6. The Role of HR in Corporate Social
Responsibility in the Case of
Author: Ralph Carol Antony Gerald
India, 2016

7. 2
This Book is dedicated to My Girl Friend Defina Sebalin,
My Family and M
guidance, and help made this book possible
When I set out to write my thesis as a book I had one purpose in mind. To help YOU,
the individual readers and the students who wanted to do their research in,
improve his/her own knowledge on CSR and thereby get more information on CSR from
the book and success out of life.

8. 3
Table of Contents
Abstract..................................................................................................................................4
List of Abbreviations and Conventional Symbols.................................................................
Introduction...........................................................................................................................
1. Corporat
Motivation............................................................................................................................10
1.1. Corporate Social Responsibility: Definition and Models .....................................10
1.2. The Role of CSR: CSR and Employee Motivation...............................................17
1.3. Problems of Corporate Social Responsibility Management in International and
Multinational Companies.................................................................................................23
2. Human Resources in CSR ............................................................................................27
2.1. HR Management in a Company............................................................................27
2.2. Specificity of HR Management in International and Multinational Companies...33
2.3. CSR and HR Managers in Companies..................................................................35
2.4. The Link between HR and CSR............................................................................37
2.5. Research Design and Methodology ......................................................................39
2.5.1. Research Variables and Conceptual Framework...............................................39
2.5.2. Research Methodology......................................................................................41
3. The Role of HR in CSR Policy Impplementation
Company..............................................................................................................................46
3.1.
Branches...........................................................................................................................46
3.2. ......................................49
3.3. ..54
3.3.1. Interview Results Analysis................................................................................54
3.3.2. Questionnaire Results Analysis.........................................................................56
Conclusions..........................................................................................................................65
Recommendations................................................................................................................67
Concluding Remarks............................................................................................................69
References............................................................................................................................70
Appendices...........................................................................................................................77

9. 4
Abstract
The topic of the Book: The Role of HR in Corporate Social Responsibilities in the
.
The aim was to study and analyze the role of HR in CSR policy implementation by
the example of The following objectives have been
completed during the research: the literature and other sources on the subject of CSR and
HR management, including the link between HR and CSR, has been analyzed; the
description of the M its CSR and
HR and/or CSR managers have been performed; the survey through questionnaire of
ach
country) to study the role of HR in CSR has been conducted; the proposals for the HR
system for a socially responsible
developed.
During the preparation, several research questions have been answered, including:
What is the evaluation of the role of HR in CSR policy implementation of
How is it similar or different?
What are the activities that are performed by HR managers to promote CSR
policy
What can be done to improve the nexus between HRM and CSR in
As a result of the research, the author has developed proposals that could make the
role of
and CSR function.

10. 5
List of Abbreviations and Conventional Symbols
HR Human Resource
HRM Human Resource Management
CSR Corporate Social Responsibility
CFP Corporate financial performance
B2C Business-to-Customers
B2B Business-to-Business
SIHRM Strategic International Human Resource Management
MA Masters of Administration
IFA International Framework Agreements
EWC European Works Council
IUF International trade union federation
EU European Union

11. 6
Introduction
Background to the Research and Topicality
The topicality is explained in theoretical and practical dimensions. Corporate social
responsibility (CSR) is the subject of This
phenomenon became popular in scholarly studies in the 1950-60s, however since then, the
concept of CSR developed and there was a shift in conceptualizing this phenomena, it
switched from the macro to micro level and from the more economically oriented to a
more stakeholder oriented dimension. Consequently it is important and useful to address
earlier and later research on the subject of CSR and the role of HR in it, because the HR
practices and approaches also developed considerably since the middle of the 20th
century.
The author of the Book finds it topical to summarise and analyse different theoretical
approaches in order to choose the contemporary ones that the empirical research would be
based on.
Also, one of the motivations for the choice of Research, is that CSR finds more and
more appreciation by real business. Many companies pay more attention to their CSR
policies in order to make them beneficial for all the stakeholders and the company itself,
the CSR policies can be formal to some companies, but current trends indicate that
companies truly dedicate more time and effort to make their policies work and improve the
welfare of the society. Employees is just one of the stakeholders groups that the
corporation deals with in daily operations, the overall results of the company are much
dependent on employees. It means that having good relations with employees, making
them feel good at their workplace, safe and appreciated, providing with enough
information, considering their opinion etc. contributes to better performance of the
company in many aspects. HR practice is used to manage human resources in an effective
way and they can contribute to creating and sustaining a successfully functioning and
stakeholder appreciated CSR policy.
restaurants of this company are open in more than 100 countries in the world and over 30
pany was one of the first to encompass
a global CSR practice and is famous for its HR practices, however due to the specificity of
its business model, 80% of its restaurants are franchised and therefore it can be
problematic to guarantee the same high level of HR and CSR everywhere in the world. The
global brand wants the HR management and the CSR management to be on the highest
level in all the franchisees, however markets and countries have latitude when it comes to

12. 7
menu, marketing, community involvement and local business management. Accordingly it
is interesting to find out, how the global brand and its franchisees manages HR and CSR
and what is the role of the earlier in the latter. The mentioned above factors make the chose
topic relevant for research.
Aim and Tasks of the Research
The aim of the Research is to study and analyze the role of HR in CSR policy
implementation multinational company.
Based on the introduced aim, the following tasks need to be completed in the thesis:
1. To analyze literature and other sources on the subject of CSR and HR management,
including the link between HR and CSR.
2.
practices.
3. To perform interviews /or CSR
managers.
4.
India and the Netherlands to study the role of HR in CSR policy implementation.
5. To develop proposals for the HR system for a socially responsible company by the
The Object and Subject of the Research
The subject of the following research is the role of HR in CSR policy
implementation. The object of the research is the employees and HR managers and/or CSR
managers of Latvia, India and the
Netherlands.
Research Process, Methodology and Research Design
The dependent variable is t in Latvia, India
and the Netherlands.
Independent variables:
policy;
practices;
policy and
practices;

13. 8
the activities performed by HR managers to promote CSR policy.
Based on these variables, the following research questions are formulated:
What is the evaluation of the role of HR in CSR policy implementation of
etherlands?
How is it similar or different?
What are the activities that are performed by HR managers to promote CSR
policy
What can be done to improve the nexus between HRM and CSR in
onal corporation?
The author of this Book has used desk and field research methods. Desk research
was used for providing background materials for primary research. For desk research
author has used various information sources such as literature on HR, management,
marketing, articles and internet. Field research is used for gathering primary data.
The methods of research include:
critical analysis of literature and other information sources for defining the
theoretical framework of research and the conceptual model;
employee survey (quantitative method) for finding out about the role of HR
in the CSR in the researched international company;
content analysis (qualitative method) the analysis of documents on the
CSR and HR systems of company;
HR managers/directors;
logical method - deductive reasoning, moving from more general to the
more specific.
Limitations of Research
There is a limitation of the period of research 2012-2016, with some data
available for the part of period only. This research period is chosen in order to reflect the
latest trends and situation with the CSR. The survey took place in 2016.
The selection of surveyed employees is 50 persons per each country Latvia, India
and Netherlands, which is important to make the data representative and comparable.

14. 9
Information Sources
The author of the Book have used different sources for research, including literature
on HR, CSR, social research etc. (for example, such authors as Amaeshi, Nnodim, Osuji,
2013; Babbie, 2010; Beal, 2014; Jamali, 2008 and 2010; Mohan (2006), Strandberg
(2009). Also scholarly articles have been used, for example, Aguinis (2011), Berber et al.
(2014), Detomasi (2007), Genc (2014), Geva (2008), Gond (2010), Kim, Scullion (2013)
The Structure of the Book
The following Book consists of introduction, three chapters, conclusions, proposals,
concluding remarks, references.
In the first chapter, the critical analysis of literature and other information sources
was performed about the
In the second chapter the HR in CSR was studied from the theoretical points of
view, including the link between HR and CSR. At the end of this chapter, the conceptual
framework of research is provided.
In the third chapter the analysis of
international company was performed and on its basis the proposals for the HR system
provided.
The results of the research were summarized in conclusions, proposals and the
concluding remarks.
Novelty and Practical Implications
The novelty of the research is based on the fact that previously the role of HR in
CSR policy
without the comparison between different countries. The following research presents the
comparison and also covers additional variables, such as informatio
practice.
The proposals provided in this thesis are practical and can be used by the managers
connection between HR and CSR and the scope for improving both practices.

15. 10
1. Corporate Social Responsibility (CSR) as a Managing Tool
Motivation
In the first (theoretical) chapter the author of the Book focuses on the subject of
CSR, presenting its definitions and analyzing them, the information on CSR management
1.1. Corporate Social Responsibility: Definition and Models
Considering that the following Research focuses on the CSR research, the
definition of CSR should be provided. Actually, the subject of CSR has become popular
and interesting for research for many authors and scholars around the world. Nowadays
CSR has become something that is much discussed in public companies not just for the
betterment of the society, but to create a juxtapose impression that companies really
present to the public. As a result of many studies dedicated to CSR, there are many
different definitions provided for this concept. In this regard authors K. Amaeshi, Nnodim
P., Osuji O. (2013) noted that CSR remains a multifaceted and contested concept. Some of
them are presented and analysed below.
At first, The European Commission stated
companies integrate social and environmental concerns in their business operations and in
2002). Corporate social responsibility refers to
companies voluntarily going beyond what the law requires to achieve social and
environmental objectives during the course of
Commission, 2016). Thus, this definition focuses on the voluntary decisions of companies
to pay more attention to social and environmental concerns in their daily business
operations, but emphasizes that CSR is about putting more efforts than prescribed in
national or international laws. One of the other definitions of CSR that stresses the idea of
corporation has not only economic and legal obligations, but also certain responsibilities to
Another definition that the author of this Book would like to include in the research
is CSR is concerned with treating the stakeholders of the firm ethically or in a responsible
acceptable in civilized societies. Social includes economic and environmental
responsibility. Stakeholders exist both within a firm and outside. The wider aim of social

16. 11
responsibility is to create higher and higher standards of living, while preserving the
profitability of the corporation, for peoples both within and outside the corporation
(Hopkins, 2007, p. 15-16). This definition is quite detailed and explains what
ethical/responsible means, who are the stakeholders and the general aim of CSR, but is
quite lengthy and thus it did not gain much popularity in the academic circles.
World Business Council for Sustainable Development (2009, p.3) provided its own
defi Corporate Social Responsibility is the continuing commitment by
business to contribute to economic development while improving the quality of life of the
workforce and their families as well as of the community and society at large Once again
in this definition, it is possible to notice the life standard, quality of life aspect of CSR,
which means that the CSR policy adapted by the corporation should bring welfare no only
to its employees, but also the community in general.
Another definition sees CSR as a form of organizational behavior, according to it
CSR includes context-specific organizational actions and policies that take into account
stakeholders
environmental performance (Aguinis, 2011; Amaeshi, Nnodim, Osuji, 2013). The author
managerial level rather than macro level. Therefore this definition is the one accepted by
the author as a basis for own research in this Master Thesis.
To sum up, based on the analysis of the summarized definitions, it is possible to
conclude that CSR is about:
voluntarily exceeding social and environmental obligations in daily business
operations;
doing business ethically, in a responsible manner, including the treatment of
bringing welfare to the community in general;
one of the forms of organizational behavior, that considers stakeholders
expectations as well as economic, social and environmental performance.
CSR covers a very wide range of topics, as it is a result of integration of business
operations and values whereby interests of stakeholders and the environment are reflected
t are generally covered by CSR include
the ones summarized in Figure 1.1. According to this figure the main topics include
business ethics, community economic development, corporate governance, human rights,

17. 12
corporate contributions, workplace issues, environment and each of them has a number of
subtopics.
Figure 1.1. CSR Topics (Center for Ethical Business Cultures, 2005, p. 27).
Thus, CSR is a broad concept that deal with the internal relations with employees,
the external relations with different stakeholders such as partners, customers, state
organizations, non-governmental organizations, associations etc. and the activities that
make the business responsible for make no or little harm to the nature and contributing to
the development of economy.
The understanding of corporate social responsibility can be facilitated if one
particular model of CSR is accepted as a basis for research. There are several theoretical
models of CSR, they are discussed below.
First, the social-economic model of CSR is analysed. This model has two
distinctive arguments on the social and economic dimensions of CSR:
1) the first one represents the orthodox paradigm which maintains that social
responsibility of business is a single dimensional activity in which business

18. 13
has the only responsibility of supplying goods and services to the society at
a profit;
2) the second dimension sees business in a social matrix contributing to the
welfare of society as a whole and support the view that business is a part of
a greater society and it has responsibility reaching beyond the narrow
perspective of profit maximization in the short term (Liangrong, 2009).
Actually, there are three popular variations of this model the pyramid, intersecting
circles and the concentric circles one (see Figure 1.2. for reference).
Figure 1.2. Social-economic Model of CSR: Different Versions (Geva, 2008).
These models may seem very similar in terms of the dimensions they have, but they
have considerable differences. The pyramid model (offered by Caroll in 1991) accepts the
idea that the dimensions of CSR that represent responsibilities of corporation are
To be profitable as a company, minimize cost
and maximize sales or make sensible strategic decisions are at the base of economic
responsibilities. Economic performance is required by the society. The second layer is the
legal responsibilities and it is also required by society. In these responsibilities companies
are expected to obey the law. The difference of the ethical responsibilities from the first
two responsibilities is that the ethical responsibilities are not required but expected by

19. 14
society. To assert ethical leadership, avoid questionable practices or operate above the
minimum standard of the law could be examples for the ethical responsibilities. The
philanthropic responsibilities stand at the top of the pyramid and to be a good corporate
citizen and improve the quality of life for the society is the aim of these responsibilities
(citied in Gulijev, 2014). On the other hand, the intersecting circles model contrasts the
pyramid one, it considers the CSR domains as interrelated and not hierarchical. The third
model recognizes the implications of the pyramid model in terms of the core social
responsibility and at the same time emphasizes the interrelationships among the different
dimensions of CSR. That means that the concentric circles model extracts the good
-economic social
re
While, the social-
academic research and literature as well, but its main drawback is too much focus on the
economic side. However, this is also an alternative model which is called stakeholder
model, this model considers more than just the economic function of the corporation.
According to this approach, corporations are expected to manage responsibility an
extended web of stakeholder interests across increasingly permeable organization
boundaries and acknowledge their responsibility for traditional interest groups as well as
silent stakeholders such as local communities and the environment (Simmons, 2004;
Jamali, 2008). This means that the company needs to address the needs of its stakeholders,
who are not only its customers or employees, but a much wider range of communities.
When the company uses this model of CSR it finds out the needs of its stakeholders,
analyses the value it can provide to them, and by providing the best possible value it also
achieves better operating results (Jamali, 2008; Hawkins, 2006). Table 1.1. summarises
the main expectations of main stakeholder groups and how the corporation could satisfy
them in its CSR practices.
Table 1.1.
(created by the author, using Jamali, 2008)
Stakeholder
group
Expectations by Value
Classes
Actions to Satisfy Expectations and
Provide Value
Employees Health and safety at work
skills
Providing family friendly environment
Engaging in responsible HR management
Providing an equitable reward and

20. 15
Wellbeing and satisfaction
of worker
Stakeholder
group
Expectations by Value
Classes
Actions to Satisfy Expectations and
Provide Value
Quality of work
Social equity
wage system for employees
Investing in HR development
Engaging in open and flexible
communication
Providing safe work conditions
Encouraging freedom of speech
Etc.
Consumers Product quality
Safety of customer during
use of product
Consumer protection
Transparency of consumer
product information
Respects the rights of consumers
Offers quality products and services
Provides information that is truthful,
honest and useful
Products and services provided are safe
and fit with their intended use
Avoids fake and misleading advertising
Discloses substantial risks associated
with product or service
Etc.
Suppliers Partnership between
ordering company and
supplier
Selection and analysis
systems of suppliers
Engaging in fair trading with suppliers
Community Creation of added value to
the community
Environmental safety and
production
Demonstrates a commitment to
sustainable development
Demonstrates a commitment to
environment
Fosters reciprocal relationships between
the corporation and community
Invests in Communities
Launches community development

21. 16
activities
Encourages employee participation in
community projects
From Table 1.1 it is evident that with the stakeholder approach the company thinks
of how to serve the community and its particular stakeholders better providing benefits for
all, including the company itself.
While there are other approaches and models of CSR, the two described ones are
the most well-known and others are more or less evolving from these models. So the
author of the Master Thesis does not include other models in this research.
The author of this Book finds the stakeholder approach more suitable for the
following research, because the CSR is viewed from the position of the role HR in it, and
HR is about employees which is one of the main stakeholder groups.
Considering that the main focus of this thesis is the role of HR (employees as
stakeholders) in CSR, hereafter the author of the Book will focus largely on this group of
interest, however, it is always important to keep in mind that the stakeholder approach
considers the multiple stakeholder groups and the CSR practices is the result of their
cumulative influence.
However, it is also important to study the historical development of CSR, because it
has developed substantially and changed the way companies do and understand business
today. This historical review would also demonstrate how CSR moved from a macro to a
micro level and social-economical to stakeholder focused approach. Therefore the author
of the Thesis presents a brief history of CSR development.
roadly discussed
to take more and more responsibilities (Reagen, 2011). Though believed to be an old
concept, the nature and the scope of cooperate social responsibility has changed over the
time. The early foundation of CSR can be traced to the concept of business philanthropy
(Forster, 2012). In 18th
century, the renowned philosopher and economist came up with a
classical theory of economics, that the desires and needs of society can only be the
unregulated dealing of individuals and organisations in the market.
In contemporary scholarly circles the interest for CSR grew noticeably in the 50-
60s of 20th
century. Truly, the contemporary form of CSR first emerged in 1950-s and
marked the existing era of CSR practice.
The evolution of views on the CSR problem is demonstrated in Figure 1.3.

22. 17
Figure 1.3. Trends in CSR research (Min-Dong, 2008).
Figure 1.3. show s the conceptual shift on four dimensions, particularly in 50-60s
CSR was mostly viewed at a macro-social level with the explicit ethical/obligation focus
and no discussion on the relationship between CSR and CFP (corporate financial
performance). In 90s and later on, the level of analysis shifted to organizational level with
the managerial orientation and implicit ethical orientation, researchers also focused on the
relationship between CSR and CFP and found them interconnected. Until 1990-s CSR
practice was mainly used by the companies in order to look good in oth
more of an obligation rather than truthful intention to become better, however, today CSR
has become more of a strategic approach to doing business in general which can be
e, 2005). Most
recently, the concept of CSR has spread in Europe and it has even become trendy for
companies to engage in CSR. This brief historical review also indicates that the choice of
the social- too short-sighted,
therefore the choice of the stakeholder model proves to be logical.
1.2. The Role of CSR: CSR and Employee Motivation
Corporate Social Responsibility (CSR) as a
n
will focus on the role of CSR in employee motivation, however it is important to add, that
the connection between CSR and HR is not only through motivation, this subject will be
researched more in the second chapter.
The role of CSR due to the accepted stakeholder model could be studied in different
perspectives such as its role in each of the stakeholder groups wellbeing, social and
economic development etc. However, considering the focus of the study, the role of CSR

23. 18
will be explained theoretically for the employee stakeholder group and its role for the
corporation in general.
First, the global benefits of CSR are analyzed. A number of authors emphasize the
advantages of the CSR for the company in general. According to the Forbes expert
Epstein-Reeves J. (2012) CSR can push a number of business processes into the
organization:
innovation taking into consideration the sustainability approach a
company can find new ways to improve its products and services;
cost savings - one of the easiest places for a company to start engaging in
packaging or less energy, these savings add up quickly;
brand differentiation CSR helps to find their voice and incorporate the
, CSR helps customers
differentiate the products/ services of this particular brand from the others;
long-term thinking - -term
interest an sustainable, it is strategic;
customer engagement CSR can help engage with customers in new ways
B2B sectors;
employee engagement (and motivation) informing employees about CSR
is another opportunity together with stimulating them to engage personally
into socially important activities.
Therefore, according to this opinion, embracing CSR helps the company in a
number of ways from cutting cost
Another opinion on the general benefits of CSR for the company is provided by
Rangan K., Chase L. A. and Karim S. (2012), they studied the benefits and motivations for
as :
1) philanthropic giving focuses on philanthropy, either in the form of direct
funding to nonprofit and community service organizations, employee
community service projects, or inkind donations of products and services to
nonprofits and underserved populations;
2) reengineering the value chain - represents CSR activities that are symbiotic

24. 19
environmental or social impacts of one or more of their value chain partners,
including the supply chain, distribution channels, or production operations;
3) transforming the ecosystem aimed at fundamentally changing the
.
Each of these dimensions provide a specific positive impact on the company
(including, employees), they are summarized in Table 1.2.
Table 1.2. Different Motivations and Benefits for CSR
(Ranga, Chase, Karim, 2012, p. 14)
Theatre 1: philanthropic giving
Generates
new
business
opportunities
23%
Improves
social
standing
60%
Improves
brand
reputation
60%
Increases
employee
motivation
49%
Supports
philanthropic
priorities
56%
Reflect
preferences
of
operating
managers
34%
Theatre 2: reengineering the value chain
Generates
new
business
opportunities
36%
Reduces
operating
costs 21%
Improves
supply chain
management
19%
Improves
environmental
impact 40%
Protects
resources on
which the
company
depends
33%
Markets to
socially
responsible
consumers
36%
Theatre 3: transforming the ecosystem
Promises
significant
and new
business/
market
opportunities
59%
Promises
significant
new
operations or
supply chain
manufacturing
efficiency
48%
Promises
long term
gains by
significantly
changing its
business
environment
96%
Creates an
important
solution to a
social or
environmental
problem
78%
Fulfills senior
management or chief
67%

25. 20
Analysing the information in Table 1.2 it is possible to conclude that the dimension
social standing, but also provides contribution to employee motivation, which is an
important impact in this Thesis outline
such main benefits as improving environmental impact, marketing to socially responsible
consumers and creating new business opportunities. transforming the
ecosystem t benefits in terms of business opportunities and long-term
business environment changes, reaching a completely new level of significance for social
mission.
When focusing particularly on the connection between CSR and employees as a
stakeholder group Tziner A. (2013) comments that the CSR:
enhances employee attitudes;
enhances employee behaviours;
increases employee productivity in the workplace.
According to Team Nudge (2014) research, CSR activities in case they are
promoting employee engagement provide such benefits as 18% higher productivity, 12%
higher customer loyalty (because employees strive to provide better service), 62% fewer
work accidents, better retention rates.
Having positive attitudes, beneficial (for the company) behaviours and higher
productivity leads to better profitability and efficiency at a workplace, which is important
for any company.
The findings of research show that CSR has a certain positive influence on
employee motivation. Table 1.3. summarises the findings of some researches on this topic.
Table 1.3 CSR Influence on Employee Motivation: Research Findings
(created by the author, using Khan et al., 2014; Forsgren, Haskell, 2015; Skudiene,
Auruskeviciene, 2012; Gond et al., 2010; Kim, Scullion, 2013)
No Author Year Findings
1 Khan A. et al.
(2014)
2014 The research results revealed that external CSR (local
communities & business partner) positively influence
employee motivation. While insignificant relationship
found between internal CSR, external CSR (customer
related) and employee motivation
2 Forsgren A., 2015 CSR activities towards employees, CSR activities

26. 21
Haskell L. towards shareholders, and CSR activities towards
customers positively impacts the intrinsic motivation
of employees. Also, CSR activities towards
No Author Year Findings
employees positively impacts the extrinsic
motivation amongst employees. The intrinsic
motivation is affected by more sets of CSR
activities towards certain stakeholder groups than
extrinsic motivation.
3 Skudiene V.,
Auruskeviciene V.
2012 The findings suggest that internal and external CSR
activities positively correlate with internal
employee motivation. Internal CSR was found to
be stronger related to internal employee motivation
than all the external CSR dimensions. Regarding
the external CSR, customer related activities
indicated stronger correlation with internal
employee motivation than local communities and
business partners related CSR activities. The
weakest relation was found between internal
employee motivation and business partners related
CSR activities.
4 Gond J.P. et al. 2010 The framework of the integrative models of CSR
influence on Employees was developed, the
motivation is influenced through the influence of
justice evaluation that triggers organizational
identification and form of social exchange. A
number of attitudes and behaviours result from
these perceptions, including job satisfaction which
is closely related with motivation
5 Kim C. H.,
Scullion H.
2013 Studied CSR and motivation connection in cross-
cultural aspect. Found, that there is a link between
CSR and employee work motivation, but it differs

27. 22
in different cultures. As example: CSR motivates
employees for more affiliation needs in Korea,
whereas it works for individual achievement
motivation in the UK
Analyzing the table above, the author of the Book finds that several authors
reported positive correlation between CSR and employee motivation. The aspects of
studies were different, for example, it was found that motivation from CSR differs in
different cultures, internal CSR and external CSR both influence motivation, but in a
different scope and they are capable of influencing both intrinsic and extrinsic motivation.
Consequently, by embracing CSR practices corporations can increase the
motivation of their employees, which is important for achieving goods performance results
for the whole company through higher productivity, positive perceptions, attitudes and
behaviours.
The author of this Book also finds it important to reveal some examples of the CSR
activities aimed at employees as a stakeholder group used by different international
companies around the world. These examples were found successful in professional and
academic circles.
Epstein-Reeves J. (2012) names two successful examples of CSR for global
companies, one of them is Sara Lee created a cross-functional, global
Sustainability Working Team to help create a strategy for sustainability. Another one is
Solo Cup Company created the Sustainability Action Network to activate
. This global company has multiple
programs for donating and supporting programs for social responsibility. Their Community
Involvement Program encourages it by directly involving employees. Since 1974, more
than half a million Xerox employees have participated in the program. In 2013 alone,
Xerox earmarked more than $1.3 million to facilitate 13,000 employees to participate in
community-focused causes. The return for Xerox comes not only in community
recognition, but also in the commitment employees feel when causes they care for are
supported by their employers (Moreno, 2015).
AT&T ion and engagement focused CSR
program, it asked employees to start an individual or team project to make one small
change of their choice in order to help their company or themselves become more

28. 23
sustainable and socially responsible, for example, walk to work instead of driving. It was
reported that this program helped participants engage with their communities in
(Quinn, 2013).
list includes the following companies: Microsoft, Google, The Walt Disney Company,
BMW, Apple, Daimler, Volkswagen, Sony, Colgate-Palmolive, Lego Group (Adams,
2015). While this rating does not only cover the assessment of employee related CSR
activities, but all of them, it shows that the best performing companies are the largest
international companies.
The things that unite these successful CSR activities are the dialogue with
employees, consideration of their opinion in choosing CSR activities, working closely with
employees to find out what is important to them, letting them choose, informing them
about success and about issues that still needs to be addressed. By feeling how important
the investment of each emplo
significance for employer, the appreciation, the purpose, an employee feels more motivated
and engaged.
In summary, CSR practice in a company contributes to higher motivation of
employees and through higher motivation and engagement it provides a number of positive
results for the whole company both in financial and non-financial dimensions.
1.3. Problems of Corporate Social Responsibility Management in International
and Multinational Companies
International companies operate in several markets located in different countries,
that means that they have several geographically distant branches (or other types of
subsidiaries), may work with people of different cultures (unless they bring all the
employees from the home country), consumers with different cultures, including religion,
demographics, beliefs and many other characteristics. Another terms that is widely used is
multinational companies (corporations), these companies have their facilities and other
assets in at least one country other than its home country. Such companies have offices
and/or factories in different countries and usually have a centralized head office where they
co-ordinate global management (Investopedia, 2016).
International and multinational companies therefore perform CSR management
which is different to some extent from the CSR of local companies. The problems and

29. 24
specificity of CSR management in international, multinational, transnational companies are
discussed in this subchapter.
Many multinational companies have established
well-developed CSR programs and adhere to their code of conduct to do businesses
ethically, help the economy grow, create larger job markets, protect the environment, raise
public attention on certain issues, and more areas to bring social goods to the world In
return, CSR programs provide good reputation and positive image to multinational
companies, influence their income, make them more attractive as employees etc. Also
Jones (2005) added that multinational corporations are under growing pressure to display
their social responsibility in their global operations.
Large international and multinational companies have a big scope of operations,
they are the actors of globalization and that is why they are often criticized by ant
globalization activists, free trade capitalists and environmentalists for the impact these
corporations make on society, environment and economies (Shah, 2007). Many big
international companies had their CSR programs and policies on track for decades,
developing them and expanding them.
Multinational companies implement global CSR management, this involves:
cross-border transfer and management of CSR practices, from one part of
the MNC to another;
the management of local CSR practices suited to the local context of the
subsidiary units (Detomasi 2007).
This means that the CSR practices of multinational companies often are based on
the overall values of the whole corporation, but at a local level they might be adjusted to
Table 1.4 demonstrated that advantages and
disadvantages of global and local CSR.
Table 1.4 Global versus Local CSR in Multinational Corporations
(Jamali, 2010, p. 184)
Level of CSR Advantages Disadvantages
Global CSR - Upward harmonization of
CSR, standards
internationally
- Globally integrated and
standardized strategy
- Policies, processes, and
structures consistent
- Insensitivity to local needs
- Reduced ownership and legitimacy
- Compliance based strategies that are
tailored to end of pipe controls
- Approaches that live up to minimum
host requirements

30. 25
across cultures
Local CSR - Nationally responsive
and adapted to local
context
- Tailored to local cultural
differences and
preferences
- Fragmented inconsistent and reactive
strategies
- Lack of clear responsibility and
internal tensions
- Approaches that live up to minimum
global requirements
- High coordination and control
necessary
As it can be seen in table 1.4, each level has its advantages and disadvantages,
when the company operates on one level only, it lacks the benefits of the other, therefore it
is necessary to find balance between each level and this is the main issue of managing
CSR of multinational companies.
Some studies have found that the country of origin influences the CSR practices
(Edwards, 2007), however the evidence is not enough to draw very specific conclusions
about the character of impact. For example, some studies indicated that in some countries
publishing information about CSR is more likely than in others, in some CSR strategies the
bigger role was given to shareholder value either than social responsibility etc., but all of
these conclusions were supported with rather little amount of evidence (Edwards, 2007).
According to Pimpa N. (2011) in some countries multinational corporations move away
from voluntary approaches to CSR through law, and in some countries they are driven by
requirements of powerful institutions such as stock exchanges.
Multinational companies in contrast with local companies have a larger group of
diverse stakeholders, depending on the area of operation, these can include different
international organizations (such as Organisation for Economic Cooperation and
Development, European Commission, United Nationals etc.), activist and interest groups
etc. (Mohan, 2006). So in managing their multinational business, corporations need to
consider the interests of a bigger group of stakeholders. This is one of the problems of
managing CSR in multinational companies. So far, the questions of managing CSR
globally has not been researched much in academic circles.
Large multinational corporations tend to develop the so-
rights and core labour standards,
reached between management in multinational corporation on the one hand and either IUFs
International trade union federation) or EWCs (European Works Council) on the other,
(Edwards et al., 2007). Over 113 IFAs had been signed, including a large number of
companies in Europe such as Michelin, Allianz, Air France-KLM, Santander, BP, General

31. 26
Motors, Nordea etc. (European Commission, 2016).
the list of such corporations.
The Eurofound (2013) report made the following conclusions on IFAs: IFAs serve
to promote key features of the respective national models of social partnership and
cooperative industrial relations. This implies that IFAs are clearly present in multinational
corporations whose headquarters are located in social market economies characterised by
collective interest representation as the basis for the regulation of work and the labour
market. However, the spread of IFAs, from outside continental Europe, has so far remained
quite limited. IFAs are certainly a positive case, however quite underestimated outside
Europe.
One of the distinctive issues with CSR of multinational corporations is that they are
often blamed to be responsible for bad working conditions in some developing countries
such as China, Bangladesh, Vietnam, Indonesia etc. As a result, a vast part of CSR
practices of multinational corporations focus on these regions in order to contradict the
negative public opinion. This includes a big number of activities to support local
communities, to fight poverty, improve social conditions. As a result, multinational
corporations invest more in decreasing their environmental impact in these countries, into
different social initiatives such as supporting education and health system, sports activities
for children etc. According to Crane and Matten (2005) in some developing countries
multinational corporations are even expected to fill in gaps of defunct governments, which
puts these corporations at even larger pressure.
In some markets multinational corporations tend to encounter specific issues. For
to favor or reject product
such issues multinational corporations need to invest more into their CSR in these
countries. Earlier it was stated that the country of origin influences the CSR practices of
multinational corporations to some extent, but the host country influences it even more.
To sum up, the main issues for managing CSR in multinational corporations are the
need of finding balance between global and local CSR, the pressure from the developing
countries, the influence of some specific cultural and national factors on CSR, the IFAs
practice.

32. 27
2. Human Resources in CSR
In the second chapter, which continues the theoretical research, the human resource
(HR) management and its link with CSR is studied. This chapter presents theoretical
information on HR management in a company, the specificity of HR management in
multinational companies and the link between CSR and HR.
2.1. HR Management in a Company
First of all, it is important to define what is HR and what is HR management. Then
the HR management functions need to be addressed in more detail.
The definitions of this term could be summed up as follows:
human resources he function dealing with the management of people
employed within the organization
human resources the company department charged with finding,
screening, recruiting and training job applicants, as well as administering
employee-benefit programs
human resources
.
Thus human resources can be understood as a function of managing people in an
organization, as a department that deals with managing people and as employees of
organization. For the purpose of this thesis, the author would use the following definition
of human resources all of the employees of an organization with their skills, knowledge,
talents and development potential. When the author would want to speak about the HR as
department the term HR department would be used.
Managing human resources is
, 2016). It is one
of the domains of corporate management. HR management is sometimes confused with
people management, personnel (or staff) management or human capital management,
however these terms are not the same, the relationship between these terms was well
defined by HR guru M. Armstrong (2007) see Figure 2.1. for more information.

34. 29
HR policies guidelines defining how these values, principles and
strategies should be applied and implemented in specific areas of human
resource management;
HR processes formal procedures and methods that are used to put HR
plans and policies into effect;
HR practices informal approaches used in HR management;
HR programmes which are used to enable HR strategies, policies and
practices to be implemented according to plan (Armstrong, 2007).
Consequently human resource management system is a set of strategies, policies,
practices, internal processes and programs under unifying HR philosophy and that defines
all the actions of the company under its HR management function.
Human resource management has a variety of sub-functions, there are different
views on HR management functions (some represent more functions and some less), the
core ones are shown and explained in Table 2.1.
Table 2.1 Main Functions of Human Resource Management
(created by the author, using Chand, 2015; Sims, 2007)
Group of
Functions
Subfunction Description
Managerial
Planning Strategic and tactical HR planning, for example,
determination of HR programs that will contribute to the
goals of the enterprise, i.e., anticipating vacancies, planning
job requirements, job descriptions and determination of the
sources of recruitment.
Organizing Designing and developing organisation structure to carry out
the various operations.
Directing Involves encouraging people to work willingly and
effectively for the goals of the enterprise motivating
Controlling Concerned with the regulation of activities in accordance with
the plans, which in turn have been formulated on the basis of
the objectives of the organization. It involves performance
appraisal, critical examination of personnel records and
statistics and personnel audit.

35. 30
Group of
Functions
Sub-function Description
Operative
Employment The employment of proper kind and number of persons
necessary to achieve the objectives of the organisation.
This involves recruitment, selection, placement, etc. of the
personnel.
Development It covers training, developing different professional and
personal skills
Compensation Concerned with the determination of adequate and
equitable remuneration of the employees in the
organisation of their contribution to the organisational
goals.
Maintenance
(Working
Conditions
and Welfare)
Providing good working conditions (it also influences the
morale and motivation), it is linked with the CSR practices
as well
Motivation Motivating employees to work with high return and
willingness to contribute to achieving overall objectives (it
takes monetary and non-monetary forms)
Personnel
Records
Maintaining records and statistics about the employees
Industrial
Relations
For example, taking part in collective bargaining, joint
consultation and settlement of disputes, if the need arises
Separation The Organisation is responsible for meeting certain
requirements of due process in separation, as well as
assuring that the returned person is in as good shape as
possible. The personnel manager has to ensure the release
of retirement benefits to the retiring personnel in time.
Advisory
Advisory to
Top
Management
Advising on the directions of formulation and evaluation of
personnel programs, policies, processes, strategy etc.
Advisory-
Departmental
heads
Advising on the issues of HR management in particular
departments of an organization

36. 31
Hence, human resource management functions can be divided into three major
categories the managerial functions, operative and advisory. Managerial functions are
those that exist in any type of business management planning, organizing, directing and
controlling. Operative functions are more specific as they include employment,
development, compensation, motivating, separation and others and concern the whole
cycle of employing personnel from the moment the need for a new employee arises till the
moment an employee leaves the company. Last, but not least, the advisory function arises
from the necessity of having feedback from the HR department and head management as
well as departmental management, because all of the internal management processes
should be interconnected.
In many companies HR management is largely entrusted to HR department, if the
company is small, this department may be represented by one HR director only. Small
companies might have no HR department at all, then the HR management functions can be
carried out fully or partially (because small companies often lack the ability to fully
For sure,
HR management requires high level of competence and knowledge in HR, but not always
HR management is entrusted to people with higher education in this field. Some companies
choose to hand over some HR management functions to external agents such as
employment and staffing agencies, recruiting companies etc. This option could be valuable
and most suitable for those companies that do not possess a required level of expertise to
complete some of the HR management functions up to high standards. In this case, these
companies can purchase services outside (outsource some of the functions) and entrust
particular functions of HR management to professionals.
When it comes to creating and sustaining a successful human resources
management system within a particular organization, it is important to consider the factors
that influence the development and management of the system. These factors can be
divided into two major groups internal factors (within organization) and external factors
(exist outside organization). External factors cannot be managed by the company, it needs
to adjust to these factors, while internal factors can be managed and changed as needed by
management decisions.
Each group indicated above includes a number of subfactors that are explained in
Table 2.2.

37. 32
Table 2.2 Factors Affecting HR Management
(author created, based upon or adapting Genc, 2014; Kammar, 2015; Punia, Sharma,
2015)
Factor Description
External
Changes in
international
economy
Due to integration and globalization, international economy changes
affect national economy. For example, economic crisis of 2008-2009,
that affected the situation in many markets and lead to mass job losses
and payment decrease
Changes in
technology
It can contribute to setting a better organizational substructure due to
advancements in technology; change in communication within HRM
system due to the usage of information technology; it can also lead to
the substitution of human labour with machine labour
Changes in the
national economy
Changes in the national economy directly or indirectly affects human
resource activities of firms, in terms of recruitment, employment,
redundancy implications, compensation and rewards/salaries
Culture and
traditions
May affect human resource management activities in terms of
transferring related national characteristics to the business life.
Behavioral types or attitudes of top managers and human resource
managers are under the influence of local culture therefore it has direct
or indirect impacts on human resources activities
Industry/ sector
characteristics
May affect in a number of ways depending on the particular industry.
For example, in some industries working distantly (away from office)
is common and managing such HR is different from managing HR that
works traditionally in an office.
Legislation and
regulation
All of the policies for human resource management should be in
accordance with legal necessities.
Actions of
competitors
It is important to follow main competitors (for example, if they raise
their salaries a lot, employees from one company can move to another,
Impact of
professional
organizations
In some industries the role of professional organizations is high, they
bargain about the working conditions, payment conditions for their
members

38. 33
Factor Description
Internal
Organizational
mission, vision,
strategy, philosophy
It provides a general direction for the whole company and its
employees, including the HRM strategy, procedures, policies,
programmes.
Size of organization The larger the company, the more complicated its structure is, the
more employees it has. Larger companies are more difficult to
manage. The size influences managerial style, the extent of HRM
activities, the scope of appraisal
History, traditions,
past practice
This is relevant for the company that has been in the market for
some time. It can learn from its own experience in HRM and use
the same practices again
Priorities of
management
This factor concerns top and line managers and how they consider
HRM should be done in the company, what principles are
prioritized for them.
Issues of power and
politics
Top management or unit managers might prefer HRM
implementations, which let them gain power. Accordingly,
they can promote anyone who is in favor of them, recruit personnel
that could support them
Others Other internal factors can also influence HRM, for example,
financial problems can lead to dismissals.
Therefore HR management in a company is influenced by a large number of factors
outside the company and inside the company. They need to be kept in mind and analysed
regularly in order to keep the HR management system effective. However HR management
in multinational companies has its own peculiarities that need to be considered as well.
2.2. Specificity of HR Management in International and Multinational Companies
Multinational companies that have branches and/or other structures in different
countries deal with a number of issues in their HR management. Some companies will
have a rather decentralized structure with a number of independent HR departments, other
companies will have their HR management decisions come from the headquarters and have
little freedom on-site in branches. Therefore, the HR management procedures will be much
dependent on the type of international strategy companies use (direct investment,

39. 34
franchising, exports etc.) and their organizational structures (matrix type, divisional,
functional etc.). This idea can be summarized in Figure 2.2 where the context of the HR
function in multinational setting is demonstrated.
Figure 2.2. The Context of the HR Function in a Multinational Setting (Farndale, Paauwe,
2005).
Each level shown in Figure 2.2 can be explained in more detail. The highest level
includes the internationalization strategies and it shows the general strategy the company
uses for entering external markets. There are three main types of such strategies. The
global strategy is linked with the high level of centralization, while subsidiaries resemble
the parent company. Multi-domestic strategy provides more decentralized control and
subsidiaries conform to local practices. Transnational strategy corresponds with the
situation, when subsidiaries and headquarters alike adhere to worldwide (or regional)
standards as part of the organizational network (Farndale, Paauwe, 2005; Hitt, Ireland,
Hoskisson, 2007).
opinion as it allows adaptation to local requirements and it was stated before that balance
between local and corporate strategic HRM is essential.
Next level includes international HR strategies which are divided into three types:
adaptive low internal consistency with the rest of the firm and high
external consistency with the local environment which leads to little transfer
of practices, suitable for multi-domestic strategy the most;
exportive high integration of subsidiary HRM systems across company-
replicating practices developed at head office, suitable to global strategy the
most;
integrative: substantial global integration with some local differentiation,
two-way transfer of HRM practices between headquarters and subsidiaries.

40. 35
This strategy well corresponds with the transnational internationalization
strategy (Farndale, Paauwe, 2005; Yu, Wu, 2009).
Finally, the last level is highly dependent on context and level of operation. The
interconnection of these variables is shown in Figure 2.3.
2009, p. 127)
To sum up, the specificity of managing HR in multinational company would
depend on its international strategy, scope and context of operations, the chosen
international HR strategy.
2.3. CSR and HR Managers in Companies
Human Resource managers play a substantial role in CSR. For instance, Gifford
argued that HR profession has a three-fold role in CSR as many aspects relate to HR
management:
1. HR needs to make sure people management practices are ethical
2. To embed corporate responsibility it is necessary to give people the right
support and training (and HR has a role in learning and development side of
that)
3. The third aspect is embedding ethics into the organizational culture (quoted in
Higginbottom, 2014).
Another expert J. Marshall (programme director in MA in leadership for
sustainability for Lancaster University Management School) stated that the HR function

41. 36
he HR function
needed to think about leadership, recruitment and reward. Some of the best organizations
had taken an interesting HR aspect to this where they look at the work-life balance of
CSR
As it has been stated previously, nowadays companies pay more and more attention
to CSR. A
senior-level position in their organizational structure dedicated to CSR and/ or
the need for having a separate managing position for CSR at the highest levels. However,
smaller companies often lack this understanding or they simply have a small and simple
structure that actually does not require a separate position for CSR management. In this
case, the functions of CSR managers can be carried out by head manager or other
managers depending on the organizational structure of the particular company.
Table 2.3 Comparison of HR
(created by the author, using Career Planner, 2016; Allaboutcareers, 2016)
HR Manager CSR Manager
Administer compensation, benefits and
performance management systems, and
safety and recreation programs.
Analyse them, offer changes.
Identify staff vacancies, recruit
Allocate HR
Inform employees
Perform evaluation, assessment, control
Advise managers about organizational
policy etc.
Plan and conduct new employee
adaptation
Plan and conduct employee
development, training
Maintain records, analyze statistical
data
Plan, direct, supervise, and coordinate
work activities of subordinates and staff
Responsible for defining and
developing the strategies which
Conduct research, come up with ideas,
develop policies, create detailed plans
within the CSR strategy
Build relationships with partner
organizations and employees
Implement and coordinate a range of
activities and initiatives according to
CSR strategy and plans
Motivating employees to participate in
CSR
Being responsible for raising
awareness about CSR and generating
publicity (often in cooperation with
marketing department)
Recruiting, managing and training

42. 37
HR Manager CSR Manager
relating to employment, compensation,
labor relations, and employee relations.
Negotiate bargaining agreements,
cooperate with unions etc.
Motivating employees
And other duties arising from HR
management functions
junior staff members
Analysing information in table 2.3 leads to the conclusion that both HR and CSR
manager deal with planning, directing, supervising, controlling, coordinating a set of
activities, both are involved in employee motivation, both are involved in employee
training, development and recruiting and advising to top-management (and possibly other
levels of management). So, to some point the functions are similar. In companies that have
both HR and CSR managers having good cooperation between both departments is
essential to the successful implementation of HRM and CSR strategies.
2.4. The Link between HR and CSR
Determining the link between HR and CSR is important in order to develop
conceptual framework for this research.
and for CSR s are one of the target audiences. This is one of the
connections.
Another connection can be seen through the functions of HR and CSR, it was found
that they are linked through motivation, through employee recruiting, developing and
managing (CSR managers direct employees partially, HR carries out these duties
predominantly). In chapter 1 the author has studies how CSR can contribute to higher
levels of employee motivation, involvement and influence employee behaviours. HR
management also deals with employee motivation programs in order to raise their
willingness to work in the particular company with maximum contribution and behave in a
way that is beneficial for the company.
Informing is another link between HR and CSR. HR managers in many companies
are those employees, who inform others about CSR strategy, activities, programmes etc.

43. 38
Even if the company has a position of CSR managers, there is a close cooperation with HR
department and employee informing activities generally take place with the participation of
HR department.
In literature the link between HR and CSR is studied both ways such as the role of
HRM in CSR (for example, Strandberg, 2009) and the impacts of CSR on HR (for
example, Dupont, 2013). This indicates that there is a two-way connection between these
concepts and they are interrelated.
Strandberg C. (2009) argues that:
Human resource professionals have a key role to play to help a company
achieve its CSR objectives. Employee involvement is a critical success
factor for CSR performance. Human resource managers have the tools and
the opportunity to leverage employee commitment to, and engagement in,
High performing CSR organizations foster a culture of CSR and fully
integrate CSR throughout their operations (including HR).
Employees prefer to work for organizations aligned with their values; thus,
incorporating CSR into the employee brand can enhance recruitment and
retention, particularly in tight labour markets.
CSR can be applied to the HR toolkit, resulting in a roadmap or pathway for
human resource practitioners to follow who wish to contribute to the
thereby improving social and environmental conditions locally and globally.
This indicates that HR has a substantial role in making CSR successful.
communicating and implementing ideas, policies, cultural and behavioural change across
organizations and that is why it is an ideal tool for using it for the same purpose but with
the CSR objectives.
Authors Inyang B.J., Awa H. O. and Enuoh R. O. (2011) indicate that CSR and
HRM has a nexus. he HRM system should take the primary
responsibility for managing CSR activities. CSR therefore expands or broadens the HR
agenda and focuses on effective implementation .

44. 39
Tekin (2005) conducted a survey of 50 Turkish companies on the HRM dimensions
of their CSR policies and practices, he found that 45% of the respondents consider the
HRM department, as the key co-ordinator unit with respect to CSR initiatives.
Some of the HRM activities are considered to be socially responsible. Berber N. et
al. (2014) who quoted an EC communication consider the following activities of HRM to
be socially responsible:
1.
2. Training and career development.
3. Flexible management of working time and job rotation.
4. Communication and information flow.
5. Better defined training needs.
6. Profit-sharing and share ownership schemes.
7. Empowerment of employees.
8. Looking after the health and well-being of employees.
9. Balance of working and family lif
(Berber et al., 2014, p. 361-362).
Looking at the link from the position of CSR role in HRM, Inyang B.J., Awa H. O.
and Enuoh R. O. (2011) indicate that CSR practice contribute to HRM practices in terms of
employee training (they are more likely to participate if they see the training contributes to
the overall CSR objectives), new employee attraction and employee retention because they
see the organization as more attractive.
In conclusion, HR and CSR are interrelated and influence each other through
employee motivation, employee training, development and management.
2.5. Research Design and Methodology
2.5.1. Research Variables and Conceptual Framework
In order to build conceptual framework for this research, it is important to choose
its variables. The author defines dependent and independent variables.
Dependent variable
It is the variable that the researcher wants to measure in the research. In this
of HR in CSR (by the
Independent variable
Within the context of the research goal, independent variables are:

46. 41
3.
multinational corporation?
Also research methodology needs to be described, the description is provided in the
next subchapter.
2.5.2. Research Methodology
In this subchapter the research methodology for the empirical part of research is
described.
For answering the research questions the author uses quantitative and qualitative
research.
Quantitative research is focused on determining the relationship between one thing
(an independent variable) and another (a dependent or outcome variable) within a
population (or a particular group). Quantitative research deals in numbers, logic, and an
objective stance. Quantitative research focuses on numberic and unchanging data and
detailed, convergent reasoning rather than divergent reasoning (Babbie, 2010).
The main characteristics of quantitative research include:
the data is usually gathered using structured research instruments;
larger sample size is used;
clearly defined research question to which objective answers are sough;
all aspects of the study are carefully designed before data is collected;
data gathered is in form of numbers, can be presented in graphs and tables;
researcher uses tools, such as questionnaires or computer software, to
collect numerical data (Babbie, 2010).
data collection questionnaire (see below for more information).
Qualitative research, on the other hand,
range of behavior and the perceptions that drive it with reference to specific topics or
issues. It uses in-depth studies of small groups of people to guide and support the
construction of hypotheses. The results of qualitative research are descriptive (Qualitative
Research Consultants Association, 2015). Qualitative research provides more detailed
information, but cannot be processed in the form of graphs and tables. For this study the
managers (interviews) and
Data collection methods

47. 42
The data collection method for qualitative research is a questionnaire. It was chosen
by a number of reasons. First of all, it allows gathering numeric results which are suitable
for comparison. Secondly, the respondents are located in different countries, so
questionnaire is the easiest and less expensive option for surveying them. Thirdly, the
questionnaire can be used later as well, to compare latter research results with the previous
ones.
The aim of the questionnaire was to find out about three independent variables of
the research:
policy;
practices;
policy and
practices.
The questionnaire was prepared by the author of this thesis and during the
Netherlands, the questionnaire was sent to these managers and asked them to forward them
to employees in
managers sent results. Questionnaire took 5 week to obtain results and took place in April
May 2016. It took quite a long time due to the inability of the author to influence and
motivate the respondents to answer quicker, and the communication was only through
each country were surveyed and all of the questionnaires were considered suitable for
analysis. The results were obtained mostly in the form of filled-in Word documents and
then processed by the author of this thesis using methods of mathematical statistics. These
methods are described in the methods of data analysis.
The data collection methods for qualitative research are:
interviews;
document content analysis.
Interviews were organized managers the form of interview
was distant interview through Skype, because organizing face-to-face interviews was not
possible. The transcripts of interviews included as appendices. The aim of interviews was
to find out the opinion of managers about HR role in CSR and the activities that the
company organizes on the local level as a part of CSR as well as other information about
HR and CSR. For analysis the author used descriptive method.

48. 43
Document content analysis was conducted in order to get to know the corporate
s, it is a descriptive method.
Methods of data analysis for questionnaire results
The questionnaire results were analysed using different methods of mathematical
statistics as well as SPSS and Microsoft Excel (for graphs) programmes for data analysis.
For checking data reliability and suitability for analysis two coefficients were used:
1)
2) Kolmogorov-Smirnov coefficient.
a set of items are as a group. It i
for Digital Research and Education, 2015). This coefficient can be calculated automatically
with SPSS Software, the results of the calculations are on scale from 0 to 1 and should be
interpreted this way:
below 0.5 unreliable data, not suitable for analysis (this means that the
survey needs to be repeated with another questionnaire);
between 0.5 and below 0.6 - weak reliability;
between 0.6 and below 0.7 doubtful reliability, but can be accepted in
some cases;
between 0.7 and below 0.8 accepted level;
between 0.8 and below 0.9 good level;
higher than 0.9 excellent (Lewis-Beck, Bryman, Liao, 2004).
Hence, for a questionnaire with the high internal consistency 0.6-0.7 and above
value is required.
Kolmogorov-Smirnov test checks the data for compliance with normal distribution
(or other type of distribution if necessary, but in this thesis for normal distribution only).
The Kolmogorov-Smirnov test (KS-test) tries to determine if two datasets differ
significantly. If the significance level is 0.05 and above, the dataset is compliant with
normal distribution or the distribution it was tested for. If the dataset is compliant with
normal distribution parametric tests could be used for analysis (Lewis-Beck, Bryman, Liao,
2004).
Also the author of the thesis would use relative and absolute results of the
questionnaire to create tables and graphs, this would show how many respondents chose
particular answers.

49. 44
In addition, the methods of descriptive statistics would be used. The indicators used
in this case are:
minimum the smallest value of the variable;
maximum the largest value of the variable;
range - a measure of the spread of a variable. It is equal to the difference
between the largest and the smallest observations;
mean the arithmetic mean across the observations.. It is commonly called
the average;
standard deviation (Std.) - standard deviation is the square root of the
variance. It measures the spread of a set of observations. The larger the
standard deviation is, the more spread out the observations are;
skeweness measures the degree and direction of asymmetry. A symmetric
distribution such as a normal distribution has a skeweness of 0, and a
distribution that is skewed to the left, e.g. when the mean is less than the
median, has a negative skeweness;
kurtosis - is a measure of the heaviness of the tails of a distribution. A
normal distribution has kurtosis 0. Extremely nonnormal distributions may
have high positive or negative kurtosis values, while nearly normal
distributions will have kurtosis values close to 0. Kurtosis is positive if the
igital research and
education, 2015).
The use of such statistics would help understand the dataset and consequently the
results of the questionnaire better.
The author also uses correlation analysis in SPSS. Statistical correlation is a
statistical technique which tells us if two variables are related. It is used to understand:
whether the relationship is positive or negative (+ or sign);
the strength of relationship (depends on the correlation coefficient use,
generally 0.8 and above good strength, but varies from -1 to +1)
(Explorable, 2016).
Depending on the type of distribution the dataset would test for, the author would
use either Pearson coefficient (for normal distribution) or Spearman coefficient (for non-
normal distribution). The SPSS would automatically mark statistically significant
relationship.

50. 45
To sum up, for conducting an empirical research the author would use primary data
obtained from questionnaires, interviews and documents, the data will be both
descriptive and numeric and so they could be processed and analysed with different
methods. This would allow getting more objective results of the research.

51. 46
3. The Role of HR in CSR Policy Implementation
Multinational Company
In the third chapter the results of the empirical analysis are presented and analysed
based on the methodology description in Chapter 2. This chapter also includes a general
3.1. ation and Its International
Branches
chains, according to official data of the company it has over 36 000 locations in more than
100 countries with over 68 million customers serv The
restaurants of this brand serve customers a wide range of products including traditional
hamburgers and other varieties, chicken nuggets, French fries, breakfast menus, soft
drinks, milkshakes, desserts, wraps, salads etc. The menu has some localization options for
the local markets therefore the menu in Japan would be quite different from the menu in
s also owns such brand names as McDrive,
Originally the company was opened in USA in 1940, but today it is a global
company. It uses franchising as its main internationalization strategy and 80% of its
restaurants around the world and more than 90% in the USA are franchised and owned by
small and medium businesses.
the company requires its franchisees to meet high standards in terms of turnover, quality,
and other criteria. Franchisees pay a certain rent and royalties based upon a percent of sales
with a minimum level specified and also the initial fees paid for the franchise.
The rest 20% are operated by affiliates or the corporation itself. The headquarters
of the company are located in Illinois, USA.
for achieving the common goal:
Franchisees bring the spirit of entrepreneurship and commitment to
communities.
Suppliers are dedicated to highest levels of quality and safety.

52. 47
36,000 restaurants .
The nu 000
2015). Figure 3.1 shows total revenues of the company as well
as operating and net income from 2012 to 2015.
n in 2012-2015, million US
The total revenues of the corporation in the researched period was in the range of
25-28 billion US dollars, while the operating income in the range of 7-9 billion US dollars
and the net income around 4-5-5.5 billion US dollars. This company is one of the leaders in
the market, however its income decreased recently. This was caused by severe competition
from other international food chains and lower interest of customers. In 2015 in order to
change the situation for the best, the company elected a new CEO and launched a
of convenience, scale, geographic diversification and system alignment and aspires to be
viewed by its customers as a modern, progressive company delivering contemporary and
excellent customer experience. Current focus of the turnaround plan is on driving
operational growth (enhancing the quality, choice and variety of its menu, building upon
investments in reimaging and technology), creating brand excitement and enhancing
financial value. The end of 2015 showed that the plan was working as the results started
turning positive, but in overall they were not yet high due to weak performance during the
first half of 2015. 2016 is expected to be more profitable.
27567 28106 27441
25413
8605 8764 7949 7146
5465 5586 4758 4529
0
5000
10000
15000
20000
25000
30000
2012 2013 2014 2015
millionUSdollars
Total revenue
Operating income
Net income

53. 48
US market the largest market, generates about 34% of all the revenues;
International lead markets established markets such as Australia,
Canada, France, Germany, the U. K. and related markets, they generate
about 30% of all the revenues;
High grown markets with high potential and growth such as China, Italy,
Korea, Poland, Russia, Spain, Switzerland, the Netherlands and related
markets, these markets generate 24% of total revenue;
Foundational markets and corporate all other markets that have the
potential to operate under franchised model (including Latvia), these
markets generate the remaining 12% of total revenue
report 2015).
12 restaurants in Latvia (in Riga and Jelgava) and one McCafe brand restaurant in Riga.
(franchisee not only in Latvia, but also in Estonia, Greece, Lithuania and Malta).
(McDonalds Latvia, 2016).
people, average age of the managers is 28 and of employees 26.
In India, the brand is managed by two business entities:
Connaught Plaza Restaurants Private Limited, led by Mr. Vikram Bakshi,
JV Partner and Managing Director, North & East India;
Hardcastle Restaurants Private Limited, led by Ms. Smita Jatia, Managing
Director, South & West India
The first restaurant opened in 1996 and currently
restaurants and they are more suited to the local needs of customers who prefer more
spices and chillies in their food and also a bigger range for people who do not eat meat at
all. India was the first country in the McDonald's system where it served non-beef and
non-pork products. More than 70 percent of the menu in India has been locally developed
with complete segregation of vegetarian and non-vegetarian products right from the food
processing plants to the point of serving the customers ( . Indian

54. 49
320 million customers a year and employs 12
thousand people.
doorstep and the main customers are not only families with children,
but also many young men and women (Kannan, 2014).
Among all three countries, the Netherlands was the first country to have a
in Europe. Currently there are 246
, it is almost as much as in India, while the size of
Netherlands is many times less than
2). The restaurants in
this country serve about 3 million people a week (156 million annually) and employ over 9
thousand people.
To sum
many restaurants around the world, it is one of the most popular and well known burger
restaurants which uses the franchising as its main internationalization strategy.
3.2. CSR and HR in
multinational corporation are described and then some region specific activities.
CSR for external and internal
target audiences. It pays very big attention to its CSR policy, and has different documents
available for public.
dimensions:
1. Food. The idea is to offer even more balanced choices and finding better ways
to share nutrition information with customers.
2. Sourcing. The idea is to provide customers with great-tasting, high-quality, safe,
affordable and increasingly more sustainable food is a big responsibility.
3. Planet. The idea behind this is to have a responsibility to take meaningful action
as environmental stewards.
4. People. The idea - providing opportunities to grow and develop with
employees, franchisees, suppliers and customers.

55. 50
5. Community - giving back to the community is a core value and a foundation of
The whole
provides more information on each of these dimensions. There are many activities under
each initiative, Table 3.1 presents the main ones.
Table 3.1
Dimension Main goals (2020
aspirational goals)
Activities and initiatives
Good Food
See
appendix 2
1) Serve 100% more fruit,
vegetables, low-fat diary or
whole grains in Top 9
markets
2) Reduce salt/sodium,
sugar, saturated fat or
calories across the menu
(Top 9 markets)
1) Focusing on changing menu and recipes,
adding new healthy choices (Nutrition
improvements and Menu evolution)
2) Clinton global initiative - In partnership
with the Alliance for a Healthier Generation,
vegetables and help families make informed
choices. Responsible marketing for children
3) Nutrition labeling - From printed
brochures and nutrition labeling right on
select food packaging, to innovative mobile
apps, QR codes and online nutrition
calculators, as well as calories on menu
boards, to give customers the information
they seek
Good
Sourcing
See
appendix 3
1) Beef: support sustainable
production (and a
number of subgoals)
2) 100% of coffee, palm oil
and fish verified as
supporting sustainable
production
3) 100% of fiber-based
packaging from certified
1) Global Roundtable for Sustainable Beef
(GRSB) to bring together key players in
the beef value chain around a common
purpose to help ensure that all aspects of
the beef value chain are environmentally
sound, socially responsible and
economically viable
2) Promoting Positive Workplaces and
Human Rights in Our Supply Chain.

56. 51
or recycled sources by
2020 Conduct under Supplier Workplace
Dimension Main goals (2020 aspirational
goals)
Activities and initiatives
Accountability program
3) Actively engaging with producers,
academic advisors and our suppliers in
the development of housing, handling,
health care and slaughter practices within
our supply chai
Good
planet
See
appendix 4
1) 20% increase in energy
efficiency of Company-owned
restaurants (Top 9 markets,
excluding Brazil and Japan)
2) increase energy efficiency
through restaurant standards (top
9 markets)
3) increase amount of in-
restaurant recycling to 50% and
minimize waste (top 9 markets)
1) Improving carbon intensity through
newer and more environmentally friendly
equipment, improved building design etc.
2) Waste management programs
3) Water stewardship program
Good
people
see
appendix 5
1) Create opportunity provide
lifelong skills and career
opportunities for global
workforce
2) Promote diversity and
inclusion foster a work
environment that values unique
contribution of all
See details below the table
Good
community
See
appendix 6
1) Improve the lives of children
and their families through
support on Ronald McDonald
House Charities and other
organizations
2) Strengthen communities by
1) Being a part of different charity funds
and initiatives
2) Offering scholarships and other
educational resources

57. 52
addressing needs such as
education and physical activity
truly far-reaching. However, the author of this Master thesis would like to focus on the
employee CSR initiatives because they have the most direct connection with HR. Though
stakeholders, including employees, different companies and organizations around the
world, however its 2020 aspiration CSR goals are largely focused on the top markets,
however other markets are expected to strive for the standard as well. In smaller markets
franchisees also can develop their own programmes and activities under CSR, but they
should correspond with the corporate ones.
different training and educational programs in many markets. Also it enhances its benefits
program. For example, in 2015 the company announced a new benefit program for
employees in USA (for corporation owned restaurants) with higher wages. The company
also helps its employees get access to free high school education and assist in college
tuition. In addition, company each year organizes the Employee Business Network for its
employees in the USA, where employers can meet, discuss, get support for their growth,
enhance their development and foster relationships to strengthen business results.
CSR policy work, CSR and HR work closely in McDona
Region specific CSR activities
different regions, it aims at achieving long-term sustainability and focuses on a number of
environmental problems. The company monitors developments related to environmental
matters and responds to governmental initiatives in order to provide support to them. In
addition to supporting government activities, the company also undertakes its own
initiatives in the area of more energy efficient equipment and management of energy use,

58. 53
2015). One of the examples shown below represents how employees were engaged in one
of the environmental initiatives.
volunteered to serve as the environmental voice in approximately 1000 restaurants, helping
with existing environmental initiatives and generating new ideas. Employees receive a day
of training on environmental issues, as well as regular communications to learn about new
opportunities and share ideas. Since the program began in 2010, restaurants have
participated in activities related to energy efficiency, waste recycling and community
clean-ups. The growing network of enthusiasts raises environmental awareness and
engages colleagues in environmental improvements .
In Europe there is an initiative called McPassport, this initiative allows employees
fr
countries. Each employee who is a part of this program has its own McPassport, where the
progress and achievements of this employee are marked down when working in different
restaurants around Europe.
Another example of employee CSR: in 2013 McDonald's launched the global
singing contest for its restaurant employees -
2016) with valuable prizes. Such activities contribute to personal and creative development
of employees.
There is a strict standard of HR practices in McDo and there is a strict
organization in regards to HR. However, it is quite decentralized and entrusted to
franchisees. All HR managers are educated and trained about the HR values, which are:
1. Conducting our activities in a manner that respects human rights as set out in the
United Nations Universal Declaration of Human Rights
2. Treating employees with fairness, respect and dignity
3. Ensuring employees have the right to work in a place that is free from harassment,
intimidation or abuse, sexual or otherwise, or acts or threats of physical violence
4. Embracing the diversity and inclusion of employees, Franchisees, customers and
suppliers
5. Providing equal treatment and equal employment opportunity
6. Providing a safe, productive and healthy working environment
Business Report 2014).

59. 54
with different guidelines and advice. Acro
trained.
fers flexible working hours and provides some
support for enhancing learning opportunities. For example, in Latvia the employees of
2016).
place to work, 75% feel favourable about the training they receive on the job.
as crew can grow up to management positions and about 51% of all restaurant managers
Report 2014). As for the benefit system, it is
tailored to local needs by franchisees, but aims at competitive payment level and non-
monetary bonuses for employees such as corporate activities, training, career growth,
flexible ours and others. In their training employees are supposed to be informed of CSR as
well. In order to study this is more detail, interviews and questionnaires had been
conducted.
3.3.
3.3.1. Interview Results Analysis
The interviews were held according to the methodology description in Chapter 2.
Interview transcripts are shown in Appendix 7. Interviews took place in April 2016 before
the questionnaire of employees.
Interview with Latvian HR director
This interview was held with HR and training director Oleg Karpushenko.
According to its results in Latvian franchisee there is not CSR manager, these functions are
mainly entrusted to marketing department, but HR helps in communicating with
employees. The respondent told about McPassport initiative which was described earlier in
this thesis and also about the cooperation with charity foundation. It became clear that HR
did not have sufficient part in CSR, because the director said the contribution could have

60. 55
been bigger if more resources would be available (personnel resources for carrying out
not encouraged much to participate in CSR activities and there were not many activities of
this kind at all.
Interview with Indian HR director
The interviewed person was Seema Arora Nambiar (people resources director at
Hardcastle franchisee). The interview showed that in India there is no such position as
CSR director or manager, these functions are mainly carried out by marketing and PR
on project to support health and medical industry and its availability to community, also
provides support to children. Projects for employees mainly focus on their education,
including access to higher education.
Informing about CSR is mainly done by restaurant directors as they are the one who
can communicate with employees easier. No particular information about the stimulation
methods for motivating employees take part in CSR activities were named. The respondent
said it was the duty of restaurant directors to choose them and to make sure they
correspond to the code of conduct.
When asked about the role of HR in CSR, the respondent said it was important,
however the inner motivation of employees to take part in CSR and to understand what it
was all about was claimed to be important too.
Interview with HR director in the Netherlands
The interview was conducted with Marjolein Reijs (HR director). In this interview,
position of CSR manager, the functions are divided between HR and marketing
department. It was highlighted that CSR was very important for the company, which is a
ed. It is because the Netherlands is
actually one of the growing markets and one of the well-developed markets for
t here. The respondent claimed that the
CSR initiatives were aimed at environment, employee development, charity, it all
corresponds with earlier research in this theirs. According to the results of this interview,
information about CSR is passed through two channels through HR department
employees in meetings and through restaurant directors at other times. As for the
motivation, it was mentioned that directors were encouraged to appraise and thank
employees who were active in CSR activities, the company also considered the

61. 56
information decision on the career
developments. The respondent was also requested to evaluate the role of HR in CSR in
positive. The respondent said it was significant because
HR department was the voice of the company. She also highlighted the link through
motivation, which was described earlier in the theoretical part.
In summary, in all of the franchisees no CSR manager position is present, mainly
CSR policy and related procedures are managed by marketing and PR departments with
the help of HR departments. HR role is considered important in CSR by respondents,
however the stimulation for taking part in CSR is not diverse and active.
3.3.2. Questionnaire Results Analysis
The questionnaire was conducted according to methodology description in Chapter
2. The questionnaire is shown in Appendix 8. It was the same for all three countries in
order to make the data comparable. Below, the results are analysed and presented in graphs
and tables where possible. SPSS was used for analyzing some of the questions (mainly
scales). From each country 50 employees participated in the questionnaire.
First, the data was a
coefficient and with Kolmogorov-Smirnov Z- criterion. For the analysis two questions
were chosen information about corporate social responsibility policy and satisfaction
with CSR (both scales with same measures). The results of calculations
in SPSS are shown in Table 3.2 for each country.
Table 3.2 (created by the author)
Country
Latvia 0.812
India 0.835
The Netherlands 0.825
0.8 which indicates high reliability of data.
Next, Kolmogorov-Smirnov test was done to check the correspondence with
normal distribution. The results are shown in Table 3.3.
Table 3.3 Kolmogorov-Smirnov Test Results (created by the author)
Criteria Information
(Latvia)
Satisfaction
(Latvia)
Information
(India)
Satisfaction
(India)
Information
(The
Netherlands)
Satisfaction
(The
Netherlands)
Kolmogorov
Smirnov Z
1.868 1.231 1.367 1.336 1.444 1.644

62. 57
Asymp. Sig.
(2- tailed)
0.02 0.097 0.048 0.056 0.031 0.009
Table above shows that only some variables tested positively for normal
distribution (those, whose significance is 0.05 and more), so for some variables non-
parametric tests are possible and for others not.
Next the results of questionnaire are analysed.
Do y
organizes in your country and globally?
Results are shown in Figure 3.2
Latvia, India and Netherlands, number of respondents, n = 150 (based on survey, 2016).
In all three countries there is a bigger number of employees who know of
either than not know about it, situation in Latvia and India is quite close,
but in the Netherlands a smaller number of employees do not know about CSR.
Please rate, how well are you informed about corporate social responsibility
Descriptive statistics were calculated in SPSS for this question the results are
shown in Table 3.4. and the full table is shown in Appendix 9.
41 40
45
9 10
5
0
5
10
15
20
25
30
35
40
45
50
Latvia India Netherlands
Numberofrespondents
Know about CSR
Do not know about
CSR

63. 58
Table 3.4 Descriptive Statistics for Level of Information about CSR in
(based on survey, 2016)
Statistic Latvia India The Netherlands
Range 4.00 4.00 4.00
Minimum 1 1 1
Maximum 5 5 5
Mean 2.38 2.62 3.1
Standard Deviation 1.027 1.227 1.111
Skeweness 0.689 0.436 -0.205
Kurtosis 0.186 -0.613 -0.429
Statistic Latvia India The Netherlands
Median 2 2.5 3.0
Mode 2 2 3
The analysis of this data shows, that in all three countries all range of answers was
chosen from 1 to 5. The highest mean indicating highest information level was noted in the
Netherlands (3.1) and the lowest in Latvia (2.38). Standard deviation is quite close in all
the three countries and indicated that spread is biggest in India and smallest in Latvia.
Skeweness that is negative indicates that higher grades are more likely and opposite when
it is positive. As for the kurtosis, it was negative for India and the Netherlands indicating
distribution along the X axis. Mean, median and mode are close in their numeric values, it
means that the data sample is sufficient. To sum up, the level of information is highest in
the Netherlands, and it is average in India and Latvia, so raising information level is more
topical for these two countries. It also indicates that HR department could take a more
active role in informing employees about CSR.

64. 59
Who do you get information about corporate social responsibility policy from?
Could choose multiple answers.
Figure 3.3.
number of respondents, n = 150 (based on survey, 2016).
Figure 3.3 shows information sources a, India and
Netherlands. According to it, the main source of information is restaurant director not HR
manager. The role of HR manager is higher in the Netherlands. It corresponds with
information found earlier during interviews. It indicates that HR managers could take a
more active position in promoting CSR among employees, but communicating directly
would be possible in Latvia, for example, where the number of restaurants is not that big,
but in bigger markets communicating through restaurant directors seems logical.
Did you take part in any corporate social responsibility activities your
company organizes (such as charity, training for personal growth, taking care of
environment etc.)?
and Netherlands, number of respondents, n = 150 (based on survey, 2016).
0
5
10
15
20
25
30
35
40
Latvia India Netherlands
Numberofrespondents HR manager
restaurant director
shift manager
my colleagues
none
27
32
41
23
18
9
0
10
20
30
40
50
Latvia India Netherlands
Numberofrespondents
Participate in CSR
activities
Do not participate in
CSR activities

65. 60
According to the results of the survey, employees in the Netherlands are most
active at participating in CSR activities, followed by India. Latvia has the largest number
of non-participants. This can be caused by low information level, by low motivation to
participate. That is why the next question was about motivation to participate, followed by
satisfaction with CSR activities descriptive statistics on both are shown in Table 3.5. The
complete table is shown in Appendix 10.
Table 3.5 Descriptive Statistics for Motivation and Satisfaction about CSR in
(based on survey, 2016)
Statistic Latvia India The Netherlands
Satisfaction
Range 4 4 4
Minimum 1 1 1
Maximum 5 5 5
Statistic Latvia India The Netherlands
Mean 3.14 3.26 3.62
Standard Deviation 1.212 1.157 1.123
Skeweness -0.207 -0.042 -0.538
Kurtosis -0.734 -0.757 -0.465
Median 3 3 4
Mode 3 3 4
Motivation
Range 3 4 4
Minimum 1 1 1
Maximum 4 5 5
Mean 2.8 3.3 4.22
Standard Deviation 1.010 1.035 1.055
Skeweness -0.693 -0.529 -1.439
Kurtosis -0.511 0.210 1.772
Median 3 3 5
Mode 3 3 5
Motivation to take part in CSR activities is highest in the Netherlands (4.22) and
the lowest in Latvia (only 3.8) (the higher the grade, the more motivated employees are). In
overall statistics indicate a trend for higher values in a set, but at the same time motivation

66. 61
is not that high on average. The standard deviation is similar with all the countries, and it is
average. Respondents demonstrated a rather alike thinking about their motivation.
The results on satisfaction were quite close for all three countries, the minimum
mean was in Latvia 3.14 and the maximum in the Netherlands 3.62, all means indicate
satisfaction above average (the higher the mean the more satisfied employees are). The
other statistics demonstrated that data is representative and with a tendency for higher
satisfaction, the deviation was average.
Satisfaction was higher than motivation in Latvia, and it was lower in India and the
Netherlands. To sum up, satisfaction and motivation is the highest in the Netherlands and it
demonstrates that the work of engaging employees in CSR in this country is done more
successfully than in the other two countries.
Also, the author used correlation analysis to find correlations between motivation,
satisfaction and information. Considering that not all the variables are corresponding with
normal distribution Spearman rank correlation was used. If the significance of correlation
is 0.01 and above, then there is a considerable connection between the two variables. The
complete tables are shown in Appendix 11, and Table 3.6 shows the summary for this
analysis.
Table 3.6 Correlation Between Motivation, Information and Satisfaction about
(created by the author)
Criteria Information Satisfaction Motivation
Latvia
Information - 0.690 0.503
Satisfaction 0.690 - 0.701
Motivation 0.503 0.701 -
India
Information - 0.724 0.372
Satisfaction 0.724 - 0.612
Motivation 0.372 0.612 -
The Netherlands
Information - 0.685 0.617
Satisfaction 0.685 - 0.730
Motivation 0.617 0.730 -