CSR pyramid as applied to Mauritian companies

This chapter presents the consequences and treatments of informations collected from study. The responses from the different subdivisions of the questionnaire will be analysed and discussed to happen out the CSR pyramid every bit applied to Mauritanian companies.

Responses of the questionnaire

Figure 4.1: Response Rate of the Questionnaire per sector

The pie chart above depicts the response rate of questionnaire. Out of 80 companies surveyed, merely 44 responses were obtained which represents 55 % response rate. The 55 % rate consists of 18 % from Industry, 18 % from Commerce, 2 % from Bank, 16 % from Leisure/Hotels, 5 % from Sugar, 7 % from Investment, 9 % from Insurance, 2 % from Transport and 23 % from other Sectors ( Refer to Appendix 4 ) . Others include building companies, import & A ; export companies, car companies and renting companies.

Company Basic information

Section A of the questionnaire consists of legion inquiries. In this subdivision, respondents were asked some general information in order to hold an overview of the company ‘s profile and information about CSR committedness such as the figure of old ages the house has been involved in CSR activities, whether the house has a specific section where CSR is controlled or implemented and whether the house presently has any CSR undertaking committedness.

Department involve in CSR activities

An analysis of information collected in subdivision A clearly shows that the prima houses in Mauritius do hold a specific section where CSR undertakings are being controlled and implemented. This can clearly be seen in figure 4.2.

Figure 4.2: Firms holding a specific CSR section

The figure 4.2 above indicates that 65.9 % of the population surveyed, do have a CSR section where CSR undertakings are managed while 34.1 % do non hold such division. This is a positive signal as it shows that these houses are transporting CSR activities in a formal manner which farther implies that these houses already have an established construction to choose and prioritize support petition.

Furthermore, it was observed that bank, hotels and the sugar are taking sectors for holding an established CSR section ( Refer to Appendix 4 ) . The consequences obtained is consistent with the determination of Ragodoo ( 2009 ) who found that these three sectors are the top leading sectors, which are taking their environmental and societal duties earnestly through the constitution of CSR undertakings.

Out of those 34.1 % houses which do non hold a CSR section, it was found that CSR is being controlled and implemented the HR section, Accounting section, Marketing section, Communication section and the Finance section.

It is deserving noted that though these houses do non hold a specific CSR section, they are lending to CSR activities by following the July 2009 authorities ordinance bespeaking all net income – devising houses to give 2 % of their portion net incomes for CSR activities. Therefore, it is a good indicant that houses in Mauritius are following with the new jurisprudence imposed to them.

Numbers of old ages houses are involved in CSR activities

Firms were farther surveyed on their battle in CSR activities in order to entree the Numberss of old ages they are involved on these activities. Figure 4.3 provides a clear image on the Numberss of old ages these houses are engaged in CSR activities.

Figure 4.3: No. of old ages houses are involved in CSR activities

Analysis shows that CSR is non a new construct in Mauritius. Most houses are found to be engaged in CSR activities for more than 2 old ages ( 63.9 % ) as shown in figure 4.3. The above findings, hence, are in line with the positions of Deloite ( 2008 ) who found that a big bulk of Mauritanian houses ( 56 % ) are engaged in CSR activities for more 2 old ages in the twelvemonth 2008. Infact, 39 % these houses had started CSR activities since their start -up.

Therefore, it can be deduced that houses were good cognizant of the term CSR before being imposed by the authorities.

Current CSR undertakings committedness

Respondents were besides questioned on their current CSR undertakings committedness. It is to be noted that 59.1 % of respondents are presently involved in CSR undertakings. This is shown in table 4.1 below.

Table 4.1: CSR undertakings committedness

Some of the CSR undertakings presently being undertaken by Mauritanian houses are as follows:

Job creative activity in ICT sector

“ Engagement citoyen ”

Positive Approach to entire Health ( PATH )

Planters Reform Association: Aid Jaago

BAI wellness programme

Trust fund for excellence in athleticss

ECO Television

Mauritanian wild life

Craft Incubator

Set up of a disabled preparation establishments so that disabled people can be employed by companies in Mauritanian

Sponsorship of charitable establishments

Sponsoring Valles-De- Prete people

Mauritius Mutual Aid Association scholarship Award Corporate Social duty

Promoting instruction and development

Sponsoring for cultural show

These houses include the Air Mauritius Ltd, Rogers and company Ltd, Omnicane, Innodis Ltd, Ciel Group and many other houses.

CSR definition as per the respondent

For this inquiry, a three – point likert graduated table was used. The definition sets for this inquiry is based on Carroll definition of CSR. The mean calculated for this inquiry is shown in the tabular array below.

Table 4.2: Definition of CSR – Mean value

From the responses obtained, it is interesting to observe that all statement were ranked really high, whereby “ CSR is about to obey the jurisprudence, be ethical and strive to do net incomes ” ranked the highest ( mean of 2.55 ) .

The identified tendency resembles that of Friedman ( 1962 ) . The latter argued that concerns have merely one societal duty, it is the ability “ to utilize its resources and prosecute in activities designed to increase its net income so long as it stays within the regulation of the game, which is to remain engages in unfastened and free competition without misrepresentation or fraud. ” This shows that Mauritanian houses want to boom by making concern merely.

It is further noted that “ CSR is the economic, legal, ethical and discretional outlooks that society has of administrations at a given point in clip ( Carroll 1979 ) ” , got the 2nd highest best definition. As per the Guidelines on Corporate Social Responsibility, CSR activities need to be conducted in countries such as Health, Education & A ; preparation, Leisure and athleticss. Therefore, houses find the definition of Carroll best fitted to specify CSR in Mauritius when sing the statement proposed by the MEF on Guidelines on Corporate Social Responsibility.

This is inline with Crane and Matten ( 2004 ) happening who mentioned that four-part theoretical account of Carroll has numerously been used by top direction and diaries. The different beds in the pyramid aid directors see the different types of duties that society expects of corporations. Therefore, the same is using to Mauritanian houses.

Evidence has shown that specifying CSR as “ CSR is about to obey the jurisprudence and be ethical ” , wholly reflect that of Visser ( 2006 ) . Harmonizing to writer, CSR is more about economic and beneficent outlook in developing companies. Legal and Ethical are given least consideration. Hence, Mauritius being a development states, portion the same position with Visser ( 2006 ) . Firms believe that staying with jurisprudence and to be ethical, do non connote of being socially responsible.

To summarize the above, it can be said that beside net income motivations and working for the involvement of stockholders, houses do show concerned on the societal facet when making concern. Besides, some houses consider themselves to be socially responsible to follow with the state ‘s Torahs and ordinances and be ethical in their pattern.

Companies ‘ Motivations for CSR

As seen in early chapters, many researches were done across the universe to happen out the chief factors which motivates houses to accommodate CSR activities.

To analyze the motivational factors of CSR in Mauritanian houses, a five – point likert scale inquiries was set in the questionnaire. However, merely the maximal frequences of responses were interpreted since it was found that construing all the frequences in the tabular array were taking to confusions. A elaborate tabular array is shown in the Appendix 4.

As shown in figure 4.4 below, bulk of the respondents agree / strongly agree that they are being engaged in CSR activities chiefly to heighten their general good – being of the community and to heighten employee committedness community. However, 15 were indecisive ( 34.1 % ) on the statement that they are engaged in CSR to better the dealingss with providers and establishment. Furthermore, it was found that 20 respondents ( 45.5 % ) strongly opposed on the fact that they are prosecuting in CSR activities merely because of the authorities – based on the new jurisprudence introduced.

This tendency reflects the statements of the Swanson ( 1995 ) who identified 3 types of position for corporations to be engaged in CSR activities. It was found that the analysis comforts the negative responsibility attack and positive position of Swanson ( 1995 ) . The decision further reflects the legitimacy theory statement in the sense that corporation is moving in the involvement of the society alternatively of their stakeholders merely.

Figure 4.4: Motivations factors for CSR – Frequency

Different attacks in CSR pattern

One among the chief aims of this survey was to happen out the different attacks used by houses in their pattern of CSR. Therefore for this intent, the respondents were asked to take the different attacks their house has chosen in their pattern of CSR and why they opted to make so. They had the possibility to take more than one of the option given to them.

There are 3 options sets by the authorities in which these houses can lend toward CSR activities. Therefore, this survey demonstrates the different attacks these houses have chosen. This is graphically shown in the figure 4.5 below.

Figure 4.5: Approachs in CSR pattern

Based on the study carried out, it has been observed that 65.9 % ( 29 out of 44 ) of the respondents are transporting out their ain O.K. programme run by the company itself. 47.7 % of the population chose to finance an approve NGOs while 22.7 % behavior CSR through an approve programme under the NEF. This shows that there exist a partnership between NGOs and Mauritanian companies while for the sanctioned programme under the NEF, can still be enhanced through farther development.

Furthermore, when Respondents were asked why they opted for these proposed attacks it was found that most of the houses have common aims. Some of the common grounds brought forwards are:

Approve programme tally by the company itself

To make public consciousness of their well being of the community

To construct up good relationship with stakeholders

To heighten the company ‘s repute

Approved programme under the NEF

So as to concentrate on nucleus activities of the company itself

Cost effectual as less resources will be engaged in pull offing financess to CSR activities

Inline with the demands of the company such as supplying preparation and occupations

Finance an approve Nongovernmental organization

More cost effectual

Aid so to place and pass on with people who are most in demand and render fiscal aid to their demands

Furthermore, a cross tabular matter between sectors and attacks in CSR pattern was generated ( Refer to Appendix 4 ) . The consequence obtained show that each and every house does follow at least one of the option proposed by the authorities.

It is deserving noted that 100 % of Bank and Sugar sectors opted for more than one approaches toward the part of CSR financess.

It was besides observed that 71.4 % ( 5 out of 7 ) of the hotels/Leisure sector carry out their ain O.K. programme run by the company itself, 14.3 % ( 1 out of 7 ) opt to carry on CSR through an approve programme under the NEF while 42.9 choose to finance an approve NGO. These sectors were interpreted since harmonizing to Ragodoo ( 2009 ) , the Bank, the Sugar and Hotel sectors are the chief sectors to hold a well developed construction on CSR activities.

Furthermore, it was found that most companies which do non hold a CSR section tend to supply merely for contributions and charity intents without executing CSR in deepness that could hold assist them to derive a competitory border.

Fiscal CSR committednesss

CSR became an issue of involvement in May 2009 when it was declared compulsory by the authorities in Mauritius. For the intent of cognizing how much financess companies were lending for CSR activities before the new statute law, respondents were asked to bespeak their fiscal committedness to CSR activities at the clip when CSR was voluntary.

A cross tabular matter between sectors and fiscal CSR committedness was generated, ( Table 4.3 ) .

4.3: Cross tabular matter between sectors and fiscal CSR committedness

With respect to financess committed to CSR, the investing, Transport, Sugar, Bank, Commerce, Insurance and others sectors were found to be the least one in the part of CSR financess. The trial revealed that 100 % , 75 % , 60 % and 50 % of houses within these sectors were lending less than 1 % and 1 % for CSR activities. Hence, these houses are now obliged to lend much more ( 2 % ) on CSR than they used to lend before

Furthermore, it has been observed that the hotels industry was the top 1 to lend 2 % or more than 2 % of their portion net incomes to CSR activities. This consequence supports the position point of Ragodoo ( 2009 ) who stated that the hotels industry was the top of the list in footings of per centum of net incomes committed to CSR. This was so because as per writer, the hotel. The Banking and Sugar sectors give tonss of consideration in the constitution of systematic processs when it comes to choose support petition in the society.

Therefore, it can hence be concluded that even if CSR was non compulsory earlier May 2009, the hotels sector were taking their function earnestly, every bit far as CSR part was concerned. By so making, they were constructing a better Mauritanian society where in return they enhanced their general wellbeing of the community.

Mauritius ‘s CSR Pyramid

Another aim was to find which countries are given most precedence by corporation in the allotment of financess for CSR. Hence, for the intent of this determination, a figure of factors were considered which bring towards the part of CSR in Mauritius.

Priority consideration in the allotment of CSR financess

Earlier chapters identified four CSR constituents which together build up the entire societal duties. These are viz. the economic duties, legal duties, ethical duties and philanthropic duties.

Carroll ( 1991 ) depicts these four constituents in the signifier of a pyramid where subsequently Visser ( 2006 ) revised this pyramid in the context of developing states. The tabular array 4.4 below shows the ranking of these four constituents by the two writers prior to what they considered as most of import.

Table 4.4: CSR as applied by Carroll ( 1991 ) and Visser ( 2006 )

Therefore, in order to happen out how the pyramid is applied to Mauritanian houses, Respondents were asked to rank the four constituents, their company gives most precedence in the allotment of fund to CSR activities. Average values were used to rank the four constituents ( Refer to Appendix 4 ) .

Table 4.5: CSR as applied to Mauritanian houses

From informations gathered, it has been observed that in Mauritius, Philanthropic responsibilities is given the first most precedence, the 2nd most precedence is given to Ethical duties, so comes the Economic duties and last the legal duties.

The identified tendency differ that of Carroll ( 1991 ) and Visser ( 2006 ) . As highlighted in the literature reappraisal, Carroll pyramid was based chiefly on American context which is applied to developed states. Therefore, it was obvious that the order of ranking in Mauritius would non resemble that ‘s of Carroll since Mauritius is a underdeveloped state.

However, it was expected that the consequence obtained, should hold been consistent to that of Visser ( 2006 ) . The latter concluded that for developing states, the order in which financess are allocated for CSR activities, are non the same as demonstrated by Carroll. The economic bed being the base of the pyramid is given first precedence in developing states, followed by the philanthropic, so the legal and in conclusion the ethical. However, the consequence obtained show that even if Mauritius is among the developing state, the order differ that of Visser ( 2006 ) .

Mauritanian houses give philanthropic duty the most precedence so as to heighten their general good – being of the community and to heighten their company ‘s repute as seen it subdivision 4.4 of the Analysis. Besides, as per the Guidelines on Corporate Social Responsibility specified by the MEF, houses are expected to carry on CSR in countries such as Socio economic development ( including gender and human rights ) , Health, Education and preparation, Leisure and athleticss, Environment and Catastrophic intercessions & A ; support. As such these countries form parts of philanthropic activities. Therefore, it is given the highest of import.

It is interesting to observe that portion of the determination resemble that of Visser ( 2007 ) . He pointed out that “ in developing states CSR is most normally associated with philanthropic gift or charity, i.e. through corporate societal investing in instruction, wellness, athleticss development, the environment, and other community services. ”

Ethical administrations demonstrate existent concern to the society and regard for employees. Hence, it is given the 2nd most precedence as companies in Mauritius do follow codification of behavior.

Harmonizing to Visser ( 2006 ) and Carroll ( 1991 ) , economic duties are given the highest precedence. However, in Mauritius, it was observed that the economic duty is found at the 3rd place. This is so because as per the new jurisprudence imposed by the authorities, all houses doing a net income should lend 2 % of their net income towards CSR activities. Therefore, houses consider them to be socially responsible to prosecute in philanthropic activities instead than that of economic.

Equally far as legal duties are concerned, houses are bound by the Companies jurisprudence and the Mauritanian statute law therefore it is obvious that they should follow with the jurisprudence in order to be socially responsible. Then, it is given least precedence.

Furthermore, Respondents were asked their sentiment on the four constituents which they think should hold been ranked first, 2nd, 3rd and last in the allotment of CSR financess. Average values were used to rank the four constituents ( Refer to Appendix 4 ) . The consequence is shown in table 4.5 above.

Table 4.6: Order of penchant as per Respondent

From table 4.6, it is clearly shows that Respondents give philanthropic their chief precedence. This consequence reflects that of Mauritanian houses which besides consider beneficent activities as their first precedence when apportioning financess to CSR activities. This is so, because as specified by the MEF in the Guidelines on Corporate Social Responsibility, CSR activities need to be conducted in the countries like the Environment, instruction, Sports, Health/ disable, poorness, Employees ‘ and the local community.

Therefore, both Mauritanian houses and the Respondents find it necessary to give philanthropic responsibilities the extreme importance. It is interesting to observe that what houses are lending towards CSR activities, are in line with what the society are anticipating from them.

Furthermore, Economic stands for the 2nd most of import while the legal is found to be the 3rd most of import and the least precedence is given to ethical duties. Each constituent will be farther discussed in more inside informations in the coming sub – subdivision. Therefore, to reason, it can be said that the order of penchant when apportioning CSR financess by Respondents differ from that ranking as applied by Mauritanian houses.

Against, it is found that consequence obtained is inconsistent of that Carroll ( 1991 ) . However, it was fouond that the order of penchant is more or less the same like that Visser of ( 2006, 2007 ) , when apportioning financess to CSR activities.

Economic Duties

There are legion activities carried out by a house which classified it to be economically responsible. Harmonizing to Carroll ( 1991 ) , the first duty of any house is the economic duties. To be able to happen out if Mauritanian houses are engaged in economic activities, the respondents were asked to take among the different statements given to them. For this inquiry, respondents were given the possibility to take more than one option.

Figure 4.6: Economic duties – Frequency

From the above chart, grounds has shown that most of the companies invest in human capital. Companies prefer to put in their employees in order for these employees to bring forth economic value while executing their occupation. By so making, houses can maximise their net incomes. Therefore, this consequence is consistent with Friedman ‘s ( 1962 ) work. The latter argued that corporations should prosecute in activities designed to increase the house ‘s net incomes. Therefore, the writer asserts that the concern of concern is merely to make concern.

The study farther showed that to some extent, companies are involved in the occupations creative activity activities, merely to make public consciousness to their trade name. These houses include the Air Mauritius Ltd, Compagnie Mauricienne de Textile ltee, AML, Appavoo Group and Sonia Wear ltd.

Harmonizing to Carroll ( 1979 ) , a house is considered as an economic unit when it is engaged in bring forthing goods and services that society desires and to sell them at a net income. As, seen in earlier chapter, Visser ( 2007 cited Nelson, 2003 ) identified 8 economic multipliers that houses can make in order to be an economic unit. These are viz. the to bring forth investing and income, produce safe merchandises and services, create occupations, invest in human capital, set up local concern linkages, dispersed international concern criterions, support engineering transportation and construct physical and institutional substructure.

Based on the column chart showed in figure 4.6, it was found that taking houses in Mauritius are engaged on at least one of the economic multipliers, mentioned by Visser ( 2007 ) in his paper, which make them to be socially responsible.

Legal Duties

Society expects and requires organisation to obey the jurisprudence. Therefore, in order to be a socially responsible company, concern entities are required to follow with Torahs and ordinances, formulated by authoritiess. For this portion, Respondents were asked to bespeak the different legal jurisprudence which they abide for.

The below chart summarises the different attacks towards legal duties. Companies follow this type of duty in order to be socially responsible. Almost all statements are found to be in the same scope, whereby conformity with environmental specifications the highest, ( Refer to Appendix 4 ) .

Figure 4.7: Legal duties -Frequency

This clearly indicates that houses consider them to be socially responsible to follow with Mauritanian statute law.

Ethical Duties

Organization is expected to be ethical. Ethical duties is about being moral, making what is right and avoid injury. For the intent of accessing if houses do follow any codification of behavior, Respondents were provided with a series of such codification which they likely abide by.

From table 4.8 below, 32 out of 44 respondents are found to follow codifications of moralss while 28 out 44 have a policy to guarantee honestness and quality in all its contacts. Overall, it can be seen that out of 44 companies surveyed, each and every company make follow at least one codification of behavior.

Table 4.8: Ethical duties

The obtained consequences, therefore reflects those of Carroll ( 1991 ) . The writer suggest that ethical responsibilities of organisations are to “ incarnate those criterions, norms, or outlooks that reflect a concern for what consumers, employees, stockholders, and the community respect as just, merely, or in maintaining with the regard or protection of stakeholders ‘ moral right. Adoption of a company Code of behavior helps to demo direction ‘s committedness to CSR and it gives a way to stakeholders therefore advancing ethical behaviour. Hence, Mauritanian houses are ethical when making concern.

Philanthropic Duties

As highlighted in chapter 2, organisations are expected to be a good corporate citizen to carry through the philanthropic duties. Therefore, houses in Mauritius choose among the different countries of intercession proposed by the authorities, to carry through their philanthropic responsibilities. These are viz. : The environment, Education, Employee public assistance, Local community, Heath & A ; disable and Poverty relief.

For analysing which of the different attacks houses contribute the most, Respondents were asked to take among the different option provided to them.

Figure 4.8: CSR activities proposed by authorities

The above illustration figure 4.8 shows the picks of Mauritanian companies when lending towards CSR activities. Caring towards Employee Welfare is seen to be cardinal – precedence by concern entity with a mean of 1.57. Besides, a batch of consideration is given to local community undertakings as shown in figure 4.6. This is legitimate, given that these houses maintain a strong relation with people around them. Education stands in the 3rd place with a mean of 1.53 while assisting in the publicity of wellness attention base in the forth place.

Therefore, this consequence is non wholly consistent with the Ragodoo ‘s ( 2009 ) work. The latter studied CSR of the top 100 companies and 19 locally integrated Bankss in Mauritius. He found that Environment, Education and Health are the top three chief precedences given by Mauritanian houses, when apportioning financess to CSR activities. He besides found that Poverty relief and Employee Welfare are given the least of import when lending to CSR activities while based on the findings, it is shown that the tendency has now changed.

The top three precedences are the Employee Welfare, Local community and Education while poorness relief is ranked the lowest on the CSR docket of Mauritanian concern administrations. This is so, because houses prefer to move in the involvement of their employees and the local community so as to actuate their employees to work in the best involvement of the company and every bit good as to heighten their general good being in the community.

Figure 4.9: Employee Social welfare

Nowadays, employees are given most of import therefore demoing that there is grounds of good direction patterns towards employees. Figure 4.9 shows the different attacks by houses towards Employee Welfare. It is found ( 32 out of 44 ) administrations offer developing installations to their staffs. ( 31 out 44 ) houses provide wellness and occupational safety while 23 out of 44 companies provide step to heighten employee satisfaction and motive.

But every bit far as poverty relief is concerned, the consequence reflects that of Ragodoo ( 2009 ) .

Table 4.9: Sectors * poorness Relief

From the above tabular array, it can see that the commercialism, the sugar, the Banks, the conveyance and the leisure sectors is more active in the combat against poorness. Harmonizing to Ragodoo ( 2009 ) , there is direct engagement in the battle against absolute poorness by Hotel sector ( 19 % ) , the sugar sector ( 17 % ) and the Bank sector ( 13 % ) . Again this consequence is the same as that of Ragodoo ‘s surveyed.

The 5 most cited duties which form portion of CSR activities in Mauritius are viz. ( Refer to Appendix 4 ) :

Invest in human capital

Jobs creative activity

Policy to guarantee honestness and quality in all its contracts

Adopt codifications of ethic

Prohibit smoke at workplace

Benefits Derived from CSR undertaking

There are many benefits derived from CSR undertakings selected. Therefore, to hold an penetration of the likely benefits companies are deriving from CSR undertakings selected, Respondents were asked to take among the different options provided to them.

Figure 4.9: Benefits derived from CSR undertakings

The tabular array above shows that 77.3 % ( 34 out of 44 ) of the population surveyed are profiting from good dealingss with the authorities and the communities. While, 61.4 % of the respondents are heightening their trade name value and deriving good repute through the CSR undertakings selected. Besides, it is found that 56.8 % ( 25 out of 44 ) of the Respondents are heightening good corporate administration. Finally, 50 % of the population surveyed shows that CSR contributes towards long-tern sustainability for both the house and society.

It can be said that factors like decreased operating costs, better hazard and crisis direction and increased productiveness are non really likely benefits by houses. Hence, direction squads should instead concentrate towards CSR undertakings which encourage its employee to increase productiveness. It is to be noted that the motivational factor in subdivision 4.4, contributes towards benefits of the CSR undertakings which are being selected.

Profitableness of house without CSR committedness

Respondents were farther asked about the consequence on profitableness of their house without CSR committedness. To place the overall tendency and demo the perceptual experience of the Respondents, a cross tabular matter was generated between place and consequence on profitableness without CSR committedness

Table 4.10: Current place * Effect on profitableness without CSR committedness

It is deserving cognizing that 27.3 % of comptrollers showed ‘Neutral Response ‘ to this study. They believed that CSR do non hold any consequence on the turnover. Evidence from table 4.10 farther demonstrates that out of 13 CSR officers surveyed, 6 showed ‘Neutral Response ‘ , 3 are showed that net incomes would hold increased while 4 believed that net incomes would hold lessening and other. Therefore, harmonizing to the obtained consequences it can be concluded CSR is neither a addition nor a loss for concern entities.

Many of import findings were identified with completion of this chapter. This has hence helped in supplying replies to the research inquiries mentioned in Chapter 1. Consequently, this consequence will besides be used to supply utile recommendations in the following chapter.

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