MGMT.

8001 Management practice Analysis and Review Assignment 3

Management Practice Analysis and Review 

MGMT.8001

Assessment 3

Tutor: Kim Watson

Due date 31st January 2020

Gazal Malhotra (30018690)
Archana Arora (30017761)
Navdeep Kaur (30019056)

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MGMT.8001 Management practice Analysis and Review Assignment 3

INTRODUCTION

As public concern over climate change has risen in the last two decades, accordingly
academic research has increased. A significant body of research is now under way to
address the issues related to climate dilemma. In this report, we therefore review and
analyse greenwashing research, to provide an overview of progress and developments in
the field and a synthesis of the empirical and conceptual findings provided in existing
studies.

Our key finding leading to the management theory and its factor’s contribution is the
concern posed in climate change research that the completely voluntary approach to CSR
(Corporate Social Responsibility) that promotes greenwashing diffusion. CSR has indeed
been described as a key word for the global business success of a wide range of matters.
CSR is a leading global player.

Our report proceeds as follows: firstly, we outlined the historical background of CSR and
insightful speculation on course of its future development. Secondly, provides an adequate
verifiable information about how chosen factors influence CSR. We then assessed the
appropriateness of CSR’s for mitigating the adverse effects of climate change or promoting
sustainability. In the 4th section, we outlined and critiqued climate change or sustainability
CSR initiative from INDIA and assess its appropriateness for adoption in New Zealand. In the
last section, we finally present a comprehensive outline of Kaupapa Maori values or
principles applied in business context and a comprehensive assessment of compatibility
between CSR and Kaupapa Maori Values.

CSR-EVOLUTION

The roots of the corporate social component can be traced back to ancient Roman Laws and
can be seen in institutions such as asylums, homes for the poor and the aged, hospitals and
orphanages[ CITATION Mau19 \l 5129 ]. Since 1950’s, Corporate social responsibility (CSR) in
its modern formulation has been a significant and progressing subject. The evolution in this
regard can be seen through the key stages of development:

 the 1950s-1960s marking the time when CSR was introduced into academia and
corporate philanthropy;

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 The 1970s, during which the theory of CSR grew rapidly

 The 1980s when the theory and economic ethics of stakeholders originated
 The 1990s, when CSR was seen to be practised[ CITATION Mas17 \l 5129 ]

Much of the literature dealing with CSR and what it entails originated in the United States;
however, documentation of its implementation has emerged around the world, often under
different names, practices and rationales [ CITATION Mau19 \l 5129 ]. One of the most well-
known CSR frameworks used in literature and practice for a number of decades is the four-
part framework or definition of corporate social responsibility known as ‘Carroll’s CSR
Pyramid”[CITATION Car16 \l 5129 ]

The four-part framework for CSR: After reviewing his original four-part 1979 CSR
framework, developed within the context of the American capitalistic societies, Carroll
created a pyramid-shaped CSR graphic representation in 1991. The revised four-part
definition of CSR by Carroll stated as follows: “Corporate Social Responsibility encompasses
the economic, legal and ethical, glocal and discretionary (philanthropic) expectations that
society has of organisations at a given point of time”. An array of four obligations provides a
framework that helps to delineate or to define in some detail the responsibilities of the
organizations to which they belong. [CITATION Car16 \l 5129 ] A brief review follows for each
of CSR’s four categories:

Economic Responsibilities: The fact is that society expects, indeed, business organisations,
to sustain themselves, may seem strange to see economic expectations as social
responsibility, but this is the only way of successful doing so, and that is to be able to
stimulate investment by owners and shareholders and to continue to have ample resources.
Consequently, economic accountability is a fundamental requirement that must be fulfilled
in a competitive business climate.

Glocal Responsibilities: In the second stage of the international pyramid model of the CSR,
the responsibilities of Glocal are indicative of the corporate decision makers ' duty to
participate throughout activities that protect the environment and improve social conditions
in society, with due regard to socio-cultural aspects, technology users and the nature of
political rights. The definition of "thinking global, localising, or regional thought, acting
locally" recognises the importance of CSR issues

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Legal and ethical Responsibilities: Compliance with the laws and regulations is expected
and necessary of businesses as a condition of service. The collective vision of "codified
ethics" is in turn embodied in the articulation of basic concepts of fair business practise by
policymakers at the federal, State and local levels. Being good corporate citizens by doing
what is expected morally and performing in a manner consistent with expectations of
societal mores and ethical norms.

Philanthropic Responsibilities: Corporate philanthropy accepts on voluntary or

discretionary activities of the corporation. Generally, they are motivated by the willingness
of business to engage in social activities that are not compulsory, not required by law and in
an ethical sense not expected of business.

The future of Corporate Social Responsibility: Emerging in its place are a new generation of
companies that by their key approaches and benefits in process- actually solve social and
environmental problems. It’s called sustainable value. While conceptual and concept
differences exist, many businesses already have practical experience in handling social and
ecological issues. This is primarily due to the increasing influence of "Triple Bottom Line."
This is a holistic business approach that involves a balance sheet and the required financial
results of the environmental and social impact of the company. This demands that a
corporation investigate its impact on the social structure, the environment and human
rights in some situations.

CSR-INFLUENCE OF MANAGEMENT FACTORS

A growing number of companies are realising the need for sustainable business practices.
Companies are now trying to rectify the reckless, impulsive, short-term decisions that led to
the global recession. Firstly, Corporate leaders now realise how important it is to be good
corporate citizens as there are several factors that drive them to undertake CSR. Managers
typically face multiple obstacles around CSR, regardless of the style of leadership or the
mixture of styles that they follow. According to research conducted by S.E. Thomas (2011) in
the private sector organisations in UAE, that reveals that leadership, its styles and
behaviours have a positive impact on CSR. According to them transformational leadership
style facilitates the implementation of CSR. As transformational leaders are change
champions and are ideal for executing change in organisation. Moreover, they have the

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ability to win the commitment of their subordinates to shared organisational goals by

inspiring and motivating them to alleviate subordinate’s expectation and levels of
morality[ CITATION Tho11 \l 5129 ]. Secondly, organisational culture is the set of shared
beliefs, values and standards that affect how members think, feel and act. Although Max
Weber’s Bureaucracy is a rational structure within which human beings work towards their
objectives. It means to transfer “community action” to “societal action” that is rationally
ordered. For instance, Walt Disney Company has a magnificent heritage of charity, voluntary
work and environmental stewardship. Their approach of corporate responsibility extends
beyond philanthropy and their Disney worldwide conservation fund has supported habitat
preservation and efforts to save endangered species along with the “no plastic bags” policy.

CSR-CLIMATE CHANGE/SUSTAINABILITY APPROPRIATENESS

Climate change is perhaps the world's most important issue. According to the scientific
opinion, in this century it is likely that climate change would lead to catastrophic social and
environmental disasters. As a financial service institution in the world, Union Bank of
Switzerland (UBS) decided in 2005 to determine which actions should be taken in order to
deal with global warming. For example, UBS could limit the number of aircraft flights for its
top executives, replacing in-person meetings with global videoconferencing. Not only would
such a measure minimise UBS carbon emissions, but it would also reduce the cost of
sending executives to distant locations, which has been quite complex. The contribution of
UBS to CSR and sustainability went much further than global warming. Hence, UBS created a
special Corporate Responsibility Committee composed of senior executives from the bank.
At industry level, UBS has begun to develop a team for its social and environmental
accountability in assessing investment funds. Locally, UBS believed in contributing $38
million per annum in cash donations to educational and environmental initiatives. UBS
audited its own effects by subjecting UBS actions to an ISO 14001 environmental audit by an
independent auditor. It can therefore be said that voluntary business programmes, in the
context of CSR activities, can play a key role in fostering sustainable development, the
success of which depends on the responsible participation of political, economic and
societal actors.

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CSR INITIATIVES BY INDIAN COMPANIES

In previous decades, all the companies used to focus on planting trees as the most common
CSR activity. In today's world, CSR has become a new way to do business in a sustainable
manner for companies all around the world, including India [ CITATION Myr16 \l 1033 ]. India
is a developing country as the economy of the country has boomed drastically in the past
few years. In recent times, the companies in India have shifted their focus on such projects,
which can help them to create a long-term sustainable impact. There are many big and small
companies that are contributing towards the environment or the society as a part of their
CSR initiatives. One of such companies is Cummins India Limited, that initiated a CSR project
named ‘Creating oxygen hubs’, in Pune (Maharashtra). One of the major concerns emerging
from industrialization is the increasing emissions into the air from factories and industries,
which lead to excessive air pollution. Pune is a city in the state of Maharashtra in India and
along with industrialization, rapid urbanization within the city has also contributed in
making it one of the most polluted cities across India. The reports of 2013-14 demonstrated
that the city alone emitted 46 lakh tons of carbon within a year [ CITATION Aks17 \l 1033 ] .
The extent of such emissions impacted the oxygen levels in the environment drastically and
deforestation impacted the levels of green cover in the city.

Cummins India Limited initiated to fight against the pollution issue within the city through
its project named ‘Creating Oxygen Hubs’, wherein the company aimed at improving the
condition of the environment through and beyond plantation drives. The company spent the
amount of 1.112 crores for its creating oxygen hubs project and planted more than 35000
trees around the city to create sustainability [CITATION GOO17 \l 1033 ]. The initiative has
been started after a deep understanding into deforestation and air pollution, with the aim
of improving the green cover within the city. Pune is a city that is situated closely to
Western Ghats, which makes the possibility of planting trees and forests much easier. As a
part of this initiative, Cummins India Limited has been planting more and more trees to
increase the forest cover in Pune [ CITATION Nid17 \l 1033 ]. This is done by planting trees in
non-forest areas of the city so that more and more greenery hubs and covers can be
generated. The initiative of the company is not limited to planting large number of trees. It
also collaborates with a number of organizations, NGOs, authorities and forest departments
to plant and maintain such forest cover in non-forest, non-green areas within the city. The

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plantation and management of tree covers not only improves the situation of deforestation
but also has improved the quality of air within the city through natural means [ CITATION
Aks17 \l 1033 ].

The CSR initiative by Cummins India Limited is applaudable because it is necessary to

improve green forest covers in city regions to combat the issue of air pollution as well as
deforestation. Also, even though the initiative of the company is related to plantation of
trees, which is one of the most basic CSR initiatives taken up by companies, it does go
beyond basic plantation because the company ensures the sustenance of the planted
saplings. But is it possible to implement the same initiative in New Zealand? New Zealand is
also one of the heavily industrialized countries in the world. Deforestation is a major issue
within the country and various calls for help and reduction in deforestation have been made
over the years[ CITATION RNZ15 \l 1033 ]. Currently some initiatives are emerging to improve
the situation of deforestation in the country but severe interference in the matter is still
required. As a result of industrialization, urbanization and the recent bushfire events in and
around New Zealand, the quality of air has also been impacted greatly [ CITATION Jim20 \l
1033 ]. CSR initiatives that improve the forest cover in New Zealand will not only be

appreciable but are very much necessary at the moment. With regards to the
implementation of a CSR initiative such as that by Cummins India Limited, an organization
will not have to make much changes to suit the cultural requirements or differences
between the countries. The process of collaborating with different authorities, organizations
and NGOs remains the same across the world. Any organization in New Zealand can easily
collaborate with the NGOs in the country as well as the forestation departments or other
relevant authorities to plant trees in large numbers in certain areas and maintain their
sustenance so as to make sure that forest covers can be increased in the country. As already
stated, plantation of trees is one of the most basic CSR activities that organizations across
the world indulge in. The rules and requirements for plantation of trees do not change. The
organizations in New Zealand that might implement this CSR strategy can also take it a step
ahead and include other activities such as rainwater harvesting, bird-nesting activities,
etcetera to improve the condition of the ecology even further. Different kinds of trees and
plants can be planted by the companies, depending upon the quality of soil in different
areas, as suggested by the relevant authorities and departments.

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ANALYSIS OF COMPATIBILITY BETWEEN KAUPAPA MOARI VALUES AND CSR

Kaupapa Māori is a way to appreciate each and every person in New Zealand while
certifying that the fundamental query of their wellbeing is essential to any decision-making
process. Furthermore, it entails to mark a difference in people's lives and culture, to make a
positive contribution to the well-being of mankind and the whole world. The Maori people
have a technique of escalating and welcoming diversity, while adhering to their own ideals
and lifestyles. All cultural practices are recognized and respected, allowing tangata to
preserve their own cultural traditions and values alongside tikanga, these values indicate
that they are viral in order to create positive values, attitudes, behaviors and desires among
humans [ CITATION TeR \l 1033 ].

The leading values are implemented by Maori people include Whakawhanaungatanga which
involves Genealogy connects people through generations, kin and lasting non- kin
relationships. Next value is Kaitiakitanga which serve as Preserving, sheltering, and
protecting in relation to the environment. Following value is known as Manaakitanga which
teaches Reciprocity of kindness, respect, humility, responsible hospitality, caring for others
and the environment. Lastly, Rangatiratanga is about demonstrating leadership qualities and
serving as a role model for the group. Such attributes may include modesty, courage, and
humility (humbleness), integrity and community engagement. [ CITATION Har16 \l 1033 ] .

CSR has become an operative instrument within national and worldwide environmental and
communal governance. Corporate social responsibility (CSR) states to the moral and ethical
determinations made via a corporation for the improvement of the humanity. Corporate
Social Responsibility creativities are constructed on four diverse classifications; ethical,

philanthropic, environmental and financial responsibility [ CITATION Naf18 \l

1033 ]. Near accomplish, corporate social responsibility includes the communal good of
individuals, which is well associated with the Maori values of caring for each other and
contributing to the mutual moral. Moreover, environment obligation connected with
Kaitiakitanga which contains fortification, preservation and maintenance atmosphere. CSR’s
humanitarian type relate with Manaakitanga. Ethical and economic CSR’s responsibilities
align with Whakawhanaungatanga and Rangatiratanga respectively.

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CONCLUSION

The CSR model is supposed to bring innovative methodologies in many different nations
that promote approaches to societal problems. The all-inclusive CSR model should be
checked in several different settings to see how successful it is in New Zealand and thus to
validate its effectiveness in terms of Kaupapa Moari principles. Hypothetically, critics from
previous models can be seen and thus success is anticipated in practical situations,
wherever, and whatsoever. In different societies, we promote further research and
application, whether in developed or underdeveloped societies, in market economies or in
other societies

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REFERENCE
Carroll, A. B., Lipartito, K. J., Post, J. E., Werhane, P. H., & Goodpaster, K. E. (2012). Corporate
Responsibility: The American Experience. Journal of International Business Studies.

Mauricio Andres Latapi Agudelo, L. J. (2019). A literature review of the history and evolution of
Corporate social Responsibilty. International Journal Of Corporate Social Responsibilty, 23.

Carroll, A. B. (2015). Corporate social responsibility: The centerpiece of competing and

complementary frameworks. Organisational dynamics, 87-96.

Najeb, M. (2017). How to win the battle of ideas in corporate social responsibility: the International
Pyramid Model of CSR. International Journal Of Corporate Socila Responsibilty.

S.E, T. (2011). Impact of Leadership on the practice of Corporate Social Responsibility a study in the
private sector: UAE. Dubai: The British University in Dubai .

Allen, M. W., & Craig, C. A. (2016). Rethinking corporate social responsibility in the age of climate
change: a communication perspective. International Journal of Corporate Social
Responsibility, 1-11.

Bhole, A. (2017, May 31). 10 Green CSR projects by Indian companies. Retrieved Jan 21, 2020, from
CSR box: https://csrbox.org/India_CSR_news_10-Green-CSR-projects-by-Indian-
companies_53

Goodera. (2017, Jan 5). CSR and sustainable development: Do Indian companies care about the
environment? Retrieved Jan 21, 2020, from Dorbes India:
http://www.forbesindia.com/blog/uncategorized/csr-and-sustainable-development-do-
indian-companies-care-about-the-environment/

Tandon, N., & Kaur, S. (2017). The Role of Corporate Social Responsibility in India. Research journal
of commerce and behavioral science, 29-33.

RNZ. (2015, March 21). Call to reduce deforestation in NZ. Retrieved from RNZ:
https://www.rnz.co.nz/news/national/269255/call-to-reduce-deforestation-in-nz

Salinger, J. (2020, January 7). Australia's bushfires mean New Zealand has become the land of the
long pink cloud. Retrieved from The Guardian:
https://www.theguardian.com/world/2020/jan/08/australia-bushfires-aotearoa-new-
zealand-has-become-kikorangi-mawhero-land-of-the-long-pink-cloud

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Rigby, C., Mueller, J., & Baker, A. (2011). The integration of Maori indigenous culture into corporate
social responsibility strategies at Air New Zealand. Journal of Marketing Development and
Competitiveness, 116-126.

Schneider, A., Samkin, G., & Pitu, E. (2012). Incorporating indigenous values in corporate social
responsibility reports. Journal of New Business Ideas & Trends, 19-38.

Te Roopu Taurima. (n.d.). Retrieved from Rangatiratanga mo tatou katoa i runga i nga tikanga o tena,
o tena, o tena: https://www.terooputaurima.org.nz/

Harris, F., Macfarlane, S., Macfarlane, A., & Jolly, M. (2016). Maori values in the workplace. Mai
journal, 62.

Nafi, J. (2018). Different Types of Corporate Social Responsibility (CSR). Transparent Hands provides
free medical surgeries, treatments & organizes medical camps across Pakistan.

Carroll, A. B. (2016). Carroll’s pyramid of CSR: taking another look. International Journal of Corporste
Social Responsibility, 8.

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APPENDIX

Corporate social responsibility has become very significant. The companies worldwide are
recognizing the indigenous culture and cultural values in terms of doing business in today’s
world. The indigenous societies are found across the world. Climate change has brought
everyone's attention to the need for adopting CSR activities to attain environmental
sustainability. In New Zealand, the Maori culture is indigenous to the country. Maori way of
doing business in New Zealand is a way to represents that the existence of CSR in the
country from ancient times. These principles derived from Maori culture are being applied
in the business across the country. The CSR activities practiced by the Maori for-profit
organizations have benefitted the climate change as well as sustainability more than the
non-Maori for-profit organization's initiatives. The Maori values are woven into the culture
of New Zealand. The Maori for-profit organizations acknowledge the holiness of the
relationship that human beings share with nature as well as with each other. Thus, these
organizations focus on sustainability as well as the requirement to operate the business in a
more environmental and socially responsible manner. The Maori culture is a very rich
culture and helps the country to represent its true identity. The Maori for-organization aims
to follow the purpose greater than just maximizing the wealth in terms of motivating its
employees as well as stakeholders compared to the non-Maori for-profit organizations
[ CITATION Col11 \l 1033 ]. The Maori for-profit industries have set the perfect example for
the non-Maori for-profit organizations to embrace indigenous cultural values in the
business. These organizations focus on integrating CSR by embracing indigenous culture in
terms of attaining sustainable development. Maori organizations do business in a way that
focuses on the sustainability of human beings as well as the planet. Before the European
settlers’ arrival in New Zealand, the Maori people developed various culture-based institutes
in terms of ensuring the sustainable environmental management of natural resources
[ CITATION Ann12 \l 1033 ]. The concepts and culturally valued of Maori culture were present

across the whole Maori society, which ensured the use of natural resources in a socially
responsible manner. In this context, it can be stated that the non-Maori for-organizations
will not be as much effective as the Maori for-profit organizations, because of the cultural
values differences. The Maori people follow the concept of staying close to nature as it is
the best for human beings to develop sustainably.

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H0 : Maori Organizations are likely to have proportionally more climate-change initiatives

than non-Maori organizations.

H1 : Maori Organizations are not likely to have proportionally more climate-change

initiatives than non-Maori organizations.

CSR FINANCIAL DETAILS (INR Cr.)

Year 2018-2019 2017-2018 2016-2017

Actual CSR 26.68 Cr 21.88 Cr 12.00 Cr
Prescribed CSR 16.16 Cr 16.61 Cr 16.16 Cr

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