Student attractiveness to CSR : taking into consideration the varieties in CSR policies and academic faculty backgrounds

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University of Amsterdam

Master Thesis - Transnational Politics of Sustainability

Political Science - Political Economy (MSc)

June 23 2017

Supervisor: dr. L. W. Fransen

Second Reader: dr. P. Schleifer

Taking into consideration the varieties in

CSR policies and academic faculty

backgrounds

STUDENT

ATTRACTIVENESS

TO CSR

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Abstract

Doing good by doing business. While Corporate Social Responsibility (CSR) is more complex than that, it is explanatory for the popularity of the concept over the years. This research examines the effect of different CSR policies on attracting recruiting high-educated job market entrants from different academic faculties. The main research question is: To what extent are CSR policies of companies formed through different models

of organizational cultures attractive for students of different academic faculties? Instead

of asking the dominant question in academic literature whether CSR policies are beneficial, this research aims to create a more in-depth perspective on the effect of these policies. The expectation articulated in this research is that the attractiveness of CSR policies depend on the faculty background of students as well as the form of these policies. The articulated expectation in this research is that the perceived attractiveness of a CSR policy is in line with the worldview that is dominant within that academic faculty. The Competing Values Framework forms the theoretical backbone of this research, as it presents different models of organizational cultures. These models are transformed into different vignettes that are evaluated on their attractiveness by 268 students of different academic faculties. The conclusion of the gathered data is that a clear pattern is observable in the responses of students. Three of the four vignettes indicate a significant relation between attractiveness and academic faculty background. Furthermore, the hypotheses on the popularity of a company with a CSR policy in line with the worldview related to an academic faculty are confirmed. This research shows the need to make clear distinctions when researching the relation between CSR and students.

Keywords: Corporate Social Responsibility, academic faculties, energy companies, attractiveness, recruitment, students.

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4.2 Vignette A ... 41 4.3 Vignette B ... 43 4.4 Vignette C ... 45 4.5 Vignette D ... 47 4.6 Control Variables ... 50 4.7 Overall Attractiveness ... 52 5. Conclusion ... 54 6. Discussion ... 55 5.1 Contribution ... 56 5.2 Limitations ... 57

5.3 Future Research Recommendations ... 59

7. Literature ... 61

8. Websites ... Error! Bookmark not defined. Appendix A – The Questionnaire ... 67

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3 Table of Figures

Figure 1 – Competing Values Framework ... 14

Figure 2 – Internal Process Model ... 16

Figure 3 – Human Relations Model ... 17

Figure 4 – Rational Goal Model ... 18

Figure 5 – Open Systems Model ... 19

Figure 6 – Sample Blueprint ... 30

Figure 7 – Respondents per Day ... 39

Figure 8 – Relative Responses Vignette A ... 42

Figure 9 - Relative Responses Vignette A ... 44

Figure 10 - Responses Responses Vignette A ... 46

Figure 11 - Relative Responses Vignette A ... 48

Figure 12 – Scheme Control Variables ... 50

Figure 13 – Mean Overall Attractiveness ... 52

Figure 14 – Mean Overall Likelihood to apply ... 52

Figure 15 – Observed Pattern ... 55

Table 1 – Absolute Responses Vignette A ... 41

Table 2 - Absolute Responses Vignette B... 43

Table 3 - Absolute Responses Vignette C ... 45

Table 4 - Absolute Responses Vignette D ... 47

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4 Abbreviations

CSR – Corporate Social Responsibility CVF – Competing Values Framework Df – Degree of Freedom

HRM – Human Relations Model IPM – Internal Process Model

NGO – Non-Governmental Organization OSM – Open Systems Framework

RGM – Rational Goal Model UvA – University of Amsterdam

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5 1. Introduction

In 2014 four entrepreneurs started an energy company in the Netherlands named

Vandebron, translated as From the Source. This start-up is not a typical energy company,

as it uses a very unconventional business plan for this sector. Traditionally the four biggest energy companies had a dominant position in the market and therefore partly dictated the greening of the Dutch energy mix. There was no incentive to break the status quo of intensive fossil fuel use.

Instead of approaching green energy as an expensive burden, the entrepreneurs of Vandebron approached it as a profitable opportunity. Ecological sustainability forms the key selling point as it is placed in the centre of their business model. Consumers are linked with local farmers that produce green energy generated by a windmill or biofuel. In that way consumers directly buy green energy “From The

Source”. Within three years this innovative and sustainable energy company has

successfully penetrated the rigid energy market of the Netherlands. Multiple companies have implemented a comparable green strategy, through which they gained a solid market share. The energy market grew from five companies in 2004 to fifty companies in 2016 (Authority for Consumers and Markets, 2016). This development of the energy market forms the inspiration for this research, as it shows how ecological sustainability can be combined with a successful business strategy in a rigid market. While the biggest energy companies formed an oligopoly in the Dutch energy market, new companies like Vandebron were able to successfully penetrate the market with a green strategy.

Nowadays even the conventional energy companies have implemented some kind of green strategy.

The implementation of ecological sustainability in business activities is related to the rise in popularity of Corporate Social Responsibility (CSR). This concept refers to the integration of social and environmental concerns in business operations and in the interaction with stakeholders on a voluntary basis (European Commission, 2001: 6).

In this research I am focussing on one specific benefit that is related to CSR policies, namely the attraction of students as future employees. Previous research indicates that students as high-educated job market entrants are attracted to companies that are actively implementing such policies. This is an important aspect, as companies are very interested in attracting employees with valuable knowledge.

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However, in the academic discussion concerning CSR and its attracting effect on students, no distinction is made between different forms of CSR policies. The scientific research point out that this approach is formed through the organizational culture within a company. Therefore my aim for this research is to make a distinction in forms of CSR and connect these forms to their degree of attractiveness in the perspective of students. By categorizing this effect for students of four academic faculties a clear insight is created in the differences of attractiveness to certain CSR policies for each faculty.

As CSR is approached differently for each academic faculty, students possibly make different considerations for evaluating the attractiveness of CSR policies. I argue that a clear distinction between the varieties in CSR policies and university education are valuable to make, as they influence the perceived attractiveness. The aim of this research is to make the effects of CSR policies clearer and more predictable. This decreases the obstacles to implement CSR policies and stimulates companies to take their responsibility.

The main conclusion of this research is that a clear pattern is observable on the perceived attractiveness of CSR policies. A significant variation appears between students of different faculties on their perceived attractiveness of these different policies.

This conclusion is gradually build-up throughout the research that has the following structure. In the first section a theoretical framework is constructed that provides a clear description of central concepts. After discussing the central concepts of the research important theories are elaborated that form the basis of the developed hypotheses presented in the last part of the framework. This framework is followed by an elaboration of the research design that provides a description of the methods and sample selection used to produce the results. Additionally the validity and reliability concerns are discussed as well as the relevance of this research. In the fourth section the results are presented and interpreted. The fifth section forms the conclusion in which the findings and contribution of this research is elaborated. To wrap up the research the a reflective discussion is constructed on the contributions and limitations as well as recommendations for future research.

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7 2. Theoretical Framework

2.1 Literature Review

2.1.1 Organizational Culture

In this post-industrialist era the success of a company depends partly on the ability of organizations to differentiate their company. Creativity, innovation, discovery and inventiveness are presented as important terms in the literature when referring to successful organizations (Martins & Terblanche, 2003: 64). These concepts are not only observable in individual behavior, but are also integrated in the organizational culture of companies that provides a structural framework in which these concepts can thrive. As ideas in knowledge-based economies are developed in an increasing pace, embracing creativity and innovation is an important mechanism for companies to secure their position in the market. Companies are emphasizing the creation of an institutional framework in where these norms and values fare present in order to capture a place in the market. Organizational culture is determining the degree in which these concepts are present and stimulated within an organization (Ahmed, 1998: 31).

An organizational culture can be defined as ‘a pattern of beliefs and expectations shared by the organization’s members. These beliefs and expectation produce norms that powerfully shape the behaviour of individuals and groups’ (Schwartz & Davis, 1981: 30). Based on the work of O’Reilly (2008, 89) it can be argued that a given norm, such as sustainable innovation, can be positively valued in one organization and

negatively valued in another. Every company has its own organizational culture that is expressed and translated into a business model. Some organizational cultures places emphasize on differentiating the brand with a certain price; others are differentiating by decreasing the environmental footprint of their product. Besides the effect of these cultures on business models and consumers, they also influence employees and potential employees (Jones et al., 2016: 383).

2.1.2 Corporate Social Responsibility

The rise in popularity of CSR policies is besides the Dutch energy branch also visible in other sectors, like the clothing and food sector (Du et al., 2010: 8). Examples of

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Ronald McDonald houses or Toms with its one-for-one-model. While some companies tend to approach CSR as an unproductive activity, other companies like Vandebron make this concept their unique selling point (Nidumolu et al., 2009: 57). Big

conventional companies like Nuon are also increasingly implementing CSR policies in their business activities, but not in the same form as Vandebron.

The processes of increased competition, product differentiation and speed of redesigning products and technologies form the current Western economy. Due to the globalization process the boundaries of states are no longer barriers for companies to sell their products, creating a market without boundaries (Nooteboom, 2000: 151). The swift developments in consumer markets cause an urge for companies to differentiate. As a result of the widespread availability of information across nations the preferences of consumers are becoming more homogenous through. However within nations the process of individualization is creating the opportunity for companies to differentiate their products (Nooteboom, 2000: 151). Due to the growing prosperity in Western nations the emphasis of individuals concerning their consumption is not on providing nutrition or shelter, but on lifestyle and self-realization. This relates to the

implementation of CSR, as it is a way to answer the needs of consumers to have a sustainable lifestyle. Therefore product differentiation can effectively be achieved as ‘utility assumes a more abstract, immaterial form (image, atmosphere) or a superficial form (packaging, appearance) that can be differentiated by comparatively cheap means (design, packaging, and advertising)’. CSR is an immaterial way of differentiating a product that has a sustainable image and atmosphere.

Additionally increased competition between companies is causing a notion of differentiation in order to avoid competition based solely on the price of the product. Through differentiation products have a slightly different pool of consumers, enabling producers to ask a higher margin of profit than in the case of price competition. This mechanism is described as ‘different products target different market niches, and since in a niche the dedicated product is closer than alternative products to what consumers want, the products are incomplete substitutes for each other’ (Nooteboom, 2000: 152).

A competitive advantage for companies can be created by increasing their degree of innovation. This process pressures companies to develop their products and become pioneers on the market. There are several factors that influence an innovative

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implementation of sustainability policies in business models is part of this innovation process. A significant innovation orientation is a common strategy for penetrating the market as a new company with Vandebron as fitting example.

Not every company is an innovator, as others rather adopt a tactic of imitating the frontrunners. These companies rather focus on minimizing the costs related to research and development of novel technologies and strategies. Instead they follow the example of frontrunners by implementing their ideas and technology in their own business model (Lukas, 2000: 240). Innovation strategies are not the only viable strategy for penetrating a market, as there are only a limited number of pioneers in a market. Also imitation strategies are used to conquer a spot in the market (Zhou, 2006: 395). While innovators are able to create new markets, shape preferences and change consumers behaviour, imitators can take a tactical market position and create improved products to expand their market share (Zhou, 2006: 396). The stimulating effect of organizational culture on innovation has been a topic of previous research. In order to innovate a business model an organizational culture should ‘stimulate innovative behaviour among the members of an organizations since it can lead them to accept innovation as a basic value of the organization and can foster commitment to it’ (Hartman, 2006: 161).

A business model describes ‘how an organization creates, delivers, and captures value in relationship with a network of exchange partners’ (Massa & Tucci, 2014: 425). By innovating this model a company can reconfigure organizational resources to change and create a comparative advantage, as is the case with implementing Corporate Social Responsibility policies. It can be considered a form of business model innovation as companies reconfigure resources to integrate CSR. These companies emphasize on corporate strengths related to innovation and efficiency in providing solutions to social and environmental challenges (Gjolberg, 2010: 204).

Consumers are increasingly concerned with the environmental and social

footprint of the goods they consume. As a result CSR is important for a growing group of consumers (Gjolberg, 2010: 203). This causes CSR to become a useful tool for

companies to differentiate their products and companies. Business models are innovated by reconfiguring resources to implement sustainable company policies (Massa & Tucci, 2013: 431).

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Besides the opportunities that CSR creates to increase a company’s comparative advantage, refusing to implement this sustainable innovation also forms a potential hazard for companies (Massa & Tucci, 2013: 432). Nike and multiple other big

multinationals have become victim of a widespread naming and shaming campaign for inadequately securing social standards in their business activities (RESOLVE, 2012: 20). The recent economic and financial crises have renewed a debate about the

responsibility of companies, especially in the financial sector. The implementation of sustainability in business models is increasingly demanded by the public in order to ensure a ‘development that meets the needs of the present without compromising the ability of future generations to meet their own needs’ (Brundtland Commission, 1987: 44). This creates not only an urge for new companies to implement a form of CSR policy, also for conventional companies like Nuon.

2.1.3 Importance of High-Educated Employees

Employees and their knowledge are important assets for companies, especially in this age of knowledge-based industries. This causes a continuous rise in demand for highly qualified and skilled employees, as ‘human resources offer a potential source of

sustained competitive advantage’ (Moroko & Uncles, 2008: 161). Due to the high

demand, especially in knowledge and information based professions; high-educated job market entrants have a high flexibility in the choice of employer. A company that can ensure its access to a high-quality workforce over a longer period is ensuring a

structural competitive advantage. Therefore the interest of companies in high-educated job market entrants is significant, which changes the labor market from ‘a sellers’ to a buyers’ market’ (App et al., 2012: 243). The rivalry between companies to attract high-educated job market entrants causes a significant pressure on these organizations to increase their attractiveness, for consumers as well as high-educated job market entrants.

Recruiting high-educated employees is a core business activity for companies in their quest to success. Therefore it is relevant to know how different CSR policies of companies attract high-educated job market entrants to apply for these organizations. The different implementations of CSR policies can form an opportunity for companies to attract a high-educated pool of employees with a certain specific academic background.

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In that way CSR becomes more attractive for companies to implement, as insights are made available in the effects of CSR policies on a company’s attractiveness (Batt, 2016: 47 & Jones, 2014: 396).

2.2 The Role of Academic Faculties

The role of universities in sustainability and CSR policies are important in societies, as these institutions provide a high-educated societal group with academic knowledge (Sibbel, 2009: 74). University education transfers this knowledge through the

framework of subjects and courses, which shape the ideas and preferences of students on the topic of sustainability and CSR.

An important aspect mentioned in the literature that influences the

attractiveness of companies as a potential employer is their CSR policy, as it shows the societal engagement of companies. How high-educated job market entrants react to the CSR policies of companies depends on their education subjects that can be related to CSR issues and their personal values. I expect that a particular academic faculty provide its students with a certain knowledge on CSR policies that shape the perceptions of the students in line with the way of reasoning within the academic faculty. This creates a certain reference framework when determining the attractiveness of a certain CSR policy. This rationale is formulated more accurate as ‘knowledge structures are mental templates consisting of organized knowledge that individuals impose on an information environment to give it form and meaning’ (Randy Evans & Davis, 2011: 460). These mental templates are a certain reference framework shaped through specific education of an academic faculty.

The attractiveness of CSR implementation is mainly based on two inferences: an instrumental inference (e.g., a stable company in the future) and a symbolic inference (e.g., a ‘good’ social conscience company). These two inferences are translated in the formation of a social-identity that has two dominant needs: ‘the social-adjustment need (i.e., the need to impress) and the value-expressive need (i.e., the need to express)’ (Highhouse et al., 2007: 210). This represents two ways in which students find a job at a company attractive: 1. As tool to impress other people 2. As a tool to express socially approved or ‘good’ values. As aforementioned the academic faculties provide students with a certain knowledge template to which students relate their instrumental and

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symbolic inferences. On their turn these inferences influence the degree in which a certain CSR policy is a tool to impress and express towards other people.

The subjects and courses provided by academic faculties are approaching CSR with faculty specific concepts (Sibbel, 2009: 75). As a consequence I assume that the attractiveness of certain approaches to CSR policies varies for students of different academic faculties, because they are more triggered by the approaches that are in line with the mental template created through their specific academic faculty education.

2.3 Literature Gap

Academic research is primarily focussed on differences between companies that implement CSR and companies that do not implement CSR in their business activities. The opportunities and challenges of CSR are widely discussed, as well as the role of different actors involved, like the government and Non-Governmental Organizations (NGOs). However not every company implements sustainability to the same degree and in the same way. While one company is innovating its business model by setting CSR as a core concept, other conventional companies are not as engaged with sustainability. As aforementioned an important aspect influencing this engagement is the organizational culture of a company.

Moreover previous research on CSR shows that incorporating CSR aspects in job advertisements is an effective tool. When companies articulate CSR policies in job advertisements it increases the attractiveness of the company by jobseekers (Batt, 2016: 7). Batt solely tests in his research whether stating CSR policies in a job advert makes it more attractive than when it is not stated. Although organizational culture determines the form of this policy, no distinction is made between the possible forms of CSR policies. Organizational culture drives the implementation and the degree of CSR policies in the business activities, but there is not one standard CSR policy that every company implements. There is a clear lack in the literature taking into account this distinction between CSR policies, and ignoring the possible variety in attractiveness of the different CSR policies.

A comparative approach is present in the research of Guerci et al. (2016) that concentrates on the effectiveness of ‘green’ and ‘nongreen’ recruitment practices. The recruiting practices are examined for their effect on organizational reputation and evaluated on basis of their effectiveness. No distinction is made in varieties of ‘green’

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recruitment practices, while this distinction is relevant with the rising popularity of CSR.

Another research related concerning this topic is from Jones et al. (2014) on the attractiveness of companies concerning their CSR policy from the perspective of job seekers. Although they partly engage in the question about the effect of a perceived value fit of the respondent on the attractiveness of the company, they do not make a distinction in the different ways of implementing CSR as well. These examples illustrate the gap in the academic literature to make a distinction between the different forms of implementing CSR developed as an expression of different organizational cultures.

Moreover multiple researches aim to discover the effect of CSR policies on the perception of students. In these researches comparisons are made between education levels or between students within a particular academic faculty (Albinger & Freeman, 2000 & Kolodinsky et al., 2010 ). The differences within the university student

population across academic faculties are not taken into consideration when evaluating the effect of CSR policies.

The gap within the literature on the effects of the variation in CSR policies and attractiveness perceptions of students of different academic faculties grants this

research a valuable opportunity to make a contribution. Therefore this research relates different models of organizational cultures and their related CSR policies to the

perceived attractiveness of students of different academic faculties. This gap forms the inspiration for the main research question and three questions. These

sub-questions are steps through which the main research question is gradually answered. The answers on the sub-questions are explicitly formulated in the conclusion, but are implicitly developed in the sections leading up to the conclusion.

Sub-Questions

1. What are the identifiable characteristics, dimensions and typologies of an organizational culture?

2. How does sustainable innovation relate to an organizational culture?

3. What is the effect of CSR policies on the perception of high-educated job market entrants?

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Research Question

To what extent are CSR policies of companies formed through different models of organizational cultures attractive for students of different academic faculties?

2.4 Competing Values Framework

The literature on organizational culture provide a widespread collection of dimensions and characteristics of the different organizational cultures. There are various

frameworks developed by scholars in which they present dimensions of organizational cultures that they perceive as the essence of an organizational culture. Two examples are the participative versus non-participative and reactive versus non-reactive by Ernst (1985) as well as the cultural integration and consensus versus differentiation and conflict dimensions by Martin (1992). The abstract term that is organizational culture cause the existence of a widespread collection of proposed dimensions. As

organizational cultures are complex, broad and ambiguous entities, it is impossible to take every aspect into account when reviewing them (Cameron et al., 1999: 54). It is useful to determine which dimensions are most important in order to form a basic model that forms a theoretical framework to approach organizational cultures. Such a

External Internal

Flexibility

Control

Figure 1 – Competing Values Framework

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model does not reject dimensions, but represents the balance between different relevant models based on empirical evidence. In that way the basic model represents reality most adjacent by empirically identifying the most frequently mentioned dimension of organizational culture and integrate them. Such a basic model is the Competing Values Framework (CVF) developed by Cameron and Quinn (1999), which is illustrated in figure 1.

In this research the CVF is utilized as it forms an useful theoretical approach that describes organizational cultures and a specific articulation of an organizations’ CSR policy. This theoretical model provides four typologies that categorize organizational cultures on their preferred outcomes of effective organizational performance and means through which they are obtained. It forms a conceptual tool for understanding the ideological underpinnings of an organizational culture as well as studying the differences across these cultures (Zammuto et al., 2000: 264). This theoretical model symbolizes the competing demands within an organization on two separate and

competing dimensions and is implemented in multiple academic articles (Linnenluecke & Griffiths, 2010: 359, Naranjo-Valencia, 2011: 58, Quinn & Rohrbaugh, 1983: 387).

The organizational cultures are divided in four competing quadrants determined by two dimensions: flexibility versus stability and external focus versus internal focus. The first dimension reflects whether the focus of an organization is on internal

dynamics or on the demands of its external environment. The second dimension reflects organizational preferences for structuring, coordination and control or for flexibility. Organizations at the control end of the dimension rely on formal mechanisms, such as rules, financial planning and direct supervision. On the other end, organizations embracing flexibility rely more on social coordination and control through

internalization of beliefs, training, participation, and peer pressure to achieve the objectives.

The models of organizational cultures have a different combination of characteristics and therefore a different adoption of CSR policies (Linnenluecke & Griffiths, 2010: 360). The four quadrants represent the beliefs, values and orientations of the organizational culture. Therefore CSR as a form of innovation is likely to be implemented in a manner that is line with the dominant organizational culture

(Cameron et al., 1999: 53). Each quadrant or culture is representing a set of dominant ends and the way they are tend to be achieved. These organizational cultures are

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influencing the way sustainability is understood in an organization and how the company is acting on this understanding. The four models with their particular objectives and means are described form the basis of the operationalization of this research.

2.4.1 Internal Process Model

This culture type is presented in figure 2 and is characterized by its focus on economic performance without considering the external organizational environment. These companies are mainly concerned with the stability, predictability and efficiency of the production of goods and services (Cameron et al., 1999: 60). Economic gains are

maximized through rationalized production processes. Formal rules are set up in order to achieve predetermined goals with maximum efficiency, as stable expectations can be formed to predict the behavior of members of the organization (Scott, 1987: 31). In this context rationality does not refer to the process of goal setting, but to the

implementation of goals. This also implies that irrational goals can be pursued with the use of rational means. The two key features of this typology are goal specificity and formalization.

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The implications for the pursuit of CSR policies are that these organizations place greater emphasis on economic performance, growth and long-term profitability. The quality of the ecological environment is considered to be crucial in order for companies to maintain the stability of these aspects. Companies implement CSR to differentiate their brand, as it creates a competitive advantage and higher revenue (Scott, 1987: 48 and Linnenluecke & Griffiths, 2010: 360)

2.4.2 Human Relations Model

This culture type is presented in figure 3 and is characterized by its focus on social interaction, interpersonal relations, employee development and the creation of a

humane work environment. This model acknowledges the importance of goals, but first and foremost argues that organizations are collectivities (Scott, 1987: 51). The HRM is specifically concerned with the behavior and the complex interconnections between the normative and the behavioral structures of organizations. This model also points out the enormous influence informal structure has on the formal structure within an organization. Therefore, the external environment of an organization is approached with teamwork and human development, while employees are participative, engaged

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and loyal. Competitive advantage is established through internal development creating cohesion and morale that causes employees to be satisfied (Cameron et al., 1999: 65).

The implications for the pursuit of CSR policies are that the emphasis is placed on internal staff development through investments in human potential and capital,

learning and education, in pursuing CSR. A clear position is articulated on issues that are addressed with CSR. Organizations accept the responsibility for renewing and

expanding the human knowledge and skill formation of their labor force through training. (Linnenluecke & Griffiths, 2010: 361)

2.4.3 Rational Goal Model

This culture type is presented in figure 4 and is characterized by its focus on the wider environment and the importance of rationality in planning and organizing in light of gaining a competitive advantage (Cameron et al., 1999: 62). Input and interaction with its wider environment is essential for the functioning of an organization. Transactions of an organization in terms of trading, selling, buying or contracting with other

stakeholders are the means to gain a competitive advantage in the market.

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The implications for the pursuit of CSR policies are that emphasis is placed on resource efficiencies in their pursuit of corporate sustainability. The realization is present in this organizational culture that through the embracement of CSR policies efficiency advantages can be gained. This efficiency is not solely evaluated in terms of reducing the costs of production, but also on the impact on the environment and society. By ‘proactively instituting corporate sustainability practices which are directed toward reducing costs and increasing operational efficiency’ these policies can improve the results of the company (Linnenluecke & Griffiths, 2010: 361). By adjusting the scope of the goals set, advantages are evaluated over a longer period. By actively reducing costs through CSR policies these savings can be reinvested in the workforce to secure longer-term gains. This is realized by creating human systems that support value adding and innovation related to CSR. The comparative advantage of the investment in training is costly, but delivers compensation through the added value in the increased quality of products and services. This advantage is more sustainable as competitors less easily copy it. (Linnenluecke & Griffiths, 2010: 361)

2.4.4 Open Systems Model

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This culture type is presented in figure 5 and is characterized by its focus on the importance of the external environment in influencing companies. It recognizes the vital exchanges of organizations with the wider social and economic environment through resource and information input. In this context the organization is a dynamic system that influences the environment around it, causing their relation to be formed through interdependency. Therefore the identity and structure of the organization is formed through the influence of the environment in which it is situated (Scott, 1987: 91). Innovation and pioneering are essential to be successful as a company in a rapidly developing economy. Establishing a dynamic, entrepreneurial and creative work environment secures these aspects.

The implications for the pursuit of CSR policies are that emphasis is placed on innovation for achieving ecological and social sustainability. Organizations are part of the natural environment, as they are located and operate within it. Organizational activities can have significant negative externalities, which impact their own functioning. In order to avoid self-harmful activities that degrade the environment, organizations have to go beyond pollution control to operate within the carrying capacity of the natural environment by minimizing their resource use and ecological footprint. (Linnenluecke & Griffiths, 2010: 362)

2.5 Typology of Worldviews

Clapp & Dauvergne utilized the knowledge of several disciplines to create a typology of worldviews on the political economy of global environmental change (2005: 3). The different worldviews are: market liberal, institutionalist, bioenvironmentalist, and social green. These worldviews provide a perspective on the causes of environmental change and the suitable reaction of companies on this process. Each worldview is related to a model of the CVF, as they embrace the same line of reasoning and focus in their approach to the behavior of organizations. Every worldview and related CVF-model identifies an ideal response of an organization on environmental change.

In order to articulate an expectation on which students find which particular CVF-model attractive, a link between academic faculties and a particular CVF-model is necessary. As the link between academic faculties and models of the CVF is not fully

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theoretical substantiated, the academic faculties are connected to the worldviews that on their turn relate to a particular CVF-model. How the faculties connect with the worldviews is based on the primary reasoning of the academic faculties on the cause and solution of environmental change.

Based on the aforementioned influence of different academic faculties I assume that the perception of students on the attractiveness of CSR policies is in line with the approach of their academic faculty. I expect that students of a particular academic faculty find the CVF-model most attractive that relates to the reasoning and focus of their particular academic faculty.

2.5.1 Hypothesis 1

The institutionalist worldview agrees with the market liberal perspective on the value of economic growth, globalization and trade (Clapp & Dauvergne, 2005: 7). However institutionalists are not convinced of the self-correcting system through market pressures. Instead they argue for stronger institutions and norms as well as state and local capacity to direct the global political economy. An external perspective is essential to create global cooperation between different actors. ‘Controls at all levels of

governance, from the local to the national to the global, can help to direct globalization, enhancing the benefits and limiting the drawback’ (Clapp & Dauvergne, 2005: 8). This external focus is needed to secure stable economies and environments for all states.

According to this worldview the main focus points of organizations in the political economy of environmental change should be on control structures to ensure economic performance, growth and maximization of production. Making the economic system controllable relates to the legalization of the economic system, through which organizations are bound to a set of rules or commitments (Abbott et al., 2000: 401). Hence the institutionalist worldview corresponds with the IPM. The behavior of organizations is evaluated on the basis of terms like rules, control, and stability. Therefore I argue that this CVF-model relates to the focus of the faculty of Law as the problem and the solution of environmental change is found in legalization. Based on this theory the following hypotheses can be articulated:

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Hypothesis 0 (A1):

There is no significant relation between the academic faculty and the perceived attractiveness of company A by students

Hypothesis 1a:

There is a significant relation between academic faculty and perceived attractiveness of company A

Hypothesis 0 (A2):

Students of different faculties find company A equally attractive Hypothesis 1b:

Students of the faculty of Law perceive company A relatively as most attractive

The social green worldview is based on theories of both the social and economic disciplines. This perspective emphasizes on the inseparability of social and

environmental problems. It is in agreement with the bioenvironmentalist worldview on the role of economic growth and unsustainable consumption in reaching the carrying capacity of the earth (Clapp & Dauvergne, 2005: 12). Globalization is the main driver of these environmentally harmful processes, causing global injustice through the

exploitation of developing countries. In order to tackle environmental degradation social greens ‘advocate a return to local community autonomy to rejuvenate social relations and restore the natural environment’ (Clapp & Dauvergne, 2005: 13). The central credo of this worldview is think globally, act locally. While understanding the global context, actors should act in a way that fits the local context. Empowering people and creating a strong sense of small-scale community the trend of deteriorating the environment can be history.

According to this worldview the main focus points of organizations in the

political economy of environmental change should be on flexible structures through the empowerment of people and the creation of communities. Social interaction and human development play an important role in the relation of organizations with the ecological

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environment. Hence the social green worldview corresponds with the HRM. The

behavior of organizations is evaluated on the basis of terms like human empowerment, social interaction, and community. This CVF-model relates to the focus of the faculty of Social & Behavioral Sciences as the problem and the solution of environmental change is found in social dynamics. Based on this theory the following hypotheses can be

articulated:

Hypothesis 0 (B1):

There is no significant relation between academic faculty and the perceived attractiveness of company B

Hypothesis 2a:

There is a significant relation between academic faculty and perceived attractiveness of company B

Hypothesis 0 (B2):

Students of different faculties find company A equally attractive Hypothesis 2b:

Students of the faculty of Social & Behavioural Sciences perceive company B as

most attractive

The market liberal worldview perceives economic growth and high per capita income as essential for maintaining a sustainable development of the economy and the world. Considering the ecological environment market liberals believe that economic growth causes higher tax revenues to invest in environmental improvements. Moreover as higher incomes allow people to worry about non-material issues like environmental problems, the growing public awareness causes political incentives to improve the environment. This worldview identifies ‘a lack of economic growth, poverty, distortions and failures of the market, and bad policies’ as the main drivers of environmental degradation (Clapp & Dauvergne, 2005: 5). When the market is not distorted market

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pressures create an economical sense for organizations to improve their environmental performance.

political economy of environmental change should be on efficiency and productivity. By creating real advantages through resource efficiency and cooperation with other

organizations in the supply chain it becomes profitable to implement CSR, which eventually will change the structure of the economic system. Tackling environmental degradation can be combined with economic results. By stimulating efficiency and productivity companies are able to reach their company goal of increasing profits. Hence the market liberal worldview corresponds with the RGM. The behavior of organizations is evaluated on the basis of terms like economic growth, efficiency, and comparative advantage. Therefore I argue that this CVF-model relates to the focus of the faculty of Economics & Business as the problem and the solution of environmental change is found in the economic system. Based on this theory the following hypotheses can be articulated:

Hypothesis 0 (C1):

There is no significant relation between academic faculty and the perceived attractiveness of company C

Hypothesis 3a:

There is a significant relation between academic faculty and perceived attractiveness of company C

Hypothesis 0 (C2):

Students of different faculties find company C equally attractive Hypothesis 3b:

Students of the faculty of Economics & Business perceive company C relatively as

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The bioenvironmentalist worldview is based on theories of the discipline of natural science. Due to a significant economic and population growth humanity has pushed the earth to its limits (Clapp & Dauvergne, 2005: 9). As a result of unsustainable

consumption of resources the limit of the earth’s carrying capacity is within reach, threatening the functioning of societies, economies and human beings. Therefore the global aim should be to ‘reduce the impact of humans on the planet and prod the world toward a more sustainable global economy’ (Clapp & Dauvergne, 2005: 11). People are simultaneously the perpetrator and victim, as we cause the deterioration of the climate and are negatively affected by it. Every human, organization, company and government should minimize its ecological footprint.

political economy of environmental change should be on external demands and flexible structures. Organizations should operationalize this by honoring the interdependency with the environment and minimizing their ecological footprint. A sustainable economic growth is essential for the functioning of the world, for which organizations are

responsible too. Innovation is the way to minimize this footprint. Hence the bioenvironmentalist worldview corresponds with the OSM. The behavior of

organizations is evaluated on the basis of terms like ecosystems, natural limits, and innovation. Therefore I argue that this CVF-model relates to the focus of the faculty of Science as the problem and the solution of environmental change is found in a technical fix through innovation. Based on this theory the following hypotheses can be

articulated:

Hypothesis 0 (D1):

There is no significant relation between the academic faculty and the perceived attractiveness of company D by students

Hypothesis 4a:

There is a significant relation between academic faculty and perceived attractiveness of company D

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Hypothesis 0 (D2):

Students of different faculties find company D equally attractive Hypothesis 4b:

Students of the faculty of Science perceive company D relatively as most attractive

3. Research Design

The aim of this research is to identify the perceived attractiveness of students of various academic faculties on the different forms of CSR policy companies. Therefore the

perception of attractiveness of different companies is the dependent variable and the different academic faculty forms the independent variable. In order to create a valuable conclusion the variations within the values of the dependent variable are measured for their relation with the independent variable. The research design utilized for this aim is the cross-sectional design, as I am concerned with change and variation that appear within the collection of data.

3.1 Method

In this research a quantitative method is adopted through which data is collected to highlight the perceptions of a large sample of students. The motivation behind this method is that it enables the development of a conclusion that is more appropriate to generalize. The sample is designed in such a way that it is assumed to be representative for the population. In this way a perspective is created on the perceptions of the student population. Furthermore, the complex structure of CSR policies and their related

organizational culture are made approachable through a limited number of variables. Although simplifying the social reality raises questions on how well this reality is approached, it allows me to research this aim. By setting a quantitative research framework it is easier to ensure certain inter-subjectivity.

A deductive approach fits the quantitative method of this research. This deductive approach represents a common view on the nature of the relationship between theory and social research, where hypotheses are subjected to empirical

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scrutiny (Bryman, 2012: 24). The hypotheses developed in the theoretical framework articulate the theoretical basis on which this research builds on. The expectations articulated within the hypotheses concerning the relation between variables are tested in order to expand and create theoretical ideas on the subject.

3.1.1 Vignette Method

The data is collected through surveys that consist of several vignettes. These vignettes ‘refer to text, images or other forms of stimuli which research participants are asked to respond’ and play an important role in social research, including comparative research between groups of students (Hughes & Huby, 2004: 36). The primary specialization of this method is to identify the coherence between different relevant aspects to the consideration of decision-making. Moreover it enables to examine people’s beliefs, attitudes, judgments, and normative standards with a quantitative method (Bryman, 2012: 261). Vignette studies combine the ideas of classical experiments and survey methodology to counterbalance each approach’s weakness (Atzmüller & Steiner, 2010: 128). In this way vignettes transcend the wide-ranging disciplines within the social sciences, making them invaluable in social research (Hughes & Huby, 2004: 46).

A hypothetical situation is created in which a decision has to be made, which reduces the chance of an unreflective reply. While regular survey questions are mainly focused on the importance of one particular aspect, the vignette method is concentrated on the importance of the coherence between the different aspects in a certain situation. This method is providing respondents with vignettes that each present a particular situation representing a systematic combination of characteristics. In quantitative research respondents need to answer closed questions about their perception of the created situation. Besides the vignette element a traditional survey element for the measurement of additional respondent-specific characteristics is implemented in the questionnaire.

The benefit of this vignette method is that strategic answers and social responsible answers are less likely. This method approaches sensitive subjects in a subtle way, causing the possibility that the questions may be interpreted as judgemental by respondents to decrease (Bryman, 2012: 263). By making the questionnaire

accessible online the response rate is expected to be much higher, as it increases the convenience for respondents.

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3.2 Sample Selection

In order to create an overview of the sample characteristics a unit of analysis,

population, sample design and sample size are clearly articulated. The unit of analysis in this research are students, as they are high-educated individuals that are expected to enter the job market within a short term. As aforementioned companies are interested in this group of job market entrants as knowledge is a valuable asset. The population from which a sample is drawn are students at the University of Amsterdam (UvA) from the faculties Social & Behavioural Sciences, Science, Economics & Business and Law that have not yet entered the job market previously. By setting this requirement the students are left out of consideration that have already been influenced by their impression of the labour market, which can have an effect on their perception of attractiveness (Jones et al., 2014: 400). By focussing on academic faculties at one university the scope of the research remains in line with the practical possibilities. These particular academic faculties are chosen as they implement specific attention or courses concerning CSR in their curriculum. Moreover students of these faculties are most likely to be employed by a company in which CSR plays a role in comparison to students of the faculty of

Humanities, Dentistry or Medicine. Therefore the chosen academic faculties have significant intersections with CSR in contrast to the faculty of e.g. Dentistry. I assume that students of the implemented academic faculties have a more explicit opinion about CSR policies, which enables the creation of theoretical based hypotheses on the

perceived attractiveness of these students.

Related to the interest of companies to attract high-educated job market entrants is the fact that the UvA ranks 63rd_{in the Times Higher Education Rankings 2017 and}

also scores high in other world university rankings (Times Higher Education, 2017). It offers high quality academic education to their students. Therefore the perceptions of UvA students are relevant for companies in order to attract students as employees.

From this population a stratified random sample is drawn that creates a balanced sample. The same proportion of students of a particular academic faculty is present in the sample as in the population (Bryman, 2012: 192). As aforementioned my expectation is that different faculties create different mental templates, creating a diversity of dominant values between the students of academic faculties. This diversity

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could stimulate a difference in perceptions between faculties on the attractiveness of CSR policies and organizational culture of companies. In order to avoid this expected bias the academic faculty is the characteristic dividing the sample in different groups, which are proportionally represented in the sample.

A simple random sample is not sufficient to avoid the expected bias on the basis of academic faculty background in the sample for two important related reasons. First of all such a sample does not include proportionality. The effect of this variable is the main assumption in this research in order to show the importance of taking into

account the differences within the student population. I argue that the academic faculty of a student is relevant for its perception of the attractiveness of CSR policies. If a disproportionate frequency of students of one particular academic faculty is present in the sample it is not an appropriate reflection of the population. Secondly this bias will almost certainly occur if a simple random sample is conducted, as I am a student of the University of Amsterdam at the Social and Behavioural Sciences faculty. Reaching students of my own academic faculty is less of a challenge than reaching students of other faculties. In order to tackle this bias a stratified random sample is desirable.

The total population of this research is the combined number of students on the faculty of Social & Behavioural Sciences, Science, Economics & Business and Law. This means that no conclusion can be made about all the students at the UvA. The total population in 2017 is 7,160 (33.02%) + 5,983 (27.59%) + 5,243 (24.18%) + 3,298 (15.21%) = 21,684 (University of Amsterdam, 2017). Based on the margin of error of 5% and a confidence level of 90% the sample requires a size of 268 respondents. The motive for this confidence level and sample size is clarified in the data collection section. In order to establish a stratified random sample the sample should consist out of

33.02% (or 88) Social & Behavioural Sciences students, 27.59% (or 74) of Science students, 24.18% (or 65) of Economics & Business students, and 15.21% (or 41) of Law students. These proportions are visualized in figure 6.

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Figure 6 – Sample Blueprint

3.3 Operationalization

The aim of researching the attractiveness of various adoptions of CSR policies and their related organizational cultures is too theoretical to directly research. It is essential to translate the theoretical concept of organization culture into measurable entities. Therefore the concept is translated into indicators that are quantifiable. As

aforementioned these indicators are based on the article of Linnenluecke & Griffiths (2010) in which the different ways of adopting CSR policies related to the differences between organizational cultures are formulated.

Organizational culture and CSR are coherent, as this culture defines the CSR policy as an expression of a company’s culture. With the vignette method this relation is implemented in this research method, as the different cultures as well as their related CSR policy are integrated in vignettes. The vignettes are shaped in the framework of a mission statement in which four hypothetical companies (A, B, C & D) present their organizational culture and related CSR policy. A mission statement is a useful

framework for the vignettes in this research as they act as carriers of culture, ethos and ideology of the company (Swales & Rogers, 1995: 226). These mission statements are created inspired by a particular model of the CVF, in which their reason for

implementing CSR, company goal, forms of CSR policies and cultural emphasis of the company are formulated. These are the most important characteristics of the CVF models and relate to the CSR policy of companies. In this way the expression of the organizational culture in the form of a CSR policy is operationalized.

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The vignettes are structured to implement the most important aspects of the CVF models and their CSR policies. The structure of the mission statements consist of four sections: motivation for implementing CSR (blue), company goal (red), different forms of CSR policies (yellow) and cultural emphasis of company (green). These sections combined form the following vignettes:

Vignette A – Internal Process Model

‘We as Company A implement Corporate Social Responsibility in our business activities because Corporate Social Responsibility helps the financial performance of our company. By implementing Corporate Social Responsibility policies we make sure to reach our goal of creating a stable and controllable production process. These policies take the form of formal rules and structures to maximize efficiency. Therefore our company culture lays emphasis on economic performance, growth and long-term profitability.’

Vignette B – Human Relations Model

‘We as Company B implement Corporate Social Responsibility in our business activities because our company is responsible for the development of its staff. By implementing Corporate Social Responsibility policies we make sure to reach our goal of cohesion and morale within the company. These policies take the form of training and education to develop the staff. Therefore our company culture lays emphasis on social interaction, interpersonal relations, employee development and the creation of a humane work environment.’

Vignette C – Rational Goal Model

‘We as Company C implement Corporate Social Responsibility in our business activities because it creates advantages for our company in relation to other companies. By implementing Corporate Social Responsibility policies we make sure to reach our goal of maximizing efficiency and productivity. These policies take the form of using resources efficiently and reinvesting it in training of employees. Therefore our company culture lays emphasis on high efficiency and productivity with a rational approach.’

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Vignette D – Open Systems Model

‘We as Company D implement Corporate Social Responsibility in our business activities because the quality of the environment influences the performance of our company. By implementing Corporate Social Responsibility policies we make sure to reach our goal of company growth. These policies take the form of innovation

measures to minimize our ecological footprint. Therefore our company culture lays emphasis on reacting to societal and environmental needs with innovation and adaptability.’

Each respondents is asked to answer two questions for every vignette: 1. ‘How attractive you find these companies as a potential future employer?’ 2. ‘How likely is it for you to apply for a job at this company?’

The respondent is required to answer these questions by choosing one option on the presented Likert scale. This is a multiple-indicator measure of a set of attitudes relating to a particular area. With this scale the intensity of feelings about the area in question are measured (Bryman, 2012: 166). Two five-point scale ranging from ‘very attractive’ to ‘very unattractive’ and from ‘very likely’ to ‘very unlikely’ are presented to the respondents. The two questions concerning the perceived attractiveness and the likelihood to apply are not very different. However the first question is most important as it indicates the feeling that the respondent perceives of the company, while the second question is concerned with the willingness to take action based on this feeling. Although action is essential when applying for a job at a company, companies also reach out to students themselves that decreases the importance of the willingness to take action. Moreover through contact between students positive perceived attractiveness of students that do not take action can be spilled over to other students that do take action and apply.

Several questions indicate the effect of control variables. They are implemented in the survey to show their influence on the perception of students and their effect on the attractiveness of the vignettes. These control variables are age, gender, political preference and immigration background. Age and gender have been presented in multiple researches as related variables with CSR attractiveness (Albinger & Freeman, 2000: 252 and Leveson & Joiner, 2014: 33). Political preferences could also influence

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the perception of students as it relates to a certain way of thinking about the role of companies within concerning the economy and environment (Rubin, 2008: 2). This also relates to the study choice of students, as it is expected that faculties attract students with certain political preferences. Furthermore, immigration status is implemented as a control variable due to the differences in approaches to CSR policies between regions. For example the Nordic countries differ sharply from the United States in the role that their government take in implementing CSR in their economic systems (Gjølberg, 2010: 205). Therefore the perception of people considering CSR potentially differs for

different regions. In order to make this distinction the immigration background of students and their parents are identified in the survey.

3.4 Validity and Reliability

3.4.1 Validity Concerns

The validity relates to the question whether the aim of this research is actually being researched. As the objective of this research is focused on relatively abstract concepts validity is a vulnerable aspect of which several weaknesses are discussed. In this research the measurements are conducted by using indirect indicators. There are multiple issues relating to these indicators that could harm the internal validity.

First of all the concept of organizational culture has many aspects, capturing the whole concept in this research is impossible as this concept is defined differently by each individual. The focus is on four different dominant characteristics divided over two dimensions that represent the different typologies of organizational cultures. It is

crucial to state that not everybody will confirm these characteristics as important dimensions of an organizational culture. In this research the CVF model forms the central model in which the most important variations of organizational cultures are identified. However some scholars have argued for different dominant aspects that are not present in the implemented model. This makes the validity of this research

concerning certain concepts a point of discussion.

The second remark relates to the vignette method integrated in online

questionnaires to collect the data for this research. Many aspects influence the answers given by respondents in questionnaires. The questions need to be designed in a way that the situation created approaches the answers that a respondent will give in the social reality of the attractiveness of CSR policies (Hughes & Huby, 2012: 39). However

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there are multiple aspects that can influence the answer of respondents. Basic

influences such as the order, length and complexity of questions could harm the validity. These issues form a potential threat for the validity of the research, but are reduced by making the questions as straightforward and homogenous as possible. In order to minimize the effect of the order of questions the vignettes are presented to participants in a random order. Besides these basic influences exist also deeper lying influences such as the appealing effect of certain concepts that can have a harmful effect on the validity.

The last remark is related to the weight of CSR attractiveness for the

attractiveness of companies as potential future employers. The vignette method is a way to approach the real perceived attractiveness of students when they are confronted with a particular mission statement. It is important to specify that the choice for the attractiveness of companies based solely on their mission statements is only one aspect that influences the perception of students. Some aspects are taken into account in the form of control variables; others are outside the scope of this research but are still playing a role. One example is the reputation of the company if the companies are not anonymized like in the questionnaire. Nowadays Nuon is engaging increasingly in CSR policy. However it is reasonable to expect that the reputation of Nuon concerning their CSR policy is not related to a company engaged with CSR. This conventional energy company was part of the market before the market opened up and CSR played an active role. New companies have the space to design a business model, with CSR as a central element. Nuon already haves a whole “grey” infrastructure build around itself that supports its business model. Implementing CSR happens within Nuon, but the

infrastructure of the company first needs to adjust before it gives CSR room to form a central element.

Also the personal ambitions of students concerning their work are influencing their attractiveness to a company. There are not only moral or ethical motivations behind the perceived attractiveness of certain CSR policies, also economical motives. The moral or ethical motivation could be of a secondary concern when a student has ambition to work in a successful and financially generous company. This means that a group of students may find a certain CSR policy attractive, but is primarily concerned with the economic success that this company can provide. Recommending every company to create the company culture with a CSR policy that students find the most attractive is therefore not the aim of this research. It depends for each person how much

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influence this attractiveness has on the total consideration to apply for a job at a company. However discovering a pattern within these preferences forms a valuable contribution and a useful starting point of future research.

3.4.2 Reliability Concerns

A discussion on the reliability of this research is also essential for determining the quality of the research and refers to the consistency of a measure of a concept. Several aspects that influence the reliability are already discussed in previous sections, but are swiftly repeated to show their relation to the reliability of this research. The first aspect is the characteristic of the sample. Because the sample is a stratified random sample the bias of academic faculty is left out of the data, which improves the reliability of this research. However the size of this research is damaging the reliability. The original aim of the sample size was 378, which creates a confidence level of 95%. Due to practical limitations this aim is adjusted, which is discussed in the result section. As the

confidence level is now 90% the results can differ when this research is repeated on a bigger scale.

The information provided at the beginning of the questionnaire is sufficient to complete it and answer all the questions. The differences in knowledge about CSR

policies could potentially affect the outcome of this research. For example a student who wrote an essay in the past on the unproductive effect of CSR policies concentrated on human development could be more critical on the HRM than a student that heard about CSR for the first time.

The last remark is on the influence of social desirable answers. Although the literature on the characteristics of the vignette method states that the benefit of this method is that it decreases the frequency of social desirable answers, this is not fully the case in this research. Normally the answers of respondents consist of multilayer

vignettes in order to camouflage the social desirable answers. As there is only one vignette given for each company the answers are not build-up out of multiple levels of vignettes. This potentially decreases the reliability of this research, as the answers that are given based on social desirability cover the real answers of respondents.