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.
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2 Author e-mail: [email protected]
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
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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
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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
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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
January 26, 2013, from KIER: http://www.kier.co.uk/strategic_alliances/company.asp?co=25
School of Built Environment
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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;
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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.
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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
January 26, 2013, from KIER: http://www.kier.co.uk/strategic_alliances/company.asp?co=25
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
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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
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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.
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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).
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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).
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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
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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
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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).
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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.
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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
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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.
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5. References and bibliography
1. Bachmann, C. (2010, February). Sustainable performance increase and strategic
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