construction industry is noted to be the greatest consumer of natural

resources and as such it would have been expected that plans to reduce its

consumption should be the prime CSR activity. However, as suggested by this survey

hybrid construction firms rarely practice CSR activities that attempt to reduce natural

resources consumption. The activity had a mean value of 2.32.

4.3.2 Challenges of CSR Engagement by Hybrid Construction Firms

This subsection highlights on the challenges of CSR engagement by hybrid firms. The

challenges obviously hinder the practice of CSR activities and in consequence the

study sought to establish the challenges that hinder the practice of CSR activities. In

an attempt to establish the severity of the challenges, respondents were asked to rate

the challenges on a scale of 1-5. Where 1 represented not severe, 2 = not very severe,

3= neutral, 4= severe, and 5= very severe. The mean score ranking was thus utilised

in the rating of these strategies. Table 4.4 provides a summary of the descriptive of

the benefits. The aggregated ratings by the individual respondents (i.e. mean ratings)

indicate that lack of coherent strategy is the highest and time consuming was the least.

34

Table 4.4 Descriptive Statistics of Challenges of CSR engagement

Challenges N Mean Std. Deviation

lack of coherent strategy 34 3.4118 .78306

lack of resources 34 2.8824 .94595

communication 34 2.5294 .92884

lack of market incentives within the

industry 34 2.4412 .92740

unsupportive reward structures 34 2.3235 1.12062

time consuming 34 2.2941 .90552

From Table 4.4, the major challenge of CSR engagement is lack of coherent strategy.

The challenge was ranked first by the respondents obtaining a mean value of 3.41 and

a standard deviation less than 1.00.

The second ranked challenge was lack of resources. This study confirms the already

established position of Porter and Kramer (2006) that CSR engagement when not

regarded as core business objective is perceived as a drain on company‟s resources

and therefore a challenge. To engage in CSR activities requires resources and the lack

of resources can be an impediment to CSR engagement.

The third ranked challenge of CSR engagement is communication. Dawkins (2004)

noted that despite the increasing advocacy for such practices, the challenge is the

missing link in the practice of such responsibilities – communication. This study

identified communication as a challenge of CSR engagement

35

CHAPTER FIVE

CONCLUSION AND RECOMMENDATION

5.1 Introduction

In recent years, CSR has gained much attention in its implementation especially in

the Construction Industry. The Ghanaian construction industry provides market

for local and international firms alike. As a result, there has emerged hybrid

construction companies comprising local and international stakeholders. These

firms, directly or indirectly owe the society a responsibility. Despite, the

increasingly importance of corporate social responsibility in community

development, very little studies have been conducted in Ghana to examine the

subject in the context of hybrid construction organizations. (Badu et al., 2013).

These discussions stimulated this study and accordingly the study was aimed at

exploring the extent of CSR engagement by hybrid construction companies in the

Ghanaian construction industry. The previous chapters presented the theoretical

underpinnings of the study, procedures for addressing the research theme,

analysed and discussed the results of the study. Finally, this chapter presents the

results of the study in relation to the laid out objectives of the study.

Recommendations from the study are clearly defined. The study limitations and

directions for future research are also presented.

5.2 Attaining the Research Objectives

This study was with the aim of exploring the extent of CSR engagement by hybrid

construction companies in the Ghanaian construction industry in their regions of

36

operation. In order to realise the above stated aim, several research objectives

were set. The objectives include:

To find out if CSR exists among the hybrid construction companies in

Ghana

To identify the activities hybrid construction firms engaged in as part of

their CSR.

To explore the inherent challenges of CSR engagement by Hybrid

construction companies in the Ghanaian construction industry.

In order to explore the extent of CSR engagement by hybrid contractors in the

Ghanaian Construction Industry, a holistic review of germane literature was

performed to establish the drivers, benefits and challenges of CSR engagement.

Subsequently, the aforementioned objectives were set around them. Under this

subsection, the various objectives are revisited and the extent to which they were

accomplished throughout the various phases of the study.

OBJECTIVE 1: To find out if Corporate Social Responsibility exists among

the hybrid construction companies in Ghana

Here, some important issues underpinning the engagement of CSR were

identified. The evolution of CSR, the threats construction poses to the

environment and as a result the need for the integration of CSR in the core

business of construction firms were all discussed under this objective.

Subsequently, respondents were asked to indicate the extent of CSR integration

into the core business objectives by responding to a categorical alternatives, YES

or NO. Majority of the respondents indicated that CSR existed and actually

formed part of their core business objectives.

37

OBJECTIVE 2: To identify the activities hybrid construction firms engaged

in as part of their CSR.

Following objective one, the study was also interested in establishing the activities

the hybrid firms engaged in. Hence, this objective was achieved by asking the

respondents to rank on a Likert scale of 1 to 5 the activities they consider in

business. The study considered that if these activities are consider in business,

then they are practiced by the firms. Overall the study showed that out of the ten

(10) activities identified half is practiced by the firms, whereas the remaining half

is rarely practiced. The often practiced activities include restoring the

environment, reducing adverse impacts on consumers. However, surprisingly

reducing natural resources consumption was the least practiced CSR activity.

OBJECTIVE 3: To explore the inherent challenges of CSR engagement by

hybrid construction companies in the Ghanaian construction industry.

Every endeavour presents its own unique challenges and the resolution of the

challenges inevitably lead to the uptake of such endeavour. This discipline, like

many other disciplines is inundated with challenges. From literature, six

challenges were identified. Subsequently, respondents were asked to rate the level

of significant of the challenges. The challenges indicated as severe include lack of

coherent strategy, lack of resources and communication.

38

5.3 Practical Implication of the Study

The insight given by this study has implications for improving CSR engagement

by hybrid firms in the Ghanaian Construction Industry and these are considered

below:

Central Regulatory Body

A regulatory body backed by a parliamentary act must be set up to oversee the

CSR activities of the various construction companies. Although, almost all the

respondents claim their companies engage in CSR or have it as part of their core

business, there must be annual reports submitted to these agencies for perusal.

Coherent Strategy

The major challenge of CSR engagement by hybrid construction companies was

identified as lack of coherent strategy. The companies must therefore develop

coherent strategies, not the usual disjointed and fragmented approaches to CSR

engagement. It must be seen more of a core business value capable of getting

return on investment rather than as a benevolent act. A unit to handle such

practices is necessary to devising coherent strategy.

5.4 Limitation of the Study

As with any research endeavour this study also had certain limitations. The study

was limited geographically to only hybrid construction companies in Accra and

Kumasi in the Greater Accra and Ashanti region respectively. Thus the sample

used for the study was affected. There was the possibility of the mean values

being affected if the sample size was increased.

39

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Uwafiokun Idemudia and Uwem E. Ite, 'Corporate-community relations in

Nigeria's oil industry: challenges and imperatives', Corporate Social

Responsibility and environmental management 14: 3, 2006, pp. 194-206.

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APPENDICES

APPENDIX : RESEARCH QUESTIONNAIRE

Corporate social responsibility (CSR) in recent times has gained much attention in

its implementation among corporations, which are critical actors in the political,

economic, social, cultural and environmental development of all countries.

Consistent with McWilliams and Siegel (2001), we define CSR as situations

where the firm goes beyond compliance and engages in “actions that appear to

further some social good, beyond the interests of the firm and that which is

required by law.”

The information obtained from this survey shall be kept anonymous and

completely confidential. Only findings in aggregate form will be submitted to the

relevant authorities.

Your participation in this survey is much needed and we will be grateful if you

could answer these few questions.

We would like to thank you for your cooperation in completing these questions

SECTION A: BACKGROUND OF RESPONDENTS

1. Please indicate your position in your establishment?

a) Chief Executive Officer/Senior Management

b) Quality Assurance Officer

c) Human Resource Manager

d) Other [Please specify …………………………………….]

2. What is the annual turnover of the company

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a) Less than Gh₵ 1 million

b) Between Gh₵ 1 – 5 million

c) Above Gh₵ 5 million

3. What is the size of your company in terms of the number of employees

a) Less than 20

b) From 20 – 40

c) Above 40

4. Please indicate your years of experience in Corporate Social

Responsibility Engagement?

a) Less than 1 year

b) From 1 – 3 years

c) Between 3-5 years

d) Above 5 years

5. Is Corporate Social Responsibility integrated in the core objectives of the

company?

a) Yes

b) No

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SECTION B: CORPORATE SOCIAL RESPONSIBILTY IN THE GHANAIAN

CONSTRUCTION INDUSTRY

I. In your experience, which of the following CSR activities does your firm

usually engage in? Please indicate the level of consideration of each factor

by ticking the appropriate boxes.

1-Never considered in business, 2-Rarely considered in business, 3-

sometimes considered in business, 4-mostly considered in business, 5-

Always considered in business

A. CSR Activities Rank

1 2 3 4 5

1. Reducing adverse impacts on

consumers

2. Restoring the environment

3. Reducing natural resources

consumption

4. Measuring and reporting on CSR

impact issues

5. Developing donations to

charity/philanthropy

6. Developing volunteer program

7. Using sustainable technologies

8. Developing green

products/services

9. Using CSR as a source of

commercial innovation

10. Linking community engagement

and business success

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II. In your experience, which of the following factors are the causes of CSR

engagement in Ghana? Please indicate the level of influences of each

factor by ticking the appropriate boxes.

1-Not Very Important, 2-Not Important, 3-Moderately Important, 4-

Importantr, 5-Very Important

B. Causes of CSR

engagement

Levels of influence

1 2 3 4 5

1. Brand Name/Image

2. Consumer demands

3. Company

Culture/Value

4. Globalization

5. Free flow of

information

6. Competitive

advantage

7. Ecological

Sustainability

III.

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IV. In your experience, which of the following factors are the challenges to

CSR engagement in the construction industry in Ghana? Please indicate

the level of influences of each factor by ticking the appropriate boxes.

1-Not Very Severe, 2-Not Severe, 3-Moderately Severe, 4-Severe, 5-Very

Severe

C. Challenges levels of influence

1 2 3 4 5

1. Time consuming

2. Communication

3. Lack of resources

4. Lack of Coherent

Strategy

5. Lack of market

incentives within

the industry

6. Unsupportive

reward structures

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V. In your experience, which of the following are benefits to CSR

engagement in the construction industry in Ghana? Please indicate the

level of influences of each factor by ticking the appropriate boxes.

1-Not Very important, 2-Not important, 3-Moderately important, 4-

important, 5-Very important

D. Benefits levels of influence

1 2 3 4 5

1. Improved Brand

Image

2. Attracting good and

quality staff

3. Competitive

Advantage

4. Higher staff retention

5. Cost savings

THANK YOU