Corporate social responsibility (CSR) has emerged as an integral part of any organization due to the impact of external forces on companies’ responsiveness. Socially responsible companies gain a competitive advantage in the global market as they have a better understanding of their consumers’ needs, and this could help to strengthen their brand. Additionally, CSR empowers employees to do good using company resources, ultimately boosting their morale and increasing productivity. Promoting operative CSR practices in an organization requires effective leadership centered on achieving organizational goals with the consumer and the public in mind. The contributions of four leaders (Jack Welch, Mark Parker, Dan Pena, and Gwynne Shotwell) who have successfully incorporated beneficial CSR practices will be discussed in addition to their influence tactics and recommendations to other leaders. Reflections on what was learned during this project will be outlined and how these concepts will be applied in personal career development.

Leader Contributions to CSR

Jack Welch

A primary theme in Welch’s leadership reflected in his quest for a socially responsible company was human value. Arthur, Herring, Morrison, and Bertsch (2017) explain that Welch was keen on meeting with employees, responding to their concerns, and creating a positive working environment. He also understood their value in contributing to General Electric’s success, an aspect that was reflected through the establishment of a learning environment and by empathizing with his employees. The second theme evident in his leadership was creating a pleasant workplace by facilitating active communication across all management levels (Arthur et al., 2017). Welch eliminated barriers in GE’s corporate hierarchy to promote candor and brevity in communication while encouraging leaders to use simplistic and straightforward language when instructing their subordinates. He considered these aspects to be vital in promoting productivity and creativity while giving employees enough opportunities for their career development.

Mark Parker

As the leader of one of the largest global corporations (Nike), Parker has established a CSR culture centered on a positive work environment and improving the external environment. Parker promoted the Sourcing and Manufacturing Sustainability Index (SMSI) within the organization to ensure compliance with environmental, health, and safety guidelines across all Nike factories (Paine, Hsieh, & Adamsons, 2013). He also improved employee working conditions by eliminating the previous excessive overtime hours and providing better compensation for employees. Parker built a sustainable environment when he set new CSR goals designed to reduce Nike’s environmental footprint, promote product innovation, and empower marginalized youth interested in sports. Over the past decade, Nike has succeeded in reducing its carbon dioxide emissions by incorporating green energy and streamlining its supply chain. For example, in 2015, the company transformed more than 24,000 tons of waste into premium material in addition to reducing water use by 43% through Nike’s Closed Loop Ecosystem method (Distelhorst, Hainmueller, & Locke, 2017).

Dan Pena

Pena is the CEO of Great Western Resources Inc, an oil and gas corporation based on Houston and established in 1981 (Pena, n.d.). Over time, Pena worked on building his company into the multi-million-dollar enterprise that it is today. He integrated CSR aspects to improve the company’s relations with the public and its overall productivity. One such measure entails establishing a code of conduct applicable across the entire organization. DuBrin (2018) notes that the advantage of having a code of conduct is that it promotes positive behavior by outlining the company’s commitment to fairness and honesty. Another common aspect of CSR evident through Pena’s leadership is compliance with the state’s regulations and policies (Pena, n.d.). He ensured that the company adheres to the tax and employment laws at all times, along with the environmental law.

Gwynne Shotwell

Shotwell is the Chief Operating Officer of SpaceX, a space exploration and aerospace manufacturing company in the United States (Newnham, 2016). The company’s activities have a significant impact on the environment, an aspect that Shotwell and all other organizational leaders take seriously. To this extent, part of the company’s CSR entails developing products that have the least impact on the environment and ensuring sustainability, which has been achieved through green energy (Rabie, 2019). The underlying strategy focuses on minimizing the negative impact while ensuring optimal benefits to the stakeholders. Internally, Shotwell has worked on maintaining a suitable work environment by ensuring that all employees undergo proper health and safety training, employees’ rights are upheld and that they receive competitive compensation and benefits.

Alahmed

I believe that Mr. Alahmed has farsightedness. Once he started his business he had planned almost everything ahead. Creating a pleasant workplace environment was one of his priorities. Since the beginning, he believed that the best ideas and the hard work come as a result of employees well-being. Therefore, providing the staff with a comfortable, pleasant, and innovative workplace will result in delivering excellent outcomes since this type of workplace has the most effect on worker productivity. Hence, he decided to create an entertainment room for the break time specially, equipped with different kinds of enjoyable equipment such as TV, and gaming zone has Intelligent games and interactive games. However, there is a brainstorm zone equipped with a whiteboard, projector, computer, and printer as well. By that, they can enjoy their break time, relief the work stress, and be productive at the same place at any time.

Additionally, Mr. Alahmed always has an emphasis on the importance of saving the environment. Therefore, he is helping build a sustainable environment by minimizing the use of the un-eco-friendly material, especially with his business materials which mostly consist of plastic and other types of harmful substances to the environment. Therefore, he uses leftover materials to create small items, and he encourages his team to use this material to make experimental models. For example, when they tend to print a sample, he always uses less material and makes it smaller as much as he can and ask his staff to do so.

Khaldoon Al Mubarak

Al-Mubarak helped build a sustainable environment and he was focused on embracing eco-friendly innovation, for instance, funding the STOP project, which focuses on preventing plastic waste from leaking into the environment by providing households and businesses with waste collection and separation services; promoting plastic recycling by strengthening the supply chain of waste; Creating new jobs and reducing the impact of pollution on public health, tourism and the marine ecosystem (The National, 2017). Consequently, Mubadala’s assets are at the forefront of worldwide efforts to reduce plastic waste, combat marine pollution, and improve recycling.

Moreover, Khaldoon Al-Mubarak has engaged in philanthropy by supporting a Civil Society Initiative with financial support. The Civil Society Initiative aims to enable Emirati social entrepreneurs to lead new projects in fields such as education and environmental sustainability to encourage citizens’ participation to enrich the fabric of national civil society (The National, 2017). The support originates within a framework of the collaboration agreement between Mubadala and the Emirates Foundation for philanthropy to aid the Emirates Foundation’s Social Development program.These initiatives have enhanced the sustainable development of the Emirates by permitting people to support communities and families throughout the UAE.

Leader Influence Tactics to Achieve CSR

Jack Welch

Based on the influence tactics outlined by DuBrin (2018), Welch’s main approach centers on building trust and respect among his peers and subordinates. One way that this is evident is whereby he created an environment where employees could have an easier time communicating their ideas and thoughts with top management. This way, he increased the flow of information and creativity in the organization, and in turn, employees felt more appreciated. Building a positive corporate culture played a major role in improving its brand image and diversifying economic ventures. Another evident tactic applied by Welch is being honest with employees and other shareholders. Welch was open about the company’s social responsibility and the measures it would take to ensure the employees’ wellbeing while meeting its requirements externally. For example, he explained that GE’s primary duty to the community is to pay its taxes, which are instrumental in guaranteeing community development (Aksenchik, 2018).

Mark Parker

Unlike Welch, Parker’s main focus is on appealing to the public through its brand. In the early 2000s, Nike was under significant scrutiny owing to poor working conditions, among other factors. To mitigate this, Parker initially used rational arguments to appeal to shareholders about the importance of transforming Nike’s operations to focus on better efficiency and a better working environment for employees (Distelhorst, Hainmueller, & Locke, 2017). He ultimately succeeded in improving the working conditions, and as a result, Nike managed to regain a positive brand image. The second tactic used by Parker is being a positive role model for the community and other sportswear companies. He communicated a message of change, cultural diversity, and empowerment through Nike’s ads and messages to the public. More recently, the company engaged in empowering underprivileged sportspeople by sponsoring athletes and sports events, which helped strengthen the company’s image and ensure that it fulfilled its CSR (Distelhorst, Hainmueller, & Locke, 2017).

Dan Pena

Dan Pena’s approach to CSR primarily focuses on the internal environment whereby he uses his appeal to communicate his message and to help employees understand the intended goal. Pena has developed a wide range of public speaking material, where he discusses different aspects of business and how to achieve competitiveness (Pena, n.d.). He also integrates elements of responsibility to earn people’s respect and trust within and out of the organization. He legitimizes his approaches by highlighting how they would eventually result in better profits for the company and shareholders (Pena, n.d.). In his capacity, Pena has earned the respect of his peers and employees by meeting his targets and portraying how adherence to CSR eventually benefits the organization’s brand.

Gwynne Shotwell

Similar to Welch, Parker, and Pena, Shotwell leads by example as part of her influence tactic. She has worked to ensure that SpaceX is a leader in its industry, not only in sales but also in its corporate culture and interactions with shareholders (Newnham, 2016). The company has played a major role in initiating and promoting environmental initiatives such as introducing the electric automobile. In addition to this environmental campaign, the goal of this vehicle was to reduce the impact of energy, electricity production, and transportation by minimizing pollution (Rabie, 2019). Another strategy is rational persuasion, whereby she explains the significance of CSR to the organization in terms of fiscal and social responsibility. Investing in solar panels, batteries, and electric vehicles is a rational approach as it reduces dependence on non-renewable energy sources eliminating fuel costs for consumers.

Alahmed

Being a team player is the most effective influence tactic that can implement in a new small business. Mr. Alahmed has a very friendly personality. He always joined the employees in the break time in the break area. Also, his interaction in the gaming zone in the various types of games have a direct influence on the employees. Consequently, the comfortable working environment and atmosphere in work will increase productivity and emphasizing collaboration.

Also, since Mr. Alahmed has the ability to inspire trust, leading by example, respect and trust will be an effective influence tactic to use in leading groups of people. In the act of his contributions with his ideas and worked with his hand in different types of work in the organization, such as designing and executing. That will encourage the employees to do the same and follow his instructions and work with his ideas because most employees tend to follow the leader who does what he says.

Khaldoon Al Mubarak

Khaldoon increased employee participation in CSR activities by leading by example. Khaldoon uses his expert power, his superior knowledge, and experience to lead others (The National, 2017). People can look at what Khaldoon Al-Mubarak accomplished through his actions. He actively follows and puts into action what he preaches to others. The charisma that he holds when he speaks has benefited him as a leader to gain others’ respect and trust to follow in his footsteps. He also utilizes rational persuasion to impact his team instead of pressuring them to follow commands. For example, when participating in environmental programs, he used factual evidence to show the team that his request is feasible and relevant to improve environmental health.

Furthermore, Khaldoon uses his referent powers in telling stories to influence others. Students at Zayed University got a dose of inspiration from him at the second session of the 100 meters initiative (The National, 2017). A part of the session included storytelling. He shared some personal stories that helped build up his career. While he was talking, the students were intrigued to listen to what he had to share. During the session, Khaldoon mentioned that we are responsible for helping our community and those who are in need or at least try to help them.

Most Common Tactics

Based on the highlighted leaders, the most common influence tactic is leading by example. These leaders try to set a positive precedent for their subordinates, peers, and the community at large using different methods. For example, Welch developed a leadership style that is still being emulated by other leaders in different industries, while Pena holds seminars and workshops to offer advice and insights on the oil industry. Another evident tactic is rational argument whereby the leaders justify CSR by explaining how it would benefit the organization, its reputation, and its relations with the public.

Recommendations to Other Leaders

The two influence tactics recommended for leaders include leading by example and trying to persuade others. In leading by example, the most important aspect for the leader is to support the organization’s mission and vision. The leader should emphasize what the company aspires to achieve, the main objectives, and each employee’s role in meeting these goals. Additionally, employees should receive support through training and career opportunities whenever necessary. It is also crucial to follow up once an initiative has been implemented, and the leader should follow through with their actions Schoeneborn, Morsing, & Crane, 2020). This measure helps to set a positive precedent for subordinates to duplicate.

Another approach would require integrating systemic change. According to Kim (2017), leaders should consider diverting from defensive actions and integrating proactive initiatives into their organizational strategy. They should focus on making strict commitments that are seen through by making substantial investments in CSR with the intended goal of increasing the probabilities of better payoffs and reduced risks. This message should be communicated to employees to understand the benefits they would gain from the new change.

When trying to persuade others, the leader should aim to provide comprehensive information to legitimize the company’s behavior and the need for social responsibility through effective communication (Kim, 2019). This approach requires transparency, which can often be a difficult aspect to achieve for organizations. It is important to communicate the company’s culture, behavior, codes of conduct, and ethical standards and the company’s future. However, the future can be difficult to represent or predict, and companies should communicate this information cautiously to avoid misleading the public.

Leaders should also aim to highlight the significance of CSR strategies when implementing them in an organization through effective reporting. Schoeneborn, Morsing, and Crane (2020) explain that leaders should analyze their organizations’ activities to anticipate costly ventures and mitigate them. Developing progressive reports enables the leader, stakeholders, and the public to identify how the company’s actions would affect them and contribute to positive development. These reports can also be useful as references in the future when incorporating new strategies.

Personal Objectives

The lessons on leadership in CSR, including their contributions and influence tactics provided us with significant insight into some strategies we should integrate for overall success. We found that the first objective that leaders should consider is building an internal network whereby employees can understand and incorporate CSR measures more effectively. The intended goal is to provide strategic leadership of ethics and social responsibility. It is important to identify employees who have an interest in sustainability and nurture this passion through proper training and other initiatives in the organization. As leaders, we should work on establishing the significance of sustainability across different departments while developing our subordinates to implement these measures by themselves.

Another objective we identified was making CSR resonate with the organizational goals, vision, and mission. We should work on connecting the abstract CSR strategies to progressive business routines that employees are engaged in to foster support and commitment. One way to achieve this is by offering training and workshops where employees will learn the meaning of social responsibility across different departments. Employees can also benefit from practical experience where we would engage them in CSR activities and they can observe the positive results. This will help them understand their role and it would be easier for them to integrate these practices with minimal supervision.

The third objective we should achieve is to identify areas where the organization might be failing in its social responsibilities and address them accordingly. We should work to create more incentives and minimize abusive supervision for a positive working environment. Leaders form the precedent that others follow, and it is important that we set achievable, ethical, and realistic standards of sustainability. This could entail engaging employees in community projects or environmental initiatives that would ultimately improve the organization’s reputation while expanding their interest in the company’s success.

Reflection on Learning

The main lesson from this project reflects on the significance of effective leadership when implementing a CSR strategy that requires legitimacy and engagement. The leader should communicate the company’s intentions and ensure to follow through with practical actions. For example, Mark Parker managed to improve Nike’s brand image by communicating a message of empowerment and social accountability and legitimized it by changing the company’s operations across the supply chain. It is also important to be a positive role model for employees and the public, as highlighted through Jack Welch’s leadership style. The leader should integrate the organization’s vision and mission when communicating the CSR strategy for employees to understand their roles and how they would contribute to social development. Over the recent past, corporations have had a larger role in society in terms of governing and influencing the well-being of employees, consumers, and the public. As such, leaders should incorporate ethical practices to improve the internal environment without affecting the internal environment.

Conclusion

Different leaders incorporate varying CSR approaches based on their personalities, corporate culture, and interaction with society. These differences are reflected in how Jack Welch, Mark Parker, Dan Pena, and Gwynne Shotwell accomplish their social responsibilities. These leaders use diverse initiatives centered on creating suitable work environments, compliance with regulations, building a sustainable environment, and engaging in social entrepreneurship. Despite these differences, the leaders have some similarities in the applied tactics. A common tactic applied in these industries is being a positive role model and leading by example. These leaders have established positive reputations in terms of CSR due to their active involvement and their concern for both employees and the public.

References

Aksenchik, A. (2018). How to manage personnel properly: principles of Jack Welch. Retrieved from: http://edoc.bseu.by:8080/bitstream/edoc/75866/1/Aksenchik_A._p._45_47.pdf

Arthur, S., Herring, N., Morrison, L., & Bertsch, A. (2017). Jack Welch: The Bridge between Drucker and Goleman. International Journal of Business and Social Science, 8(3). Retrieved from; https://ijbssnet.com/journals/Vol_8_No_3_March_2017/1.pdf

Distelhorst, G., Hainmueller, J., & Locke, R. M. (2017). Does lean improve labor standards? Management and social performance in the Nike supply chain. Management Science, 63(3), 707-728. Retrieved from: https://eureka.sbs.ox.ac.uk/5637/1/LeanLaborStds_MnSci.pdf

DuBrin, A. J. (2018). Leadership: Research Findings, Practice, and Skills. [VitalSource Bookshelf]. Retrieved from https://online.vitalsource.com/#/books/9780357382837/

Kim, S. (2019). The process model of corporate social responsibility (CSR) communication: CSR communication and its relationship with consumers’ CSR knowledge, trust, and corporate reputation perception. Journal of Business Ethics, 154(4), 1143-1159. Retrieved from: http://www.com.cuhk.edu.hk/images/content_people/publication/sora-journal-2018-csr.pdf

Newnham, D. (2016). Gwynne Shotwell. In Female Innovators at Work (pp. 109-115). Apress, Berkeley, CA. Retrieved from: http://link-springer-com-443.webvpn.fjmu.edu.cn/chapter/10.1007%2F978-1-4842-2364-2_11

Paine, L. S., Hsieh, N. H., & Adamsons, L. (2013). Governance and sustainability at Nike (A). Harvard Business School. Retrieved from: https://www.hbs.edu/faculty/Pages/item.aspx?num=44895

Pena, D. (n.d.). The Trillion Dollar Man. Retrieved from: https://www.danpena.co.uk/

Rabie, P. (2019). NASA’s ‘Green’ Fuel Will Make Its Space Debut on SpaceX Falcon Heavy Mission. Space. Retrieved from: https://www.space.com/falcon-heavy-nasa-testing-clean-fuel-stp2.html

Schoeneborn, D., Morsing, M., & Crane, A. (2020). Formative perspectives on the relation between CSR communication and CSR practices: Pathways for walking, talking, walking. Business & Society, 59(1), 5-33. Retrieved from: https://research.cbs.dk/files/57749100/dennis_schoeneborn_et_al_formative_perspectives_acceptedversion.pdf

The National. (2017, September 28). Interview with Khaldoon Al Mubarak CEO of Mubadala [Video file] [Video file]. Retrieved September 21, 2020, from https://www.youtube.com/watch?v=e5MGsrmOsd4

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