CSR in The Construction Industry

Corporate Social Responsibility (CSR) in the Construction Industry
An Analytical Investigation into the Development and Prosperity of CSR through

Applicable Industrial and Academic Illustrations.
By
David Barry
Dissertation Presented to
The School of Engineering
Waterford Institute of Technology
In Partial Fulfilment of the Requirement for
The Honours Degree of Bachelor of Science
In Construction Management and Engineering
April 2011
Preliminaries Corporate Social Responsibilities in the Construction Industry
“Problems cannot be solved at the same level of awareness that created them”
"Out of clutter ... find simplicity. From discord . . . find harmony. In the middle of
difficulty lies opportunity. "
- Albert Einstein (1879 – 1955)
i
Preface
The prevailing interpretation of a modern organisation has significantly transformed
with the infiltration of societal expectancies now motivating predominant aspects of
an organisations business model. Ethical practices are fast becoming a responsible
requirement in the business environment and have progressed beyond the
philanthropic recognition that it historically procured responsible business practice.
Focus has surpassed the principle ‘bottom line’ and the undeniable growing emphasis
on the non-financial accountability of a company. Investigating the global
organisations practices instigates the principle importance that Corporate Social
Responsibilities (CSR) has in the business environment.
The academic literature of respected authors Hopkins (2007), Lantos (2001), and
Mullerat (2009) and successful industrial implementations of Carillion Plc, Skanska, and
the Royal BAM Group departs no reservation concerning the importance and
dependability of CSR in all business levels and societies. The tangible existence of
fruitful examples of application and practices in the UK construction industry has
proved evidence of its remunerations and reinforcement within society and the
business envelope. The strategic success factors of CSR have been correlated to
corporate reputation (Mullerat & Brennan 2005), future prospects (Hopkins, 2007),
employee motivation (Mullerat, 2009), profitability (Kotler & Lee, 2005) and
stakeholder and community engagement (Maignan & Ferrell, 2004), which all
subsequently commend total quality management and honourable corporate
reputation.
The predominant and unavoidable trends have largely influenced the author to further
research the concept of CSR and its historic development in the business and
construction environments. The purpose of this dissertation is to demonstrate the
underlying benefits and implementation methods of CSR through combining both
primary and secondary research methodologies. Predominant focus will be placed on
successful and competent industrial organisations in a fluency that encourages and
demonstrates an initial foundation for subsequent research, while also providing a
reference to interested undergraduates and professionals alike.
ii
Acknowledgements of Support and Dedications

I would like to take this opportunity to thank a number of people who have helped me
throughout this dissertation, academically, intellectually and physically. Without the
support I have received over the past seven months this research project would not
have been conceivable. While also acknowledging the persons who have helped with
the inclusive success of this dissertation, I would additionally like to recognisably
acknowledge the contributions of the people who have provided the foundation for
which I have developed my academic and practical knowledge and abilities
respectively. They have personated a dynamic role in helping me to achieve what I
have with this dissertation and with the academic course.
My initial appreciation of gratitude is for my academic supervisor Kevin Ryan. Kevin

has undoubtedly exceeded his role as a supervisor, through his attentiveness, strategic
direction, gratuitous support, directive knowledge, accommodating awareness and
general appreciation of the work I have done in a motivating demeanour. Kevin’s
motivational attributes have inspired me to expand my knowledge in the area of CSR
through post graduate research upon completion of my degree if the opportunity
arises.
Sincere appreciation is also comprehended for the lecturers of the Construction

Management and Engineering course specifically Eugene O’ Sullivan and Brian Graham
for their general encouragement and assistance over the preceding four years. All
relevant academics have appreciatively provided the theoretical knowledge for which I
will reiterate in my future years in the industry.
In respect to the internals of the dissertation, I am intently grateful to the

professionals who have provided guidance and given their valuable time during the
primary research stage through interviews and questionnaires, your experienced
sentiments and personal understandings have given this dissertation the grounds for
which it has been possible.
Finally my personal appreciation progresses to all my family who have emotionally

supported me over the last four years. To my Dad Kevin, Mom Bernadette, girlfriend
Divina and all my family, I dedicate this to you.
iii
Particulate Dissertation Word Count
Chapter 1 - Introduction 745
Chapter 2 - Literature Review Corporate Social Responsibilities 9273
Chapter 3 - Research Design and Methodology 2012
Chapter 4 - Findings and Discussions Part One - Qualitative Research 4332
Chapter 5 - Findings and Discussions Part Two - Quantitative Research 2197
Chapter 6 - Conclusions and Recommendations 3897
Dissertation Word Count Total - 22456
iv
Declaration of Originality
I declare that this dissertation in whole or in part, has not been submitted to any
University as an exercise for an Honours Degree. I further declare that, except where
reference is made in the text, the contents are entirely my own work. All subsequent
work has been completed to the standards and guidelines illustrated by the
Department of Construction and Civil Engineering, Waterford Institute of Technology,
Ireland.
I have discussed, agreed and compiled with whatever confidentially or anonymity

terms of reference were deemed appropriate by those participating in the research.
The author agrees that the library may lend or copy the thesis upon request for study
purposes, subject to the normal conditions of acknowledgement.
David Barry
15th April 2011
v
Table of Contents
Page No
Preface ii
Acknowledgements of Support and Dedications iii
Particulate Dissertation Word Count iv
Declaration of Originality v
List of Illustrations ix
List of Abbreviations x
Executive Summary xii
Chapter 1 - Introduction 1
1.1 Chapter Overview 2
1.2 Research Aspirations 2
1.2.1 Hypothesis 2
1.2.1 Research Aim and Objectives 2
1.3 Dissertation Content 3
1.3.1 Chapters 2 & 3 - Literature Review 3
1.3.2 Chapter 4 - Research Design and Methodology 4
1.3.3 Chapter 5 & 6 - Primary Research 4
1.3.4 Chapter 7 Conclusions and Recommendations 4
1.3.5 Chapter 8 References and Bibliography 4
1.4 Chapter Summary 4
Chapter 2 – Literature Review Corporate Social Responsibilities 5

2.2 Defining Corporate Social Responsibilities 6
2.3 Classification of Corporate Social Responsibilities 7
2.3.1 Economic / Instrumental Stakeholder Theory 7
2.3.2 Political / Legal Theory 8
2.3.3 Integrative / Philanthropic Theory 8
2.3.4 Ethical Theory 9
2.4 The Development and Evolution of CSR and Ethical Practices 10
2.4.1 Historical Development 10
2.4.2 Stakeholders Engagement 11
2.4.3 Globalisation 13
2.4.4 Cause Related Marketing 13
2.5 CSR in the Construction Industry 14
2.6 Influential Factors and Key Performance Indicators 16
vi
2.6.1 The Brundtland Report 16

2.6.2 Global Reporting Initiative 18
2.6.3 Social Responsible Investing & Social Anchored Competences 19
2.6.4 Sustainability Indexes 22
2.6.5 ISO 14001 - Environmental Management 21
2.6.6 ISO 26000 - Social Responsibility 22
2.6.7 CEMARS 23
2.6.8 World Business Council for Sustainable Development (WBCSD) 25
2.6.9 Considerate Constructors Scheme (CCS) 26
2.6.10 Green Public Procurement (GPP) 26
2.7 Remunerations and Benefits of CSR 27
2.7.1 Image Formation and Corporate Reputation 28
2.7.2 Future Prospects 28
2.7.3 Employee Enthusiasm and Improved Workforce 29
2.7.4 Profitability and Productivity 29
2.8 Transition and Company Change 30
2.9 Limitations 32
Chapter 3 - Research Design and Methodology 37

3.2 Research Objectives 38
3.3 Defining Research 39
3.3.1 Secondary Research 39
3.3.2 Primary Research 40
3.3.2.1 Quantitative and Qualitative Methods of Research 40
3.4 Quantitative Research - Survey/Questionnaire 43
3.4.1 Survey Participants 43
3.5 Qualitative Research - Structured Interviews 43
3.5.1 Interview Participants 44
3.6 Research Limitations 45
Chapter 4 - Findings and Discussions Part One - Qualitative Research 46

4.2 Interview Structure 47
4.3 Structured Interview Respondents 48
4.4 Corporate Social Responsibility in the Company 48
4.5 Subjective Opinions and Interpretations 57
4.6 Qualitative Research Summary 61
Chapter 5 - Findings and Discussions Part Two - Quantitative Research 63

vii
5.2 Online Questionnaire Structure 65

5.3 Respondent Profile and Background 65
5.4 Personal Opinions and Views 66
5.5 CSR in your Organisation 69
5.6 Quantitative Research Summary 74
5.7 Primary Research Conclusion 75
Chapter 6 - Conclusions and Recommendations 76

6.2 Research Aim and Objectives 77
6.2.1 Research Aim 77
6.2.2 Research Objectives 77
6.2.3 Objective Summary 84
6.3 Hypothesis Appraisal 84
6.4 Recommendations for the Construction Industry 85
6.4.1 Awareness in the Global Environment 85
6.4.2 Staff Inclusion 86
6.4.3 Better Responsiveness in the Irish Construction Industry 86
6.4.4 Potential ICT Developments 86
6.4.5 Supplementary Acknowledgement of External Accomplishments 87
6.4.6 Incentives for SME’s 88
6.4.7 Instigation of ISO 26000 as a Documented Business Policy 88
6.4.8 Contractual Obligations 88
6.5 Avenues for Further Research 88
6.6 Research Limitations 89
Chapter 7 - References & Bibliography 91

7.1 References & Bibliography 92
Appendices
Appendix A - Construction Interview Manuscripts xiii
Appendix B - CSR Professional Interview Manuscripts xiv
Appendix C - Online Questionnaire Results xv
Appendix D - Questionnaire Cover Letter xvi
Appendix E - Sample Dissertation Review Meeting xvii
Appendix F - Carillion Plc Strategy Model xviii
viii
List of Illustrations
Tables
Table 1 - The Development and influential factors of CSR at Skanska
Table 2 - Summarised Benefits of CSR
Table 3 - Comparison between Interviews and Questionnaires
Figures
Figure 1 - Stakeholder Management
Figure 2 - Company Stakeholders
Figure 3 - Reduction of waste per tonne in the construction Industry
Figure 4 - GRI Integers
Figure 5 - 7 Core Subjects to Social Responsibility
Figure 6 - How to get CEMARS certification
Figure 7 - Kg of CO₂ per m² on Managed Sites
Figure 8 - Carillion ‘sun diagram’
Figure 9 - CSR Development and Transition
Figure 10 - Defining CSR
Figure 11 - Future prominence of CSR in the business environment
Figure 12 - Government Involvement
Figure 13 - Importance of Sustainability
Figure 14 - Strategic Relevance
Figure 15 - Implementation Period
Figure 16 - Complications of Implementation
Figure 17 - Influences of Acquisition
Figure 28 - CSR Reporting
Figure 19 - Environmental Management Systems
Figure 20 - Economic Benefits
Figure 21 - Company Benefits
Figure 22 - Company Performance
Figure 23 - Skanska Sustainability Agenda
Figure 24 - Green BIM
ix
List of Abbreviations
BLL Bovis Lend Lease

BIM Building Information Modelling
BITC Business in the Community
CCS Considerate Constructors Scheme
CDP Carbon Disclosure Project
CEC Commission of the European Communities
CEEQUAL Civil Engineering Environmental Quality Assessment Award Scheme
CEMARS Certified Emissions Measurement and Reduction Scheme
CIB Construction Industry Board
CIF Construction Industry Federation
CIOB Chartered Institute of Building
CIRIA Construction Industry Research and Information Association
CRC Carbon Reduction Commitment
CRM Cause Related Marketing
CSR Corporate Social Responsibility
CO₂ Carbon Dioxide
EFQM European Foundation for Quality Management
EU European Union
EU Corporate Leaders Group on Climate Change (EU CLG)
EMS Environmental Management System
ESG Environmental Social Governance
GDP Gross Domestic Product
GM General Motors
GPP Green Public Procurement
GRI Global Reporting Initiative
H&S Health & Safety
HSE Health, Safety & Environmental
ICE Institute of Civil Engineers
ICT Information Collaboration Technologies
IFSD Institute for Sustainable Development
ISO International Organisation for Standardization
IT Information Technology
KPI’s Key Performance Indicators
KPMG Klynveld, Peat, Marwick, Goerdeler
LCA Life Cycle Analysis
MENCAP Royal Society for Mentally Handicapped Children & Adults
MNC’s Multi-National Companies
NJUG National Joint Utilities Group
OECD The Organisation for Economic Co-operation and Development
ORB Organisation for Responsible Businesses
PCC Project Carbon Calculator
PR Public Relations
PwC Price Waterhouse Coopers
SAC’s Social Anchored Competences
SDI Sustainability Development International
SME Small, Medium Enterprise
x
SRI Social Responsible Investing

TBL Triple Bottom Line
UKCG UK Contractors Group
UKGBC UK Green Building Council
UN United Nations
UNEP United Nations Environment Programme
UNPRI United Nations Principles for Responsible Investment
UNFCCC UN Framework Convention on Climate Change
WBCSD World Business Council for Sustainable Development
WCSD World Commission on Sustainable Development
WCED World Commission on Environment and Development
WGBC World Green Building Council
WLC Whole Life Costing
WTO World Trade Organisation
xi
Executive Summary
Title: Corporate Social Responsibility in the Construction industry
Sub-Title: An Analytical Investigation into the Development and Prosperity of
CSR through Applicable Industrial and Academic Illustrations.
Author: David Barry
Academic Supervisor: Kevin Ryan
Submission Date: April 2011
CSR can be seen as an imposition placed on an organisation by external stakeholders, who

believe it is the honourable obligation of the organisation to give back to the society that
has perceivably facilitated their successes. Others believe it is merely the latest in an
extensive catalogue of modernistic trends and academic management theories.
Conversely, these observations miss the conceptualisation of ethically incorporated CSR.

Evaluating the authentic integrities CSR stipulates evidently conceives that it is a
fundamental creed and methodology that serves not only the broader environment but
the preeminent interest of the organisation itself. CSR is a doctrine of “enlightened self-
interest” in which the organisation in the pursuit of its own success helps the wider
community, creating further opportunities that not only fuel the company’s long term
success, but conceive extensive benefits for the expansive environment (Urip, 2010).
The construction industry as a global environment has excessively and recurrently

attracted hostility among local communities and residents owing to its unmethodical and
riotous impact arising from its disruptive nature. The rising importance and attention of
socially responsible investment, increasing consumer and environmental concern and a
growing political/legislative environment have all contributed considerably to the pressure
on business to be socially responsible. CSR is increasingly being identified as central to core
business activities which strongly link with a firm’s marketing strategy and economic
success (Bhattacharya, et al, 2004).
Multinationals increasingly recognise the major impact they have on the environment,
society, and the economy (Skanska, the Royal BAM Group and Carillion Plc). The intention
of this research project is to arrive at a clear conceptualisation of CSR in the context of an
emerging particular in the industry, focusing on the historical development, remunerations
both internally and externally, influencing factors and the paramount methods for its
implementation. The secondary research supported evidential illustrations of competent
organisations and academics. This additionally provided a theoretical basis for the author
to appraise using primary research methodologies conducted through a combination of
qualitative interviews and quantitative surveys. Acutely evaluating these combining
investigation methods further facilitated the predominant significance of CSR in the
construction industry and appropriately approved the hypothesis stated.
In conclusion to the delineating purpose, it is the informed contemplation of the author

that CSR is a dynamic strategy of considerable importance in today’s society and business
environments. Its responsiveness in the construction industry is varied among
organisations but with current market trends, its inevitable growth, benefits and
importance are conclusive. The underlining aspiration is that this initial research will
establish a foundation for further exploration and provide a guide or reference to instigate
the recommendations and initiate implementation incentives for inquisitive organisations.
xii
Chapter 1 Introduction
Chapter 1
Introduction
‘Earth provides enough to satisfy every man’s need, but not every man’s greed’
- M.K Gandhi (1869 – 1948)
Page | 1
1.1 Chapter Overview
The fundamentals of this chapter outline the intentions, determined objectives

and purposes of the academic research which subsequently succeeds this preparatory
chapter. It is a guide to identify the assessment targets, introduce the reader to the
methodology, illuminate the structure of the contents and potentially provide an
incentive for further research.
1.2 Research Aspirations

1.2.1 Hypothesis
Corporate Social Responsibility in today’s business environment plays a fundamental

role in developing a company for future compliance and competitive success. As
described by Douglas B. Johnson a CSR Consultant, during preliminary interviews, ‘its
proper implementation consequently results in organic and inorganic growth for the
organisation through goodwill, social and environmental performance, increased
efficiency, productivity and furthermore new market opportunities’. The following
tentative statement of prediction will be investigated throughout this dissertation:
“The preference and prosperity of evolving Corporate Social Responsibilities as a

dynamic policy in the development of construction companies central objectives and
strategies towards enhancing corporate reputation, increasing efficiency and enriching
profitability”.
1.2.2 Research Aim and Objectives
The primary aim of this dissertation is to demonstrate the importance of CSR in the
construction industry through its implementation as a core business strategy, which
can be summarised in the following statement:
“Illuminating the prominence of incorporating CSR as an imminent organisational

feature to succeed in the future markets of the construction industry”.
The succeeding objectives have been compiled to illustrate the significant motivations
and substance for which companies are now evolving and becoming more socially and
environmentally responsible in an industry that primarily requires extensive corporate
governance.
Page | 2
1. To literate the prominence and connotation of Corporate Social Responsibilities

in the Construction Industry through its historic development and
characteristics.
2. To appraise the research developments concerning the motives, drivers and
market influences for company change towards social, sustainable and
environmental strategies.
3. To establish the justifications and prominence behind changes and adaptations
to innovative market opportunities.
4. To investigate the Key Performance Indicators and influencing factors shaping
the imminent markets.
5. To identify the challenges strongly associated with company adjustments and
recommend the best approach to integrate a CSR business model.
These research objectives will be examined via a combining illustration of research

methodologies, comprising of a secondary research stage which embraces the
appraisal of honoured academic literature, and a primary research stage involving a
personal selection of investigation techniques to provoke a professional opinion on the
subject.
1.3 Dissertation Content

This dissertation has been composed to include numerous chapters which have
been compiled to illustrate the required information thus successfully demonstrating
the overall aim of the author as previously stated.
1.3.1 Chapters 2 & 3 - Literature Review
In these chapters the author initiates with the historical development of CSR as a
business concept, describing its progress and growth over the years, illustrating the
different classifications and portraying the primary influencing factors that have
instigated its development. In the latter it includes construction related examples
based on the companies that have shown exemplary contributions towards CSR with
the attitude to influence other organisations of the benefits and change agents
required for successful implementation. These research chapters have been devised by
the contribution of academic researchers and authors that have been influenced by
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the attributes of CSR in the business society both in construction and other
professional business sectors.
1.3.2 Chapter 4 - Research Design and Methodology
This chapter defines the selected methods of research for the dissertation and main
reasons behind their adaptation, including primary and secondary research phases.
1.3.3 Chapter 5 & 6 - Findings and Discussions
This primary research chapter presents the selected practical methods of research,
including structured interviews and a business related survey. It is the thought of the
author that combining these two methods of research will provide a distinguished
basis for concluding the dissertation.
1.3.4 Chapter 7 - Conclusions and Recommendations
Resulting from the investigation stages the conclusions and recommendations chapter
outlines the overall findings of the dissertation based on the aim and objectives
previously set out by the author. The chapter finally appraises the hypothesis proposed
and sets out the recommendations for a construction based organisation grounded on
the appraisal findings and the author’s educated judgements.
1.3.5 Chapter 8 - References and Bibliography
In this concluding chapter the author illustrates the comprehensive list of references
and bibliography which have been utilised throughout the dissertation.
1.4 Chapter Summary
It is the overall aim of the author to present a dissertation that stipulates an

informative, interesting and educated read, while illustrating the significance of CSR in
the construction industry and the respected remunerations it presents to an
organisation.
Page | 4
Chapter 2 Literature Review - Corporate Social Responsibility
Chapter 2
Literature Review
Corporate Social Responsibilities
“Never doubt that a small group of thoughtful, committed citizens can change the
world; indeed it’s the only thing that ever does”
- Margaret Mead, US Anthropologist (1902-1978)
Page | 5

Industries and businesses are constantly changing and evolving with the
introduction of new technologies, legislation and outside influences. EU and
Government policies play a major role in the direction in which a company regulates its
strategies for the future. Jenkins & Plowden (2006) believes that although the
Government is the largest client of the industry shaping legislation, fiscal and general
public policy framework within which construction delivers, further proposing the
governments cannot be the sole influences and drivers of the new environmental
policies and frameworks. The challenge and tribulation is for the future businesses to
incorporate instrumental and persuasive strategies to influence its stakeholders
(consumers, clients, employees, etc.) and shareholders to maintain their support and
commitment to sustainable practices. This concept has been adapted by major
corporations and focuses on the notion of Corporate Social Responsibilities (hereafter
CSR), particularly in the areas of climate change, sustainable development, employee
progress, and community impact. These aspects form the basis for adjustments to the
new social requirements and business ethics (Mullerat, 2009).
This Chapter illustrates the global concept of CSR and how it has been fostered and
developed over the centuries to become an international phenomenon adopted by
businesses not only as an important ethical practice, but also to achieve economical
intentions.
2.2 Defining Corporate Social Responsibilities

The term CSR has been one of much debate and delegation among businesses
and governments alike and can signify many different values to numerous
organisations and groups. The Organisation for Economic Co-operation and
Development (OECD, 2001) concluded a general view that in a global economy, the
business environment extends beyond the ‘bottom line’ and a company has ethical
responsibility to contribute to sustainable development. The European Commission
(2006) adapts the definition that CSR is a concept whereby companies incorporate
social and environmental policies into their operational strategies, attitude and
process of work, along with collaborating with associated stakeholders on a voluntary
basis. The World Business Council for Sustainable Development defines this process as:
Page | 6
“The continuing commitment by business to behave ethically and contribute to

economic development while improving the quality of life of the workforce and their
families as well as of the local community and society at large” (WBCSD, 2010)
All CSR characterisations conclude that it is a process by which a company’s ambitions

are to create higher standards of living while preserving the profitability of the
organization for people within and independent of the corporation (Hopkins, 2007). A
company with virtuous ambitions aims and objectives to be successful and profitable
in their industry must look to the future markets and sectors, where sustainable
development and the role of society will influence the growth of the organisation. It
can be said that if you treat society in a respectable manner, society will revert the
favour.
2.3 Classification of Corporate Social Responsibilities
Within the concept of CSR there are numerous theories and classifications that
can be defined as social and environmental practices. Chand, (2006) & Mulleret, (2008)
all promote that the principle classifications of CSR can be divided into four theories;
economic, political, ethical, and altruistic theories. Similar to these theories numerous
academic publications have analogously segregated CSR into instrumental, legal,
ethical and philanthropic categorisations (Lantos, 2001; Garriga & Mele, 2004). Each
characteristic has significant meanings and all adapt different processes to achieve
corporate compliance, but similarly the different theoretical methodologies assumed
by the proposing authors can be compiled to accompany the other as collective
arguments can be initiated in both classifications.
2.3.1 Economic / Instrumental Stakeholder Theory
The dominant methodology to instrumental stakeholder theory assimilates exploiting

CSR as a fundamental and strategic instrument to achieve economic intentions and
objectives for the company. This theory focuses on the ‘bottom line’ of organisations,
concentrating on profitability for the associated shareholders while subsequently
ignoring many social and environmental conflicts between corporations and their
numerous stakeholders (Banerjee, 2007). If stakeholder theory is incorporated to
promote ethical and corporate moral, it must be customarily recognised and accepted
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as an imperative central purpose of the company on normative and not instrumental

terms. The obligation of the company is to understand and involve the dominant views
of the stakeholder and the unique monetary prospects of the shareholders. Banerjee
(2007) believes that companies have responsibilities to provide an account of their
actions, and are not only in business to provide profits for the shareholder’s. This
theory requires primarily reorganising the organisations outlook and focus on not only
the primacy of the shareholders but also the significant social responsibilities of the
firm (Banerjee, 2007).
2.3.2 Political / Legal Theory
Political theory centre’s on the interactions and connections between corporate and
societal responsibilities and the dominance of these responsibilities on the position of
the business in civilisation (Garriga & Mele 2004). One of the first scholarly
contributions to examine the power in which a business has on society was Davis
(1960) who also observed the social impact of this competence and argued that this
‘business power’ is a new component in the CSR debate. A powerful business in society
must use its influence to act both ethically and responsibly to create a social
supremacy for its stakeholders and community. Davis (1960) illustrates the
consequence of organisations exploiting their dominances in society will be retained
responsible for their actions by the social order, which he cleverly describe as ‘iron law
of responsibility’. CSR at this degree should be recognised as a pursuit of the
organization ambition for legitimacy. Organisations have a moral obligation to society
not to exploit the power they have generated, or they face to lose the inherent social
charter. An authoritative business has the influential dominance to change and
encourage the equilibrium of the market (Davis, 1960). Chand (2006) believes an
organisation has the ethical responsibility to implement social practices within the
company, further stating there is an obligatory social contract between the
organisation and civilisation.
2.3.3 Integrative / Philanthropic Theory
This method of social concern is considered to be philanthropic in nature or motivated

by the noble interest of the organisation. Garriga & Mele (2004) consider this
technique if a firm does not have the resources and ability to fully commit to their
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ambitions. Philanthropic theory observes how the organisation incorporates the social
requirements, based on its dependency of external bodies for societal success,
expansion and economic wealth as suggested by Garriga & Mele (2004). The corporate
management of a business must integrate with social demands in a concept that
incorporates the interaction of business and society which results in certain legitimacy
and prestige aligned with present social values (Chand 2006; Garriga & Mele 2004).
Corporate philanthropy promotes a charitable belief of contributing money, time, and
services to society. Many organisations now feel obliged to in some way or form apply
this altruistic theory of corporate donation into their business strategy (Lantos, 2001).
Skanska UK, a global construction firm, have implemented this scheme as a small part
of their CSR activities. An example of their commitment includes the charitable
donation of over £55,000 to charities including MENCAP (Royal Society for Mentally
Handicapped Children & Adults) and other local organisations. This has been achieved
through incentives such as £1 donations for every Safety and Environmental reports
filled out by staff, totalling £25,000 in 2009 (Skanska, 2009). Historically in the USA
they have customarily signified CSR as an organisation ‘philanthropic strategy’ as
opposed to corporate responsibilities (Brady, 2005). This concept is perceived as being
responsible, but it can be argued that it is not paramount if the main objective of the
company is social and environmental improvements. This policy does not consider the
environmental requirements to reduce carbon or the social to improve working
conditions for employees.
2.3.4 Ethical Theory
The concluding classification of the four theories involves the ethical philosophy
towards CSR. Ethical practices are perceived as being a moral liability and implicate
unbiased procedures including respecting the needs of people and society and
preventing any avoidable harm to others. Lantos (2001) credits these moral practices,
if incorporated correctly and sustainably, can achieve more than the legal obligations
and limitations. Ethical theory is perceived as being morally mandatory and progresses
further than complying with a firms financial and legal requirements. This theory is
incorporated as a moral achievement for the organisation and not economic growth
and competitive benefits (Mulleret, 2008). Garriga & Mele (2004) divide this theory
Page | 9
into three sub-categories, universal rights, sustainable development, and the common
good approach, each involving and resulting in social and corporate compliance for the
company. This type of ethical practice would be seen as respectable and honourable in
the business culture and as an investor or a member of society is the most desirable of
the four theories. It can be simplified into a social practice that will promote social
good and avoid causing damage to humanity.
2.4 The Development and Evolution of CSR and Ethical Practices

Over the past century few organisations have directly involved ethical business
practises into their strategies or traditions. Some companies such as General Motors
(GM) have been proactive in the early stages of social development with the
introduction of the auto industries primitive ‘supplier’s diversity plan’ in 1968. This
scheme involves a continuous objective to ensure an unremitting diverse supply chain
for all aspects within the GM Company (GM, 2010). Allouche (2006) educationally
wrote that the CSR trend has significantly grown over the past ten years and has been
subject to substantial critical analysis by authors and academics alike.
2.4.1 Historical Development
CSR is not a modernistic concept however it has been distinctively regenerated over
the past few years as a major topic of interest among many groups in the business
environment. The term CSR is a contemporary expression of a concept that has been
incorporated in society for centuries. According to Asongu (2007) an historical example
of ethical business practices involved the Dutch East India Company in 1622, where the
shareholders were angry about the secrecy of the management and ‘self-enrichment’
of the top managers. The moral of which shows that even in 1622 shareholders were
aware of their rights in society and were arguing about similar situations we entail in
today’s economic society. An early and local example of ethical practice was
performed by John Sisk and Son Contractors in the early 1900’s to accommodate their
employees in close proximity of their developments in Cork they built houses to
accommodate their employees and families, while also providing health care for the
aforementioned (John Sisk and Son, 2009). The term CSR would not have been used
for these practices but rather the term respectable corporate citizenship or corporate
ethics (Canniffe, 2005).
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During the 1960’s and 1970’s the concept of CSR was of considerable interest and
became a dominant factor in business society and as a business model for many
organisations. During this time it was embraced by the scholarly contributions of Heald
(1970); Ackermann & Bauer (1976); & Carroll (1979) amongst others. After emerging in
the 1960s, CSR slowly became obsolete from company strategies, only to re-surface in
recent years (Maignan & Ferrell, 2004). Centuries ago the concept of these ethical
practices was founded on an instrumental approach, whereby the corporations could
meet their social and environmental commitments without consuming financial
exhausting and losing sight of the shareholders requirements, (Jones et al, 2005). CSR
in today’s society has consequently been adapted as an ethical obligation of the
organisation, determined by the stakeholders and shareholders of the company.
2.4.2 Stakeholders Engagement
“Business cannot hope to enjoy concrete benefits from CSR unless they intelligently
communicate about their initiatives to relevant stakeholders”
Maignan & Ferrell (2004, pp. 17).
The term stakeholder constitutes to describe the persons or groups who have an
interest, claim or stake in the organisation (Carroll, 1991). The growing emphasis on
corporate responsibility is affecting the relationship between companies and their
various stakeholders, and is resulting in investors seeking social responsibility and
environmental performance as well as financial sustainability. Management must
consider the attitudes and thoughts of their stakeholders, as outside influences are
now becoming the customary activity and the focus of a business’s core (Paloviita &
Luoma-aho, 2010). As with stakeholder theory, organisations must work together with
their stakeholders, not only to achieve a sound work place but also the obstinate
‘triple bottom line’, effect of social, economic and environmental success (Elkington,
1998).
Upon extensive research Pajunen (2006) concluded organisations need to be proactive

with the involvement of stakeholders if they aim for ‘organisational survival’. Paloviita
& Luoma-aho (2010) further added that stakeholder’s influences predominantly drive
the business to achieve a sustainable performance which exceeds beyond the legal and
ethical compliance expected of them. With these transitions and influences it is
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important to understand the management process involved with successful

stakeholder integration into an organisation. Carillion Plc believes by successfully
understanding their stakeholders opinions and ensuring stakeholders understand
theirs, it results in stronger business ethics for the organisation (Carillion, 2010). To
successfully implement the requirements of the stakeholder an in-depth analysis must
be carried out which will identify and analyse the needs of the concerned
stakeholders. This process of management is illustrated in Figure 1.
Figure 1 - Stakeholder Management (Leadershipchamps, 2008)
To help understand the main persons associated with the term stakeholder, Figure 2
exemplifies the internal and external stakeholders involved in an organisation.
Figure 2 - Company Stakeholders (Skanska, 2010)
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2.4.3 Globalisation
Globalisation is an economically motivated and ambitious corporate movement; Ngowi

et al (2004) asserts the attitude that its instantaneous foundations integrate the spatial
reorganisation of production, international trade, and the integration of financial
markets. Globalisation has been around for decades from colonisation in the
fourteenth century to immigrations in the nineteenth century. The contemporary
concept of globalisation has advanced in recent decades due to rapid developments
and innovations in communications and expansions to the global transport network.
Ngowi et al (2004) couples these advances with international protocols such as the
World Trade Organisation (WTO) which in collation have resulted in an open network
and infiltration into world markets. In today’s markets the former barriers of political
interferences and national differences are ignored and are irrelevant in a society that is
centred on the economic interdependencies of global nations (Ngowi et al, 2004).
O.Brady (2005) argues that approximately all Multi-National Companies (MNC’s)

throughout the world operate in a global scale, performing and competing in different
regions. Conversely this movement involves the knowledge of vastly distinctive,
atypical and increasingly stringent legislation and regulations in all sectors. Global
organisation must always expand and study the changing legal requirements and
understand the implications that may result if they are not correctly adhered to.
Contending in the global economy can be the financial downfall of a company. As
proposed by O.Brady (2005), companies now find it easier to work to a superior
standard of workmanship and ethics, rather than incorporating the different levels of
legislation in the required region. Potentially this results in less expenditure and
reducing risk of potential liability. With the introduction of international legislation in
developed countries particularly on environmental aspects, organisations are
beginning to find it easier to participate and compete in the indigenous markets. A
MNC is a world acknowledged organisation and should be seen to compile and exceed
the ethical standards that are required of them (O.Brady, 2005).
2.4.4 Cause Related Marketing
Cause Related Marketing (CRM) reflects on organisations charitable contributions to

worthy causes and can range from sponsorship of a local team, donations, advertising,
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sales promotion, and public relations. Defined by Kotler, (2003), cited in Kim et al
(2005) the transition of marketing has developed over the past few years through a
variety of six phases, beginning with the production concept, the product concept, the
selling concept, the marketing concept, the customer concept, and finally the modern
societal marketing concept. The final concept is strongly linked with the process of
philanthropic CSR where companies are contributing to local causes and communities.
As a construction industry example, in 2009 construction contractors the Royal BAM
Group (2009) developed a strategy called the BAM 140 fund where they donated
£140,000 to 140 charitable organisations which were selected by BAM employees.
The CRM concept is mutually beneficial for both organisations. The charitable
organisation benefits financially and increases its public profile, while the company
associated with the CRM remunerates by involving itself ethically with a charity, while
also increasing profile and brand awareness. On a global scale it can be utilised to
stipulate a competitive advantage across unacquainted competition (Kim et al 2005).
In many cases CRM is integrated into company strategies as tool to promote the
organisations dependability, reliability and as stated by Business in the Community
(BITC) (2010) customers consider the company more innovative and 30% of
consumer’s switched brands as a result of a CRM partnership. With all social and
environmental issues consumers are becoming increasingly aware of what is ethically
required from a business, together with the escalation of market prices, the consumer
demand has intensified momentously.
2.5 CSR in the Construction Industry
In the construction industry CSR is becoming a global responsibility of all firms

on an ethical and corporate level driven by the history of a bad environmental and
social reputation. The industry is one of the leading producers of waste material and
exerts huge quantities of CO₂ each year. In the UK it is estimated that 70 million tonnes
of construction demolition material and soil end up as waste and 13 million tonnes of
material delivered to sites are unused and dumped (Halliday, 2002). CO₂ production is
an active problem in today’s society and with the industry producing 2.5% of the UK’s
emissions through concrete production alone (Halliday, 2002). These statistics are
staggering, however Figure 3 demonstrates what is currently being recycled and it is
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clear there have been vast improvements in this area. This information demonstrates
the ability organisations comprehend but it is nevertheless inevitable that the
construction sectors must step up and set an example to prove their moral ambitions.
Figure 3 - Reduction of waste (tonnes) in the construction Industry (Pulse, 2010)
With the influences of external schemes and incentives such as Global Reporting
Initiatives, Sustainability Indexes, Social Responsible Investment and Management
systems the industry has become a forceful partner of CSR in the economy.
Industrially, CSR concepts are absorbed in concerns relating to how the construction
business might affect people and environment in which it is operating. Governments
have also strongly initiated the importance of this development as stated by Irish
Minister for the Environment John Gormley (2010), illustrating that ‘Green Firms’ will
be given priority in competing and selection for all government contracts in the future.
‘Green Firms’ relates to the CSR activities in respect to environmental benign, the
organisation community collaboration and utilisation of sustainable products.
Focusing on the industrial leaders in the area of environment and sustainability,

specifically Skanska, the Royal BAM Group and Carillion PLC, this section of the
literature review aspires to outline the factors that have influenced the transition of
these companies towards a sustainable perspective. Focusing on the dynamics that
have subjectively prompted companies to restructure their strategies, incorporate
more socially sustainable practices, to improve industrial power, enhance stakeholder
values, and demonstrate a competitive edge. The literature will conclude with the
evolving process of the company and the techniques required when implementing the
new environmental ethics of the company, as described by O.Brady (2005) this
transition is a ‘marathon not a sprint’.
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2.6 Influential Factors and Key Performance Indicators
The construction sector has many reasons and motives to comprehend the
increasing pressure to engage with social and sustainable systems of work. The
European Commission (2006) considers CSR as a characteristic of the European Social
model which if incorporated correctly can protect the solidarity, cohesion, and equal
opportunities, hostile to the current framework of intensifying global competition. The
introduction of investment indexes and schemes (Dow Jones Sustainability Index,
FTSE4GOOD, and Fortune 100), government initiatives (Green Public Procurement) and
international organisations (WBCSD) have added to the induced pressure for change. A
competent company will understand the beneficial implications of these performance
indicators and over time will strategize the company structure to include these
advantageous and globally recognised schemes.
2.6.1 The Brundtland Report
The influential components of CSR were fully comprehended in the aftermath of The
Brundtland Report, which has been very influential towards sustainable development.
This report has inspired the modern global understanding of the term CSR and
analytically accentuated the relationship between poverty, environmental
degradation, and economic development. The WCED (World Commission on
Environment and Development) cited in Strong & Hemphill (2006, pp. 3) clarify the
findings of the report stating that it has introduced a number of actions and strategies
that are considered as the main objectives in a successful sustainable development
policy.
 Reviving economic growth;

 Changing the quality of growth;
 Meeting essential need for jobs, food, energy, water, and sanitation;
 Ensuring a sustainable level of population;
 Re-orientating technology and managing risk;
 Merging environment and economics in the decision making process.
The Brundtland report cited an influential definition of sustainable development. This
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definition supports that organisations must now respect and contemplate the
unfamiliar stakeholders in society such as the environment and future generations
(Strong & Hemphil, 2006). The WCED (1987) defined this process by the following
reflective demeanour:
“Development that meets the needs of the present without compromising the ability of
the future generations to meet their own needs”
The Brundtland Report has been very influential towards sustainability as it introduced
many actions, development strategies, organisations and frameworks soon after it
was published, some of which include:
 UN Earth Summits (Rio de Janeiro, 1992 and Johannesburg, 2002)

 The UN Framework Convention on Climate Change (UNFCCC)
 Worldwide "Agenda 21" programs
 World Business Council for Sustainable Development in 1992 (WBCSD)
Specifically to the construction industry the following have been developed and
incorporated for environmental and sustainability success:
 World Green Building Council in 1999 (WGBC)

 Creation of member state sustainable development strategies such as the UK´s
Sustainable Development Strategy
 UK Green Building Council
 ICE Environment and Sustainability Committee
 Constructing Excellence Programme
Additionally arising from the influential Brundtland Report was the highly accredited
initiative, the United Nations Global Compact which was officially launched in 2000.
Leipziger (2003) cited in Isaksson & Steimle (2009) believes developing this initiative
within an organisation shows the company encourages and respects fundamental
international standards, such as the universal declaration of human rights, and the Rio
declaration on environment and development. This network also encourages
corporations to adapt social and sustainable policies in a global format to challenge
sustainable development and advance the concept of corporate responsibilities in the
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globalising economy. The Global Compact is the largest corporate initiative in today’s
society; it advocates companies in the appreciation and understanding of CSR.
Additionally it accommodates a publicising reputational podium for the companies
initiating and progressing in combating social and environmental issues (Leipziger,
2003) cited in (Isaksson and Steimle, 2009).
2.6.2 Global Reporting Initiative
The concept of the Global Reporting Initiative (GRI) began in 1997 with the perception
of a framework for sustainability, which soon transformed into the Global Reporting
Initiative. Almost immediately after it was initiated the United Nations Environment
Programme (UNEP) acknowledged the scheme and became a partnering
representative, resulting in global recognition. The initiative bases itself on a
comprehensive number of framework guidelines (identified as G3 guidelines) for
accurately implementing and effectively producing a company’s Sustainability Report
for the given year. To date the scheme receives over 1400 reports a year from all over
the world (GRI, 2010). The framework proactively sets out the ideologies, guidelines
and indicators in which the business can use to quantify and report on their
progressing economic, environmental, and social performance all of which are
demonstrated in Figure 4.
Figure 4 - GRI Integers (Arksustainability, 2009)
Numerous companies in the industry including the Royal BAM Group, Carillion Plc, and
Skanska have strongly implemented this initiative into their sustainability and
environmental strategies to achieve global credibility, environmental success and
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social performance. Soon after it was launched Skanska produced its first
Environmental Report in 1997 and credit the GRI as one of the main influences to their
sustainability strategies (Skanska, 2010). GRI (2010) credits companies producing
sustainability reports grounded on the GRI framework can be used as a beneficial
promotion to the corporation and is described as a benchmark for organizational
performance with respect to laws, norms, codes, performance standards and voluntary
initiatives; demonstrate organizational commitment to sustainable development; and
compare organizational performance over time.
The Royal BAM Group has sturdily implemented this strategy with dominant
contribution and consultations from their internal and external stakeholders. BAM
focuses its sustainability reports to embrace significant economic, environmental and
social accomplishments and endeavours throughout the specific year, which
encompasses both negative and positive issues on the part of the company (Royal
BAM Group, 2009). In a publication by Chartered Institute of Builders (CIOB), the
effectiveness of CSR requires transparent communications regarding the
environmental and societal responsibilities of organisations; however according to the
CIOB (2010) awareness of these responsible practices is currently despondent in the
industry. The implementation of GRI in the corporate world consents and promotes a
standardised methodology to reporting on the stimulate necessity for sustainability
information. This will benefit the organisation involved through accredited recognition
of their sustainability successes (Schaltegger et al, 2006).
2.6.3 Social Responsible Investing & Social Anchored Competences
Social Responsible Investment (SRI) is now a dominant factor in the selection of

competitive companies for capitalisation. Price Waterhouse Coopers (PwC), (2009)
describes SRI as an investment strategy which pursues to maximize both financial
return and social good. According to Fortune Magazine one in every ten dollars of
assets under management amounting to $2.3 trillion is being invested in companies
that rate highly on some measure of CSR or social responsibility (Demos, 2006). The
growth of SRI has increased dramatically with Sparkes & Cowton (2004) suggesting it
has become an ‘investment philosophy’ among an increasing society of investment
institutions. The 21st century combined global disaster of Enron an American energy
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company and WorldCom a telecommunications company has resulted in a severe

decline of consumer and investor confidence. The disaster caused the US economy
approximately $42 billion of their GDP (Gross Domestic Product) and had severe knock
on effects to the shareholder market, resulting in a collapse of stocks and investor
confidence (Arnold & de Lange, 2004). The absenteeism of social responsibilities in this
case have been predominantly exposed to the point where the company have cause
significant damage to the economy and community (Arnold and de Lange, 2004). This
catastrophe alone justifies the concept and importance of SRI in today’s society.
The term SAC’s incorporates the organisations ability to involve the industrialised
management programmes such as the Environmental Management System (EMS)
ISO14001, carbon reduction scheme CEMARS (Certified Emissions Measurement and
Reduction Scheme) and investment indexes such as the prevalent FTSE4GOOD index.
Stakeholders and shareholders correspondingly agree the introduction and
involvement in these systems will prove financially beneficially, along with CRM,
companies involving social and environmental policies will increase brand awareness
and competitiveness. The growing awareness among shareholders has increased
pressure on the organisations to involve these systems (Arnold & de Lange, 2004).
2.6.4 Sustainability Indexes
The introduction of such sustainability indexes as KLD Domino 400 Social Index,
ETHIBEL, FTSE4GOOD, and the Dow Jones Sustainability Index have opened a new
concept of SRI in the corporate industry. Investors use these indexes as a base for
responsible investing knowing the corporation involved has respectable
environmental, social and ethical standards. Fisher (2009) states that these
sustainability Indexes are used by ‘profit seeking’ investors to promote sustainability,
and although each of the indexes have specific requirements and criteria, they all aim
to seek sustainable compliance. Investor and stakeholder demand surpasses the
economic parameters of the company to seek the comfort of investing in an
organisation that embraces opportunities and understands the risk evolving from
environmental and social developments (Holliday et al, 2002). The practicing company
is seen as a reliable industry leader by shareholders, stakeholders and government
bodies in a fiercely conscious and competitive market. As a successful implementation
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example of these sustainability indexes, in 2009 BAM were initiated as the leader in
the Dutch Investors Association (VEB) (Royal BAM Group, 2009).
2.6.5 ISO 14001- Environmental Management
The management system ISO 14001 is the prevalent Environmental Management

System (EMS) used vastly in the Industry today. After launching in 1996 this EMS has
become the largest environmental certification in the world with over 20,000
members (Fuller, 2008). Active involvement results in huge beneficial outcomes for the
organisation, as described by (Fuller, 2008; Woodside et al, 1998) with the growing
emphasis on incorporating environmental credentials by consumers, it provides
competitive advantage over unapprised rival companies as well as an excellent means
of demonstrating corporate responsibilities and reducing risk to the consumer. Within
the community and governmental agencies this system provides an ethical and
positive image for the organisation. (Woodside et al, 1998) describes this auditing
process as a constantly evolving systematic progression of achieving the corporation’s
environmental goals and encouraging the development of environmental
accomplishments. Skanska (2010) propose this programme as an essential industrial
management system which has been proactively incorporated by Skanska UK since
2000. Skanska have been leaders in dynamically initiating this system and in 2009
through active utilisation of the guidelines, achieved zero environmental incidents.
Arising from this exceptional accomplishment they developed a similar strategy for
2010 focussing on competency, energy and climate, materials and flora, fauna and
eco-systems as specified in the Skanska CSR Report (2009).
2.6.6 ISO 26000 - Social Responsibility
The International Organisation for Standardization (ISO) 26000 is a standard giving

guidance in the area of Social Responsibility. Development of the standard began in
2004 for use by businesses of all sizes and types in both public and private sectors in
developed and developing countries (ISO, 2010). Influenced by the growing conception
that global organisations including their stakeholders and shareholders are becoming
increasingly aware of the need for and benefits of socially responsible behaviour. It
provides guidance for the organisations to effectively initiate, develop, manage and
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control socially responsible operations in a manner that society increasingly demands

(ISO, 2010). The standardisation intends to succour organisations interjecting
ambitions to sustainable development. The principle objective is for the organisation
to surpass legal compliance in all aspects, fundamentally acknowledging that
conformity with law is an underlying customary duty of any organisation and an
indispensable part of their corporate governance. ISO 26000 will address a globally
appropriate understanding of the social responsibility concept and the objectives of
the organizations to operate in a socially responsible manner (ISO, 2010).
The sustainable benefits of this imperative implementation and management system

are similar to the values of CSR, embracing, competitive advantage over rivals,
reputation among business industries, ability to attract and retain workers or
members, customers, clients or users, maintenance of employees' morale,
commitment and productivity, view of investors, owners, donors, sponsors and the
financial community, and an improving relationship with companies, governments, the
media, suppliers, customers and the community in which it operates (ISO, 2010).
ISO 26000 contains voluntary guidance, not requirements, and therefore is not for use
as a certification standard like ISO 9001:2008 and ISO 14001:2004. It incorporates 7
core subjects to achieve its standardization as illustrated in Figure 5. Each subject from
organizational governance to community involvement and development must be
embraced within the organisation to achieve full compliance and official recognition.
Figure 5 - 7 Core Subjects to Social Responsibility (ISO, 2010)
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As described by Kehal and Singh (2006) the encouraging ISO 26000 provides and
unprecedented opportunity for global discussion and widespread involvement to
implement the goals of sustainable development at all strategic levels. Kehal & Singh
(2006) also believe this alone standard could be a crucial actor in the process of
harmonization and ethical development in the business environment and is a standard
that is mutually compatible with the established ISO 9000 for quality and ISO 14000 for
the environment.
2.6.7 CEMARS
Being one of the highest consumers of CO₂ in the world, the construction industry is
vastly becoming more conscious to the reality of this growing concern. Organisations
are increasingly concentrating on their energy expenditure and the possible methods
of reducing their CO₂ emissions. The Royal BAM Group (2009) considers the growing
concern is a result of three main intelligences:
1. Future and more stringent legislation and regulations

2. Societal Requirements
3. Possibility of good economic performance and enhancing CSR
To aid the global business the ‘carboNZero’ organisation established a scheme called
CEMARS (Certified Emissions Measurement and Reduction Scheme) which was
established in 2001 and is vastly becoming the leader in carbon reduction
management in the world. This scheme which is owned by the New Zealand
Government provides the auditing tools and management schemes to help reduce the
greenhouse gas emissions and carbon footprint of individual and leading global
corporations with the highest level of credibility and integrity (carboNZero, 2010). The
key benefits to this scheme as identified by (carboNZero, 2010) include:
 Understanding your potential risk exposure

 Ensuring peace of mind in relation to new climate change legislation
 Addressing consumers, shareholders and investors’ concerns
 Understanding inherent carbon liabilities
 Avoiding the cost of carbon and rising energy prices
 Reducing operating costs
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 Reducing reputational risk and cost
The fundamentals and certification of the scheme are split into four protocols as
demonstrated in Figure 6.
Measure
Accurately measure your carbon footprint and understand your emission sources. We provide
tools and assistance to help calculate emissions.
Manage
Make a commitment to manage and reduce your emissions by preparing a reduction plan. We
provide resources to help you identify emissions reduction opportunities.
Verify
Clients are required to have an external verification prior to certification.
Market
We help you to communicate your CEMARS status.
Figure 6 - How to get CEMARS certification. (CarboNZero, 2010)
The recent recognition of CEMARS as a Carbon Trust Equivalent scheme by the UK

Environment Agency has given fantastic opportunities to UK based companies under
the Carbon Reduction Commitment (CRC) Energy Efficiency Scheme (carboNZero,
2010). The Royal BAM Group have been proactive in the area of CO₂ reduction and
have developed an internal initiative to combat the growing concern regarding CO₂
consumption. In conjunction with KPMG, BAM established the PCC tool (Project
Carbon Calculator) which is used along with the supply chain partners to determine the
possible methods of moderating, reducing and calculating CO₂ emissions during the
design, tendering, procurement, construction and maintenance phases of all projects
(Royal BAM Group, 2009). William Van Niekerk of BAM expresses that the
implementation of the PCC tool was not only influenced by CSR ambitions but also by
the ‘realisation that an effective response to the climate crises will be instrumental in
determining the company’s future (Royal BAM Group, 2009). Figure 7 illustrates the
significant and remarkable CO₂ reduction of 35% which BAM have achieved over the
past few years.
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150
Kg of 100
CO₂ per
m² 50
0
2005 2006 2007 2008 2009
Year
Figure 7 - Kg of CO₂ per m² on Managed Sites (adapted from BAM Carbon Footprint
Summary, (2009)
2.6.8 World Business Council for Sustainable Development (WBCSD)
As one of the first sustainability councils for sustainability development the WBCSD has
predominately influenced the business environment to a sustainable and societal
perspective. The WBCSD has built on its vast network of members, partners, regional
networks and stakeholders to become a global, diverse organisation, influenced by its
extensive network and assisted by the diverse groups to articulate a collective and
communal apparition for which businesses contribute to sustainable development. The
WBCSD (2010) and Tolhurst et al (2010) believe focussing strategic exertions on four
important topics including: the role of a business in society, energy and climate,
ecosystems, and company development, will empower the societal knowledge and
collective growth of sustainable development in an organisation.
In order to fulfil this new mandate, the WBCSD work program includes projects and
initiatives mixing both on-the-ground action and advocacy, business experiences in
implementation, activities challenging sustainability thinking within companies, and
the strengthening of its regional network (WBCSD, 2010). Membership to this council
opens the organisation to vast and experienced knowledge and also gives the business
the opportunity to have a say on sustainable issues.
2.6.9 Considerate Constructors Scheme (CCS)
The construction industry is essential in developing communities, regenerating towns

and building vital infrastructure; however the initial works can have implications in the
surrounding communities and sensitive locations. Realising the disruption caused,
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companies should exhibit and extemporise an image of competency, efficiency, local

environmental awareness and neighbourliness in the surrounding community
according to the CCS (2010) and the Construction Industry Board (CIB) (1996).
Established in 1997 the CCS was implemented to ‘improve the image of construction’
throughout United Kingdom. It is a voluntary scheme founded by the CIB, which
inspects the associated company’s codes of considerate practice on the registered
sites (CCS, 2010). All competent contractors from local to international have
integrated this scheme on the majority of their sites and it is seen as an important
aspect of each development. CIB (1996) stated that the principle of this scheme is
proving that the industry can be self-regulating and not forced on a policy basis by
local authorities. The main beneficial factors of this scheme for the considerate
contractor as stated by CCS (2010) include:
 Membership of a nationally recognised and government endorsed scheme for

the company and the site.
 A competitive edge in securing future work.
 An external assessing tool for the organisation, which can be used a
competitive benchmark of the companies own performance potentially leading
to development and improvement.
 Environmental awards for excellence and evidence of high achievement.
Within this scheme Carillion Plc have been proactively seeking to improve year on year
and in 2009 they achieved an astonishing seven Silver Awards and 11 Bronze Awards
from the Considerate Constructors scheme (Carillion, 2010). Initiating from this report
the Royal BAM Group in conjunction Ballast Nedam, Strukton, and Volker Wessels
developed the Netherlands version of the CCS called Conscious Constructors (Bewuste
Bouwers in Dutch) (Royal BAM Group, 2009).
2.6.10 Green Public Procurement (GPP)
The power of Europe’s public authority in the construction industry can unpersuasively
be the demise or amplification of the industries already intensely competitive market.
With the development power of around 1.8 Trillion their impact on the European
environment is colossal (SDI & UNEP, 2007). In the book Climate Action by the
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consortium of Sustainable Development International (SDI) and United Nations

Environment Programme (UNEP) (2007) stated that authorities have the power to
trigger the growth of sustainability and greener products which consequently reduces
their own environmental impacts and risks and has been successively termed Green
Public Procurement (GPP). SDI & UNEP (2007) further outlined that the strategic
importance of GPP for the environment and competitiveness in EU member states is
receiving growing attention as governments seek more sustainable and
environmentally friendly companies when contracting work.
For public or private clients seeking to involve GPP in their specific project, the EU
outlined some basic essential criteria when selecting an appropriate contractor, the
main point being considering environmental performances of the company and not
only the most economical advantageous tender (Commission of the European
Communities, (CEC), 2004). Clients are advised to incorporate environmental clauses in
the tender documents, and it is felt that contractors that already incorporate these
strategies and sustainable criteria through CSR activities will have advantage over
competitors through experience and the use of case studies and documented results
(CEC, 2004).
2.7 Remunerations and Benefits of CSR
There have been many surveys conducted over the past few years concerning
the concept and values of the incorporating CSR into business society (Economist
Intelligence Unit, 2005; UNDP, British Council & PwC, 2002) resulting in the conclusion
that CSR has emerged as a significant theme in the global business community and is
gradually becoming a mainstream activity. Businesses are aware of the growing
perception of CSR and the economical, ethical and environmental remunerations it
conceals. (KPMG, 2005) a leading advisory and services firm, conducted a global survey
interpreting CSR in the business industry. The detailed and comprehensive analysis
presented inclusive details of the global perception and virtuousness of CSR which
comprised of economic, environmental and ethical accomplishments, reduction of risk,
company reputation and awareness, capital access or augmented shareholder value,
internal and external economic savings, and vitally employee enthusiasm, eagerness
and edification on arising social and environmental issues. As presented by a
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renowned CSR literates (Hopkins, 2007; & Mullerat, 2009) there are a number of
benefits the CSR concept entails for the company and communities which will
inevitably improve the financial ‘bottom line’ and help to resolve the severe
environmental and social problems exerted in construction environment.
2.7.1 Image Formation and Corporate Reputation
In an article by Constructing Excellence (2004) the belief is that developing and

working among shareholders, stakeholders and other bodies in a proactively social and
environmental manner vastly improves the reputation of the organisation. By
incorporating the influential factors and schemes such as GRI and ISO 14001
aforementioned, the reputation of the organisation becomes an international and
ethically recognised perception (Van Tulder & Van der Zwart, 2006; & Hopkins, 2007).
Mullerat & Brennan (2005) believe the main benefits of CSR are in terms of marketing,
whereby improving ‘image’ and ‘reputation’ and the effect this has on consumer
attitudes and employee commitment. Successful implementation of CSR builds on key
intangibles such as thrust, dependability, regularity, relationships and credibility, while
also to providing ‘competitive’ advantage over companies tolerating subordinate
reputations (Hopkins, 2007).
This is facilitated by the Sunday Times who produces a ‘Best Green Company’ each
year including 60 of the UK’s top green performers. In 2009 Skanska were announced
as the 4th greenest company in the UK. This result was based on their ambitious
abilities and commitment to green procurement throughout all sectors and has proved
the Skanska environmental brand in the industry and business atmosphere (Skanska,
2010).
2.7.2 Future Prospects
The importance of attaining work in the current economic climate is imperative if a

company desires to continue or even expand. Environmental procurement methods
are now seen as a necessity to many companies as a means of obtaining work,
shareholder values and increasing reputation, as these CSR strategies and initiatives
can decide the settlement of tendering contracts. As an industrial example the Skanska
Sustainability Report (2009) described the introduction of a new sustainable
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procurement initiative which they developed to ensure value for money when sourcing
services, accounting for environmental, social and ethical aspects over the whole
product or service lifecycle. These eco-friendly approaches will certainly be more
approachable and favourable when competing for government or environmentally
driven projects. This environmental procurement was recently exemplified by BITC
(2010) whereby they discussed the importance of CSR and how it can affect future
business. Further describing the ‘preferred bidder’ status is the London Olympics 2012,
BITC (2010) stated companies that tendered for procurement had to produce evidence
of their responsible and sustainable business practices to even be considered at the
procurement stage. Achieving good relationships with governments and local
authorities not only makes business easier but also promotes and generates positive
press coverage (Hopkins, 2007; & Mullerat 2009).
2.7.3 Employee Enthusiasm and Improved Workforce
Stated by Mullerat & Brennan (2005), the underlying assumption is that employees
and consumers understand and appreciate the consequences that CSR has on the
environment, the community and the society. Mullerat & Brennan (2005) confidently
trust for this reason employees are willing to meet the costs of these practices by
working harder and in an environment that rightfully respects its ethical obligations.
CSR is an important factor for employee motivation and maintaining important
skillsets. As an additional factor to the Royal BAM Group’s CSR approach, they have
established the ‘BAM Professional School’ to consistently educate and utilise their
employee’s knowledge and skills creating a learning culture for their staff (Royal BAM
Group, 2009).
2.7.4 Profitability and Productivity
One of the major advantages of globally incorporating CSR is the introduction and
utilisation of GRI and SRI as discussed previously. These initiatives can dramatically
increase the profitability of the organisation through the acknowledgement and image
the company portrays. Instigating environmental schemes such as CEMARS, ISO 14001
and GRI potentially increases stocks and shares through the SRI programme (Kotler &
Lee, 2005). Kotler & Lee (2005) further described the reduction of operating costs and
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increased revenue as one of the key results of CSR instigation into company strategies
as an esteemed business model. Implementing measures to combat waste and CO₂
such as BAM’s ‘PCC’ tool provides an effective measurement apparatus for which the
company can enthusiastically reduce surplus waste and detrimental emissions. The
signing of the Kyoto protocol has also introduced a number of significant changes to
the building industry, predominantly focused on the introduction of CO₂ charges for
the companies (Morris, 2004). The UN (United Nations) have also now prompted that
they have intensions to investigate company’s internal environmental conditions and
possibly introduce sanctions on Multi-National Companies (MNC’s) for not initiating
producing or providing corporate responsibilities (Allouche, 2006).
2.8 Transition and Company Change
The benefits of CSR have been extensively covered by numerous authors

(Keinert, 2006; Mullerat 2009; & Hopkins, 2007) but in order to be successful the
organisation must undertake the transition period involving detailed and studied
strategies for future success and incorporate and apprehend the KPI’s (Key
Performance Indicators) involved in the sustainability evolution. Carillion Plc has been
one of the most successful construction companies in the area of CSR. On the back of a
major environmental incident in 1992 under the company Tarmac, they have
inventively designed an informative diagram Figure 8 below, to illustrate the processes
they understand to be the principle KPI’s to successful implementation and guidance
under corporate responsibilities. The ‘sun diagram’ has helped with affective delivery
of their business objectives, across the four priority areas of the UK Government’s
sustainable development strategy (Carillion, 2010). The diagram provides the links
between policies, government’s objective and the key sustainability impacts of a
specific project or contract (Shah, 2007). It illuminates the fundamental objectives,
targets, and KPI’s which must be extensively assessed to form the Sustainability
Excellence Model (Carillion, 2010). Carillion have also developed a ‘Sustainability
Strategy Model’, which can be appreciated in the appendix F attached. It has been
developed to assist in the understanding of how the KPI’s could be incorporated to
improve performance in sustainability while delivering business benefits and
objectives (Shah, 2007).
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Figure 8 - Carillion ‘sun diagram’ (Carillion 2010).
Skanska developed its CSR strategies based on the bad business ethics and reputation
of the construction industry along with some environmental incidents that have
occurred, such as the Hallandsasen scandal. Table 1 below elucidates the development
process, influential factors and CSR occurrences that have motivated Skanska to
incorporate and spearhead the CSR campaign in the industry from the early stages.
- - The Toxic Scandal of Hallandsasen

- - Sustainability issues are being discussed, but with focus on the environment
1997- - Top management are making verbal commitments about ethical issues of the
company
1999- - Environmental unit is established
2000- - The notion of sustainability is expanded

- - Benchmarking the CSR work at Shell
- - Environmental unit is renamed sustainability unit
- - Code of conduct is presented
2001 - The asphalt cartel exposed
2002- - The first sustainability report is established
2003- - Ethical education of 2,500 employees
Table 1 - The Development and influential factors of CSR at Skanska (adapted from von
Schantz, 2005) cited in (von Schantz & Herbert, 2006)
In the book ‘Cannibals with Forks: The Triple Bottom Line of 21st Century Business’,
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John Elkington summarised that the companies of the 21st century are now in demand
to not only produce financial statements but additionally social and environmental
productivity and performance (Elkington, 1998). The demand for companies to
develop these strategies was described by Allouche (2006) as a primary interest from
external organisations and persons, but in the current, modern environment, the
concept has been industrialised by the internal company itself. Allouche (2006) further
clarified that prevailing organisations absorb this concept to reassure the growing
criticisers and to demonstrate the company’s adherence to their ethical environmental
obligations.
As explained by Yang, et al (2005) the involvement of sustainability in the UK remains a

government and policy powered legislation, rather than a response to market appeal.
The governments in the UK are treating the situation as a volunteering appetite for the
companies who see the legislation as a primary driver towards succeeding in
sustainability as such legislation is not destined. Embracing CSR is the right thing to do
in today’s business sphere and the principle has become a key to the organisation’s
competitiveness and survival. With specific reference to construction business,
understanding and addressing CSR carries potential significant implications for
business success. In fact, it plays a very broad umbrella concept about role and impact
of business in society and most relevant when it connects with an organisation’s core
business (Hopkins, 2007).
2.9 Limitations
The question asked prior to any investment, strategy or company movement is

will it accomplish the ‘Triple Bottom Line’ (TBL) concept, meeting social, environmental
and economic consistencies throughout the transition. Companies must aim to achieve
this concept and not only profitability (Idowu & Filho, 2009). Driving a company
towards sustainability requires the systemically dramatic changes to the performance
in contradiction of the TBL (Elkington, 1998). A lot can be said about CSR and the
benefits it has on society and the environment, but all organisations have a bottom
line which must also be strategised and incorporated into this concept. BAM’s chief
executive Chairman J.A.P van Oosten illustrated the importance of this by expression
that BAM aims to offer the most economically beneficial solutions for its stakeholders
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while minimising the negative impact on the environment (Royal BAM Group, 2009).
O.Brady (2005) believes that the biggest problem with the development of CSR in the
21st century is the transition of this concept from local needs to a global scale, further
positioning that CSR requires a ‘radical rethink’ of the fundamental philosophy to
achieve global recognition. BITC (2010) produced some very interesting information
about the realities of CSR in business success, which Hopkins (2007) also conceives as
limitations. The precincts embrace the following:
 The short term success of CSR is one of moral achievement for the company,
whereas the ‘bottom line’ or economic success will not be achieved in quick
succession as CSR is correlated with long term attainment and sustainable
business growth.
 In order for CSR to be successful and effective in the long term, the
organisation must understand the process, and actively manage the constant
changing process to proactively add value to all its stakeholder relationships,
and not just the financial attributes of the scheme.
 In order to measure the impact that CSR devises on a business structure, BITC
believe the organisation must consider and justify the impact the strategy
endures on all its stakeholders to increase the company's positive impact and
reduce the negative impact.
Agreeing with the first above point Friedman (1970) conceive that the benefits of CSR
are ‘separated in time’ but the financial aspect of implementation is current whereas
the future economic benefits will be achieved years after the investment.
Vividly presented in Figure 9 is the transition from implementation to sustainable

accomplishment, and the anticipation/development period which inevitably
materialises through diligence and experience.
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Figure 9 - CSR Development and Transition (Bakerhughes, 2010)
2.10 Chapter Summary
This chapter summarises the basic concepts of CSR through concentrated

erudite research, focusing on history, perceptions, and systemic importance on an
international scale. CSR centres on the relationship between business and the
surrounding society; it concentrates on the businesses behaviour regarding their key
stakeholders and can influence shareholders interpretations and financial patronage to
the company. Firms are beginning to realise the potential of CSR and its relationship to
globalization and the international economy. Despite the various views and disparities
in the literature, it can be said the importance of high ethical values in society is an
inevitable cause for recognition in a ‘stakeholder’ culture.
When globalising a brand or company the initial marketing should incorporate social
and environmental responsibilities and contend with the predicaments communities
encounter. Transnational corporations now play a fundamental part in global politics,
economics and culture than ever before (Karliner, 1997). It is a vital aspect for all
businesses initially to develop a social responsible image and brand, and the profits,
reputation, corporate supremacy will all shadow this opening movement of corporate
branding. The author asserts the certain moral and ethical responsibility for
organisations to give back to society and the communities, concluding that if your
organisation supports the community, the community will support the company back.
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CSR development creates a higher standard of living for employees while preserving
the profitability of the organization for shareholders in the organization (Hopkins,
2004). The importance of incorporating and constantly assessing a company’s social
and environmental polices is a fundamental aspect of growth and success, and should
not be underestimated if a company aspires to expand in the community, economically
and strategically. As informatively outlined in a report published by The Commission of
European Communities (2002, pp. 5) on the subject of CSR, quoting:
“There is today a growing perception among enterprises that sustainable business

success and shareholder value cannot be achieved solely through maximising short-
term profits, but instead through market-oriented yet responsible behaviour.
Companies are aware that they can contribute to sustainable development by
managing their operations in such a way as to enhance economic growth and increase
competitiveness whilst ensuring environmental protection and promoting social
responsibility, including consumer interests”.
This further explains that CSR is an integral component of Europe’s 2020 strategy for
smart, sustainable and inclusive growth that can help influence company
competitiveness. Europe’s needs for global expansion and investors see these ethical
values as a positive business investment and a venture that virtually ensures long term
investment value. With the growing emphasis, and the increasing pressures being
enforced on companies, management now recognise that they can no longer avoid or
ignore the ethical and environmental expectations of society. In a recent publication,
the importance of this strategy was outlined in the Irish economy by Chambers CEO
Ian Talbot, where he praised the current sustained commitment by all businesses to
invest in their stakeholder communities through CSR programmes and assurances.
Talbot further believes:
“This continued commitment and the positive values underpinned by CSR best practice
can play a key role in restoring our international reputation in the future”
(Business and Leadership, 2010).
Although there is no legislation to date concerning the full perimeter of CSR, the
government recognises the significant contribution that CSR makes to society, dealing
with issues including the environment, disability, raising standards of education and
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tackling poverty in developing nations (Business and Leadership, 2010). A socially

responsible company will be recognised for its contributions to society through its
reporting, programs and initiatives, promoting its reputation and potentially amplifying
the organisations probabilities of persuasively attracting new clients and opening
doors to additional markets and sectors.
IFSD (Institute for Sustainable Development) cited in (Mullerat, 2009) categorised the
benefits of CSR into three classifications once actively practised, these classifications
are summarised in Table 2.
Company Benefits Community and Public Environmental Benefits

Benefits
- -Improved financial - -Charitable contributions - -Recyclability of more
performance - -Volunteering materials
- -Lower operating costs - -Community involvement in- -Better use of Renewable
- -Enhanced reputation and education, employment and sources
brand image other programs - -Environmental
- -Productivity enhancement - -Safe and quality management tools and
- -Enthusiastic employees developments standards
- -Access to capital - -Better product durability
- -Diversity of workforce and functionality
- -Reduction of Liability
Table 2 - Summarised Benefits of CSR, (IFSD, cited in Mullerat, 2009)
In this chapter the author aspires to express the fundamental objectives of this
transition and the patience and knowledge required to successfully implement CSR
strategies.
The KPI’s illustrated only indicate a peripheral number of schemes and activities that
can influence and facilitate an organisations transition to corporate governance. There
is an abundance of other actions and societies in the global environment including:
 UKCG (UK Contractors Group), UKGBC (UK Green Building Council), CIOB and
NJUG (National Joint Utilities Group) Sustainability Groups
 UN Environment Programme, "Sustainable Building and Construction Initiative“
 EU Corporate Leaders Group on Climate Change (EUCLG)
 Various WRAP groups
 London Leaders
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 CEEQUAL (Civil Engineering Environmental Quality Assessment and Award

Scheme) working groups
 ICE (Institute of Civil Engineers) Environment & Sustainability Panel
 CIRIA (Construction Industry Research and Information Association) Biodiversity
Group
These societies and management organisations not only prove beneficial directly for
the company but also indirectly, as described by Bragança (2007) modern clients do
not only seek the lowest tenders when selecting contractors, but they also pursue eco-
friendly contractors by incorporating environmental constraints and criteria into the
selection process. Companies that use Management Systems such as the ISO 14001
will be considerable advantageous in the clients decision of selection. Based on the
industrial revelations of Skanska, Carillion, and the Royal BAM Group, the significance
and importance of this transition is a vital future strategy for competitiveness,
reputation and growth of the business. Evidently even companies that have a
prominent and powerful name in the Industry will always want to increase their
clientele and business thus increasing revenue and enhancing their social image (Yang,
et al, 2005).
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Chapter 3 Research Design and Methodology
Chapter 3
Research Design and Methodology
Page | 37
The purpose of this Dissertation is to outline the possible benefits and

prosperities of evolving Corporate Social Responsibilities into strategies, objectives,
and methodologies of Construction Companies for future affluence.
The intention of this chapter is to distinguish the paramount method for collecting and
establishing effective and conversant information to aid with the findings and
conclusion of this dissertation. Using the various established methodologies the author
aspires to underline and select the research methods that will provide the greatest
informative evidence that justifies and determines the proposed hypothesis and
outcome of this dissertation.
Selecting the principle research methodology in order to achieve a reliable judicious

supposition for the outlined hypothesis is the fundamental foundation for which to
begin academic investigation. According to Allison (1996), research methodologies
range from philosophical to experimental and practical, and should be carefully
adapted depending on the type of study.
3.2 Research Objectives
The following objectives have been compiled to illustrate the significant

motivations and substance for which companies are now evolving and becoming more
socially and environmentally responsible in an industry that primarily requires
extensive corporate governance.
1. To literate the prominence and connotation of Corporate Social Responsibilities

in the Construction Industry through its historic development and
characteristics.
2. To appraise the research developments concerning the motives, drivers and
market influences for company change towards social, sustainable and
environmental strategies.
3. To establish the justifications and prominence behind changes and adaptations
to innovative market opportunities.
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4. To investigate the Key Performance Indicators and influencing factors shaping

the imminent markets.
5. To identify the challenges strongly associated with company adjustments and
3.3 Defining Research
To fully understand the dissertation topic, effectively achieve precise

recommendations and an overall conclusion, in-depth primary and secondary research
must proactively take place. Defining research can be difficult as numerous sources
have determined various definitions. Agreeing with the list compiled by Brew (2001)
research is:
 Finding out something and making it public.

 A mean of testing, validating and generating knowledge.
 A systemic process of investigation that contributes to knowledge and guides
academic disciplines.
 Advancing knowledge and understanding.
For the purpose of this dissertation the author felt the Concise Oxford Dictionary (cited
in Naoum, 2007 pp. 2) proposed the paramount definition of research as:
“a careful search or enquire; endeavour to discover new or collate old facts etc. by
scientific study of a subject; course of critical investigation”.
Naoum (2007) concluded this definition that research may be used as the principle
trajectory of the words ‘enquiry’, ‘study’, or ‘investigation’.
3.3.1 Secondary Research
The secondary research stage involves extensive reviewing and researching in

collaboration with pertinent academic literature. It is a vital aspect of the research and
forms the basis for which the dissertation develops. Naoum (2007) outlines that this
stage involves the exploitation of relevant themes and focus areas in relation to the
proposed topic, through resources such as journals, publications, books, conference
papers, databases, and articles previously reviewed by peers. The Waterford Institute
Page | 39
of Technology Library provided a large honoured database of information by which the

author was able to access freely and obtain beneficial documents and preceding
student dissertations.
Facilities such as the World Wide Web (WWW) has introduced the social environment
to a vast innovative system of research, aiding the researcher to achieve optimum
respected interpretations and observations on the elected topic of CSR.
The author conducted a comprehensive literature review to facilitate and form the
basis of the coherent argument. The literature review revealed information based on
existing data and evidence, case studies of experienced and accomplished industrial
organisations and theories proposed by supplementary personnel. The results of the
secondary phase enabled the researcher to further analyse the topic of CSR through a
primary research stage.
3.3.2 Primary Research
Primary research is a stage by which the researcher further explores the techniques
and examples by others, but personally generates the design and procedural method
of the study and furthermore is responsible for the collection and analysis of the data.
This stage is indispensable in answering specific questions outlined by the researcher
and facilitating the conclusion of the hypothesis stated (Blaikie, 2003). Throughout this
stage suitable research methods were explored and selected through the concept of
compatible research analysis.
Primary research involves the selection of Quantitative or Qualitative research

methods, both of which include various approaches and procedures to congregate the
necessitated information and results for which the author can consequently advocate
to accomplish the anticipated recommendations and conclusion.
3.3.2.1 Quantitative and Qualitative Methods of Research
Upon completing a comprehensive literature review, Yin (1994) cited in Naoum (2007)
described the primary research stage as an action plan for getting from ‘here’ to
‘there’, initiating with a set of questions to be answered and concluding with a set of
answers to determine the recommendations. There are many steps along this path
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which have to be considered including collection and analysis of the collected data
from the proposed research techniques (Naoum, 2007).
Quantitative analysis involves the numerical process of collecting, analysing, and

interpreting the results of a study or survey through statistical analysis. The
respondents have the same selection of answers and options to select from, which
supports the conclusion of this method of research (Creswell, 2003). Qualitative data
is a source of dependable, informative descriptions and clarifications of procedures in
identifiable local contexts. The qualitative research provides a chronological flow
deriving ‘fruitful’ explanations (Miles & Huberman, 1994).
Brown (1991) believes that productive internal research should comprise of both the
qualitative and quantitative methods, where the qualitative stage involves interviews
with top management and front-line employees and middle managers, in addition to
those with customers. Based on these qualitative results, a questionnaire can be
established to assess the relative importance of service or product and the company's
views and performance. The merits and demerits of each method are outlined in table
3 to follow.
To achieve optimum and reliable results the author proposes to use both Qualitative
research through semi-structured interviews and Quantitative research through a
professional business based survey. These methods will be focused on experienced
industrial based companies and their unbiased employee’s and business professionals
respectively, all of whom accommodate informative opinions. The fundamental
purpose of the primary research stage is focused on obtaining quality, knowledgeable
and personal opinions that will encourage and inspire the outcome and aspiration of
the author.
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Qualities Interviews Questionnaires

Identity of Respondents Known Unknown (Depending on
Layout)
Interaction between Close Distance
interviewer and respondent
Time involving the High Significantly lower than
Researcher interviews
Sample Small Large
Quality of Information Deep and Detailed Rich
Skill and Experience Skill Relevant to the specific No skill required
area of research
Control of the process High Low
Great flexibility to reword Answers accepted as they
Flexibility questions and clarify terms are
Strenuous and difficult Simple to analysis
Analysis of the Results particularly with unstructured
interviews
Interviews allows for bias Can be subject to bias if
Interviewer Bias views of the respondents inappropriately conducted
Table 3 - Comparison between Interviews and Questionnaires (adapted from Naoum

2007)
3.4 Quantitative Research - Survey/Questionnaire
Questionnaires or similarly surveys are a simple and effective method of

quantifying results based on a quantitative approach to research. The respondent is
specified with a number of diverse options for each statement or question, allowing
them to select the pre-eminent personal response. Surveys provide a well-structured
solution to analysing results in an unproblematic and artless approach. Modestly
identified by Brown (2001, pp.60) as:
“any written instruments that present respondents with a series of questions or

statements to which they are to react either by writing out their answers or selecting
from among existing answers”
It is a basic statement for a simple and prevalent method of research. Rendering on

the thoughts of Dornyei (2003) who expertly believes questionnaires engender three
types of particulars about the respondent:
 Attitudinal: Attitudes, Opinions, Believes

 Behavioural: Experience and Knowledge
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 Factual: Demographic Characteristics
All of which are extremely important components of a coordinated and articulate

questionnaire yielding dependable responses.
3.4.1 Survey Participants
The author has chosen to develop a questionnaire grounded on the verity that they are
unprecedentedly effective in terms of time and exertion in application. In a well-
structured questionnaire the processing of the data can be punctual and comparatively
undemanding (Dornyei, 2003). The questionnaire will be designed as so it can be
distributed to business professionals in all industries and sectors who obligate a
virtuous opinion on the area of CSR not only in their associated business practice but
also on a personal sentiment. This will provide a global business opinion on the topic
and confidently embrace shareholders, stakeholders and leading executive’s attitudes
on its importance, remunerations, particular business actions and personal
perspectives.
Conversely with all research approaches they can only accomplish certain results based
on their established objective. Dornyei (2003) comprehends there to be certain
disadvantages to questionnaires including: superficiality to answers, unreliable and
unmotivated respondents, and social desirability or bias opinions. To prohibit this
transpiring and to embrace the construction industries experience and knowledge in
the area, the author intends to conduct structured interviews through the qualitative
research approach.
3.5 Qualitative Research - Structured Interviews
This approach of research has special value for investigating complex and
sensitive issues. It can be used to achieve a deep understanding of how people think
about particular topics. This can be achieved using an in depth interview (Kothari,
2008). Suitable qualitative data is likely to lead to serendipitous conclusions especially
in a subject not widely known or acknowledged. It helps researchers excel beyond
initial conceptions and generate abstract frameworks, in an ‘undeniable’ quality of
reliability (Miles & Huberman, 1994).
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Interviews can be categorised into a number of specific types, as described by

Goodwin & Goodwin (1996) there are four general types: structured, semi structured,
informal and retrospective, for the purpose of this dissertation the author feels a
structured interview would be best.
Structured interviews incorporate predetermined illustrated questions that will be

asked in a pre-established sequence. In relation to the qualitative approach the
structured interview emphasises open ended questions that are more complex than
one worded or scaled answers as such in a quantitative approach (Goodwin &
Goodwin 1996). The author believes giving the interviewed person the opportunity to
express their opinions easily and freely will provide a more informative and personal
response. It is important for the interviewer not to improvise or influence the answers
or deviate from the sequence of questions.
The questions can be categorised into six types of classifications:

experience/behaviours question, opinion/values questions, feeling questions,
knowledge questions, sensory questions and background demographic questions
(Miles & Huberman, 1994). The author aims to incorporate this framework of
behavioural responses into the interview questions, as it is felt that collectively they
will produce optimum and informed answers.
3.5.1 Interview Participants
To obtain a substantial understanding of the subject the author intents to initially

undertake interviews with experienced business professionals who have worked in the
area of CSR through consultancy, research or individuals who demonstrate a
respectable understanding and knowledge of the topic. This will be conducted to
primarily attain a general appreciative perception of CSR in the business environment
and additionally assist in the preparation of the construction based interviews. It is the
aspiration of the author to administer construction based interviews with the
organisations mentioned in the secondary research phase and in addition to this
interview other experienced and commendable companies from medium size
organisations to large global contractors. This will allow a comparison between the
distinctive companies and generate productive recommendations for the smaller
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companies who aspire to become more socially aware.
3.6 Research Limitations
As CSR is a relatively new concept in the Irish Construction Industry it can be an

arduous task obtaining personnel for the construction based interviews. To overcome
this impediment interviews will be organised in collaboration with practiced UK based
contractors, with the hopeful possibility of some larger Irish contractors participating.
Interviews are time consuming and in many cases expensive to conduct due to travel
constraints and other issues, for this reason some interviews may be conducted
through information technology systems such as ‘Skype’ and or via recorded telephone
communication.
3.7 Chapter Summary
Chapter 4 outlines the basic methods used in obtaining the information required
for successfully achieving and accomplishing the final results and concluding main
statement of the dissertation: “The preference and prosperity of evolving Corporate
Social Responsibilities as a dynamic policy in the development of construction
company’s central objectives and strategies towards enhancing corporate reputation,
increasing efficiency and enriching profitability”. It is hoped the personal interviews
will achieve an experienced opinion on this subject highlighting the major influences
and propositions behind the change.
The chapter also evaluates the beneficial evidence of using numerous methodologies
both primary and secondary, focusing on interviews, questionnaires and academic
literary research to conceive a pronounced supposition based around the hypothesis
of this dissertation. The qualitative and quantitative processes of investigational
research methods outline the pre-eminent approach the researcher intends to
instigate. It is the hope of the author that the selected methods will effectively achieve
and conclude the central assumption of the dissertation. The Research findings will be
illustrated in the proceeding chapter.
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Chapter 4 Findings and Discussion Part One - Qualitative Research
Chapter 4
Findings and Discussions
Part One - Qualitative Research
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The initial of two findings and discussions chapters focuses on the qualitative
research approaches selected. It outlines the selected candidates for the structured
interviews, all of which are construction related professionals working for some of the
biggest companies in the world. To primarily understand CSR in the business
environment, the author conducted a series of interviews with consultancy
professionals, prior to initiating with the industry based interviews, (full
comprehensive interview responses are attached in Appendix B), which was primarily
focused on their knowledge regarding CSR aspects and environmental issues within the
comprehensive business environ. This provided a foundation to develop suitable
questions for the construction related interviews and it presented the author with
personal, direct and experienced interpretations of CSR.
This chapter summarises the candidates valued and learned opinions, on a carefully
selected range of questions facilitating the preceding aims and objectives presented by
the author.
4.2 Interview Structure
The author projected a respectable number of interviewees to achieve optimum

sentiments on the subject of CSR and to allow for commendable responses to which
the author can appraise and evaluate. The interviewees were interviewed during the
primary research stage of this dissertation on numerous questions surrounding CSR in
the construction industry. The questions were subsequently divided into four initial
sections in order to gain the best possible outlook for the research:
1. Company experience and attitude towards CSR in construction.

2. Influential factors and remunerations gained.
3. Methods of assessing and controlling CSR in the Company.
4. Personal opinions and views on CSR in the Industry.
Evaluating the findings of professionals working in the construction industry will

provide comprehensive understandings and viewpoints to fully appreciate or
depreciate the aim of the research. Each of the questions responses have been
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informatively summarised to reduce the volume of word count. The interview

manuscripts for each respondent have been collated and can be observed in the
Appendix A.
4.3 Structured Interview Respondents
The following is a list of key personnel that appreciatively participated in the

structured interview process.
Dawn Watson – Environmental Manager, VINCI Construction

Dawn Watson has been an Environmental Manager with VINCI Construction the world’s
largest construction company for the past three years. Her responsibilities within the
company include environmental audits, ensuring all sites are complying with Environmental
Management Systems (EMS), liaising with external bodies such as CCS, ISO, GRI and
consistently reviewing strategies and KPI’s which have been set by VINCI.
Peter Scanlon – Environmental Manager, Skanska

Peter Scanlon has been working for Skanska for the past two years and has developed his
interest in sustainability after obtaining a degree in forestry from NUI Galway. His main roles
within the organisation include organising and implementing new strategies relating to
sustainability and environmental issues. Liaise with the sites and aid them with any issues
they may have, review progress regarding benchmarking and help increase and better their
results.
Nick Drake – Sustainability Advisor, Carillion PLC

After completing a Masters in Climate Change, Nick Drakes interest in sustainability and CSR
grew from there and he has been a keen part of Carillion’s Sustainability team for the past
three years. Nick spent the first year with Carillion planning and preparing with colleagues
on sustainable solutions that can be achieved with the Heathrow Terminal 5 C project. He
has opened relationships with BITC and other groups, and also written management
documents for the company.
Tom van Beek – CSR Director, Royal BAM Group

Tom joined the Royal BAM Group in 1988 and became Corporate HR Director in 1998 and
was given the responsibility of CSR Director in 2008. He has always been interested in CSR
activities from early on in his career and is now responsible for the coordination and
implementation of The Royal BAM’s Sustainability and CSR policies, particularly the sections
for which are developed for the group’s worldwide policies.
Mairead Dennehy – Health Safety and Environmental (HSE) Manager, Laing O’ Rourke
Mairead is a knowledgeable and experienced professional and has worked for Laing
O’Rourke for the preceding three years. Working with Laing O’Rourke, Mairead provides
guidance on all aspects of health and safety and the environment within the company and
ensuring all staff are trained and competent in their roles and responsibilities. She reviews
processes and procedures and provides initiatives to improve on HSE standards.
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Andrew Kinsey – Senior Sustainability Manager, Bovis Lend Lease

Andrew has spent his entire career focusing on sustainability and has been working for
Bovis Lend Lease (BLL) for the past 12 years. He helped initiate the environmental
department of Bovis Lend Lease in the late 90's and have helped the UK division achieve
certification of their EMS. Andrew has also introduced policies, processes and procedures
on environmental reporting and the CCS and won recognition for BLL at several industry
and environmental events. His previous work was delivering BLL’s sustainability
programme at the Athletes Village in London.
Ian Brooks – Business Improvement Manager, Kier Group

Ian is a Business Improvement Manager for Kier Eastern and Kier Regional in the UK and
has been associated with the company for the past 3 years. He is responsible for capturing
and sharing best practice, and monitoring and improving benchmarking. He Manages
change and is consistently driving continuous improvement in all areas of the business,
including some of the aspects and elements of CSR, monitoring the effectiveness of
current strategies and liaising with organisation’s such as BITC to help improve their
relationship and reputation.
Jim Peters – Services Manager, PJ Hegarty

Jim has been a services manager with PJ Hegarty for the past 3 years and although he is
not directly associated with CSR in the company he has an ample appreciation and
knowledge of PJ Hegarty’s views and fundamental policies and aspects they have
incorporated over the past few years. Jim is a well-educated and experienced professional
and has worked as a lecturer in DIT and Project manager for RPS Group. His role as a
service manager essentially involves the effective and efficient running of projects
throughout Ireland, ensuring they on time, to specification and within budget.
Cyril Keegan –HR and Environmental Health and Safety Director, P. Elliott
Cyril Keegan joined the company in 2002 as Safety Manager. In 2004 he became the
Company's first Human Resources Manager prior to joining the Board as HR Director in
2009. Cyril deals with all areas of human resources in the company, customer relations,
employing and resourcing personnel, but more recently he has become involved in
resolving all safety and environmental issues from each of P. Elliott’s sites.
Anne Buttfield – Marketing and PR Manager, Mott MacDonald

Anne is an extensive member of the Mott MacDonald team and has been working for this
prestigious company for the preceding 21 years. She has developed her interest in CSR
through marketing campaigns and organising community related projects for the
organisation.
Jane Grant – Associate Director, WSP

Jane has been an associate member of the WSP group for the last 9 years. Her current
remits are two-fold. Jane is the learning and development manager for one specific part of
the UK Business, concentrating on technical learning, professional development (helping
staff achieve professional qualifications) and also university contact such as scholarships.
Her second role is with the UK Sustainability team, co-ordinating and helping to promote
CSR and Volunteering activities.
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This compilation of extensive industry experience and knowledge will confidently

stipulate inclusive intellects on the subject matter. As each respondent is a
representative of their company they will be respectively referred to by the
organisation in which they work.
4.4 Corporate Social Responsibility in the Company
Question 1 - What is the history behind the CSR activities in your Organisation?
Contemplative Summary
All respondent companies evidently understand the concept of CSR and its importance
in society and within the organisation. The larger companies such as Skanska and
Carillion have exhausted huge efforts in its implementation and growth over the past
decade. SME’s (Small, Medium Enterprises) such as P. Elliott and PJ Hegarty who have
recently implemented CSR activities as a formal business model in the organisation,
dictate strong encouragement for its development which over the impending years will
materialise as they become more experienced. The ISO management systems,
sustainability indexes, CSR reporting, community engagement, H&S, and stimulus from
external bodies appear to have had the greatest influence on this transition which
have been evidently described by literature of Leipziger (2003) cited in Isaksson and
Steimle (2009), CIOB (2010); Fuller (2008) & Woodside et al (1998).
Gratifyingly some of the global companies informally began their CSR activities in the
1970’s influenced by internal management and the moral obligations within the
company. BLL for instance has understandably become market leaders in this area of
the industry and reportedly increased their reputation as a result of their experience.
In conclusion each of the companies have been proactively and perceptibly
harmonizing their growth in recent years, and it is considered that their progression
will be in proportion to the size and experience of the organisation.
Question 2 - How was CSR implemented into the company structure?
Summarising and evaluating the various methods of implementation, the author felt
that generally motivation of top management emerges as the main influencing factor
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of CSR within the respected companies. Organisational executives and directors would
primarily be influenced by markets trends and external encouragements, such as the
sustainability indexes, SRI, and GRI, thus form the interview outcomes, realising that
CSR is prominent and imperative activity in the construction industry. As defined in the
literature review, outside bodies such as BITC, CCS and ISO systems along with the
ethical behaviour of employees and other stakeholders also seem to have a significant
influence on its employment in the organisation.
The preceding question queried the historical development of CSR in the company,
which prominently argued that CSR has industrialised through the virtuous
responsiveness of various stakeholders. Uniting the interview responses, the substance
of employee engagement has also subjectively influenced its implementation. Brady
(2005) and Tonn (1999) designate the sustainable development as a process that is
perceived as difficult transition and societal challenge which can only be achievable
through the cooperation, support, and partnerships of all stakeholders’ education of
uninformed staff and supporting CSR reports have inspired its awareness in the
organisations influenced predominantly by management.
Question 3 - What forms of CSR activities and policies have been implemented into
the company’s structure?
Initially when comparing the responses from Skanska, Carillion, BAM, Laing O’ Rourke,
Mott Mac Donald, and BLL you can understand the extent some companies exert on
their CSR activities and the relevance it has to their company policies. It is an extensive
aspect to many who appreciate its substance and apprehend its significance in the
construction industry. Leading by these admirable companies, other less
commendable organisations, can extensively improve their reputations through
schemes and policies such as Skanska’s extensively inspiring and beneficial 5 Zero’s
campaign, BLL’s ‘BeOnSite’ campaign, and also P. Elliott’s loyal sponsorship days and
donations. The secondary research stage also detailed some of these methods which
can be unified with the response of the interviewees, influencing that all companies
can implement these activities in an ethically driven business model. The policies and
activities range from community engagement, environmental awareness and
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protection to philanthropic activities and guidance from external bodies such as ISO
management systems, Low Carbon Transition Plan which Skanska affiliate with, and
accreditation with organisations such as BITC, EFQM (European Foundation for Quality
Management), and the UKGBC among others (Mullerat, 2009).
Question 4 - What are the main influences and reasons behind your company’s
involvement in CSR?
Influences change depending on the type and structure of the company. Where
organisations are publicly owned shareholders influences can dramatically change the
structure and outlook of the business. Companies such as Skanska, Kier and Carillion
focus their efforts to increase their moral responsibilities in the industry and
surrounding communities, creating a reasonable reputation for the company. Relating
to the true statement and foundations of CSR, companies should be influenced by
their own ethical obligations set out by the fundamental aspects of moral business
practices and internal categorisations (Garriga & Mele 2004; & Lantos, 2001).
Evidently all the companies interviewed are influenced by the honourable compulsions
of their employees and management; correspondingly significant to the aim of this
dissertation the client’s ambitions and statute regulations are necessitating its
integration within the indentures of the contract. As exemplified in the secondary
research CSR has stipulated extensive opportunities for the preceding companies
including new market prospects, employee motivation, increased reputation, business
efficiency and community awareness, which have primarily been driven by
commendable ambitions of the internal bodies (Mullerat, 2009; & Hopkins, 2007).
Question 5 - What benefits has the company gained from incorporating CSR
strategies?
Through extensive research of academic literature during the secondary research stage
(Mullerat & Brennan, 2005; & Hopkins, 2007) the author concluded there to be
copious expanses of CSR remunerations. It can be manifestly understood by the
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responses of the organisations that the benefits gained vary depending on the level of
implementation, size of the organisation and employee attitudes towards social
responsibilities.
Achieving the TBL in construction is the paramount activity generated by all

companies, which has been illuminated by the responses of the interviewees. CSR
practices can emphatically influence this realisation, through environmental
awareness, H&S improvements, financial savings through Life Cycle Analysis (LCA) and
Whole Life Costing (WLC) and carbon reduction, increased moral and motivation,
entrance to new markets and increased reputation within communities. Paramount to
the hypothesis and as exemplified by Kier’s Ian Brooks CSR contributes to the potential
proliferation of clientele and as definitively illuminated by BLL it provides competitive
advantage over unaware counterparts.
Question 6 - Have any contracts been won based on your CSR accomplishments?
This question is comparable to the aforementioned, but specific to the type of

remuneration that hypothetically can be achieved. With the exception of the Royal
BAM Group who expressible succeeded in the accomplishment of contracts based on
their CSR achievements, the awarding of contracts is not a certain subsidy of virtuous
CSR accomplishments. As identified by Constructing Excellence (2004) and Van Tulder
& Van der Zwart, (2006) in the literature review, enhanced reputation is a huge
element to the reason behind CSR integration, grounded on the responses of the
interviewees; CSR reputably increases the company’s awareness among prospective
clients through the organisations activities and virtuous work ethos. Exercising the
KPI’s depicted previously in the literature review and uniting the professional
responses obtained, CSR prominently exerts the requirements to successfully initiate
with the contractual prerequisites set out by clientele, as discussed by Andrew Kinsey
of BLL whereby they were invited to tender for based on their achievements and
reputation in the area of CSR. The responses predominantly exposed that CSR has
emphatically facilitated the named companies in attracting and attaining new work,
while accumulatively increasing the consciousness of the organisation.
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Question 7 – Composed selectively of Strategic Management, Assessment &

Objective Setting in the Organisation
Comprising the Strategic Management, Assessment and Objective Setting responses

allowed to author to evaluate these specific elements in a central supposition,
consenting the reader to appreciate the organisational management of CSR through
the various interpretations.
Reviewing the intellectual responses, one exerts an understanding that there are
similar management and controlling techniques among the diverse companies. The
secondary research stage did not proficiently cover the strategic management aspects
of CSR, as the author sensed it would provide a better outcome to receive professional
and practiced thoughts. Objectives and strategies appear to conceive similar results,
mainly focusing on benchmarking, yearly, monthly, and result based strategies,
converging on areas such as carbon reduction, staff education, philanthropic activities,
and community engrossment. Interestingly Mott MacDonald has introduced a survey
based assessment method which would provide excellent opinions from the
employees within the company. In contrast to the larger organisation, P. Elliott
seemingly expresses a lot of their CSR activities on employee relations, as they feel
employee interaction and involvement will predominantly and organically increase
their CSR ethos.
Using a number of the KPI’s academically illustrated, certain companies incorporate

these systems as assessment tools which include EMS’s, CEMARS, BITC, and inclusion
in sustainability indexes. This further illustrates the aforementioned KPI’s paramount
influence in the construction industry and portrays their knowledgeable importance in
successful implementation and management. Examining this thought through the
Altruistic theory described in the literature review, it observes how the organisation
integrates the societal necessities, influenced and dependent on peripheral
organisations for social success, expansion and economic wealth (Garriga & Mele,
2004).
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As indicated in the broad sense, the financial implications of CSR are varied between
the companies, but predominantly CSR is not seen as an expense to the company, and
will always prove cost neutral and most cases profitable depending on its severity of
application.
Question 8 - What are the key performance indicators influencing your activities?
KPI’s are essentially benchmarks for the organisation to consistently monitor and
improve on targets and results. Although not thoroughly examined, the responses
profoundly comprise the inclusive areas in which the KPI’s are set. The Influencing
Factors and KPI’s section of the literature review, covered international bodies that
enable the implementation, monitoring and controlling of different managing systems
ranging from carbon calculating to Social Responsible Investment, as well as the
influencing external organisations such the WBCSD and WGBC.
Concentrating more on internal systems, the responses indicate a similarity between

all organisations. Though some of the grander companies such as Skanska, Mott
MacDonald, and WSP already incorporate some of the management systems indicated
in Chapter 3, the responses strongly indicate a dominant focus on carbon initiatives,
waste management, environmental awareness, community interaction and employee
awareness and education. The author believes unacquainted corporations should
embrace the previously outlined programmes such as CEMARS, GRI, and ISO systems in
order to improve results, educate stakeholders and increase productivity.
Question 9 - Have there been any barriers that have prevented the performance of
the company?
According to BITC (2010), for CSR to actively and beneficially implement CSR in the
long term goals of the establishment, essential all stakeholders need to understand the
procedures and processes, and enthusiastically manage the continual fluctuating
process to proactively achieve the long term objectives of the organisation. Reflecting
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on this opinion and combining the responses it is definite that CSR needs to be strongly
prompted by management and the moral behaviours and attitudes of the employees.
The uncontrollable factors such as the economic downturn has dented some of the
organisations progression, but generalising the responses, the barriers of CSR
implementation are minimal, with the exception of some of the geographical locations
of the larger companies, and reluctant and apathetic staff. The responses of Kier, BAM
and Skanska and the academic opinion of Hopkins (2007) illustrate a comfortable
approach to CSR influenced by perceptive nature of the employees and the
undemanding and non-judgemental approach to its implementation.
Question 10 - What are the next steps for your Organisation in the construction
excellence program?
The market perception of CSR and globalising ethical business practices has
predominantly affected the attitudes of the above organisations. Undoubtedly all the
responses conceal ambitious prospects for the future development of CSR, focusing
primarily on carbon reduction through schemes such as the UK Carbon Reduction
Commitment (CRC), which is an obligatory trading scheme covering large non-energy
intensive businesses and public sector organisations. Further analysing this scheme, it
is designed to provide the organisations involved with a financial incentive to reduce
their emissions in the most efficient way and fundamentally raise the corporate profile
of energy and carbon management (Great Britain; Committee on Climate Change,
2008).
A consistency between all interviewees is the ambition to effectively improve on

current results with some organisation warranting zero carbon desires, enhanced site
communication using internally developed systems, with Skanska and PJ Hegarty
aiming to progress on current results and be recognised as market leaders in the
respect to green initiatives. Analysing the SME P. Elliot in particular, it is worthy to
perceive their motivations to publish environmental and CSR reports in the coming
years, supplementary asserting their CSR objectives in relation to the recompenses of
the GRI.
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4.5 Subjective Opinions and Interpretations

Question 1 - What is your view on CSR in the industry today and do you think it is
important for company performance?
The construction industry generates a huge impact to the economy, to the social fabric
of associated countries and to the formation of innovative environments (Halliday,
2002). The interview responses significantly express for themselves, the absolute
importance of CSR incorporation, not only demonstrating its benefits but also in a
responsible business intellect. Relating the responses with the inclusive aim of the
research, one would feel a definite attraction to its importance of implementation.
The organisations all exhibit an understanding of CSR as being a predominantly

important aspect in the construction industry. Some of the responses demonstrate
more dominant relations to its prominence. BLL definitively state CSR should be part of
a company’s ‘licence to operate’ with Kier illustrating that businesses in the industry
cannot survive without it, and the Royal BAM Group defining that substandard
sustainable performance could result in loosing you licence to operate. These are
extreme but effective fortitudes of its relevance to the industry.
Question 2 – Do you think CSR has Economic Remunerations?
Looking at the bottom line of all business activities is the inclusive aspect of economic
viability. The general purpose of this question was not just to reference economic in a
financial facet, but rather in an undefined expression, which was gathered by some of
the respondents. Agreeing with the opinion of Friedman (1970) in the secondary
research stage, P. Elliott and Skanska also strongly implement that it has economic
benefits in the financial terms. However it is over time that it will be perceived and not
in immediate succession as some believe. Interestingly looking at the breakdown of
the elements by Carillion’s Nick Drake it gives the reader a clear understanding of the
where the savings can be made in relation CSR policies through efficient management
and execution of the tasks.
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All respondents believe CSR development creates higher standards of living while
preserving the profitability of the organisation for people within and external to the
organisation. This is due to the fact that customarily CSR concerns centre on how the
construction business might affect people and environment, while, improving effective
management and reputation which evidently collates with the views of (Hopkins,
2007) in the literature review.
Admiringly none of the respondents show condemnation against the economic

benefits, effectively all illustrating positively to some form of benefits from financial to
stakeholder improvements to enhanced reputation. Concluding in the words of Bovis
Lend Lease’s Andrew Kinsey ‘what goes around comes around’.
Question 3 - Do you feel the Governments should imply legislation to ensure

companies are more responsible?
With the governments setting targets such as the UK’s 2020 strategy and the
government white papers in conjunction with the Kyoto protocol described in the
literature review, it is inevitable that in some way or form the governments will
introduce legislation such as the recently discussed carbon tax impediment, to ensure
companies are being more responsible. All the respondents recognise these concerns
but the overall unanimity is that government driven policies and legislation will provide
only a benchmark for CSR recommendations, and the socially responsible companies
should exceed these standards through conformity of their own initiatives.
As with the previous response’s regarding its implementation methods, a number of

the interviewees believe government policies will only force people to instigate the
programs resulting in retaliation and non-conformance. The policies should be driven
by employee motivation and ambitions as predominantly recommended in the
preceding responses.
Conversely in full agreement with the responses of Laing O’Rourke’s Mairead Dennehy
and P. Elliott’s Cyril Keegan, looking at the concept of implementing a similar scheme
to the CCS instigated by the CIF (Construction Industry Federation), not necessarily
introduced by the government but certainly backed by the state as it is in the UK, this
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would certainly help introduce the Irish industry to CSR on an informative and practical
scale.
Finally resolving the issue with a paragraph from the Harvard Business Review written
by professors Michael E. Porter and Mark R. Kramer (2011) stating,
“Governments, for their part, have often regulated in a way that makes shared value
more difficult to achieve. Implicitly, each side has assumed that the other is an obstacle
to pursuing its goals and acted accordingly”
Question 4 - How would you rank your company’s performance in social and
environmental aspects of the industry?
Appraising the copious organisations that have instigated CSR practices from an early
stage, the author believes their achievements are administrated through local and
international accolades, dictated by recognised bodies such as inclusion in
sustainability indexes (FTSE4GOOD, and Ethibel), CCS gold, silver and bronze awards,
BITC honours, and the illustrious ‘Sunday Times Best Green Company’ list.
There are numerous methods of valuing company performance, from employee

motivation and productivity to achievement of reputable accolades from renowned
organisations. It is important to note that although performance indicators change
depending on the structure and size of the business all accomplishments should be
documented as a respectable and honoured attribute to the consequences of CSR
applications.
Question 5 - In your opinion what is the main influences of your organisations CSR
activities through the following - Philanthropic responsibility, Economic
responsibility, Ethical responsibility and Legal responsibility
The literature section expressly depicts the stated classifications of responsibilities and
comprehensively dictates the various natures of each specified characteristic. The
defiant relative theory described in chapter 3 was the ethical philosophy, as illustrated
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by Mulleret (2009). It is the responsibility to exceed legal and financial requirements,

primarily influenced by the moral obligation of the organisation. Contrasting to initial
thoughts of the author, all the responses quantify that it is in fact a combining theory
representing all of the concepts in some way. However, influenced by the nature of the
answers it can be speculated that the ethical theory is a primary influence of CSR
policies, followed by general legal requirements, philanthropic activities and economic
through the obligations of the shareholders.
The structural criteria for successful implementation in terms of the above sections, is
to surpass the obligations set out by the statutory bodies (shareholders, stakeholders,
governments), thus consequently transcending past the preceding philosophies in a
socially responsible approach.
Question 6 – What do you feel the main aspects of CSR present?
CSR is a broad concept involving countless aspects which inevitably improve the social
appearance and reputation of an organisation (Mullerat & Brennan, 2005). The
purpose of this question was to understand from a construction professional attitude
the central characteristics of CSR in the industry. Exposing the principle opinions
suggested community interaction and engagement, environmental consciousness and
protection, and employee relations through education and integration in the
community. Dawn Watson of VINCI Construction keenly expressed its relevance to the
previously noted ‘Triple Bottom Line’ by John Elkington (1998), uniting an equal
relationship between the social aspects, the environmental aspects and the economic
aspects, which when subdivided relate to the prominent tasks revealed by the other
interviewees.
Principally delineated by Cyril Keegan of P. Elliot and Kier’s Ian Brooks, the
employment of the local community plays a major part in their CSR activities. This
particular has not been defined in the secondary research stage and perceptibly
outlines an important aspect to CSR policies in the construction industry.
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Question 7 - Do you think CSR will become more prominent over the coming years
within all companies in the industry?
Conclusively contemplating on the various questions examined, combining the

revelation of this query and the preceding question number 5 in the initial section
relating to the obtained benefits, the author regards these as the paramount to the
final concluding chapter. This is reflected due to the influencing parameters of the
responses and their importance to the hypothesis and research aim. Unreservedly the
opinions of all the established organisations reveal the irrefutable prominence of CSR
in the Industry. Supportive in the revelations of the academic literature in the
secondary research stage on the magnitude of CSR (Kotler & Lee, 2005; Morris, 2004;
Allouche, 2006 & Mullerat, 2009) the imperative responses unite the learned
sentiments in a form that represents an undeniable substance of reality in the
construction industry.
Peter Scanlon of Skanska summarises the extent of this intricate question in a simple
and formidable statement,
“If a company does not adapt they will not survive in the industry”
This statement copiously corresponds with the other interviewees in different forms
but the general consensus is that all companies will have to adopt some aspect of CSR
over the next few years if they want to compete in the growing markets where
increasing competition is undeniable resulting new market strategies and innovative
policies.
4.6 Qualitative Research Summary
The opening secondary research stage analysed the potentials of CSR not only
in the construction industry but also on a historical development progression in the
business environment, focusing on KPI’s and remunerations through theoretical
literature and case studies. The literature chapter did not provide a comprehensive
perception of CSR in the construction industry due to the comparatively modernistic
concept, which has not been broadly covered by academics to date. Thus it was
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concluded by the author to embrace this predicament specifically through the primary
research stages. This qualitative investigation of the primary research chapter provided
the author with an unambiguous foundation to successfully achieve an appropriate
and precise conclusion to the objectives and hypothesis, formally set out in the
introductory chapter. The questions were developed in a format to unite the findings
of the secondary research stage fundamentally adding to the overall conclusion of the
dissertation. Using the structured interview format it allowed the author to collate and
organise the responses in a reasonable unpretentious method, comparing any diverse
reactions in a reflective summary.
Upon reflecting and evaluating on the inclusive responses of the various organisations,
evidently it is clear there is a vibrant understanding of the concepts of Corporate Social
Responsibilities between all those interviewed. Predominantly presenting a categorical
similarity amongst the responses in all questions asked, however some respondents
illustrated more precise answers than others, but all demonstrated an impressive
understanding of CSR and all its internal aspects and features. This qualitative
approach will be further projected through the results of the quantitative data which is
statistical evaluated in the second part of the primary research stage. Summarising the
relative objective of the qualitative research undertaking can be accomplished through
the imperative appraisal from Nick Drake of Carillion, asserting that:
“Companies cannot afford to oversee CSR in business society, it is far too important in
this competitive industry”
In conclusion, this principal portion of primary research has provided exceptional

developments in the author’s perceptions towards concluding the dissertation.
Appraising the responses of the interviews in collation with the secondary research
stage unites the direct attraction between the two research methodologies. From the
information obtained thus far in the exploration of studies patently clarifies the
significance of the research project commenced. The subsequent chapter details the
statistical analysis of the quantitative research undertaking. In the conclusion of the
following chapter the author will unite the dispersed research approaches in a
definitively annalistic manner.
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Chapter 5 Findings and Discussions Part Two - Quantitative Research
Chapter 5
Findings and Discussions
Part Two - Quantitative Research
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As initially described in the research methodology chapter, the author felt it

was paramount to conduct the two stated methods of research to fully comprehend
the complexities of the research proposed. The online survey was proposed as a
generic research approach, focusing on all business professionals and academics who
demonstrate an acute understanding of CSR in the business environment. The
questionnaires are a vital aspect of the investigation stage of this dissertation and will
stipulate a substantial influence upon which the findings and recommendations will be
grounded. To counteract the palpable issue surrounding the response rate of the
questionnaires, the author took the initiative to join social networking sites relating to
business development and professional interaction, some of which included:
 LinkedIn
 Yahoo Forum CSR ‘Blokes’ and ‘Chicks’
 CSR International
 Sustainability Online and
 GreenCollarWoman
These provided the author with a comprehensive address list of business professionals
in the area of sustainability and business improvement. To ensure a healthy response
rate, the questionnaires were issued in a personal manner and addressing the
respondent through their first and or second name provided an individual experience
and did not breach any privacy injunctions, as some publicly directed emails would.
This concluding chapter of the primary research undertaking incorporates the

quantitative results which have been evaluated through statistical analysis
systematised into charts and graphs. In the final summary of this chapter the author
accumulates and appraises the two methods of research undertaken by comparing any
dissimilarities or correspondences where appropriate to help encourage the
informative decisions of the closing chapter.
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5.2 Online Questionnaire Structure
The online questionnaires were designed to deliver a user friendly approach

which exhibits a prompt completion time, through structured and stimulated
selections for the majority of the questions. The questions were premeditated to
outline the prominence of CSR activities, attitudes of professionals and where relevant
to the respondent, organisational implementations. The online survey was conducted
through a system called ‘SurveyMonkey’ (www.surveymonkey.com) which allowed the
author to develop the questionnaire using his own format and layout prompted by
examples and tutorials. The survey was developed in three sections and included 28
relevant questions in the area of CSR. These sections encompassed:
1. Background Information
2. Personal Opinion and Views
3. CSR in your Company
The survey received a healthy response count of just under 100 replies, allowing
comprehensive results to be developed by the author. Upon extensive reviewing the
author felt that not all of the questions primarily related to the aim of this research,
thus are not included in the main document. A full illustration of the questionnaire is
included in the Appendix C, which includes all questions originally delineated.
5.3 Respondent Profile and Background
Question 1 – Respondent Information
The ample list of respondents did not signify any trend in business qualifications,
supplying the author with an inclusive catalogue of experienced attitudes,
interpretations, and evaluations on the generalisation of the topics solicited. The
respondent’s backgrounds varied from education to construction to consultancy and
even local governments participated in research. With professional credentials
including CEO’s, Directors, Community Affairs Executives, Directors of Corporate
Responsibility, Civil Engineers, and Corporate Governance Managers. For privacy
compliance no designations will be cited from the participants of this research.
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5.4 Personal Opinions and Views
Question 1 – Personal understanding of CSR
This question contributed to extensive reviewing and evaluation in order to select the
most relevant response for this dissertation. It is not an extensively in-depth
explanation but involves what the author and the literature such as Hopkins (2007)
have illuminated over the course of this research:
“Combining sustainable communities and workforce, natural resource protection and

environmental enhancement, climate change and energy, sustainable consumption and
production to achieve corporate governance”
Or very simple put by another response:
“Going beyond the statutory requirement and cover all areas of the triple bottom line”
Question 2 – Defining CSR
How would you describe CSR under the following Headings
CSR is a set of philanthropic CSR is the commitment of a CSR is about promoting

activities a company carries out company to strictly abide to corporate fairness, transparency
voluntarily on a sporadic basis in national labour and environmental and accountability through a set
the local community laws of internal rules or processes by
5% which businesses are operated,
regulated and controlled
3%
92%
Figure 10 - Defining CSR
In agreement with the authors perception and the discernments of the academics in
the secondary research stage (The European Commission, 2005; WBCD, 2010; &
Lantos, 2001) 92% of the respondents believe that CSR is about promoting corporate
fairness, transparency and accountability through a set of internal rules or processes
by which businesses are operated, regulated and controlled. The reactions to this
question evidently focus on the core values of CSR, illustrating CSR as the way in which
a company manages the triple bottom line, and the way it engages with its
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stakeholders rather than a set of policies or obligatory laws, which has previously been
argued by some interviewees as forceful method of implementation (Skanska,
Carillion, & Kier).
Question 3 – Future prominence of CSR in the business environment
Do you think CSR will become more prominant over the coming years in all
business environments
Definitely Maybe Doubtful No Unsure

1%
2% 0%
17%
80%
Figure 11- Future prominence of CSR in the business environment
Appraising these responses indicates the relevance of significance that CSR has and will
have on businesses in the future, with 80% strongly believing it will become a global
business strategy, additionally exhibiting its certain existence in future society and
business.
Question 4 – Government Involvement

Do you feel Governments should imply legislation to ensure compnaies are
more repsonsible
Yes No Not sure

17%
17%
66%
Figure 12 - Government Involvement
Relating these responses to that of the industry based interviews, there is a definite
differentiation between the two types of research undertaking. Contradicting to the
qualitative research where generally the respondents believed the governments
should not introduce legislation, 66% of the quantitative responses trust the
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government should imply legislation. The author contemplates this to be because of

the various business professionals who completed the survey and in-sight of their
industry it may facilitate CSR development and awareness.
Question 5 – Importance of Sustainability
How Important do you think Sustainability Issues are currently to your

business environment
More important Less important Not relevant No opinion

1% 2%
13%
84%
Figure 13 - Importance of Sustainability
Information taken for the chart demonstrates the substantial importance of

sustainability in all the respondent business organisational environments, indicating
84% relevance. Sustainability is of course a subsidiary of the CSR practices and
furthermore was comprehensively examined by Carillion’s Nick Drake during the
interview process, who partially perceived sustainability as the main definition and
aspect of CSR practices.
Question 6 – Strategic Relevance
Do you feel CSR is an important policy to incorporate as a business strategy

Yes No Not sure
0% 1%
99%
Figure 14 - Strategic Relevance
The concluding question of this section combines the previously inquired responses in
a definite illustration of CSR substance as a core business model in an organisation. A
commanding and influential 99% of respondents believe CSR should be incorporated
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as a business strategy. This further demonstrates its prevailing relevance and global
recognition as a dominant underlying concept that will conceivably be addressed as a
prerequisite in the accommodating future and in many cases present environments.
5.5 CSR in your Organisation
Question 1 – How was CSR implemented into your Organisation?
This question was open ended, meaning the author did not provide relevant options to
the respondents. This process was preferred as to provide profusion in the answers,
further analysing the various business implementation methods. Evaluating the
responses the author discovered the principle method of implementation was a
combination of personal/employee pride and motivation and company ethos educated
through the company by top management. These two methods positively collate with
the interview responses and furthermore with the literates in the initial research
chapter.
Question 2 – Implementation Period
Figure 15 - Implementation Period
Contemplating on the limitations of CSR implementation in the literature review

section, Hopkins (2007), Brady, (2005) and BITC (2010) all exert the conceptions that
CSR is not a simple concept to instigate, it takes time and requires a ‘radical rethink’ of
the organisations philosophies and strategies to be successful. As defined by Jim O’
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Brien, an independent CSR consultant during my initial interview stage and in

agreement with the 48% of respondents:
“CSR would take at least a year, and for a bigger company like John Sisk and Son it
could take over a decade in being properly developed. There is a huge amount of work
in developing these strategies and also the reporting would take years to properly
achieve sustainable GRI standards”
Question 3 – Complications of Implementation
Figure 16 - Complications of Implementation
This question was left to a multiple choice selection to allow for a full understanding of
the subsequent problems associated with implementation and the external
environment difficulties. Evaluating the comparable literature in respect to Friedman
(1970) who cited the financial benefits being ‘separated in time’, 31.4% believe CSR
benefits are not immediate, but fundamentally the main complication of
implementation is the lack of knowledge on the subject with 44.2% considering it as
the main complication. BITC (2010) advocate that focus should be on continuous
education of staff, which will facilitate the long term effects and successful
implementation of CSR.
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Question 4 – Influential factors of CSR
What are the main influences and reasons behind your company’s involvement in CSR?
Figure 17 - Influences of Acquisition
Comparing the respondents of the quantitative and qualitative research, the prevailing
trend of the responses indicates the ethical motivation of top management as the
main motivating justifications at 36.8%. The interviews sustained that executive boards
and the enthusiasm of employees proved the paramount impelling stimulations of CSR
growth in the organisation in question (Carillion, BAM, and PJ Hegarty). Some of other
responses included ‘all of the above’, with two of the respondents indicating CSR as
their core business driver.
Question 5 – Reporting
Figure 18 - CSR Reporting
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This question proved in unanimous favour that 50.6% of the respondents do not
incorporate reporting guidelines or initiatives. But the author felt there were some
interesting reports which were not covered in the literature review section.
Interestingly they include a CDP report (Carbon Disclosure Project) which indicates
carbon output of an organisation, and interestingly the UNPRI, as described by Sanders
(2008) is the United Nations backed guidelines on the Principles for Responsible
Investment, which is also similar to the SRI and GRI as dictated in the secondary
research stage. Fundamentally, the main report concluded to be the GRI which has
been conceived by nine of the respondent’s organisations.
Question 6 – Environmental Management Systems (EMS)
Figure 19 - Environmental Management Systems
As suspected through the variety of respondents to this survey, the author conceived
the perception that many of the organisations due to their irrelevant working
environments would not incorporate an EMS. However 26.2% of the responses
indicated the use ISO 14000, an EMS which has been portrayed in the literature
review. As with the preceding question this allowed for other specific responses not
listed, which included ISO 65 which a general accreditation scheme for product
certification (ISO, 2011) and Organisation for Responsible Businesses (ORB) which has
been designing polices for SME’s to achieve the set requirements for responsible
business practice (ORDUK, 2011).
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Question 7 – Economic Benefits of CSR
Figure 20 - Economic Benefits
Collectively between all the research implemented and appraised by the author, the
fundamental economic ‘bottom line’ of business has been mutually conceived to be an
established consequence of CSR practices. An inspiring 87.8% of the survey
respondents and 100% of the interviews highlighted that CSR has economic benefits
both financially and through productivity and employee satisfaction. This is further
demonstrated in research carried out by KPMG (2005) and the literature of Hopkins,
2007 and Mullerat (2009), who all illustrate the ‘bottom line’ benefits.
Question 8 – Company Benefits
Figure 21 - Company Benefits
This multiple choice question has substantiated the internal and external benefits in
which a company can gain once CSR has been implemented. These benefits not only
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demonstrate the paramount reasons for employing CSR practices but also a
professional view on the understanding of CSR in a global context. The literature
extensively covered a trivial list of the benefits (Mullerat, 2009, Talbot, 2010; &
Business and Leadership, 2010), which are predominantly common to the primary
research findings, further ensuring their relevance in business society and the
beneficial conclusions of CSR practices.
Question 9 – Company Performance
Figure 22 - Company Performance

This question provided a personal answer on the respondent’s organisation. It is a
difficult question to evaluate and analyse, based on the variability of the organisations
that completed the survey. The term excellent demonstrates companies such as BAM,
Skanska, Carillion, Vinci, Mott Mac Donald, Kier, WSP and Bovis Lend Lease, who all
exert their excellence through GRI and CSR reporting and EMS, and also the
community related work they have completed.
5.6 Quantitative Research Summary
The preceding chapter outlined the CSR accountabilities of construction based

professionals, demonstrating company theory, knowledge, opinions and learned
experiences. The principal purpose of the survey responses was to gather a global
business perspective, but evidently they reinforced the dominant primary research
undertaking, fully comprehending the importance and inevitable development of CSR
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in the current fragmented construction industry. The survey definitively presented

comprehensive results which are palpably comparable to the dominant research
already undertaken.
The quantitative and qualitative stages of research were essentially developed on the
back of the secondary research and the CSR professional interviews, which enabled the
author to equate, evaluate and assess any patently contrasting views or results
throughout the primary research stage. The various phases and varieties of research
allows any contrasting views to be assessed and appraised based on the prevailing
opinions of the literature, interviews, and survey responses, resulting in attaining the
veracious and respectable supposition and conclusions. This meant the responses were
expansively substantiated or contradicted in the summarisation of each question. It is
the developed opinion of the author that this ancillary research stage provided uniting
thoughts with the aforementioned research and will indisputably facilitate the final
subsequent chapters of concluding the predetermined aims and objectives of the
dissertation.
5.7 Primary Research Conclusion

Appraising and analytically evaluating the collation of explorations into the
development and subsidiaries of CSR implementation through the various
investigation methodologies undertaken by the author has positively proved the
expressive thoughts of the research in respect to the hypothesis and objectives stated.
Effectively all the preconceptions of the research have been commendably delineated
through selected methods of analysis and examination of both academic and practical
exploration. The author aspires to influence and encourage the growth and realisations
of CSR in the construction industry justifying this by portraying revolutionary examples
of accomplished companies such as the corporations enumerated previously in the
interviews and the literature presented. The results thus far predominantly
exemplified the predetermined considerations and have unquestionably provided a
stern basis for the author to formulate the recommendations as to the research in
practice in the subsequent concluding chapters. The author will also make
considerations to the further research that can be conducted in this area to further
demonstrate the principle objectives of the research undertaken.
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Chapter 6 Conclusions and Recommendations
Chapter 6
Conclusions and Recommendations
“be the change you want to see in the world”
- M.K Gandhi (1869 – 1948)
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Amalgamating the ample information obtained in the multiplicity of research

completed over the previous chapters, the author can present the subsequent
informative conclusions regarding the objectives stated in the introductory chapter
along with recommendations to improve CSR activities in the construction industry. To
fully comprehend the instructive objectives presented, the author consumes the
attitude to isolate each of the five objectives into distinctive conclusions. The principle
intention of this method of evaluation is to independently assess each of the
objectives, ensuring they are adequately appraised through the utilisation of the
previously obtained research methodologies.
6.2 Research Aim and Objectives
6.2.1 Research Aim
The subsequent aim will be tested through the conclusion of the predetermined
objectives.
“Illuminating the prominence of incorporating CSR as an imminent organisational
feature to succeed in the future markets of the construction industry”.
6.2.2 Research Objectives
1) To literate the prominence and connotation of Corporate Social Responsibilities in

the Construction Industry through its historic development and characteristics.
The initial contention of the research objectives sets the elementary foundation for
which the author can acknowledge and develop the research undertaking in a manner
that articulates the successive research fluently. Observing and envisaging the
historical development of CSR is a difficult area to comprehend, especially in respect to
the construction industry, where many organisations traditionally exerted CSR aspects
through their ethically obligated internal objectives which are not associated with any
of the modern programmes or external organisations. This conception has been
intentionally established throughout the research stages, with personal observations
during the primary research stages. Through subsequent literature the author
compiled a list of classifications of CSR that through numerous defined motives have
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industrialised over the years. The practical research concluded a dominant combined
illustration of the various categorisations achieving an appreciative understanding of
the internal obligations of CSR. The multiplicity of research undertaken has established
a refined collection of historical development patterns from a collective business
perspective as well as construction related maturities. Uniting both perceptions the
author has fostered a number of appraised and evaluated CSR progression precedents
in the business environment with emphasis on the construction industry. These
expansions encompass the following:
1. Globalisation
2. Influential Sustainable Reports, Movements and Frameworks
3. Historic Reputational Characteristics
4. Internal Ethical Compulsions
This reviewed compilation has been accumulated to establish the focal influential
factors regarding the development and incorporation dynamics behind CSR practices in
the construction industry. It is the thought of the author that this initial objective sets a
precedent for the subsequent objectives in a manner that represents a basis for its
theoretical and applied understanding.
2) To appraise the research developments concerning the motives, drivers and market
influences for company change towards social, sustainable and environmental
strategies.
Throughout the investigation of this dissertation numerous authors described their

definitive and valued opinions on the various aspects of CSR in its integrity as a
business concept. These academic sentiments in most instances were reinforced
through the quantitative and qualitative methodologies of learned professionals. As
one of the main paradigms, the literates considered the compulsions of the
organisations as the foremost stimulating strategy. Underlining the ethical motives is
the influential contributories of external organisations, focusing on the social,
environmental and sustainable perspectives, providing guidelines and assessment
tools facilitating businesses to implement accomplished CSR systems. These schemes
have provided the industry which a benchmarking apparatus to assess strategies and
targets through comprehensive external analysing and evaluations. Not only will these
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external organisations provide inclusive results, but will influence the selective
opinions and performance observations of stakeholders and essentially regarding the
bottom line, shareholders.
Evaluating the various research contributions throughout the dissertation the author
compiled a list of the diverse factors that have provided a baseline for efficacious
implementation in the construction industry.
1. Economic Marketing Permeations (CRM, SRI, GRI, & EMS’s,)

2. Instrumental Administrations (ISO, CEMARS, BITC)
3. Stakeholder Revelations
4. Client Pre-Requisites
5. Achieving the ‘triple bottom line’
This list encompasses the external instigations correspondingly to the internal drivers
such as employee enthusiasm, community relations, and client requirements. It is a
comprehensive list derived from the literature and primary research indicating the
paramount activities in which an organisation is influenced and can subsequently
through successful and ambitious instigations illuminate the organisations aspirations
in a national and international context.
3) To establish the justifications and prominence behind changes and adaptations to

innovative market opportunities.
CSR should not be thought of as doing the right thing because it’s right, but rather a
moral commitment of the organisation, not focusing on the economic benefits it
creates. Through the varied research the author has evaluated many aspects of CSR
from environmental to social to economic; all of which portray their central
compulsions for the organisation. Appraising the internal and external benefits and
competitive recompenses it generates, the author has developed a comprehensive list
of the focal remunerations from the preceding investigations undertaken. The list
which has been similarly fostered from the thoughts of Mullerat (2009), an author that
has been numerously depicted during this dissertation based on his CSR attributes
through practical and theoretical knowledge, embraces the following:
1. Client Loyalty and Dependability
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2. Acquisition of Legitimacy and New Market Penetration

3. Competitive Advantage
4. Less Litigation
5. Employee Commitment, Retention and Productivity
6. Increased Quality of Services
7. Amplified Health & Safety Awareness and Decreased Liability
8. Reduced Carbon and Environmental Impacts
9. Better Access to Credit
10. Bolstering Public Image, Reputation and Brand Value
This list depicts a short comprehension of what is seen as Company, Community and
Environmental benefits transcending from the instigation of CSR practices in an
organisation.
Evidently the prosperity of CSR transcends the tangible resources in which it

consumes. The preeminent justification in its implementation has been demonstrated
by professionals and academics alike during the research stage. Portraying the concept
of John Elkington’s TBL in respect to CSR throughout this dissertation significantly
justifies its dominant qualifications as a successful business policy to instigate in the
construction industry. CSR strategies stipulate a competent equilibrium of the internal
characteristics of the TBL philosophy which incorporates Environmental, Sustainable
and Economic integers. This is achieved through an obligatory comportment of
commitment through responsible and virtuous behaviour of the organisation.
The projections of the benefits that justify its implementation have been vindicated
meticulously throughout this dissertation from the various accolades of academia and
professionals in a comparable manner, further demonstrating its importance to society
and the internals of the organisation. A concluding factor which indefinitely
substantiates its importance in the construction industry is the dynamic element of
client prerequisites, which was demonstrated in the literature review, especially for
companies involved in public works for government authorities and ethically
orientated organisations. These organisations have relentless buying power exceeding
billions and through the Green Public Procurement initiative illustrated in the literature
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review, will only select companies that express their commitment to CSR aspects and
policies in everyday business exertions.
4) To investigate the Key Performance Indicators and influencing factors shaping the
imminent markets.
Organisations must not only consider the numerous policies they incorporate, but also
the methods of measuring and controlling the strategies through benchmarking and
utilisation of internally and externally controlled Key Performance Indicators. Actions
must be taken to ensure their KPI’s on CSR activities are met in terms of measurable
CSR initiatives across the business operations. CSR stratagems should be set and
managed in a manner that suits the company and range from short, medium and long
term strategies depending on the size of the organisation. The research indicated that
strategies are managed on a daily, monthly, quarterly and yearly basis also with certain
organisation the strategies are consistently monitored and managed based on results
and productivity.
Observing the revelations of Skanska for explanatory purposes, they have focused
strategies and benchmarking on four key areas where they feel they can improve in
relation to CSR aspects. These include:
Competences: Training and Awareness; 100% of Employees trained in Environmental

Awareness by the end of 2010.
Energy and Climate: Reduction of Energy use and CO2 Emissions; 50% of cars in class 1
and 2 of green class policy, all site offices with energy efficiency programs, and
adaption to new products using Life Cycle Costing Analysis.
Materials: 100% of offices with proactive waste reduction and management plans and
10% of project waste gong to landfill by the end of 2010.
Flora, Fauna, and Ecosystems: 100% of prioritized materials affecting Flora, Fauna, and
Ecosystems that can show a clear chain of custody.
External organisations have predominantly helped the growth and development of
CSR, recent advances of outside monitoring contingents such as BITC, WGBC,
CEEQUAL, ISO and other sustainability groups. The construction companies
interviewed in the primary research stage all demonstrated a reliance on a number of
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these external organisations, believing they will portray a responsible reputation while
also facilitating with the monitoring and controlling of the relevant CSR activity. The
importance of these organisations is evident in their global recognition and
reputations in society. They provide unsurpassed help and guidance for businesses,
which improves the reputation of the recently tarnished industry in the community,
environment and within the internals of company. The objectives for mainstreaming
and efficaciously implementing a CSR strategy are to combine and interplay between
the organisations peculiar policies and the external administrations of the outside
institutes. This would provide an internal knowledge utilising the known objectives and
abilities of the company while also receiving guidance on national and international
compliances and standards.
5) To identify the challenges strongly associated with company adjustments and

Assessing the complexity and challenges associated with CSR, the embracing
businesses must not only define and develop an incorporation strategy to educate
staff, but also a strategy that delineates an optimum balance among social,
environmental and economic factors for the organisation. Further delineated by Urip
(2010 pp.8):
“Corporate governance and CSR policies should be embedded into the company’s
culture and become an integral part of the short - and long term strategy of the
company”.
Jim O’ Brien a CSR consultant during initial interviews considered the main problem is
the lack of appreciation of what it is really about, therefore not seeing the need for it
nor the benefits that it can bring. Further illustrating that education is a very important
aspect when firstly introducing CSR. Agreeing with above point Jenny Todd of BITC
during an interview organised with the author stated that:
“Implementing anything new is always a challenge and is met with obstacles. Getting
the support from top level management and senior staff is the key to success but can
be tricky. Getting the measurement aspect right can be challenging, one must be able
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to prove the worth of the strategies you are implementing and make sure that they can
continually be improved upon”
These professional opinions fundamentally outline the limitations and challenges

associated with this transition to achieve corporate governance.
A company can only expect to practice sustainable CSR successfully only when it is able
to exert the high degree of control required to ensure good corporate governance
within its core business operations. Companies need to be proactive in their solutions
to create a positive reputation in social, economic and environmental aspects
(Hopkins, 2007). A pertinent business must develop uniting objectives between the
societal understanding and on-going interchange and engagement amongst the
company and its stakeholders, preserving and maintaining relevant competences at
the various levels in the company. Figure 23 below is an explanatory industrial example
of what Skanska have adopted as their main focus in their Sustainability Agenda 2010.
Figure 23 - Skanska Sustainability Agenda, (Scanlon, 2010)
The initial problem when involving and educating the organisation is the belief and
acceptance of CSR in the company’s structure. Many employees do not understand the
exertions CSR has and for this reason choose not to except or believe in it as a
beneficial strategy. The organisation must listen to these employees and educate them
in a manner that will ensure compliance and competency among all staff members.
In conclusion perceiving the author felt the statement by Elkington (1998 pp. 24)
demonstrates the fundamentals of successful implementation:
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“A commitment of sustainability will only reap maximum benefits when it is fully

incorporated in a company’s core business models”.
6.2.3 Objective Summary
The objectives fundamentally outline five key areas of research which have been
established over the duration of this dissertation through various methodologies of
research incorporating:
1. Historic Development
2. Motives and Drivers
3. Organisational Benefits
4. Key Performance Indicators
5. Integration Challenges
CSR has been described as a basic philosophy that through an understanding of its
principles should be a fundamental and integral part of the operation of every business
enterprise (Urip, 2010). CSR results in substantial growth opportunities for the
companies that fully embrace its principles and instigate compliance as a trusted
comprehensive model of business ethics.
A competent company will develop short (day to day), medium (6 - 12 months) and
Long (2 - 5 years) strategies which should ultimately merge these activities and the
ones expressed previously, to cultivate their ambitions and become more
conscientious and exceed fundamental legal requirements set by governments and
other authorities. An articulate CSR strategy is based on integrity, sound values, and a
long-term approach which stipulates clear business benefits to the company and
portrays positive contributions to the well-being of society (Timberlake, 2006).
6.3 Hypotheses Appraisal
The dissertation has provided insight into the concept of CSR in the business
environment and more importantly in the construction industry. The hypothesis in
chapter one stated:
“The preference and prosperity of evolving Corporate Social Responsibilities as a

dynamic policy in the development of construction companies central objectives and
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strategies towards enhancing corporate reputation, increasing efficiency and enriching

profitability”.
This tentative statement was profoundly tested in this research, and it is the concluded
belief of the author that through the various literature and practical research
presented in the preceding chapters of this dissertation that the hypothesis has been
tested and proven to be accurate.
6.4 Recommendations for the Construction Industry
CSR in the construction industry is a modern theory of responsible business

practices, and in most cases only adapted by the larger multi-national organisations.
Resulting from the informative research presented in this dissertation, the author has
acknowledged the importance to conceive the following recommendations based on
the findings of the preceding research and conclusions attained. It is the thought of the
author that these findings will help progressively improve CSR’s awareness in the
industry in a manner that relates to all organisational sizes. Corroborated from this the
following recommendations are being put forward.
6.4.1 Awareness in the Global Environment
Appraising CSR on an international basis perceives the barrier that it does not excel
outside the corporate world. CSR is delivering fertile ground for think-tanks,
multinationals and consultancies. However government authorities are becoming
strikingly aware of the corporate responsibilities and are taking an ever profounder
interest. For example in 2006 the British Government introduced a Companies Act
which required all public companies to report on social and environmental matters. On
a global scale measures are being taken to promote corporate responsibility around
the world through a New York-based group called the Global Compact which has been
developed by the United Nations (Franklin, 2008). More needs to be done in this area
through local authorities, colleges and international bodies. It’s an emergent concern
and needs to be addressed, this cannot be done unless it is acknowledged and
accepted.
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6.4.2 Staff Inclusion
The general theme of the construction interviews was industry professionals related to
some aspect of CSR in the organisation. This was not the ambition of the author but
rather an uncontrolled certainty. The author conducted interviews with other persons
not necessarily related to CSR i.e. Senior Engineer, Contracts Manager, but
inopportunely the questions asked were not applicable to their knowledge in that area
of the organisation and thus were not apposite to include in the research. One of the
concluding thoughts of the research was the fundamentals to include and educate all
staff on the reasons and importance of the strategies being CSR implemented. For CSR
to be successful you must establish an intricate system of staff inclusion from
inception.
6.4.3 Better Responsiveness in the Irish Construction Industry
The Irish construction industry by nature does not instigate the term CSR in practice,
but many of the organisations would execute CSR activities. The international
organisations working in Ireland generally implement CSR activities, but it is the SME’s
that need to be more aware of its presence in the industry. Stakeholders should
become more responsive through GPP initiatives to promote CSR and establish
awareness in Ireland of its contributions to society and benefits to the organisation. A
motivating suggestion was presented during the interview process, whereby the
Construction Industry Federation should instigate a system such as the CCS in the UK.
This would present a national awareness of CSR activities through personal ambitions
of the company to excel in this scheme and be recognised as an ethical business based
on the results of the CCS structure.
6.4.4 Potential ICT Developments
With any modern concept or business model the potential to development an ICT
(Information Collaboration Technologies) system which will help manage and control
the new policies and schemes being implemented. There are many theoretical
organisations that provide guidance and measures on CSR activities such as the
associations enumerated in the literature review, but there are few IT systems
developed to assess, monitor and guide the associate company on CSR undertakings.
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Evident in the literature, the Royal BAM Group have developed carbon calculation tool
called PCC and through the interviews the author established other companies have
created internal management systems such as Kier’s ‘Connecting’ software. There will
always be room for improvement in ICT, certainly in admiration to CSR enhancements
where companies should share their knowledge and experiences with other less
informed businesses as a standard moral practice.
As an example of future ICT systems, evaluating the potential of using BIM (Building
Information Modelling) as a Green initiative, Skanska were able to reduce costs and
implement better strategies and initiatives from the preliminary procurement stages.
Figure 24 demonstrates the model Skanska used to ensure they instigated sustainable
systems from project commencement, which through BIM technology subsequently
reduces cost of change and demonstrates the ability to change during the various
stages of the project.
Figure 24 – Green BIM, (Scanlon, 2010)
6.4.5 Supplementary Acknowledgement of External Accomplishments
Organisations achievements should be acknowledged by more than just external

accolades, governments and other clients should recognise the importance of these
responsible practices, and focus more on awarding contracts to ethical companies
rather than the ‘lowest’ tender. The accomplishments should be globally recognised
and locally appreciated.
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6.4.6 Incentives for SME’s
Assessing the general information obtained in this research the theme being projected
is one that is dominated by multinational companies as outlined previously. The
incentives do not seem to be present for SME’s to incorporate CSR policies. Its
dominance by larger companies needs to be addressed and incentives need to put in
place to encourage these organisations to adopt social and responsible policies.
Although this dissertation outlines the remunerations and importance of CSR
implementation, many SME’s do not feel it’s relevant or appropriate to their size or
structure. The underlying thought of the author is that governments or external
organisations should encourage and incentivise the smaller businesses to implement
these policies through financial or contractual inducements to animate its growth
among local and national companies.
6.4.7 Instigation of ISO 26000 as a Documented Business Policy
As delineated in the literature review the ISO 26000 is a standard giving guidance in
the area of Social Responsibility, but to date is not a documented requirement for
organisation but rather a voluntary guidance on social responsible aspects. Evaluating
the global successes of ISO 14000, the author believes the ISO 26000 series could
potentially deliver similar success if implemented as a documented policy of
requirements, which would additional exhibit the awareness of CSR in the global
environment and portray the importance of CSR as a business strategy.
6.4.8 Contractual Obligations
As a concluding and observable recommendation, the author proposes the prospect of

an obligatory application of responsible practices particularly on public contracts
where governments and local authorities have the influence and responsibility as
public body to showcase their own CSR ambitions before any contract is even
awarded.
6.5 Avenues for Further Research
While researchers continue to debate upon the ‘true’ nature of CSR to produce
clear definitions and concepts, this research suggests that the CSR notion and any
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frameworks are likely to evolve further in the construction industry. CSR policies are
seen as being industry-specific in nature with complex process, strategies and
procedures. This dissertation focused on the broad sense of CSR through its
developments, remunerations and implementations, with positive emphasis on
accomplished construction companies in respect to CSR procedures and intelligences,
to outline its fundamental presence in the industry. Therefore, as a first extension on
the theoretical side, future researchers should enhance the investigation scope by
focusing on a specific area of CSR to fully alleviate specific fundamentals. The
subsequent concentrated research would offer a more complete picture of CSR
specifics in construction, providing a more complex perspective on a definitive
strategy. Testing the applicability of such a framework in a specific manner such as
paramount implementation methods from an emerging market perspective or
emerging market setting would be valuable to compare and contrast the CSR picture in
an increasing ethically orientated industry.
This dissertation was the author’s initial attempt to endeavour the research of
Corporate Social Responsibilities in the construction industry. As mentioned
previously, the selected subject was explored in an expansive approach and the aim of
the author was to provide a wide scope of CSR in the industry with initial focus on the
importance and prosperity in which it consumes. The author hopes this initial study
will act as a catalyst and inspire further investigation to sociological, environmental
and sustainable aspects in the construction industry and provide a fundamental basis
for future research or reference by undergraduates and construction organisations
alike.
6.6 Research Limitations
This undergraduate dissertation proved successful in the respect that the author
achieved compliance with the hypothesis, aim, and objectives stated. In addition to
this there are some limitations which subsequently hindered the research undertaken.
The main problem was the limitation of time specifically set for this research, meaning
survey responses and gathering of literature was restricted and resulted in less
responses and time dedicated to researching. This delimited the author from analysing
profoundly in to different theories and philosophies of the various academics of CSR.
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As CSR is a relatively new term in the construction industry the author was restricted
to the literature available in the specific industry so unfortunately was constrained to
using internet references and general CSR narratives to portray thoughts, attitudes
and philosophies on the subject in matter.
A final obstacle was the Irish presence and understanding of CSR for interviews. The
author tried to obtain Irish organisations for the interviews but was unfortunate to
only conduct two interviews with Irish Contractors. The author had to conduct
interviews with UK and Global based Contractors to obtain respectable results, a
number of which were conducted via ‘Skype’ which presented an impersonal
affiliation between the interviewer and the interviewee, but regrettably this could not
be avoided due to the time constraints and cost of international travel. Conversely
acknowledging the preceding limitations the author believes the research produced
was an inclusive success.
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Chapter 7 References and Bibliography
Chapter 7
References & Bibliography
Page | 91
7.1 References & Bibliography

1. Ackermann, R., & Bauer, R. (1976). Corporate Social Performance: The Modern
Dilemma, Reston Publishing Co, Reston.
2. Allison, B. (1996), Research Skills for Students, Kogan Page Limited, London.
3. Allouche, J. (2006), Corporate Social Responsibilities, Concepts, Accountability and

Reporting, Palgrave Macmillan, Hampshire.
4. Arksustainability (2009), Sustainability Management. Available from: Arksustainability

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Appendices Construction Interview Manuscripts
Appendix A
Construction Interview Manuscripts
Dawn Watson – Environmental Manager, VINCI Construction
Peter Scanlon – Environmental Manager, Skanska
Nick Drake – Sustainability Advisor, Carillion PLC
Tom van Beek – CSR Director, the Royal BAM Group
Mairead Dennehy – HSE Manager, Laing O’ Rourke
Andrew Kinsey – Senior Sustainability Manager, Bovis Lend Lease
Ian Brooks – Business Improvement Manager, Kier Group
Jim Peters – Services Manager, PJ Hegarty
Cyril Keegan –HR and Environmental Health and Safety Director, P. Elliott
Anne Buttfield – Marketing and PR Manager, Mott MacDonald
Jane Grant – Associate Director, WSP
xiii
Appendices CSR Professional Interview Manuscripts
Appendix B
CSR Professional Interview Manuscripts
Douglas B. Johnson – ‘Environmental Intelligence Inc.’
Jim O’ Brien – ‘Jim O’ Brien CSR Consultancy’
Jenny Todd – ‘BITC’
xiv
Appendices Online Questionnaire Results
Appendix C
Online Questionnaire Results
xv
Appendices Questionnaire Cover Letter
Appendix D
Questionnaire Cover Letter
xvi
Appendices Sample Dissertation Review
Appendix E
Sample Dissertation Review Meeting
- Sample Minutes of Meeting
- Sample Progress Review
xvii
Appendices Carillion Plc Strategy Model
Appendix F
Carillion Plc Strategy Model
xviii

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Corporate Social Responsibility (CSR) in the Construction Industry

An Analytical Investigation into the Development and Prosperity of CSR through

In Partial Fulfilment of the Requirement for

The Honours Degree of Bachelor of Science

In Construction Management and Engineering

- Albert Einstein (1879 – 1955)

Acknowledgements of Support and Dedications

My initial appreciation of gratitude is for my academic supervisor Kevin Ryan. Kevin

Sincere appreciation is also comprehended for the lecturers of the Construction

In respect to the internals of the dissertation, I am intently grateful to the

Finally my personal appreciation progresses to all my family who have emotionally

Particulate Dissertation Word Count

Chapter 1 - Introduction 745

Chapter 2 - Literature Review Corporate Social Responsibilities 9273

Chapter 3 - Research Design and Methodology 2012

Chapter 4 - Findings and Discussions Part One - Qualitative Research 4332

Chapter 5 - Findings and Discussions Part Two - Quantitative Research 2197

Chapter 6 - Conclusions and Recommendations 3897

Dissertation Word Count Total - 22456

I have discussed, agreed and compiled with whatever confidentially or anonymity

15th April 2011

Chapter 2 – Literature Review Corporate Social Responsibilities 5

2.6.1 The Brundtland Report 16

Chapter 3 - Research Design and Methodology 37

Chapter 4 - Findings and Discussions Part One - Qualitative Research 46

Chapter 5 - Findings and Discussions Part Two - Quantitative Research 63

5.2 Online Questionnaire Structure 65

Chapter 6 - Conclusions and Recommendations 76

Chapter 7 - References & Bibliography 91

BLL Bovis Lend Lease

SRI Social Responsible Investing

CSR can be seen as an imposition placed on an organisation by external stakeholders, who

Conversely, these observations miss the conceptualisation of ethically incorporated CSR.

The construction industry as a global environment has excessively and recurrently

In conclusion to the delineating purpose, it is the informed contemplation of the author

- M.K Gandhi (1869 – 1948)

1.1 Chapter Overview

The fundamentals of this chapter outline the intentions, determined objectives

1.2 Research Aspirations

Corporate Social Responsibility in today’s business environment plays a fundamental

“The preference and prosperity of evolving Corporate Social Responsibilities as a

1.2.2 Research Aim and Objectives

“Illuminating the prominence of incorporating CSR as an imminent organisational

1. To literate the prominence and connotation of Corporate Social Responsibilities

These research objectives will be examined via a combining illustration of research

1.3 Dissertation Content

1.3.1 Chapters 2 & 3 - Literature Review

1.3.2 Chapter 4 - Research Design and Methodology

1.3.3 Chapter 5 & 6 - Findings and Discussions

1.3.4 Chapter 7 - Conclusions and Recommendations

1.3.5 Chapter 8 - References and Bibliography

1.4 Chapter Summary

It is the overall aim of the author to present a dissertation that stipulates an

Corporate Social Responsibilities

- Margaret Mead, US Anthropologist (1902-1978)

2.1 Chapter Overview

2.2 Defining Corporate Social Responsibilities

“The continuing commitment by business to behave ethically and contribute to

All CSR characterisations conclude that it is a process by which a company’s ambitions

2.3 Classification of Corporate Social Responsibilities

2.3.1 Economic / Instrumental Stakeholder Theory

The dominant methodology to instrumental stakeholder theory assimilates exploiting

as an imperative central purpose of the company on normative and not instrumental