Inclusive corporate culture and employment of persons with disabilities: analysis of CSR strategies ofmultinational enterprises in Norway and the UK
Yuliya Kuznetsova
PhD student in Social Work, University of Trondheim, Norway
Marie Curie Fellow, Disability Rights Expanding Accessible Markets (DREAM) Project
NOVA – The Norwegian Social Research Institute, Oslo, Norway
Hiring persons with disabilities is recognized as a part of the philosophy of corporate social responsibility (CSR) and an essential dimension of the workforce diversity. Increasing labour participation of persons with disabilities and raising CSR among business is important to achieve the ‘inclusive’ growth targetof the EU 2020 strategy. Yet, the official employment rates for persons with disabilities still remain low.The paper argues that instead of treatingemployers as a part of the problem, they should be regarded as a part of the solution to improve the situation and share positive examples. Inclusive practices tend to be observed more in multinational enterprises (MNEs), since those are subjected to CSR policies and possess better resources.
Thepaperexamineshow MNEs integrate ‘inclusive corporate culture’ in order toemploy persons with disabilities as a part of their CSR strategies. The article analyses inclusive corporate cultures and CSR policies of twelve selected MNEs operating in Norway and the UK. The paper is based on the comparative qualitative content analysis of the websites of MNEs and their CSR reports. The selection of the MNEs is based on the results of the discussion meetings with employers’ organizations in Norway and the UK.
Key words: Corporate Social Responsibility (CSR), Multinational enterprises (MNEs), disability policies, employment, Norway, UK
1
Introduction
This paper considers a relatively new aspect of CSR – employment of persons with disabilities. The main objective of this paper is to conduct an overview of how MNEs incorporate their CSR strategies into ‘inclusive corporate culture’ to address persons with disabilities among their workforce and in communities, where they operate.
For a long time persons with disabilities have been regarded as “objects of charity, medical treatment and social protection”, whose rights are discounted bythe mainstream society (UN, 2006, Quinn, 2009). The prevailing ‘medical model’ treated disability as an “observabledeviation from norms, a medical condition and an individual problem”that isolated persons with disabilities from active participation in the mainstream society(Bickenbach et al., 1999, Harpur, 2012). The paradigm shift has occurred with the anticipation of the ‘social model’ of disability claimingthe society as disabling and causing a disability due to a relationship between a person with impairment and this society(Shakespeare, 2004). The social model of disability appeals for society to view ‘disablement’ as a matter of basic civil rights and treat persons with disabilities asa “social minority”(Bickenbach et al., 1999, Olkin, 2002, Harpur, 2012). The adoption of the United Nations Convention on the Rights of Persons with Disabilities (UN CRPD)in 2006hasfurther strengthened the social model of disability and granted persons with disabilities with a wide spectrum of human rights including the right to employment based on the principles of equal treatment, accessibility and non-discrimination(Waddington, 2009, Harpur, 2012, UN, 2006).
Employment is considered one of the important aspects of social inclusion, that is especially important for the employment of persons with disabilities in the mainstream labour market. However, the official unemployment rates for persons with disabilities of working age in most of the developed countries are still reported at least twice low than for those with no disability. According to OECD (2010), in the late 2000s across OECD countries the average employment rates for persons with disabilities comprise just over 40% compared with 75% for people without disability.Europe has recently started to promote active integration of persons with disabilities in the labour market and recognised the active involvement of the business sector (OECD, 2010).
For a long time business and industry have beenproviding sheltered workshops or other segregated forms of employment opportunities for persons with disabilities (Rabby, 1983).Though, involving persons with disabilities in the open labour market has been associated with numerous problems. Previous research has identified prejudiced and negative attitudes of the employers and co-workers, discrimination at the workplace and concerns of employers about high costs, safety, productivity and public image as negatively influencing employment of persons with disabilities(Rabby, 1983, Hernandez et al., 2000).In recent years, businesshas startedincorporating ethicalbehaviour towards the environment, stakeholders, society, employees and promotinginclusion of the ‘disadvantaged population’. Some scholars, e.g. Trevino and Nelson (2011)explain this behavior asthe need of companies to change theiroverwhelming focus on accumulating profits that negatively affects corporate reputation. Others, like Ramasamy et al. (2010),consider the expansion of companies and increased expectations of varied stakeholders as influencing companies’ responsiveness.In addition, Matten and Moon (2008) see changes in political, cultural and nationallabour systems asinfluencing companies decisions to undertake social responsibilities. Thenew stakeholders’ expectations as well as social performance goals of global and national environments, expandbusinessCSR policies towardsembracingdiversity, non-discrimination, human rights and employee rights (Holme and Watts, 2000, Idowu and Towler, 2004, Markel and Barclay, 2009).
Since persons with disabilities are pronounced equal members of society by international institutions and are recognized as an important group of human diversity who have rights including the right to employment, their integration into employment also becomes a part of the CSR agenda on the international and European levels. Adopting CSR and corporate policies specifically towards inclusion of persons with disabilities has to a greater extent been observed in large corporations and MNEs due to better conditions and resources availableto employ diverse workforce and care about the communities, in which they operate(Rabby, 1983, McMahon, 2008).Though some scholars e.g. Hernandez (2000)consider such ‘socially appropriate behaviour’ rather superficial. Previous research has studied CSR policies and corporate culture, as well as challenges experienced either by employers or persons with disabilities, and inclusive diverse environment.However,there is a limited number of practical researchstudyinghow companies address inclusion of persons with disabilities into the workforce in their CSR strategies. Accordingly, this paper will particularly address in more details the issue of how large corporations adhere to new social responsibility normsof employment of persons with disabilities and how they adapt their CSR strategies and corporate cultures towards these new requirements. Whether employment of persons with disabilities becomes a part of CSR,and if so, how is it highlighted in companies’ policies and culture? And what are the factors influencing companies undertake these initiatives?
The remainder of the paper is structured as following. The first sectionconsiders the theoretical background: the meanings of CSRand corporate culture. It also presentsbrief overview of the global and national CSR guidelines and policies and discusses the inclusion of persons with disabilities as a part of CSR strategies and corporate culture. The second sectionpresentscountry and company selection overview. The third section describes data analysis of selected MNEs. The forth sectiondiscusses findings and limitations and the fifth section presents the conclusion.
- Theoretical framework: Employment of persons with disabilities as a part of CSR and ‘inclusive corporate culture’
Corporate culture is argued to positively influence employment of persons with disabilities and expand companies’ corporate social responsibility(Samant et al., 2009, Schur et al., 2005). This section willfirst look at CSR and corporate culture as separate concepts and their interrelation. Then, it will discuss how CSR can promote an ‘inclusive corporate culture’ and the elements pertinent to this type of culture in relation to inclusion of persons with disabilities into the workforce.
1.1.CSR
Corporate social responsibility (CSR) is the umbrella term explaining how business relates to the cultural, economic and political environment in which it operates.Previously, the proponents of ‘shareholder capitalism’, i.e. Milton Friedman (1970), associated CSR mainly with economic responsibility integral to increase company profits, create jobs and wealth (Trevino and Nelson, 2011). Though overtime, the scope of business CSR strategies and initiatives has expanded dramatically.
American sociologist Archie B. Carroll (1991)has conceptualizedCSR as a pyramidconstituting of four kinds of responsibility: economic, legal, ethical and philanthropic. First, the economic responsibility occupies the basic responsibility, which isabout producing goods and services for society and getting profit. Second,the legal responsibility isimportant to comply with the minimum norms and standards of business conduct in society. Third, business has anethical responsibility todo “the right things”.Forth, the philanthropic responsibility occupies the top of the pyramid, though the smallest part, and includes activities aimed topromote human welfare and goodwill through voluntary donations of time and money or products or services (Trevino and Nelson, 2011). The ‘social aspect’ of corporate responsibility has latelygained greater attention and significance. The World Business Council for Sustainable Development’s (WSCSD) has recognized the important role societal responsibility has alongside with economic responsibilityto improve the quality of life of the local communities and society at large (Holme and Watts, 2000). Social responsibility and stakeholder responsibility are the most often addressed CSRdimensions above economic and environmental responsibility inthe recent analysis of various definitions of CSR undertaken by Dahlsrud (2008).
Thus, in contrast to ‘shareholder capitalism’ theopposite view has emerged emphasizing the goal of CSR as a ‘human capitalism’ serving all stakeholders’ interests - employees, suppliers, customers, the government, the community and society at large (Mackey et al., 2007, Peng, 2006). Regarding this, Trevino and Nelson (2011)point out high interconnectedness and interdependence of business and society. Companies contribute economically to their local communities, by providing jobs, wages and benefits, and tax revenues. Though, on the other hand, companies depend on the health, stability, and the prosperity of the communities, in which they operate, thus need to care about these aspects of the communities. Moreover, engaging in social responsibilitycompanies do not only increase their image and reputation among customers and suppliers, but influence employees’ motivation, quality and productivity and help attract new talented employees (Mackey et al., 2007, Husten and Allen, 2007, Idowu and Towler, 2004, Nijhof and Jeurissen, 2010, Weber, 2008).
Yet, incorporating socially responsible behavior is not entirely voluntary and arises due toexpectations of multiple stakeholders and national legislations that add new requirements and alter how the social, environmental and economic impacts are addressed by business (Dahlsrud, 2008, Trevino and Nelson, 2011, Porter and Kramer, 2006). In this respect,when underemployment of persons with disabilities becomes a matter of societal concerns both on the international and national levels,it can be argued that integrating these people into the mainstream labour market is a part of the companies’ social responsibility.Especially, when disability is recognized as a form of human diversityimportant to be included in companies diversity management policiesand CSR programmes, though requiring significant changes in the work environment (Samant et al., 2009, Ball et al., 2005, Markel and Barclay, 2009, Hart, 2010).
1.2.‘Think globally, act locally’: international and national CSR guidelines and policies addressing disability
To be able to communicate and establish trust-based relations to their customers, the national authorities and their employees, inclusion and diversity are increasingly important for MNEs that operate in global and multicultural environments.Usually, these enterprises observe internationally recognized CSR guidelinesthat promote the principles of non-discrimination, human rights and equality. The United Nation’s Global Compact (UN, 1999)launched in 1999, involves corporations from all over the world to voluntary advance ten principles that address human rights, labor, the environment, and anti-corruption policies (Bies et al., 2007).The OECD Guidelines for Multinational Enterprisesoblige multinational enterprises to respect the internationally recognized human rights and encourage local capacity building through close co-operation with the local communities. The latest 2011 amendments to these OECD Guidelines(2011) - the fifth since 1976 – require that enterprises comply with the principles of non-discrimination and respect the human rights of specific population, including persons with disabilities. The Guidelines address enterprises to recruit persons with disabilities from local communities and invest in their training and lifelong learning.
The debate that business has to play a more prominent societal roleis also important to theEuropean level(Habisch et al., 2005). The Green Paper of the European Commission (2001)articulates the importance of going beyond compliance to legislation and investing into human capital, environment and stakeholders such asbusiness partners and suppliers, customers, public authorities and local communities organizations. In the follow up document, theEuropean Commission (2002)pronounces such aspects of CSR as provision of quality employment, lifelong learning and equal opportunities and considers integration of personswith disabilities an important aspect to be addressed by CSR strategies. In this respect, enterprises are encouraged to exchange CSR experiences and to act in a socially responsible manner towards people with disabilities in relation to promoting equal employment opportunities, developing designed-for-all products and improving accessibility to assistive technologies (EC, 2002).The recentlyrenewed EU strategy 2011-2014 for CSR (2011)articulates hiring persons with disabilities an important social responsibility issuerecognized as a part of the business CSR philosophy.
1.3.Social responsibility towards persons with disabilities as a part of the corporate culture
Empirically, CSR consists of clearly articulated and communicated policies and practices that reflect business responsibilities (Matten and Moon, 2008). Though, some companies use CSR policies asjust a supplement to their activities. While others, that are fully involved, incorporate CSR into organizational norms, values, policies and business processes. Thisapproach makes CSR initiatives implementedinto companies strategic goals and has the potential to change their corporate culture, as argued byAguilera et al. (2007).
The term‘corporate culture’ according toSchein (2009)is represented by the three levels within organizations: 1) ‘artefacts’ or visible organizational structure and processessuch as architecture, people’s behaviour, climate; 2) ‘espoused values’ including strategies, goals and philosophies and guide explicitly organizational policies; and 3) ‘underlying or shared tacit assumptions’ such as unspoken values, norms, beliefs, perceptions, often taken for granted, unconscious and implicit. There is a growing consensus among scholars who state that the corporate culture that values diversity requires a welcoming and supportive environment for persons with disabilities and special norms and policies concerning their recruitment, accommodation, promotion and retention (Samant et al., 2009, Dobbin et al., 2011, Schur et al., 2005). Accordingly, if employment of persons with disabilities becomes a part of the company CSR, to be fully incorporated, a ‘culture of inclusion’ or a ‘disability supportive culture’ needs to be established, as stated byPless and Maak (2004) andMarkel and Barclay (2009). ‘A culture of inclusion’, according to Pless and Maak (2004)is a culture “that enhances workforce integration and brings to life diversity potentials; built on clarified normative grounds and honors the differences. Recently, BBI (2011)outlines ‘inclusive culture’ as “a culture that extends beyond the formal presence of persons with disabilities inside organizations towards formal and informal policies and practices encompassing three important elements: universal design, HR policies and workplace accommodation”.
Incorporating CSR strategies related to persons with disabilities into corporate culture may require subsequent changes in organization norms, work environment, culture and attitudes. Previous research has discussed the following important aspects.
Firstly, organizational norms and values influencing the way disabled individuals are
perceived and treated in organizations need to be addressed since theymight affect the treatment of people with disabilities (Stone and Colella, 1996).According to Chan et al. (2010), if normative beliefs are supported by senior and middle level management, supervisors, and co-workers,they significantlyincrease the willingness to hire people with disabilities by organizations.
Secondly, proactive recruitment and retention policies and integration of these policies into the firm’s actual practices strongly characterizethe organizational culture that supports inclusion of persons with disabilities(Markel and Barclay, 2009).To incorporate the inclusion of persons with disabilities into the workforce, HR policies have paid much attention to the recruitment and selection processes, workplace accommodation, interpersonal relationships and provision of supportive culture, training and performance management systems (Klimoski and Donahue, 1997).
Thirdly, Gilbride et al. (2003)emphasize work cultural issues, job match and experience as important characteristics. Precisely, the work culture thatinvolves senior management, provides equal treatment, flexibility and support, is attentive to the needs of employees with disabilities, focuses on workers’ performance and abilities, values cooperation, helpfulness, social justice and egalitarianism and provides workplace accommodation and necessary benefits for employees with disabilities(Gilbride et al., 2003, Schur et al., 2005). In this case, theworkplace accommodation refers to making appropriate modifications necessary to employment, such as providing assistive computer technology or a different break schedule (Markel and Barclay, 2009).Universal design also makes work environment as inclusive as possible for employees with disabilities(BBI, 2011). And awareness trainings provided for all employees are important to enhance knowledge about legal requirements and improve working relationships with disabled colleagues (Markel and Barclay, 2009).
For the purposes of the present paper the following aspects of ‘inclusive corporate culture’ regarding employment of persons with disabilities will be taken into further consideration: 1) organization norms, values, beliefs; 2) HR policies,such as hiring, selection, accommodation and retention; and 3) work environment in relation toproviding support, accessibility, flexible work arrangements, and positive attitude.
- Country and company selection
2.1. Country selection