Embedding corporate responsibility through effective organizational structures

Abstract

Purpose

The purpose of this paper is to explore the ways in which companies are embedding the corporate responsibility function in different organizational structures, and to identify, when possible, best practices related to organizational structures which have proved effective in managing corporate responsibility that can be applied by any organization, regardless of size or industry sector.

Design/methodology/approach

The authors developed and applied a methodology, in the form of a questionnaire, covering more than 40 aspects to describe what companies are doing to integrate the corporate responsibility function in their organizational structures. The design of the survey was based on available literature as well as their own professional experience answering questions commonly received from clients in Latin America. The questionnaire was then applied to a small sample using companies' public information from reports and company web sites.

Findings

The application of the questionnaire on a sample of Chilean companies using their public information tested the tool as valid and fit for the designed purpose. The main conclusions were that CSR structuring and CSR strategies are both strongly associated with the size of the company in terms of number of employees and revenues.

Originality/value

Many questions arise when the task of implementing CSR is proposed and Latin American companies are trying to apply best practices by learning from the experience of companies with longer histories in CSR matters. However, trends are not uniform and different organizations are taking a variety of pathways in the process of CSR implementation. This paper offers a general vision of how companies are making the effort to implement CSR best practices, in terms of structure, strategy and scorecard; and presents a simple tool to assess the gaps, if any, in the effective embedding of corporate responsibility on organizational structures.

Citation

Perera Aldama, L.R., Awad Amar, P. and Winicki Trostianki, D. (2009), "Embedding corporate responsibility through effective organizational structures", Corporate Governance, Vol. 9 No. 4, pp. 506-516. https://doi.org/10.1108/14720700910985043