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
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