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8000199, which deals with workers rights and conditions as well as child labor, can be effective measures of control.200 However, the inherent difficulty of CSR as a control mechanism is the existence of ethical relativism and differences in expectations between buyers and sellers.201 Attracting and retaining employees Organizational culture, alignment and fit with personal values are becoming increasingly important in

people’s decision of where to work.202 Therefore, to retain the best people, organizational and existing employee values must align so that they feel motivated to work at full capacity. CSR can thus be considered a competitive edge for finding and retaining the best people.203 According to Bhattacharya et al204 companies manage their employees best by viewing them as internal customers, whose needs are fulfilled through “job products” such as salary, health benefit packages etc. CSR can be considered as one of these “job products”. These contribute to job satisfaction and employee retention.205 Specific CSR initiatives can be effective in building a talented employee base, because they reveal company values and thus constitute the employee value proposition. CSR gives employees a feeling that the company is a contributing member of society and not only a profit machine.206 CSR activities can thus be a genuine point of differentiation for a company. The ability of CSR to serve as an internal marketing function is however limited by four issues: employees’ lack of awareness and involvement in CSR; limited understanding of employee needs fulfilled by CSR; limited

understanding of employees’ returns of CSR; and a top down approach


207 Total Quality Management CSR can be viewed as a form of Total Quality Management (TQM)208

as TQM has a foundational

similarity to CSR. It shares an ethical anchor and implies an inclusive approach that encompasses major stakeholders such as employees, customers, investors and society.209 TQM consists of three components: core values, techniques and tools.210 Business ethics can be considered a grounded core value for the other core values in TQM or serve as an umbrella to be incorporated and considered in the implementation of TQM.211 By improving processes, a company can for example reduce waste and energy use and thus save significant amounts of money212, as was reported for the United Kingdom’s top ten retailers213. Hazlett et al214 argue that CSR can be viewed as a natural progression for organizations that have begun their “quality journey”. The concept of the “quality journey” implies a continuous improvement where organizations develop and use quality management in an

199 200 201 202 203 204 205 206 207 208 SA 8000 is produced by the institution Social Accountability International. Aguilera, R.V. et al (2004), Svedberg-Nilsson, K. (2004). Svedberg-Nilsson, K. (2004). Hardjono, T.W. & Van Marrewijk, M. (2001). Aguilera, R.V. et al (2004), Hardjono, T.W. & Van Marrewijk, M. (2001). Bhattacharya, C.B. et al (2007). Bevan, S. & Wilmott, M. (2002), Joyner, B. & Payne, D. (2002). Bhattacharya, C.B. et al (2007). Bhattacharya, C.B. et al (2007). Total Quality Management (TQM) is an integrated management philosophy and set of practices that emphasize amongst other things continuous improvement, meeting customers’ requirements, reducing rework, long-range thinking, competitive benchmarking, closer relationships with suppliers etc. (Ross, 1993). Hazlett, S. et al (2007). Svensson, G. & Wood, G. (2005). Svensson, G. & Wood, G. (2005). Hardjono, T.W. & Van Marrewijk, M. (2001). Jones, P. et al (2007). Hazlett, S. et al (2007). 209 210 211 212 213 214


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