“RESPONDING TO THE CHALLENGE OF MEETING ETHICAL, CORPORATE SOCIAL RESPONSIBILITY AND...

School of Built Environment

1 Author e-mail: [email protected]

“RESPONDING TO THE CHALLENGE OF MEETING ETHICAL,

CORPORATE SOCIAL RESPONSIBILITY AND SUSTAINABILITY-

RELATED RESPONSIBILITIES IN RECESSIONARY TIMES”

U. H. Madanayake

Liverpool John Moores University, United Kingdom

Abstract

This paper is a documental exposition that reflects the topic; “Responding to the challenge of

meeting ethical, corporate social responsibility and sustainability-related responsibilities in

recessionary times”. The reflection of report is mainly formed by a supportive case study;

Winsford E-ACT Academy School project under the program of “Building School for the

Future” (BSF).

The report itself commences with a brief introduction of the two main aspects; corporate

social responsibility, sustainability related responsibilities and their challenges in a time that

economy is declined. Secondly, the case study is introduced stating the background

perspectives and the relevance for the aforementioned challenges. It is conspicuously shown

that the case study explicitly addresses the challenges mentioned above and has been

successful so far in responding and reacting upon them. Moreover, the arguments are further

supplemented by extensive academic literature while adducing the opinions given in different

point of views. Finally, it is recapitulated asserting the recommendation of the report writer

with a strong assertion for the survival and propensity of CSR and sustainability when

economic prosperity is threatened.

1. Introduction

Over the last two decades, sustainable development and corporate social responsibility were

two of the main discourses driven by global pressures. On the other hand, the global

economic crisis is another hot topic widely perceived as the biggest barrier for the

performance of afore-mentioned two factors. The UK construction industry frequently

attracts hostility among the local community and general public due to its disruptive impact

arising from the built environmental activities. In that case the development of sustainability

and CSR has been the best response being a solution for global warming and financial crisis as

well. Since transition of economies is somewhat beyond the control of individual perspective,

every organization should have a strategy to respond the challenge of meeting ethical,

corporate social responsibility and sustainability-related responsibilities in recessionary times.



BSF- Winsford E-ACT Academy School is such a project that successfully responded all those

challenges.

2. Case study

2.1 Background to case study

Building Schools for the Future (BSF) is a government invested (PFI funded) program for

secondary school buildings in England which is highly ambitious in terms of costs, timescales

and objectives, compile with the prevailing economic environment. Therefore, the cost

effectiveness has been one of the main concerns of this program. The delivery of the BSF

program was done with the Partnership of UK set up Partnerships for Schools (PfS) which is a

non-departmental public body formed through a joint venture between the Department for

Children, Schools and Families (DCSF) Partnerships UK and private sector partners. With the

implementation of first step in 2000, the BSF program could deliver large number of

sustainable schools via PFI procurement method and currently 15% smaller than those under

old BSF with the aim of reducing building costs by approximately 30% (Kier Group PLC, 2013).

Winsford E-ACT Academy School is another project executed under BSF program with the

contract cardinality of KIER (Education) scheme.

2.2 The contribution of KIER on the project

2.2.1 KIER Education

Kier Education is a division of KIER Group, specialized to deliver innovative learning

environments in terms of construction to inspire and support students and teachers on

learning activities and motivate them to gain more achievements in a standardized,

comfortable and fully facilitated atmosphere (Kier Group PLC, 2012). Kier education has

clearly identified that making investments on the needs of younger generation is a

remarkable step for the head way of country and an immense contribution to the

development of a country (Brereton & Pope, 2012). Contribution on Academies, Building

Schools for the Future and Primary Capital program is one of the main consequents of it.

Since the program is funded by government initiatives, kier has paid more of their attention

on applying good design and construction techniques that are flexible, innovative and



sustainable. Moreover, kier has led their concern more on the cost effectiveness of every BSF

project with the intention of “delivering more for less” (Brereton & Pope, 2012). The

following factors are the major efficiency concerns of kier in terms of their intention of

Reducing build costs guaranteed to meet Government Funding levels;

Reducing area and maintaining efficiency

Smart design

Challenging standards

Building environment

Streamlining

Kier has conversantly identified how significant cost efficiencies can be achieved on future

school projects. This involved analysis of teaching and learning methods and creating design

flexibility, investigating aspects of building environment, spatial requirements, smart design

and acceptable minimum standards. In that case, the design must meet almost all the

educational requirements while being adaptable for future needs as well (Brereton & Pope,

2012). Kier has implemented a strategy to achieve a significant reduction in Winsford E-ACT

Academy School project; combining adaptability and running cost efficiencies for the building

user. Achievement of “Fit for purpose” being inside the budget has been critically

demonstrated in this project (Barrett, et al., 2012).

2.2.2 Corporate social responsibility frame work of KIER

Management strategy of CSR

Kier has got a fully integrated strategy for CSR with the intention of making a positive

difference to people’s lives and environments both internal and external circumstances. The

integrated system is mainly based upon a broad framework which complies with the Global

Reporting Initiative (GRI) G3 Sustainability Reporting Guidelines (Kier Group PLC, 2013).

It is up to the top level management to take the responsibility of kier’s brand, business risks,

governance, ethics and financial management. In that case kier has paid more of their

attention on continuous improvement of product and serviced via arranging regular

meetings, progress evaluations and client/ end user satisfaction surveys. Since reputation

plays a big role in every project, it ultimately becomes a major KPI as well (Brereton & Pope,

2012). In order to nurture stakeholder relationships, kier has established a proactive

involvement with almost all the stakeholders to make them fully understandable of business

and process. The company itself has improved the interaction with employees, clients and

local communities through employee engagement surveys, customer satisfaction surveys, and

the Considerate Constructors Scheme respectively (Booth, 2012). The considerate



constructor’s scheme has offered number of charity works as well. The achievement of 90%

(gold award) in 2012 CR index undoubtedly proves that fact (Kier Group PLC, 2013).

Figure 1- A fully integrated approach of CSR

Source: Kier Group PLC. (2012). Kier-Corporate Social Responsibility. (Kier Group) Retrieved

January 26, 2013, from KIER: http://www.kier.co.uk/strategic_alliances/company.asp?co=25

Table 1- KIER’s performance in terms of CSR in the case study

Section Performance

Environment & Climate Change

KIER has reduced carbon emissions (by 2011,

35.2 tom per £m), the amount of waste that

goes to landfill (by 2011; reduced in 20%) and

amount of material recycling. Establishing ISO

14001-certified environmental management

system

Workplace – H&S Reduction in Accident Incident Rate (AIR) in

terms of people, supply chain, clients and



partners has resulted in a further 23%

improvement in AIR from 389 in June 2011,

to 301 in June 2012. Positive Safety

Leadership Program (PSL) is also conducted in

every kier project.

Workplace – Employees & Training

Conducting employee engagement surveys,

Conducting training and development

activities. Kier always conduct programs to

appreciate, motivate and inspire employees’

works and the people who are with best

practical skills and intellectual skills. Equality

and diversity is another 2 main facts of this.

Marketplace – Customers & Supply Chain

(including ethics)

Conducting customer satisfaction surveys

(the overall satisfaction was 79.55%).

Involvement of customers in seminars,

workshops and educational talks, often with

the supply chain. The supply chain policy

ensures that more than 70% of project spend

is with approved supply chains, well above

the SFC 2012 target of 30%.

Community Engagement

Money has raised and donations have been

made for charities by Kier foundation with

the mission of ‘deliver a brighter future for

our communities’. Kier employees have

contributed 161,254 man hours (2011:

154,000) in support of community related

initiatives in the year which has made a

positive impact on over 58,114 individuals

(2011: 33,000).

Considerate Constructors Scheme (CCS)

Kier has shown significant performance in

Environment, Cleanliness, A Good Neighbor,

Respectful, Safety, Responsible and

accountable align directly with issues relating

to CR within the industry.

Source: Kier Group PLC. (2012). Kier-Corporate Social Responsibility. (Kier Group) Retrieved




Additionally, an effective CSR is always linked with not only an effort of an organization alone,

but also a group effort of the engagement of almost all the stakeholders. The ISO 26000 has

perfectly given the standard for that as follows;

Figure 2- Schematic overview of ISO 26000 for CSR

Source: Galbreath, J. (2008, June). Building corporate social responsibility into strategy. European

Business Review

2.2.3 Business ethics of KIER

Kier has a zero tolerance policy to bribery and corruption and has undertaken a Group-wide

training program to raise awareness of the Bribery Act 2010 and the anti-fraud awareness

(Sheffield, 2012). Moreover, business ethics policy has also been established to the company

stake holders to follow with the core values of to be enthusiastic, open, honest, integrity, and

to be proactive, committed and safe in every business they engage (Sheffield, 2012). The

influence of the Built Environment on the academic performance and behavior of school: The

Environment-Human-Behavior (E-H-P) Model is clearly stated in these policies. Kier’s business

ethics policy literally applies for the following areas;



Business ethics on legal compliance

Duty to report non-compliance

Conflicts of interest

Gifts and hospitality

Improper payments

Compliance with laws prohibiting anti-competitive activity

Political contributions and activities

Supplier relations

Health, safety and environmental protection

Equality, diversity and inclusion

Human rights

Confidentiality

Insider dealing

Corporate governance

Personal conduct outside the work place

Communications – government inquiries and investigations

Communications - News media relations

Communications – email, internet and social media

2.2.3 Sustainable approach of KIER

Kier has identified that the company short and long-term economic development can be

achieved via a systematic approach consisting of clear set of objectives that addresses social,

environmental and economic issues (SEE) enclosed with negative risks and opportunities as

well (Kier Group PLC, 2012). The table below shows how kier has concerned about triple

bottom lined sustainability.

Table 2- Triple bottom lined sustainability

Environmental Social Economic

Effective waste management,

appropriate choice of

materials and careful

consideration of design

Support local communities

through opportunities for

employment, interaction with

schools, liaison and support

for local wellbeing,

contributing to local charities

and voluntary organizations

where appropriate.

Increase profitability by

making more efficient use of

resources, including labor,

materials, water and energy.



Minimize pollution and

disturbance to neighbors and

the general public

training and development for

the employees

Making best out of market

and business opportunities

Protection of flora & fauna

and their habitats

Respecting our people and

encouraging them to respect

others

Identify and manage risks

efficient use of materials and

resources

Offering equal opportunities

and diversity

Balance work with supply

chain to give value for money

Minimizing the need to travel

and if unavoidable, selecting

least environmentally

damaging solutions

Change management Maintain good relationship

with clients to maximize

project value, minimize cost

and higher the opportunities

Work according to environ-

mental policy

Behavioral management Reducing whole-life costs

continuous improvement in

environmental management

systems and performance in

key areas, including energy

use, water usage and waste

Employee motivation

sustainable procurement of

supply chain

Health, safety & welfare

Source: Kier Group PLC. (2012). Kier-Sustainabilitybility. (Kier Group) Retrieved


3. Responding to the ethical, corporate social responsibility and

sustainability challenges in recessionary times

3.1 Responding to challenges in building schools and it’s effectiveness

The education secretary, Michael Gove has stated that construction of well-designed new

sustainable school buildings improves pupils’ progress in lessons by 25% (Booth, 2012). That

undoubtedly proves that learning environments highly effects on students’ performance

(Sheerman, et al., 2007). Literally, the Winsford E-ACT Academy School project is ultimately a

climax output of CSR that is made to improve student performance. This building is 15%

smaller than those other school buildings built under BSF previously. They were subjected to



delays and some had to stop as a result of over budgeting (Barrett, et al., 2012).

Consequently, this building design is highly concerned about building a better output for less.

The important thing in this building is, the squeezing of space for corridors, more rooms,

larger outdoor spaces office space for support staff, assembly halls and canteens ultimately

reduces building costs by 30%, saving up to £6m the school (Booth, 2012). The internal

partitions were folded to subdivide classrooms while roof terraces are utilized as play areas

embossing the sustainable construction technologies of the project. A single glazed wall or

translucent plastic roof is not used in the project. After all, the building is based on a steel

structure. According to the study, the design principles, design parameters that effects on

pupil’s progress and the proportion of increase in a pupil’s learning progression are shown in

the table below.

Table 3- Design principles, parameters and the proportion of increase in a pupil’s learning progression

Design principle Design parameters Proportion (%)

Naturalness light 12

sound (acoustics) -

temperature -

air quality -

Individualization choice 10

flexibility 17

connection 26

Appropriate level of

stimulation

complexity, 17

color 18

texture -

Source: Barrett, P., Zhang, Y., Moffat, J. and Kobbacy, K. (2012, August). A holistic, multi-level analysis

identifying the impact of classroom design on pupils’ learning. Building and Environment,

59(5), pp 678- 683.

The Salford study states that natural sense that is felt in the room, the extent to which the

room felt individual to its occupants, and the extent of stimulation for academics are three

main principles of an environmental design would most affect brain function among students

and individuality comes prominently among them (Booth, 2012). The study moreover

compares against the academic results of students and hypothesizes the way that the building



has allowed students to flow through with suitable "connections" (wide and uncluttered

corridors with comfortable orientations and landmarks, intensively accessible rooms from

main entrances, and closeness of classrooms to frequently used places such as the library,

café) has significantly impacted on student performance (Booth, 2012). The case study has

evidently followed all these aspects.

Color also plays a big role in a good design, where proves the ability to show more for less and

flexibility. Less color complexity is also a necessity to concern. The Light levels and the

arrangement of furniture inspire the students to feel “our own place”. Combination of both

natural light and hygienic artificial light supports this fact (Booth, 2012).

The pilot study; University of Salford confirms that the environment and design of classroom

contributes averages 25% for the sensory impacts of learning. This has been caused to

maximize their investment in the learning environment (University of Salford, 2013). This can

be optionally termed as the power of indoor environmental quality (IEQ). IEQ can be effect

pupils’ brain in synergistic or antagonistic way by sending signals of the comfort they feel to

the brain as a psychological feeling; sensation and vice versa (Barrett, Zhang, Moffat, &

Kobbacy, 2012).

Figure 3- Holistic perspective of the multi-sensory impacts of the built environment on pupils

Source: Booth, R. (2012, December 31). Michael Gove faces rebellion over no-curves schools plan.

Retrieved January 26, 2013, from The Guardian home.



Windows and doors are designed to open widely letting the carbon dioxide to discharge while

heating system is installed under the floor. The interests also differs from ages, as pre young

children prefers more colorful and exciting areas while others prefer mush ordered places. In

that case, a clear identification of those interests also an essential part of design. Considering

all these facts, Winsford E-ACT Academy School project experts to make the very best use of

space (Booth, 2012).

3.2 BSF program’s sustainability

As the Sustainable Development Commission states, the schools estate contributes 2% to

national carbon emissions overall, but that figure represents almost 15% of UK public sector

carbon emissions. If the Government is to meet a target of at least 60% reduction against the

1990 baseline, while intending to make it more from the public sector building stock, it clearly

has to address the issue of schools’ carbon emissions (Moore & Rydin, 2008).

The program is set to make a contribution of 2% to national carbon emissions overall, but that

figure represents almost 15% of UK public sector carbon emissions. The Government, as per

the means of meeting the target of at least 60% reduction has made a huge improvement in

BSF carbon reduction (Sheerman, Carswell, & Chaytor, 2007). In that case, all new school

buildings and plant are to be carbon neutral. For that, extra capital cost is to be input with the

intention of lower the running cost throughout the lifecycle of expected 50-100 years;

enabling fit for purpose of the needs of the 21st-century economy and society (Renukappa, et

al., 2010). The program’s sustainable targets are based on lower carbon emissions, water

demand, waste production, traffic and other environmental factors. Recycling (up to 30 % of

recycled material), reducing landfilling waste, carbon offsetting, and school travel, in

particular better facilities for cyclists, temperature controlling, better insulation are some of

the appliances of them (University of Salford, 2013). Maximizing the use of natural lighting

and ventilation by, for example, using wind and solar power to generate light and heat and by

collecting rainwater to reduce water usage is another fact (Booth, 2012). The projects are

ensuring that the completed development meets the criteria to achieve excellent Building

Research Establishment Environmental Assessment Method (BREEAM- schools) ratings.

Moreover the designs are flexible allowing being adapted quickly and easily to new

requirements taking account of climate change as well (Barrett, et al., 2012). Particular

additional costs associated with sustainability, will be brought in additional uplift to the cost

parameters used for sustainability. An extra funding from the Government is also to provide

to help achieve its target of carbon neutrality (Suresh, Searle, & Proverbs, 2010).



3.3 BSF program’s CSR

Not only the physical environment but also the environment that touches pupils’ and

surrounding society is cognitively improved though CSR remedies. 100% support for the idea

of schools extending the use of their facilities to the local community, by those who

suggested that new designs need to take account of this (Booth, 2012). The program is

approached with a view not just providing environments compatible with the current state of

educational thinking, but with an eye to future needs and developments (University of

Salford, 2013). It has a drive to make education more personally tailored to individual

students. To ensure the projects gone as planned, a post-occupancy review is done for every

school within the BSF program. The accountability framework is also successfully maintained

safeguarding the position of pupils currently in a school which is being rebuilt or refurbished.

3.4 Response of sustainability in recession time

The current global economic downturn provides a unique opportunity to re-assess the

sustainability of construction projects and develop more innovative practices (Hobbs &

Mansour, 2009). It’s true that the early stages of economic crisis, the demand for most of the

built environment activities were declined, but with the adaptation and finding better

solutions now that the situation has been changed. With the recent declining economy and

the rapid deterioration in property markets the investors might assume that the green

building craze is over, but projects such as BSF have proved that greener buildings have been

a perfect solution endorsing more for less cost supporting the economy as well (Hobbs &

Mansour, 2009). In fact, the construction and certification of greener buildings in Europe

continues to accelerate, increasing the green share of the building stock and now it has

speedily entered the markets continuing to increase through the recession (Hobbs &

Mansour, 2009). Moreover, the push of government construction strategy with the recent

mandates and regulations, the demands for socially-responsible investments have made for

increasingly attractive financial returns on green investments, particularly with the

introduction of more affordable and efficient greening technologies (Hobbs & Mansour,

2009). BREEAM and LEED rated buildings have recorded a growth at about a 50%

compounded growth rate since 2000; about 25 times the growth rate for commercial real

estate overall in Europe, which averages a bit under 2% annually (Hobbs & Mansour, 2009).

As per the figure below shows, the amount of green office space constructed last year was

about 25 times the amount in 2000, and is now growing at 50 times that rate – and the

volume has increased significantly every year (Nieto, 2009).



Figure 4- Green vs. non-green buildings growth in Europe

Source: RREEF Research

Despite this economic down turn, a tremendous growth in sustainability proves the greater

potential for green buildings in the near- and long-term.

Corporate owner-users and government agencies account for the lion’s share of green

building, with schools and universities contributing the next largest shares (Kronenberg &

Bergier, 2012) as shown in figure below.

Figure 5- Average tenants in Non-Residential BREEAM Buildings- 2005 to 2010

Source: RREEF Research

The public sector’s push to greater sustainability is not likely to reduce in the face of the

recession. The UK government has addressed global warming through stricter coercive action

of increasing sustainable construction (Nieto, 2009). On the other hand, early December of

2010, the World Bank has declared that the financial crisis is causing the first global recession

in 25 years,10 the European Union reaffirmed its climate deal committing its member states

to reduce greenhouse gases to 20% below their 1990 levels, and the union finalized adoption

of stricter energy efficiency standards for buildings. As per the campaign platform, the



Administration has influenced sustainability of built environment in recessionary times at

least four ways (Murphy, et al., 2010);

Through a carbon-tax program for building owners/managers;

Raising the energy-efficiency standards;

spurring the introduction, adoption, and/or affordability of greener building

technologies through the “green collar” jobs initiative;

providing subsidies to local governments to encourage energy efficiency, which then

can be passed on to building owners, managers, and developers

In summary, green buildings are generally less cost consuming than conventional buildings

with substantial operating-cost savings and attract greater demand, with attendant rent and

occupancy premiums. These premiums are likely to endure during the recession, as there is

no reason to suspect green buildings will underperform in a downturn as per the research

results show (Murphy, et al., 2010). In fact, that can be a competitive advantage for global

economy. Knowledgeable investors find attractive investment opportunities on green

buildings during the recession as it present many opportunities for both core and

opportunistic investing, as well as some selective opportunities for modest repositioning of

assets (Nieto, 2009).

3.5 Response of corporate social responsibility in recession time

CSR is, mainly a business being responsible for society (avoiding, reducing or at best

compensating for negative externalities and contributing to social welfare), responsible to

ensure market stability and probity and enhancement of stakeholder relationships (Herzig &

Moon, 2008). ‘The Recession is a test of companies’ commitments to doing well’ (The

Economist 16.5.2010). Accordingly, recession has tested the performance of CSR in difficult

times. The recession has highly effected not only for shareholders and a small number of

financial institutions but also for taxpayers, those losing jobs, welfare recipients and other

beneficiaries of public expenditure as well (Herzig & Moon, 2008). CSR is also overlapping

with other cognate concepts such as business ethics, corporate governance, community

investment, corporate citizenship, sustainable development.

During the recessionary time, most of the organizations made huge cost savings through

increased energy and resource efficiency. For an example, NatWest have saved approximately

US$60 million in energy costs between 2001 and 2005 (Barthorpe, 2009). Moreover, the

construction sector has been more conspicuous on CRS factors after the economic boom. In

February 2008, some organizations (i.e. Citigroup) launched carbon principles to evaluate and



address carbon risks in the financing of projects. This is a framework for assessing and

managing social and environmental risks in project financing.

Moon (2008) says that government that should provide welfare in the face of the hard times.

‘Perhaps the very survival of our institutions in UK for so long without revolution owes much

to the sense of responsibility of those who enjoyed the power of capital’ (Michael Heseltine,

UK Secretary of State for the Environment, 1982). In the early 1980s, it was the government

being blamed for the recession for their failures in faulty monitory & industry policies (Chen,

2009). The situation has now changed and the responsibility towards the society has been

more biased for individual organization according to the withdrawal of government welfare

(Herzig & Moon, 2008). At the same era, government has interfered to reduce the

unemployment rate where dramatic de-industrialization and urban decay was highly

increased at that time (Navarro & Martínez, 2009). Several ministers came in to controllable

position in government (i.e Secretary of State for the Environment) threw themselves into

encouraging UK business to increase its social responsibility.

Nowadays, a new wave of CSR has been established by individual companies who re-assessed

their relations with society and developed new strategies for CSR. Joined associations for

business responsibility is somewhat plentiful now (Herzig & Moon, 2008). These associations

provide information and networks for their members; offered frameworks for collaborative

responses to recession particularly unemployment and tackling business cash flow (Jones,

Comfort, & Hillier, 2008).

Another key feature of CSR in recession is the new networks in which companies operated to

achieve more effective and more legitimate responses. This includes local government and

non-governmental communities that combine public and private resources to withstand

recession (Ellis & Bastin, 2011). Maintenance of marketplace is a co-activity of this. Making a

sensible long term investment in its marketplace to get used in future recessionary times is

the objective of this (i.e. Marks and Spencer’s). A company’s involvement in the local

community is also highly concerned in this fact. Ultimately, the company reputation increases

and even though urban disorders become a regular fact of life, the stores would successfully

survive because of the trust they have built on communities with their precaution strategies

of CSR (Ellis & Bastin, 2011). However, research into CSR in the last 25 years of UK (including

recession), shows further integration of CSR issues with core business strategies and

institutionalization of CSR with governmental associations in order to respond social issues

raised in the recession. As a result of that, most of SME companies have now established

expanded ethical supply chains in market place, fair trades and policies in work place and

energy conservation, waste disposal policies, sustainable construction methods, resource

consuming policies in environment (Baglione, Žabkar, & Pogorelc, 2012). These developments

have not only reflected the organizational competency, but also the interference of

government (i.e. Ministers for CSR, international NGOs).



Overall, CSR in the UK has become institutionalized within companies (e.g. company

integrated SCR strategies), between companies and government (e.g. local and national

partnerships and with other governmental and societal CSR initiatives (e.g. from partnerships

with local community groups to national groups) (Baglione, Žabkar, & Pogorelc, 2012). This

also include direct their responses to the recession more on unemployment, training,

enterprise development, community development, product selection and marketing to meet

consumer demands for more economical purchases. The sustainable approach that has been

underpinned in supply chain is the perfect example for this (Barthorpe, 2009). Moreover, few

companies have responded the recession via CSR based work place policies by reducing

working time and even down-sizing. However, CSR may be (re-) invigorated by recession and

that as a result CSR can become embedded in companies giving wider and practical responses

to social engagement issues in recessionary times (Jones, Comfort, & Hillier, 2008).

According to a survey conducted by Nottingham University, not only the majority believes the

positivity of being good corporate citizens but also over half believed that this was even more

important in a recession (Herzig & Moon, 2008). This additional consideration in recession

time means a greater integration of corporate responsibility in their business strategies. (E.g.

valuing or treating employees well, improving their skill and educational development). Way

around, this can be considered as a greater investment that is linked with the employee

satisfaction with work-life balance and increment in productivity (Moir, 2007). These

strategies eventually add value to the organizations.

The research findings further mention that Market Rationalization, Moralization & Ethical

Leadership, Reconceptualization & Professionalization and Political Economy Restructuring

are the four main discourses of ‘CSR effected by the economic recession (Herzig & Moon,

2008). In order to withstand next recession, these discourses should be carefully managed

with defined remedies to make business sense and the logical way forward, often leading to

the development and increase market opportunities which are economically attractive and

advance environmental and social sustainability (Moir, 2007). Indeed, the use of PFI as a

method of funding requires local authorities to take risks on behalf of schools over which they

have little control. The table below shows how each discourse is responded in recessionary

times.


Table 4- Overview of discourses on ‘CSR, the financial sector and economic recession’

Source: Herzig, C., & Moon, J. (2008). Corporate Social Responsibility, The financial sector and economic recession. Research report, Nottingham University Business School,

International Centre for Corporate Social Responsibility (ICCSR), Nottingham


4. Conclusion

To encapsulate, all of the physical spaces which pupils occupy can be effectively supported

their learning by a sustainably built environment. Today’s challenge for the built environment

decision makers lies in attaining levels of comfort with respect to social responsibility,

economic viability, and environmental Sustainability, while protecting the heritage of future

generations. Since economic downturns have highly impacted on these performances,

organizations have found effective ways of responding the recession. In order to improve the

UK industry sectors sustainability and CSR performance to withstand recession, decision

makers have to recognize and understand the concept of sustainability and CSR first and then

implement the appropriate strategies; importantly learning from experiences had from the

recent economic booms. As economic constraints have generate creativity, innovations and

modern cost-reduction methods (value-based strategies) that protect the environment as

well as society. Therefore it is the industry’s responsibility to get the maximum out of it in a

cognitive manner.



5. References and bibliography

1. Bachmann, C. (2010, February). Sustainable performance increase and strategic

turnaround management: current corporate restructuring experiences in the

Romanian market. Business Strategy Series, 10(6), pp 334-337.

2. Baglione, S., Žabkar, V., & Pogorelc, S. (2012, December). Corporate social

responsibility: A comparison of the UK during the current recession. International

Journal of Business and Public Administration, 9(1), pp 97-100.

3. Barrett, P., Zhang, Y., Moffat, J., & Kobbacy, K. (2012, August). A holistic, multi-level

analysis identifying the impact of classroom design on pupils’ learning. Building and

Environment, 59(5), pp 678- 683.

4. Barthorpe, S. (2009, October). Implementing corporate social responsibility in the UK

construction industry. Property Management, 28(1), pp 10-14.

5. Booth, R. (2012, December 31). Michael Gove faces rebellion over no-curves schools

plan. Retrieved January 26, 2013, from The Guardian home:

http://www.guardian.co.uk/education/2012/dec/31/michael-gove-rebellion-no-

curves-schools

6. Brereton, P., & Pope, M. (2012). Education Projects. Retrieved January 26, 2013, from

KIER: http://www.kier.co.uk/

7. Chen, C. H. (2009, August). The major components of corporate social responsibility.

Journal of Global Responsibility, 2(1), pp 87-91.

8. Ellis, L., & Bastin, C. (2010). Corporate Social Responsibility in Times of Recession:

Changing Discourses and Implications for Policy and Practice- Corporate Social

Responsibility and Environmental Management. University of Leeds, UK, Sustainability

Research Institute, School of Earth and Environment,, Leeds.

9. Ellis, L., & Bastin, C. (2011, April). Corporate Social Responsibility in Times of

Recession: Changing Discourses and Implications for Policy and Practice. Corporate

Social Responsibility and Environmental Management, 8(4), pp 295-297.

10. Engen, O. A., Mikkelsen, A., & Grønhaug, K. (2008, September). Critical incidents and

social construction of corporate social responsibility. Social Responsibility Journal, 6(3),

pp 348-351.

11. Galbreath, J. (2008, June). Building corporate social responsibility into strategy.

European Business Review, 21(2), pp 115-119.



12. Giannarakis, G., & Sariannidis, N. (2012, December). The Role of Corporate Social

Responsibility in an Unstable Environment: An Examination of Trends 2008-2010.

International Journal of Management, 29(4), pp 579-582.

13. Herzig, C., & Moon, J. (2008). Corporate Social Responsibility, The financial sector and

economic recession. Research report, Nottingham University Business School,

International Centre for Corporate Social Responsibility (ICCSR), Nottingham.

14. Hobbs, P., & Mansour, A. (2009). How Green a Recession? – Sustainability Prospects in

the US Real Estate Industry. RREEF Research. San Francisco: RREEF.

15. Holt, G. D., & Edwards, D. J. (2009, November). Coping with recession and preserving

fiscal sustainability. OECD Economic Surveys- France, 8(4), pp 4-8.

16. Jhothi, M. (2010, August). CSR in the era of global economic meltdown. Global

management review, 4(4), pp 93-96.

17. Jones, P., Comfort, D., & Hillier, D. (2008, January). Corporate social responsibility and

the UK construction industry. Journal of Corporate Real Estate, 8(3), pp 138-144.

18. Kier Group PLC. (2012). Kier-Education. (Kier Group) Retrieved January 26, 2013, from

KIER: http://www.kier.co.uk/strategic_alliances/company.asp?co=25

19. Kier Group PLC. (2012). Strategy for sustainability. NAPM, EMAS, Kier Construction-

Sustainability. Cyclus.

20. Kier Group PLC. (2013). Kier Corporate Responsibility Performance Report. Anual

Report, Kier Group PLC, CSR.

21. Kovacs, G. (2008, June). Corporate environmental responsibility in the supply chain.

Journal of Cleaner Production, 16(10), 1572-1574.

22. Kronenberg, J., & Bergier, T. (2012, March). Sustainable development in a transition

economy: business case studies from Poland. Journal of Cleaner Production, 26(12), pp

20-24.

23. Moir, L. (2007). What do we mean by corporate social responsibility? Corporate

Governance, 1(2), pp 18-22.

24. Moore, S., & Rydin, Y. (2008, September). Promoting Sustainable Construction:

European and British Networks at the Knowledge–Policy Interface. Journal of

Environmental Policy & Planningv, 10(3), pp 243-250.

25. Murphy, A., Satterthwaite, C., Grounseli, D., & Chandra, M. (2010, November). As the

recession eases, should sustainability become a priority? The Marketing Society

Forum, 15(6), pp 1-6.



26. Navarro, J.-G. C., & Martínez, A. (2009, September). Linking corporate social

responsibility with admiration through organizational outcomes. Social Responsibility

Journal, 5(4), pp 502-505.

27. Nieto, D. V. (2009, December). Sustainability and recession. Managing through

recession, pp 7-10.

28. Renukappa, S., Egbu, C., Akintoye, A., & Goulding, J. (2010, May). A critical reflection

on sustainability within the UK industrial sectors. Construction Innovation:

Information, Process, Management, 12(3), pp 302-308.

29. Sheerman, B., Carswell, D., & Chaytor, D. (2007). Sustainable Schools: Are we building

schools for the future?- Seventh Report of Session 2006–07. House of Commons

Education and Skills Committee. London: Authority of the House of Commons.

30. Sheffield, M. P. (2012). Business Ethics Policy. Kier Group PLC, Kier Construction.

31. Sivakumar, N., & Krishnaswami, S. R. (2011, May). Global financial crisis: dharmic

transgressions and solutions. International Journal of Social Economics, 39(1), pp 40-

44.

32. Suresh, S., Searle, D., & Proverbs, D. (2010). Sustainability Strategies in Construction.

University of Wolverhampton, UK, Construction and Infrastructure- School of

Engineering and the Built Environment. Wolverhampton: Arcom.

33. University of Salford. (2013). Study proves classroom design really does matter.

Retrieved January 31, 2013, from University of Salford Manchester:

http://www.salford.ac.uk/home-page/news/2012/study-proves-classroom-design-

really-does-matter

“RESPONDING TO THE CHALLENGE OF MEETING ETHICAL, CORPORATE SOCIAL RESPONSIBILITY AND...

Documents

Transcript of “RESPONDING TO THE CHALLENGE OF MEETING ETHICAL, CORPORATE SOCIAL RESPONSIBILITY AND...