Culture and Credibility in CSR Communication
-
Upload
catalin-c-kadar -
Category
Documents
-
view
219 -
download
0
Transcript of Culture and Credibility in CSR Communication
-
8/13/2019 Culture and Credibility in CSR Communication
1/164
...
, 24251
,
1
200
-
8/13/2019 Culture and Credibility in CSR Communication
2/164
CULTURE AD CREDIBILITY I CSRCOMMUICATIO
2
1. Introduction ...................................................................................................................................... 4
1.1 Problem statement ...................................................................................................................... 5
1.2 Purpose ....................................................................................................................................... 5
1.3 Theory and method .................................................................................................................... 6
1.4 Structure ..................................................................................................................................... 7
1.5 Selection of companies .............................................................................................................. 9
1.6 Delimitation ............................................................................................................................... 9
2. Corporate Social Responsibility..................................................................................................... 10
2.1 CSR communication ................................................................................................................ 11
2.2 Organisational responsibilities ................................................................................................. 11
2.3 CSR in the international food industry .................................................................................... 13
2.3.1 Results from analysis of industry specific CSR issues ..................................................... 13
2.3.2 Framework for discourse analysis..................................................................................... 17
2.4 CSR and culture ....................................................................................................................... 22
2.4.1 The organization situated in a cultural system .................................................................. 23
2.4.2 Explicit vs. implicit CSR .................................................................................................. 24
2.4.3 CSR in Denmark ............................................................................................................... 25
2.4.4 CSR in the US ................................................................................................................... 26
2.5 Summary of CSR and culture .................................................................................................. 28
3. Credibility ...................................................................................................................................... 29
3.1. Ethos........................................................................................................................................ 29
3.1.1 The dimensions of ethos ................................................................................................... 31
3.2 Operationalising ethos.............................................................................................................. 32
3.2.1 The Ethos Model ............................................................................................................... 33
3.3 Summary of credibility ............................................................................................................ 35
4. Analysis of CSR discourse ............................................................................................................. 36
4.1 Presentation of empirical material ........................................................................................... 36
4.1.1 Background for CSR profile: Arla Foods ......................................................................... 36
4.1.2 Background for CSR profile: Smithfield Foods ............................................................... 38
4.2 Analysis of Arlas CSR discourse ............................................................................................ 39
4.2.1 Preliminary conclusion on Arlas CSR discourse ............................................................. 42
4.3 Analysis of Smithfields CSR discourse .................................................................................. 43
-
8/13/2019 Culture and Credibility in CSR Communication
3/164
CULTURE AD CREDIBILITY I CSRCOMMUICATIO
3
4.3.1 Preliminary Conclusion on Smithfields CSR discourse ............................................. 48
5. Analysis of ethos ............................................................................................................................ 50
5.1 Arla........................................................................................................................................... 50
5.1.1 Expertise............................................................................................................................ 50
5.1.2 Character ........................................................................................................................... 54
5.1.3 Goodwill............................................................................................................................ 55
5.1.4 Conclusion on ethos analysis of Arla ................................................................................ 56
5.2 Smithfield ................................................................................................................................. 57
5.2.1 Expertise............................................................................................................................ 57
5.2.2 Character ........................................................................................................................... 58
5.2.3 Goodwill............................................................................................................................ 59
5.2.4 Conclusion on Smithfields ethos analysis ....................................................................... 60
6. Discussion ...................................................................................................................................... 61
6.1 Comparison of Arla and Smithfield ......................................................................................... 61
6.1.1 Response to problem areas ................................................................................................ 61
6.1.2 Relations to stakeholders .................................................................................................. 62
6.1.3 Providing proof ................................................................................................................. 65
6.2 Differences based on explicit vs. implicit CSR ....................................................................... 65
7. Conclusion ..................................................................................................................................... 69
References .......................................................................................................................................... 73
Appendices ......................................................................................................................................... 78
Characters: 123.008
-
8/13/2019 Culture and Credibility in CSR Communication
4/164
CULTURE AD CREDIBILITY I CSRCOMMUICATIO
4
1.
In modern society, it is not enough for companies to simply provide consumers with a satisfying
product. Factors such as political consumerism, globalisation and information technology have
influenced consumers to become more educated and critical. Modern consumers therefore not only
demand satisfying products to fulfil their needs, but they also consider less tangible factors such as
the corporate social responsibility (CSR) strategy of the company1.
CSR is based on the idea that firms have responsibilities towards society and stakeholders which go
beyond profit making. In order to meet the demands of their stakeholders, the trend of
communicating CSR on corporate websites has increased in recent years2.
As a consequence of the increase in CSR communication, the demand for guidance on how tocommunicate CSR was also augmented. Scholars, such as Nielsen and Thomsen3, have engaged in
research on how and what to report in terms of CSR. However, other research showed that CSR
does not only differ between companies, but also between cultures. Some of the scholars who have
conducted research in the area of CSR and culture are Maignan and Ralston4and Matten and
Moon5. Their results showed that culture has an influence on, amongst others, the extent to which
CSR is communicated and how firms present themselves as responsible CSR companies6.
In terms of the extent of CSR communication, research indicated that Danish firms have
traditionally communicated less openly about their CSR activities than US firms7. However,
Morsing et al.8argue that the Danish traditional approach turns towards an Americanisation and
that Danish companies increasingly engage in more open CSR communication.
Additionally, research showed that cultural differences have an effect on companies self-portrayal
as responsible citizens, and Morsing et al.9argue that consumers in Denmark seem to be more
sceptical towards companies intention of communicating CSR than US consumers10
.
1http://kommunikationsforum.dk/?articleid=12048
2Morsing et al. (2006), p. 153Nielsen & Thomsen (2007)4Maignan & Ralston (2002)
5Matten & Moon (2008)
6Maignan & Ralston (2002), p. 497 and Sotorrio & Sanchez (2008), p. 3797
Morsing et al. (2006), p. 238Ibid.9Ibid., p. 3010
Ibid., p. 30
-
8/13/2019 Culture and Credibility in CSR Communication
5/164
CULTURE AD CREDIBILITY I CSRCOMMUICATIO
5
1.1
Based on the above-mentioned research results and theories by e.g. Maignan and Ralston and by
Matten and Moon, who argue for certain cultural differences in CSR communication, this thesis will
examine and discuss CSR communication by a company from the US and Denmark, respectively, in
order to examine the nature of cultural differences. It will also be discussed whether these cultural
differences are shaped as indicated by relevant theory and previous research or whether there is
evidence that Denmark moves away from its traditional CSR approach towards Americanisation.
Furthermore, it is assumed that one of the cultural differences is that consumers in Denmark are
more sceptical towards companies intention behind CSR communication. In this relation, the
assumption is that scepticism towards CSR is reflected in the CSR communication of the Danish
company, as the company needs to be more careful in portraying themselves as a credible company.
The problem statement therefore is as follows:
By analysing the CSR communication of a Danish and a US company, this thesis examines how the
national cultures of these two firms influence the way in which CSR is communicated and
portrayed. Are theories and results from previous research right about the nature of cultural
differences, or is there evidence of Americanisation of the traditional Danish approach?
Furthermore, this thesis will examine the assumption that Danish companies express credibility in
CSR communication differently than US companies, due to more sceptical consumers in the Danish
culture.
1.2
The overall purpose of this thesis is to contribute to an understanding of how CSR is framed within
the cultural bounds of the US and Denmark.
More specifically, the purpose of this thesis is to study general differences in the communication of
CSR, as well as how companies in Denmark and the US express credibility in the companies CSR
communication. This is based on the assumption that Danish companies need to be more concerned
with portraying themselves as credible CSR companies, due to consumer scepticism towards the
companies intentions behind CSR.
-
8/13/2019 Culture and Credibility in CSR Communication
6/164
CULTURE AD CREDIBILITY I CSRCOMMUICATIO
6
For both analyses the purpose is also to establish whether American and Danish companies use the
traditional approach for their cultures, as established by previous research11or whether there is
evidence for Americanisation as stated by Morsing et al.12
To my knowledge, no research exists which has examined expressions of credibility in connection
to cultural based differences in CSR communication. My analysis could therefore form the basis for
further research in this area.
1.
The next chapter aims at presenting the CSR concept and allows the identification of organizational
responsibilities which are presented through Carrolls pyramid of corporate social responsibility13
and the triple bottom line14. These theories will be discussed and reflected upon in order to identify
which responsibilities firms have towards society and stakeholders in todays society.
The chapter will shortly present CSR communication and elaborate on tendencies and benefits of
CSR communication by e.g. Morsing et al.15.
Furthermore, the chapter will include a section on industry specific CSR issues. In this section, the
organizational responsibilities identified earlier will help to find out which issues are emphasised by
companies in the food industry in general16. For the analysis, 10 websites from companies in the
global food industry will be analysed for the responsibilities and CSR issues the company
communicates. The goal with this analysis is to be able to identify central and common issues
which will be likely to be presented by the two companies in the case study. The results of this
analysis will therefore contribute to the development of an analytical model which will be inspired
by Nielsen and Thomsen17and by Maignan and Ralston18. This model will be used in chapter 5 to
analyse the CSR discourse of the two companies.
In order to answer the problem statement, it is also important to define cultural theory in relation toCSR. Cultural theory will not only be discussed on the basis of existing theory, but also on the basis
of previous research in this field by scholars such as Matten and Moon19, Maignan and Ralston20,
11By e.g. Maignan & Ralston (2002) or Matten & Moon (2008)
12Morsing et al. (2006), p. 2313Carroll (1999)14
Van Marrewijk (2003), p. 10115
Morsing et al. (2006)16Based on my own analysis of CSR issues of 10 companies in the food industry appendix117
Nielsen & Thomsen (2007)18Maignan & Ralston (2002)19Matten & Moon (2008)20
Maignan & Ralston (2002)
-
8/13/2019 Culture and Credibility in CSR Communication
7/164
CULTURE AD CREDIBILITY I CSRCOMMUICATIO
7
Morsing et al.21, etc. However, the cultural theory and research results will not be used in order to
conduct an operational analysis of culture in the CSR communication of the two companies, but
will rather serve as a framework for discussion in chapter 7.
Finally, the notion of credibility will be presented in chapter 3. The approach to credibility will be
based on both traditional and modern scholars such as Aristotle22, McCroskey23, Isaksson and
Jrgensen24and Lund and Petersen25. This thesis will adopt the approach of rhetorical theory where
the credibility of a source is referred to as ethos. Ethos consists of three dimensions, expertise,
character and goodwill. By communicating on these dimensions, companies can influence how they
are perceived as credible in their communication. The notion of ethos and the three dimensions will
therefore be used for the analysis of credibility (ethos) in chapter 5. In chapter 3, existing models
for identification of ethos will be discussed and one will be selected for the ethos analysis in this
thesis.
In the comparison and discussion of the two analyses, the cultural theory and perspectives by e.g.
Maignan and Ralston, Morsing et al. and Matten and Moon will be discussed and compared to the
results of the analyses of the two companies. In the discussion, the problem statement of how
cultural differences and credibility are shaped in the case study will be answered. Furthermore, it
will be possible to identify whether there is any evidence of Americanisation in this case.
1.
This thesis consists of eight chapters. The aim has been to make a logical and progressive structure.
Therefore, there is a gradual movement from theoretical discussions to analyses to comparison and
discussion of the analyses.
In the introductory chapter, the content of the thesis has been outlined, delimited and structured in
order to define the frame of this thesis.
In chapter 2, the notion of CSR will be defined and outlined. This chapter will provide the basis for
an understanding of CSR and organisational responsibilities. Furthermore, an analysis of industry
specific CSR issues will identify which responsibilities companies in the food industry emphasise.
21Morsing et al. (2006)22
Cited in McCroskey (2001), Hoff-Clausen (2001) and Isaksson & Jrgensen (2008)23McCroskey (2001)24Isaksson & Jrgensen (2008)25
Lund & Petersen (2001)
-
8/13/2019 Culture and Credibility in CSR Communication
8/164
-
8/13/2019 Culture and Credibility in CSR Communication
9/164
CULTURE AD CREDIBILITY I CSRCOMMUICATIO
9
1.
The companies of the case study have been selected based on the fact that they are both global firms
which have their headquarters in their national country. Both companies are leaders in the food
industry, Arla as a dairy firm, Smithfield as a meat firm. Both companies emphasise CSR on their
corporate websites.
I have selected only companies from the food industry in that CSR issues may vary according to
industry. I am aware that companies within the same industry might focus on different CSR issues.
However, in chapter 2 an analysis of industry specific issues will give an overview over issues
generally emphasised in the food industry. Focusing on the same CSR issues for both companies
will provide a better basis for comparison and discussion of cultural differences.
1.
The research in this thesis is based on a case study of two companies of different cultural settings.
As this sample is so small, it is possible to go into depth with the two companies. Furthermore, it
allows a specific and in depth examination of how culture influences CSR communication and
expressions of ethos.
As the case study only includes two companies, this thesis cannot be used to draw statistical
conclusions on cultural differences between Danish and US companies in general. This thesis can
therefore only serve as an exploratory study and as a basis for further research on the subject. In
order to still be able to discuss and compare the two companies in a credible and professional way,
the discussion of culture will be based on prior research.
-
8/13/2019 Culture and Credibility in CSR Communication
10/164
CULTURE AD CREDIBILITY I CSRCOMMUICATIO
10
2.
The purpose of this thesis is to contribute to an understanding of how CSR is constructed in
Denmark and the US. In order to be able to fulfil this purpose, it is important to understand what
CSR is and which responsibilities companies seem to have towards society and stakeholders in
general, and, more specifically, which responsibilities companies in the food industry seem to
emphasise. This knowledge will form the basis for the analysis of CSR discourse in the two case
study companies.
One may say that the concept of CSR is a widely discussed topic on todays business agendas and
in academic circles26. However, it is not a new concept. According to Carroll, the concept of CSR
has a long and varied history. However, formal writing on social responsibility is largely a product
of the 20th century27
. The fact that CSR has been defined in many different ways and that it goes
under a variety of names, such as corporate citizenship, business ethics and sustainability, proves
that CSR still is a rather complex and fuzzy concept28. Academics may not agree on one single
definition of CSR, however, most include that corporate responsibilities go beyond pure profit
making29. The European Commission defines CSR as a concept whereby companies integrate
social and environmental concerns in their business operations and in their interactions with their
stakeholders on a voluntary basis.30
According to scholars, the benefits of involving in and communicating on CSR are various31. One
of the main benefits emphasised is the contribution of CSR to the companys image and reputation,
which in turn has a positive influence on differentiation of the company and its competitive
advantage32. In the eyes of consumers the media, legislators and investors, social and
environmental responsibilities are increasingly powerful drivers of reputation.33CSR might also
add value to the product, as it might provide consumers with information about circumstances that
are important to them, such as conditions for workers and animal welfare.
To enjoy the benefits of CSR, the companys responsibilities must be communicated to
stakeholders as they will otherwise remain ignorant of the companys efforts.
26http://kommunikationsforum.dk/?articleid=551127
Carroll (1999), p. 26828
Ibid.29See e.g. Tench & Yeomans (2006), p. 97 and Carroll (1999), p.28330
http://europa.eu/scadplus/leg/en/lvb/n26034.htm31See e.g. Tench & Yeomans (2006), p. 10132Macleod (2001), p. 833
Tench & Yeomans (2006), p.105 f.
-
8/13/2019 Culture and Credibility in CSR Communication
11/164
-
8/13/2019 Culture and Credibility in CSR Communication
12/164
CULTURE AD CREDIBILITY I CSRCOMMUICATIO
12
Economic responsibilities represent the basis of the pyramid, as Carroll defines the primary role of
companies to be profitable in order to be able to compete on the market. The second layer of the
pyramid consists of legal responsibilities, where it is expected that companies comply with the laws
and regulations of the government and other institutions. Ethical responsibilities represent the third
layer and consist of ethical norms about fairness and justice and include activities and practiceswhich are expected by society and stakeholders, but which are not law. The last layer represents
philanthropy, which are made up of those actions which often are associated with the firm being a
good corporate citizen37. Examples of philanthropy could be engaging in programs to improve
living conditions in the local community or donating money for people in social need.
What Carroll does not consider, however, are environmental responsibilities which in contrast are
part of the Triple Bottom Line: Profit, People, Planet38. Environmental responsibilities are of
increasing importance in todays society with growing issues such as the climate change, which is
widely discussed in all areas of business39. One could therefore argue that environmental
responsibilities should also be considered in CSR communication.
To sum up, Carroll argues that economic and legal responsibilities form the basis of the CSR
pyramid, and without these, the business has no basis to exist. However, increased pressure from
society and consumers forces companies to consider other responsibilities, such as ethics,
philanthropy and the environment.
As the goal of this thesis is to find out cultural aspects in CSR and as it in this connection may be
relevant to analyse the cultural difference in the communication of basic responsibilities such as
economic and legal responsibilities, the analysis of CSR discourse in chapter 5 will be based on
Carrolls CSR pyramid. However, the analysis will be supplemented with environmental
responsibilities, as this issue is crucial in CSR communication today, due to recent discussions on
e.g. climate change and the exploitation of natural resources.
37Caroll (1991), p.43
38Van Marrewijk (2003), p.10139
Sriram & Forman (1993)
-
8/13/2019 Culture and Credibility in CSR Communication
13/164
CULTURE AD CREDIBILITY I CSRCOMMUICATIO
13
2.
In the previous section, organisational responsibilities have been identified by Carrolls pyramid of
CSR as well as the Triple Bottom Line. In the following, industry specific CSR issues for the global
food industry will be examined. These industry specific CSR issues will serve to create a model for
identification of CSR discourse of the two companies which will be analysed later. Thereby, it is
possible to distinguish between issues which can be said to be general for the food industry and
issues which are company-specific.
2..1
The following companies have been considered in the analysis of industry specific CSR issues:
Danone40, Nestl41, Kellogs42, Kraft Foods43, Unilever44, Dole Food Company45, Heinz46, Vion
Food Group47, Ben & Jerrys48, Pepsi Co49.
These 10 companies are not just part of the food industry. These companies are also, just as the two
case companies Arla and Smithfield, large, multinational corporations from different cultural
settings. The goal here is not to find issues from a specific cultural setting, but to identify the global
and overall issues the food industry deals with in order to apply them in the discourse analysis later.
The issues found on the companies websites were divided into the four responsibilities defined by
Carroll in order to categorize the different issues. Furthermore, Carrolls four responsibilities have
been supported by environmental responsibilities.
Economic responsibilities
Economic responsibilities are communicated by some corporations (4 out of 10) as the basis of their
business operations. The corporations argue that without the financial means, the firm is not able to
create value to its stakeholders and is not able to fulfil their responsibilities. This is in accordance
with Carrolls argument that economic responsibilities form the basis of business operations.
40http://www.danone.com/index.php?option=com_content&task=view&id=41&lang=en&Itemid=78
41http://www.nestle.com/CSV/CSVHome.htm42http://www.kelloggcompany.com/corporateresponsibility.aspx?id=152643
http://www.kraftfoodscompany.com/About/44
http://www.unilever.com/sustainability/ and http://www.unilever.com/aboutus/ourpeople/45http://dolecsr.com/46
http://www.heinz.com/sustainability.aspx and http://www.heinz.com/our-company/ethics-and-compliance.aspx47http://www.vionfood.com/811/Socially_responsible_business/48http://www.benjerry.com/company/sear/2007/index.cfm49
http://www.pepsico.com/Purpose.aspx
-
8/13/2019 Culture and Credibility in CSR Communication
14/164
CULTURE AD CREDIBILITY I CSRCOMMUICATIO
14
One could assume that companies do not communicate much on their economic responsibilities
because the company may want to be considered as caring for e.g. people and the environment more
than caring about making profits. Therefore, by communicating less on economic responsibilities
and more about other responsibilities, such as the environment, they may want to signal that
financial gain is not as important.
Legal
Legal responsibilities consist primarily of statements claiming that the firm complies with the law
(7 out of 10). Some companies communicate further about internal laws, such as a code of conduct
(5 out of 10).
The issues observed under legal responsibilities can be said to be more general issues and not
necessarily bound to the food industry, as they are important in all areas of business. They are
therefore not considered as industry specific. However, this analysis makes clear that, in this
analysis, 50% of corporations communicate on self-regulation of the company. However, as
mentioned earlier, this should only be concluded for this analysis and is not a general conclusion, as
10 companies is too small a sample to make general conclusions.
Ethical
As mentioned earlier, responsibilities towards employees are included under the category of ethical
responsibilities. 10 out of 10 companies communicate their responsibilities towards employees. It
then depends on the nature of the company which issues are emphasised. Generally these issues
deal with employees and the work environment, health and safety and diversity. For corporations
operating in 3rdworld countries (e.g. Dole), the issues also include non-exploitation, wages, human
rights, no child labour, working hours etc. Other issues are: promoting a healthy lifestyle to
consumers, which is not only emphasised by corporations with unhealthy products, but it is
generally emphasised by 7 out of 10 corporations. Additionally, animal welfare is emphasised by
companies, whose products have to do with animals (e.g. Vion, who works with slaughtering,
processing and selling fresh meat). Furthermore, responsible marketing, dealing with e.g. marketing
towards children etc., are emphasised by some of the companies dealing with unhealthy products
or products for children (Kelloggs, PepsiCo). None of the two companies in our case study,
however, deal with these products, therefore responsible marketing will probably not be emphasised
by these companies.
-
8/13/2019 Culture and Credibility in CSR Communication
15/164
CULTURE AD CREDIBILITY I CSRCOMMUICATIO
15
Philanthropic
The results of the analysis of philanthropic responsibilities reveal various different forms of
philanthropic actions. This indicates that corporations support philanthropic actions which they can
identify with and often these actions are connected to their business operations and the products.
One common denominator is, however, responsibilities towards the community. Almost all
corporations (8 out of 10) seem to feel some kind of responsibility towards the community, be it the
community in their national country or the local community where the company has business
operations. Also foundations (5 out of 10) and volunteerism (5 out of 10) have been communicated
broadly.
Environmental
In terms of environmental responsibilities, all 10 companies communicate about the protection and
preservation of natural resources, including limiting the impact of business operations on the
environment. 7 out of 10 companies also focused on sustainable agriculture. Agriculture has been
shown to have significant effects on climate change primarily through the production and release of
greenhouse gases50. Therefore the issue of sustainable agriculture is a relevant issue to address in
CSR communication of food companies with agricultural backgrounds.
Other issues
Besides the issues identified above, one can point out that the relationship between food, health and
nutrition is mentioned in many of the companies CSR communication (8 out of 10). This can be
explained by the fact that consumers and society in general are becoming increasingly aware of
obesity and health problems in developed countries51. The issue has also become prominent in the
media and has since brought about a consumer health trend. This trend may have forced companies
into considering how they can help consumers to make healthier choices, as they will otherwise risk
losing consumer trust and sales. What can be observed now is that many companies, besides their
regular range of food products, have a range of food products with reduced fat, reduced sugar, or
otherwise more healthy choice foods. One example is PepsiCos Smart choices made easy
labelling52, which consists of a label on the front of the package with e.g. calorie information. They
argue that this label will make it easier and quicker for consumers to identify their needs. In this
50http://localfoods.wordpress.com/2008/06/25/greenhouse-gas-emissions-from-agriculture/
51http://www.iblf.org/media_room/general.jsp?id=12378852
http://www.pepsico.com/Purpose/Health-and-Wellness/Responsible-Marketing.aspx
-
8/13/2019 Culture and Credibility in CSR Communication
16/164
CULTURE AD CREDIBILITY I CSRCOMMUICATIO
16
relation, many companies have also begun to communicate truth in labelling, meaning labelling that
is truthful and not misleading.It is a widely discussed and criticized issue that food labels are often
incomprehensible and consequently make some choices difficult for the consumer53. The companies
in this analysis promoting the connection between health and food (7 out of 10) have therefore also
in some form promoted truth labelling as a way to make smart choices easier for consumers.
Another issue discussed by some companies was the issue of food safety (3 out of 10). The number
of companies responding to this issue is surprisingly low. The reason could be that this issue is
connected to the kind of product. As diseases and bacteria from meat and poultry are emphasised by
the media regularly, it seems reasonable that companies providing these products need to
communicate more on food safety54. As the two companies in the case study conducted later deal
with dairy and meat, food safety is likely to be an issue they will emphasise.
To sum up, the main issues in the food industry seem to be:
Responsibilities CSR issues in the food industry Sub-issues
Economic Economic achievements as basis for
business operations
Legal Lawfulness Compliance with national law
Standards and regulation
Code of conduct
Self-regulation
Ethical Employees Workplace
Diversity
Health & Safety
Other circumstances (fair trade, wage,
working hours, payment, Employee
representation etc.)
Responsible Marketing (will not be
emphasised in relation to the case study
corporations)
Promoting a healthy lifestyle Nutrition
Labelling
53http://www.truthfullabeling.org/issue.htm54
http://www.msnbc.msn.com/id/26369583/
-
8/13/2019 Culture and Credibility in CSR Communication
17/164
CULTURE AD CREDIBILITY I CSRCOMMUICATIO
17
Animal welfare
Food safety
Environmental Protection and preservation of natural
resources
Limiting the impact of the business operations
Sustainable agriculture
Philanthropic Local community In national country
In countries where operations take place
In third world countries
Foundations
Volunteerism
Table 1 CSR issues in the food industry
The CSR issues in the food industry will be applied in the model presented in the next section. The
CSR issues identified in this section will be called CSR issues in the food industry.
2..2
The analysis in chapter 5 will contain an analysis of Arla and Smithfields CSR discourse. This
section will deal with the creation of the framework that will help identifying the CSR discourse of
the two case study companies.
The frameworks structure will be based on the semantic topic analysis by Nielsen and Thomsen55.
The semantic topic analysis is used to examine which issues are emphasised by categorizing the
companies statements into topics, such as employees, local community etc. Nielsen and Thomsen
categorise citations from the companies according to the appropriate topic. For example, Loyal
and motivated employees is categorised under employees whereas environmental protection
and sustainable development is categorised under environment. It seems reasonable to say that
the topical analysis is used to observe which issues have been emphasised and not to analyse these
issues.
55Nielsen & Thomsen (2007), p. 31
-
8/13/2019 Culture and Credibility in CSR Communication
18/164
CULTURE AD CREDIBILITY I CSRCOMMUICATIO
18
Nielsen and Thomsen state that the analysis gives us a rough idea of the reporting companies
identity and self-understanding as CSR pioneers and CSR caring organizations.56
A shortened version57of Nielsen and Thomsens table for semantic topic analysis can be seen here:
Topic Company X Company Y Company Z
Employees
Local
Community
Environment
Society
Corporate
GovernanceEtc.
Table 2 A shortened version of ielsen and Thomsens table of Topical Analysis58
Nielsen and Thomsens framework gives an overview over issues reported by the companies, but it
does not elaborate on e.g. how the companies report on these issues or which stakeholders they feel
responsible to. As the purpose of this analysis is to contribute to an understanding of how CSR is
constructed in Denmark and the US, the framework used for analysis must not only be a tool to
identify which issues are communicated, but also how they are communicated. By identifying how
the companies report on their CSR issues, it will be possible to discuss their perspective on CSR.
Furthermore, instead of the topics identified by Nielsen and Thomsen, the industry specific CSR
issues (identified in section 2.3.1) will be used. This will give a more specific picture of the
companies CSR as Nielsen and Thomsen do not identify e.g. animal welfare or food safety.
Maignan and Ralston59
compare the extent and content of CSR communication in three European
countries and the US. In order to do so, they investigate the CSR principles, processes and
stakeholder issues discussed on the companies websites. They have created two tables which can
be used as an operational tool to identify and categorise the CSR principles, processes and
56Nielsen & Thomsen (2007), p. 3057
This table has been shortened, as Nielsen & Thomsen include many topics which are not of any relevance to theanalysis in this thesis.58Nielsen & Thomsen (2007), p. 3159
Maignan & Ralston 2002
-
8/13/2019 Culture and Credibility in CSR Communication
19/164
CULTURE AD CREDIBILITY I CSRCOMMUICATIO
19
stakeholder issues. The first table presents CSR principles and processes and the second table
presents stakeholder issues60.
The CSR principles are motivating principles followed by corporations to motivate CSR
involvement and they are divided into three categories, value-driven, stakeholder driven and
performance driven. It is reasonable to say that these motivating principles are likely to be different
from company to company even within the same cultural boundaries. Therefore they will not be
emphasised in this thesis.
Maignan and Ralstons CSR processes consist of managerial procedures, programs and activities
used to realise CSR in the company. The scholars identify stakeholder issues as concerns of
importance to the groups that can directly or indirectly affect or be affected by the firms
activities61 Below a shortened version62of Maignan and Ralstons table for processes can be seen.
Maignan and Ralston here identify and define seven processes a company can engage in based on
previous research or found in their own research.
Processes
Philanthropic programs The company presents a formalized philanthropic program made of clear
mission and application procedures to allocate donations and grants.
Sponsorships The company introduces sponsorships as a type of responsibility initiative
aimed at providing assistance either financial or in-kind to a cause or charity.
Volunteerism The company presents programs that allow employees to work for a good
cause or charity.
Code of ethics The company discusses the content and/or implementation of a code of ethics
or conduct.
Quality Programs The company describes a formal product/service quality program as a form
of responsibility initiative.
Health and safety programs The company introduces formal health and safety programs aimed at one or
more stakeholder groups as a form of responsibility initiative.
Management of environmental
impacts
The company discusses activities aimed at diminishing the negative impact
of productive activities on the natural environment.
60
Maignan & Ralston (2002), p. 501 ff.61Ibid., p. 49862The table has been shortened as the original table by Maignan & Ralston includes results from their analysis, whichare of no relevance here.
-
8/13/2019 Culture and Credibility in CSR Communication
20/164
CULTURE AD CREDIBILITY I CSRCOMMUICATIO
20
Table 3 A shortened version of Maignan and Ralstons original table of categorization of CSR processes63
Maignan and Ralstons table of stakeholder issues can be seen below. Here the scholars identify
five stakeholder groups and give detailed suggestions for which issues could be of importance to
these groups.
Stakeholder issues
Community stakeholders Arts and culture: The company discusses its support of organizations, activities,
actors, and objects linked to the arts or the national culture
Education: The company presents its support of activities aimed at improving
educational opportunities and the quality of the education received by
populations outside the firm.
Quality of life: The company expresses its dedication to improving the quality of
life and well-being of the communities in which the firm operates, or of society
as a whole.
Safety: The company displays concern for the preservation of the natural
environment either in general or in the communities where the firm operates
Protection of the environment: The company shows concern for the preservation
of the natural environment either in general or in the communities where the
firm operates
Customer stakeholders Quality: The company presents the achievement of high product/service quality
as part of its commitment to social responsibility
Safety: The company displays concern for the safety of its customers in relation
with its production activities or products/services.
Employee stakeholders Equal opportunity: The company expresses its commitment to giving the same
chances in recruitment and promotion to all employees regardless of race,
gender, age, or handicap.
Health and safety: The company expresses its concern for protecting the safety
of employees in the workplace along with their overall health level.
Shareholders The company expresses its commitment to the involvement of shareholders in
corporate governance and/or to the proper information of shareholders.
Suppliers The company expresses its dedication to giving equal opportunities to suppliers
in terms of gender, race, and size and/or to assuring suppliers safety.
Table 4 Maignan and Ralstons table of categorization of the stakeholder issues64
63Maignan & Ralston (2002), p.50164
Maignan & Ralston (2002), p.503
-
8/13/2019 Culture and Credibility in CSR Communication
21/164
-
8/13/2019 Culture and Credibility in CSR Communication
22/164
CULTURE AD CREDIBILITY I CSRCOMMUICATIO
22
Animal
welfare
Food safety
Protection and
preservation of
natural
resources
Community
Foundation
Volunteerism
Table 5 Julia Geier's model for analysis of CSR discourse
2.
The previous section defined general organisational responsibilities and examined which issues
companies in the food industry generally emphasise. With these issues in mind, the chapter
introduced a framework for analysis of CSR issues on the website which will be used in chapter 5.
The theory necessary for analysing the CSR discourse of the two case-study companies has
therefore been defined.
This leads to the subject of CSR in relation to culture. The theory of CSR and culture in this chapter
will not be used in the analysis. The theory presented here will serve as a framework for the
discussion of the two analyses in chapter 7.
In this chapter, different views on CSR and culture will be introduced in order to get a varied
overview over the connection between CSR and culture and relevant theory.
Scholars presented in this chapter, such as Kampf66, Matten and Moon67as well as Morsing et al.68,
66Kampf (2007)67
Matten & Moon (2008)
-
8/13/2019 Culture and Credibility in CSR Communication
23/164
-
8/13/2019 Culture and Credibility in CSR Communication
24/164
CULTURE
2..2 .
In their research, Matten and Mo
four key features of national insti
political system and the cultural
establish the conceptual framewo
corporate policies that lead comp
interest to society. Implicit CSR
relation within a society that can
Figure 8 Matten and Moons explicit and
In the following, CSR in Denma
cultural system of the national b
and Moons framework on impli
as it will be supplemented with r
72Matten & Moon (2008)
73Ibid, p. 41074
As e.g. Morsing et al. (2006) , Kamp
Explicit CSR
Describes corporate activitieassume responsibility for theof society
Consists of voluntary corporpolicies, programs, and strat
Incentives and opportunitiesmotivated by the perceivedexpectations of different staof the corporation
D CREDIBILITY I CSRCOMMUICATIO
on72use the national business systems appro
tutional frameworks. Two of those will be p
ystem. In connection with this approach, Ma
rk of implicit and explicit CSR, where expli
anies to voluntarily assume responsibility fo
n the other hand is embedded in the busines
be called state-defined.
implicit CSR73
k and the US will be presented by using the
siness systems approach. In relation to the t
it and explicit CSR will be applied to Denm
sults from research by other scholars74.
(2007) and Maignan and Ralston (2002)
s thatinterests
tegies
are
eholders
Implicit C
Describes corporations'the wider formal and ininstitutions for society'sconcerns
Consists of values, northat result in (often codimandatory) requiremencorporations
Motivated by the societ
the legitimate expectatiand contributions of allin society, including cor
24
ch, which identifies
esented here: the
tten and Moon
it CSR refers to
selected areas of
s-society-government
eature political and
o systems, Matten
rk and the US as well
R
role within theormalinterests and
s, and rulesfied ands for
l consensus on
ns of the rolesmajor groupsporations
-
8/13/2019 Culture and Credibility in CSR Communication
25/164
-
8/13/2019 Culture and Credibility in CSR Communication
26/164
-
8/13/2019 Culture and Credibility in CSR Communication
27/164
CULTURE AD CREDIBILITY I CSRCOMMUICATIO
27
Political system
In contrast to the Danish institutional system, US businesses have long traditions of self-
governance, where the state exercises minimal legislative control and does not provide the extensive
social services available to all citizens in Denmark.88As the government is not seen as being
responsible for the well-being of the people, US businesses have established traditions of
philanthropy, as they need to establish their place in the community through caring for the people
and the community89.
Cultural system
The high level of individualism in the US culture and the before mentioned scepticism about
government led to a tradition of businesses having internal policies in order to police themselves
as well as external communication to demonstrate CSR90. Internal policies such as employee
representation and participation are covered by dense employment regulation and protection in
Denmark. These issues are part of CSR in the US.
Figure 10 CSR situated in the US cultural system91
88
Kampf (2007), p. 4789Ibid, p. 4890Ibid, p. 4791
Ibid, p.48
Outside influences:
Global focus on CSR
Stakeholder
expectation
Origins or
ecological factors:
History of state as a
threat to peoples
well being and
therefore focus on
minimizing its power
orms:
Concern for business
practices
Concern for the
money of
shareholders/ owners
Contribute to society
by choice
Institutional
consequences:
High degree of self
regulation for
businesses
Businesses needing
CSR in external
communication
-
8/13/2019 Culture and Credibility in CSR Communication
28/164
CULTURE AD CREDIBILITY I CSRCOMMUICATIO
28
2.
Matten and Moon argue that the implicit approach does not need to emphasise the same issues as
the explicit approach, as many of the issues are already presented by the state. Alas also argues that
some societies do not need to communicate ethics to the same extend as others, however, she bases
this on the desire of ethics and not on traditions or national systems.
Morsing et al. argue that even though the traditional approach to CSR in Denmark is implicit,
Danish companies increasingly engage in visible activities as a consequence of global focus on CSR
and stakeholders expectations for more visible CSR efforts92. Additionally, CSR is gradually more
seen as a competitive advantage for corporations. Morsing et al. call this development for
Americanization93. At any rate, Morsing et al. argue themselves that Danish businesses are forced
to develop and articulate CSR - an approach which goes more from implicit to explicit withoutdisregarding their traditions for close interaction with the state and institutions94.
Concluding one can say that the scholars mentioned in this section agree that the reason for the
differences in CSR communication can be found in the way society is build up around institutions
and norms. By institutions, it is here referred to the definition given by Matten and Moon95which,
beside the formal organization of government and corporations, also includes norms, incentives and
rules.
92
Morsing et al. (2006), p. 2393Ibid, p. 23f.94Ibid, p. 2895
Matten & Moon (2008), p. 406
-
8/13/2019 Culture and Credibility in CSR Communication
29/164
CULTURE AD CREDIBILITY I CSRCOMMUICATIO
29
.
In the previous chapter, research and theory on CSR and culture have been presented. In the chapter
it was established that consumers might be sceptical towards the intention of the companies
commitment to CSR, as it is increasingly used strategically as a marketing tool to improve the
reputation of companies. Morsing and Schulz argue that, in the Danish culture, consumers regard
the open account for CSR as taking advantage of other peoples misfortune in order to improve their
reputation96. Consequently, companies have to ensure to appeal credible in their communication
about CSR activities.
Throughout more than two thousand years, rhetorical scholars have been concerned with the role of
credibility in communication. From among many rhetorical scholars, Aristotles view on credibility
has been assigned the most support and much modern empirical research has been based on his
views. Among the researchers who grounded their studies on his views can be named, Hovland,
Berlo et al., McCroskey, Tuppen, Lund and Petersen and many more.
According to Aristotle, persuasion can be created through the use of the three appeals: logos, pathos
and ethos. Logos describes the appeal through reason, pathos is the appeal through emotions and
ethos defines source credibility97. Aristotle argued that persuasive communication would contain all
three appeals. While the goal of this thesis is to find out whether there are cross-cultural differences
in the CSR discourse and the self-portrayal of two firms, the notion of ethos will be dealt with in
this thesis, while logos and pathos will not be regarded here.
.1.
As mentioned above, ethos defines source credibility and it is also often regarded as a synonym for
credibility98. However, academics do not agree on where in the communication process ethos is
situated as such. Some academics, e.g. McCroskey argue that the receiver has ethos and not the
source, as they believe that ethos exists in the mind of the receiver. Ethos is therefore the attitude of
the receiver towards the source of communication99. Other scholars, such as Hoff-Clausen100 and
Isaksson and Jrgensen101understand Aristotles view on ethos as the personal credibility which a
source can strive to achieve in communication. Ethos thereby becomes a technique to be used for
96Morsing & Schulz in Morsing et al. (2006), p. 136
97Fem Nielsen (2004), p. 28598
Lund & Petersen (2001), p. 12199McCroskey (2001), p.84100Hoff Clausen (2002), p.39101
Isaksson & Jrgensen (2008), p. 369
-
8/13/2019 Culture and Credibility in CSR Communication
30/164
CULTURE
self representation. Isaksson and
ethos in a written text (see sectio
the rhetorical strategy ethos in or
receiver who has ethos, these sch
However, McCroskey may haveor not the receiver of the commu
on whether the communication is
source wants to establish credibil
Lund and Petersen argue for a tri
image and identity form credibili
trustworthiness, all three need to
Figure 11 Lund and Petersens model of c
Lund and Petersens definition o
contrast to the way image is seen
and Petersen furthermore agree
of the source and the evaluation
focus on ethos as a rhetorical tec
102Lund & Petersen (2001), p. 129 f
103Fill (1995), p. 435104
Lund & Petersen (2001), p. 121
D CREDIBILITY I CSRCOMMUICATIO
Jrgensen even design an analytical model f
4.2.1). One must therefore assume that a so
der to portray itself as a credible company. I
olars would not have been able to identify et
a point in claiming that the use of ethos doesication is persuaded by ethos, and one can t
perceived as credible, one can only attempt
ity.
chotomy model of credibility, where the inte
ty. Lund and Petersen argue that, in order to
be identical102.
redibility
image as the sources desire to appear in a c
traditionally- as the way the receiver percei
ith McCroskey on the view that ethos is the
f how credible the source is104. As discussed
nique to self-portrayal, which can have an e
Competence
Moral character Goodwill
30
r identification of
urce can make use of
it would be only the
os in a written text.
not indicate whethererefore not comment
o identify how the
action of ethos,
ave a stable
ertain way, stands in
es the source103. Lund
eceivers perception
earlier, some scholars
fect on image. This is
-
8/13/2019 Culture and Credibility in CSR Communication
31/164
-
8/13/2019 Culture and Credibility in CSR Communication
32/164
-
8/13/2019 Culture and Credibility in CSR Communication
33/164
-
8/13/2019 Culture and Credibility in CSR Communication
34/164
CULTURE AD CREDIBILITY I CSRCOMMUICATIO
34
The eleven credibility appeals constitute the operational level of the model. Below, Isaksson and
Jrgensens coding framework is given. This framework allows the identification of credibility
appeals in chapter 5 and permits to recognise these appeals consistently and precisely.
(1) Expertise:Entitlements /Enhancements. Entitlements are used to communicate what the
corporation has achieved, while Enhancements are used to bring attention to and take credit for a
particular achievement, which the corporation believes they should be especially rewarded for.
(2) Expertise:World knowledge. By communicating World knowledge, the corporation can
portray its insight and knowledge. It is especially used to demonstrate universal truths or
generalities about business life/conditions, the industry or company or the world at large.
(3) Expertise:Presence/Resources. By demonstrating Presence and Resources, the corporation
explains where it is situated and its ability to perform. This will typically be statements about the
physical presence of the corporation, and its capabilities or way of performing, in concrete terms, or
any description, recommendation, offering, or praising of products, services, or specialization
offered by the corporation.
(4) Expertise:Knowledge/Skills. By communicating Knowledge and Skills, the corporation states
what they are made up of. These statements could contain information on knowledge and skills
acquired by the members of the corporation through education or training, rank, merit, recognition,
position or status, or cooperation with a third party or membership of an organization.
(5) Expertise:Abilities/Attributes. Abilities and Attributes refer to the corporations fundamental
competences. This will be expressed through statements about abilities or attributes that relate to the
corporations natural qualities, work-related experience and insights, vision or human effectiveness,
thoroughness or trust.
(6) Character:Integrity/Justice.Integrity and Justice stand for how the corporation behaves.
Integrity refers to statements about the corporations business morality or objectivity, neutrality,
impartiality, or its members diligence. Justice refers to statements about the corporations equity,
fairness and compliance with the law.
(7) Character:Truthfulness. Through Truthfulness the corporation expresses its corporate identity
with respect to morale, honesty and sincerity.
-
8/13/2019 Culture and Credibility in CSR Communication
35/164
CULTURE AD CREDIBILITY I CSRCOMMUICATIO
35
(8) Character:Passion. Passion is how the corporation expresses its enthusiasm and excitement
and state what they find rewarding.
(9) Character:Courage. Courage is how the corporation communicates its responds to challenges
and threats and refers to statements about the corporations competitiveness, its ability to
demonstrate resolution and persistence.
(10) Goodwill:Attention. Attention refers to statements concerned with the corporations selfless
behaviour and concern for society and common good, or its devotion and attention to the target
audience, or an indication of a bond between the corporation and its audience.
(11) Goodwill:Enjoyment. Statements relating to Enjoyment are concerned with the corporations
communication of their ability to generate happiness and joy, pleasure and satisfaction with others.
.
In this chapter, the notion of credibility and ethos has been presented and relevant theory has been
discussed. It was established that this thesis will follow the approach that a source can use ethos as a
tool to present itself as credible. Lund and Petersens model of credibility was discussed in relation
to Isaksson and Jrgensens the Ethos model. It was decided that the Ethos model is the appropriate
choice for the analysis of ethos in chapter 5, as it is operational and permits to identify the ethos
appeals based on rather fixed boundaries.
However, this thesis will call the ethos appeals for expertise, character and goodwill, based on
Aristotles original appeals, yet with the modification of calling Aristotles intelligence appeal for
expertise.
-
8/13/2019 Culture and Credibility in CSR Communication
36/164
CULTURE AD CREDIBILITY I CSRCOMMUICATIO
36
.
In the previous chapters, the theory which serves as background for this thesis has been outlined.
Chapter 2 presented the notion of CSR and CSR communication, as well as accounted for CSR
issues in the food industry and the relation between CSR and culture.
In this chapter an analysis of the CSR discourse of the two case study companies, Arla and
Smithfield, will be carried out. The framework created in section 2.3.2 will be used in order to find
out what and how the two companies communicate CSR. The analysis will include which issues
they address, which processes they communicate in order to realise the CSR discourse and who the
company identifies as stakeholders for the issue communicated.
.1
On Arla Foods website, the Our responsibility section will be analysed. All issues addressed in
this section and which can be related to the industry specific CSR issues (see section 2.5.1) will be
addressed.
On Smithfield Foods website, the section Responsibility will be regarded in this analysis. CSR
or issues closely related to CSR, such as Corporate Governance, are also communicated by the
company in other sections such as Employees and Investors. However, these will not beregarded, as the thesis strives for a comparative discussion of the two companies and therefore it is
necessary that the two sections analysed are directly comparable. That would not be necessary if
results from sections such as Corporate Governance would be included from one company but not
from the other.
.1.1
In this section, Arla will be shortly presented. Furthermore, two of the companys problem areas
will be accounted for, as these issues might be reflected in the companys CSR communication. For
example could Arla decide to communicate more extensively on an issue in order to improve its
image in a problem area. This might then have an influence on the analysis of Arla and the
comparison of the two companies.
-
8/13/2019 Culture and Credibility in CSR Communication
37/164
-
8/13/2019 Culture and Credibility in CSR Communication
38/164
CULTURE AD CREDIBILITY I CSRCOMMUICATIO
38
tolerance are basic Islamic values.122Arla also stated that New Arla initiatives include sponsoring
humanitarian projects in the region, i.e. by giving aid to disabled children, cancer sufferers and the
hungry. Arla has approached the Danish Red Cross to assist in co-ordinating the effort. Arla also
intends to support activities aimed at creating greater understanding between the worlds religions
and cultures.
As the issue includes philanthropic actions, such as support to humanitarian projects, it is likely to
be emphasised in the companys CSR communication.
.1.2
Smithfield Foods, Inc. is the worlds largest pork producer and processor124. Its headquarters are in
Smithfield, Virginia, with operations in 26 states and 9 countries.
Environment
In 1997, Smithfield was fined 12.6 million USD for violation of the federal Clean Water Act, due to
millions of gallons of faecal matter and other pollutants that were released into the rivers of North
Carolina over a five year period125. The pollution was said to have a serious impact on the
environment and the local community. Smithfield was charged the largest Clean Water Act fine
ever at that time126. Consequently, Smithfield Foods has adopted more environmental friendly
initiatives and has among other things entered into an agreement with the Waterkeeper Alliance127
and taken steps to environmental certification of its slaughterhouses128. Therefore it is likely that the
company communicates on their initiatives and certifications in order to improve their image in
terms of the environment.
Labour issues
In 2005, the National Labor Relations Board (NLRB) announced its decision finding Smithfield
Packing Company guilty of illegally assaulting, intimidating and harassing its workers in Tar Heel,NC, when the company attempted to form a union in 1994 and 1997. The company has since paid
back $1.1 million in wages, plus interests, to 10 workers that were fired during past union-
122
http://www.arla.com/press/archive/arla-attempts-a-comeback-in-the-middle-east/123
http://www.arla.com/press/archive/breakthrough-for-arla-in-the-middle-east/124http://findarticles.com/p/articles/mi_m0EUY/is_31_12/ai_n26959360/125
http://www.usdoj.gov/opa/pr/1997/August97/331enr.htm126Ibid127http://www.waterkeeper.org/mainarticledetails.aspx?articleid=216128
http://www.smithfieldfoods.com/responsibility/el.aspx
-
8/13/2019 Culture and Credibility in CSR Communication
39/164
CULTURE AD CREDIBILITY I CSRCOMMUICATIO
39
organizing elections129. This issue might also be communicated in Smithfields CSR in order to
attract employees and improve the companys reputation as a good corporate citizen.
.2
Economic achievement
We manage our business in a good cooperative spirit that promotes the financial interests of our
owners summarizes that Arla thinks of its economic responsibility as a responsibility towards its
owners. Since Arla is a producer cooperative and the owners of the company are the farmers, it is
not surprising that Arla has to account for how the company is operated and how the company
cooperates with and satisfies the interest of their owners. This may be the reason why Arla has
dedicated a section of the CSR to how the business is managed. In this section the company
accounts for the relationship with their owners in terms of resources, governance, the cooperativeconditions and the insight the owners can have in the companys business operations.
As this information could very well have had its own section on the website, instead of being part of
the CSR report, Arla must have thought about the satisfaction of their owners as part of their
responsibility instead of simply being part of their business strategy. One could also tend to believe
that, since Arla has had issues with its owners in the past (see section 5.1.1), the company therefore
communicates their responsibilities towards their owners in order to re-establish the companys
good reputation and reduce the risk of scepticism by the public as well as by present and futureowners of the company.
Compliance with law
In the section business principles, Arla poses the interesting question What does responsible
enterprise mean?As an answer to this question the company states that In all of the countries in
which we conduct our operations, and at all organisational levels, we obey the law.Arla therefore
communicates that obeying the law means to be a responsible company. The company furthermore
states that This enables us to act credibly and with integrity with all our stakeholders, where the
company expresses that by obeying the law the company also manages to be responsible towards
their stakeholders.
Arla does not only account for their compliance with the law and the transparency of the company,
but also state their approach to bribes. Especially the statement we never offer or provide any gift
or payment that constitutes, or could be interpreted as, a bribe is interesting, as Arla has been
charged with bribery not too long ago (see section 5.1.1).
129http://www.ibtimes.com/articles/20081219/nlrb-holds-off-on-certifying-smithfield-union-vote.htm
-
8/13/2019 Culture and Credibility in CSR Communication
40/164
CULTURE AD CREDIBILITY I CSRCOMMUICATIO
40
Employees
Arla has two sections which focus on the issue of employees, the workplace and human rights.
In the section workplace, Arla seems to communicate two topics. The first topic deals with the
companys responsibilities as an employer, such as to provide employees with a safe and healthy
workplace, to ensure the well-being of their employees, to counteract harassment and to respectdiversity. The second topic deals with statements connected to work achievements and
performance, which could represent what the employees can do for Arla. Some examples are that
the workplace judges work achievements regardless of ethnic background, gender, age, religion,
civil status or sexual orientation and that the company states to invest in their personal and
occupational development in order to support our business strategy.
Arla therefore seems to focus on both their responsibilities towards employees, but also highlight
performance and achievements.
Arla also communicates human rights, where the company asks the question can we accept
responsibility for peoples living conditions? This may be one of the overall issues of CSR
whether or not corporations should take on responsibility in relation to how their workers live. Arla
does not directly answer its own question, but rather states that Arla conducts business as a
responsible citizen through respecting and upholding internationally recognized human rights.
However, it is reasonable to say that peoples living conditions contain much more aspects than
human rights, such as housing, access to food and clean drinking water, education and so on. This
is however, not emphasised by Arla.
Healthy lifestyle
In this section, Arla poses the question Should we decide what people should eat? Instead of
answering the question explicitly, Arlas approach is to help consumers in their nutritional decision
making process by giving information about the product: The aim is that our products and the
information we provide will inspire and stimulate consumers to increase their interest in the link
between nutrition and health.The company expresses their motivation for doing so as we meet
consumer demands for healthy products and nutritional information about products. Even though
Arla communicates about this issue as though the company voluntarily informs about their products
due to consumer demand, there has been established legislation on food labelling by the EU
Commission130.
130http://www.ugebrevet-europa.dk/artikel.asp?AjrDcmntId=439
-
8/13/2019 Culture and Credibility in CSR Communication
41/164
-
8/13/2019 Culture and Credibility in CSR Communication
42/164
CULTURE AD CREDIBILITY I CSRCOMMUICATIO
42
avoid talking about the subject. It seems as if Arla is communicating rather vaguely upon their
intentions.
Arla then accounts for the steps the company takes in order to always improve their protection of
the environment, which includes sound and sustainable principles from cow to consumer.
Examples of these principles are designing new facilities, procuring equipment, saving energy and
reducing material consumption, waste and CO2 emissions. Besides their own initiatives, Arla states
that we challenge and encourage our suppliers to develop and deliver products and services that
exceed our environmental standards and that the company is open towards the wishes expressed by
their stakeholders and regulatory authorities.
Also in the section of Agriculture, Arla expresses its views on making agriculture more
sustainable through support to sustainable farming and encouraging milk suppliers to protect the
environment. Still, Arla does not state how the support and encouragement is shaped and whether
the company will act on misbehaving suppliers.
Community
This section is introduced by the question Can Arla Foods improve the world? One might think
that this question is used to introduce Arlas philanthropic actions. Arla also emphasises this fact by
stating We cannot change the world on our own, but we believe we can make a difference withinthe local communitiesHowever, Arla focuses on maintaining good relationships with their
communities we maintain good, respectful and constructive community relations. Arla does not
further elaborate on how the company contribute positively to their development.
Arla did neither provide information on foundations or volunteerism in their CSR report.
.2.1
There are several tendencies to point out. Firstly, since Arlas CSR communication is arranged in
bullet-points, the critical reader may sometimes feel that the communication lacks argumentation,
i.e. in the issue of community or animal welfare, as much information may seem to be presented as
facts.
Secondly, as mentioned earlier, Arla has had some issues in the past which might be brought up in
CSR communication, such as bribery, unfair competition and religion. Arla distances itself from
bribery and unfair competition in their CSR and by doing so, Arla might be using its CSR
communication to improve their reputation and communicate that the corporation has changed.
-
8/13/2019 Culture and Credibility in CSR Communication
43/164
CULTURE AD CREDIBILITY I CSRCOMMUICATIO
43
Surprisingly, Arla did not report on the Mohammed crisis at all. One could have expected a section
where Arla reports on the respect of religions and that the company would never participate in any
actions that involve violation of their respect.
It can also be observed that Arla states that the company helps consumers to make the right choice
in terms of healthy lifestyle by informing consumers about the ingredients in their products. Here
Arla expresses that the company fulfils the demand of their consumers for healthy products and
nutritional information while also communicating concern and good will towards their consumers.
On the other hand, legislation on labelling of products already provides fixed boundaries on how
food producers should label their products. Arla does not emphasise that fact and it therefore seems
as though the company wants to communicate that the company informs consumers voluntarily.
Moreover, it can be observed that Arla encourages readers and stakeholders to contact the company
with their views and suggestions in relation to CSR. This further supports their statements of
stakeholders as drivers of CSR.
.
Smithfield has several sections on their website that deal with CSR or a related topic, such as
Corporate Governance. However, the section dealt with here is their Responsibility section
accessible from their front page. Each subsection of Smithfields CSR section begins with an
introduction to the subject. Then different issues are elaborated in a coherent text.
Economic achievement
Smithfield only states economic responsibilities in one case: Our global perspective and
commitment to inclusion are central to our mission to produce good food, responsibly, and
ultimately maximize shareholder value. This statement shows that Smithfield does feel responsible
towards their shareholders. Yet the company does not communicate further on this issue.
Compliance with law
Even though Smithfield does not have a section on lawfulness per se under Responsibility,
several statements of Smithfields intent to comply with the law are given. In most cases, however,
Smithfield communicates compliance with and exceeding the law and regulations, such as in the
environment section where Smithfield seeks to demonstrate its responsible corporate citizenship
by complying with relevant environmental legislation and regulations, and with other requirements
to which we voluntarily subscribe and Maintaining compliance with all federal, state, and local
regulatory requirements.It is also communicated widely that complying with company policies
-
8/13/2019 Culture and Credibility in CSR Communication
44/164
-
8/13/2019 Culture and Credibility in CSR Communication
45/164
CULTURE AD CREDIBILITY I CSRCOMMUICATIO
45
committed to ensuring the health, safety, and well being of our employees, the people living and
working in communities near our facilities, and the environment. Smithfield therefore not only
relates health and safety to their employees, but also to the community and the environment.
Moreover, Smithfield describes their approach to health and safety as making their own standards
and own regulations since although occupational health and safety is highly regulated in the United
States, more so than almost any other country in the world, 100 percent compliance 100 percent of
the time with regulatory statues is not enough to keep people safe. Smithfield therefore argues for
self-regulation and going beyond regulations. This also applies to more areas in the field of health
and safety, where Smithfield argues Although here in the United States we have many laws and
various Occupational Safety and Health Administration agencies, we generally lack an overall
management system. Here, Smithfield criticizes part of the national system and reports how this
problem is solved within the company through self-regulation. This system is then described in
much detail, although it is merely a Health & Safety Summary.
Animal welfare
Smithfield reports that the company is recognized by the worlds foremost experts in animal well-
being as setting the standard for Americas pork industry.
To underline this statement, Smithfield elaborates on five different issues in terms of animalwelfare: their Animal Welfare Management System, their innovative approach to gestation stalls,
their overall Animal Welfare Policy, their Antibiotic Policy and their Accident Response program.
Smithfield therefore communicates extensively on animal welfare, from pregnant sows to sick
animals to accidents involving animals during transport. The company communicates their
motivation as to assure respectful and humane treatment of animals that we own or process, to
produce wholesome food products for our customers This claim is further supported by expert
recognitions and testimonials, as almost every one of the before mentioned issues is supported by a
citation of a 3rdparty expert in the field or even supplemented by a newspaper article. Moreover,
two experts in the field of Animal Science and Animal Agriculture are cited in the Recognition
section. However, as Smithfield states to produce wholesome food products for our customers,
their motivation to engage in animal welfare is also based on their responsibility towards their
customers.
-
8/13/2019 Culture and Credibility in CSR Communication
46/164
CULTURE AD CREDIBILITY I CSRCOMMUICATIO
46
Food safety
Smithfields motivation for engaging in food safety seems to be consumer satisfaction to ensure
our ability to provide safe, wholesome foods for families throughout the world, we use a multitude
of food safety processes and programs throughout our plants. Smithfield describes a series of
testing and HACCP programs and introduces their facility and food safety guidelines. The companyalso reports that their employees are central in these programs and that they receive proper training
in this field, All of us at Smithfield Foods never forget that we are working hard to produce the
safest foods possible. Thereby Smithfield expresses the commitment and involvement of the whole
company, in order to ensure that consumers are provided with safe food.
Environment
Smithfield states providing good food responsibly means going above and beyond to be good
stewards of the environment. The company therefore communicates that it is not only necessary to
behave correctly but also to make an effort and a positive contribution to the environment. As proof
of their commitment, the company states that their commitment is reflected in our ISO 14001
certification. Smithfield also gives examples of their achievements and actions. In this way the
company establishes an overview of their CSR activities and proves that it is a responsible
company.
The Environmental Management System section describes how the company reduces its use of
natural resources and finding ways to improve whereas World Water Monitoring Day and
National FFA Environmental Award focus more on philanthropic aspects, such as sponsoring and
volunteerism. World Water Monitoring Day will therefore be dealt with later, under the aspect of
Volunteerism. In terms of the National FFA Environmental Award Smithfield includes a
testimonial from a scholarship recipient in the FFA competition, where he states that the money will
go to his education in the field of Natural Resources. This statement further supports Smithfields
motivation to support agricultural education in order to provide students with the opportunity tolearn. Smithfields environmental responsibilities therefore not only involve the protection and
preservation of natural resources, but also include philanthropic activities such as sponsorships and
volunteerism.
Moreover, Smithfield includes Recognition in their communication of their environmental
responsibility as proof of their commitment to protecting and preserving the environment and the
company directly states You dont just have to take our word for it. Each award or honor provides
tangible proof.
-
8/13/2019 Culture and Credibility in CSR Communication
47/164
CULTURE AD CREDIBILITY I CSRCOMMUICATIO
47
Community
Smithfield states that its our responsibility to give back to the communities where our employees
live, work and raise their families. Smithfield therefore seems to include employees and their
families in its responsibilities towards the local community. The company furthermore reports that
one of their core involvements are educational initiatives which provide learning opportunities forthose that might not otherwise have them and providing support to food programs that help feed
the hungry. Smithfield therefore communicates philanthropic actions in their community section,
as those are activities which the company engages in voluntarily in order to ensure the continued
well-being of our employees and communities.
Furthermore, Smithfield emphasises feeding the hungry in their Helping Hungry Homes
initiative which supports families faced with food insecurity. In order to do so, Smithfield has four
courses of action: Food Banks, School Nutrition Programs, Disaster Relief and Community
Outreach. The company also arranged for a 10-City Helping Hungry Homes across America Tour,
where a popular kitchen chef helped providing food to families. Again, Smithfield describes exact
initiatives and activities to prove their role as a responsible and good citizen.
Foundation
The Smithfield-Luter foundation is the philanthropic arm of Smithfield Foods and provides
educational scholarships to children and grandchildren of Smithfields employees. Furthermore it
also funds the Learners to Learners education alliance to overcome challenges such as Academic
disadvantages, social challenges, cultural barriers etc.
Volunteerism
Smithfield states that its employees actively engage in World Water Monitoring Day in order to
help preserve resources. By stating that Around the world, our employees have tested waterways
together with school children, 4-H groups, Boy Scouts, Girl Scouts and church groups Smithfield
relates its employees to committed volunteers with a good reputation. This way the commitment
and engagement of Smithfield volunteers may be enhanced. As discussed earlier, Smithfield has
been fined with a penalty for violation of the Clean Water Act 12 years ago. It seems reasonable to
say that Smithfield engages in this activity in order to dissociate itself from the past and to support
and engage in this initiative to ensure clean water to signal that Smithfield is a responsible
company.
Smithfield does not communicate on healthy lifestyle.
-
8/13/2019 Culture and Credibility in CSR Communication
48/164
CULTURE AD CREDIBILITY I CSRCOMMUICATIO
48
..1 Smithfields CSR section is dominated by three tendencies, the companys tendency to self-regulate
through company policies and regulations, its constant desire to prove that the company is
responsible and a good citizen through recognitions and testimonials, and its emphasis on
families.
The first tendency, their tendency to self regulate is especially visible in the situation where the
company states that in the US occupational health and safety are highly regulated, but state that it is
still necessary to self-regulate with a corporate system for health and safety, as the federal, state and
local policies are not sufficient. Also in other examples, Smithfield communicates corporate actions
which provide necessary services to e.g. employees and the local community. Some of these
examples are: a healthcare facility for employees and the local community at one of their sites, asthe area lacks affordable healthcare. The company supports education in order to give students an
opportunity they might not otherwise have. The company also provides food for families with food
insecurity.
Smithfield therefore seems to take great responsibility towards their employees and the local
community and the company seems to believe that their employees and the local community in
some cas