389

International Journal of Management Vol. 29 No. 1 Part 2 Mar 2012

The Practice of Corporate Social Responsibility in

Different Countries: A Study of Firms in Canada,
Hungary, Italy, Lebanon, Taiwan and the United States
Dennis Krumwiede
Idaho State University
Ann M. Hackert
Idaho State University
Joanne Tokle
Idaho State University
Robert J. Vokurka
Texas A&M University – Corpus Christi

There is a long history developing the concept of Corporate Social Responsibility (CSR)
and the framework for considering the issues including why firms might adopt these
practices and how they implement them. This paper provides a unique contribution
to the literature by evaluating CSR practices at firms in countries that have not been
widely studied. The study also includes health and safety aspects of CSR that have not
been widely studied in the literature. The data for this study is comprised of survey data
from companies in Canada, Hungary, Italy, Lebanon, Taiwan, and the United States.
The data were collected by The Global Manufacturing Research Group (GMRG), an
organization of academic researchers interested in international manufacturing research.
Data collected in 2003 and 2004 in the third GMRG survey is used to examine various
aspects of CSR. Survey responses from the study were used to analyze the extent of
firm investments in environmental initiatives including pollution prevention, recycling,
and waste reduction. This research also includes data on work place health and safety,
statistical process control, and total quality management. The goal of the study is to
evaluate how CSR activities vary by country and how firm activities compare with
competitors.
Introduction
Corporate Social Responsibility (CSR) includes a broad range of issues, activities, and
ideas. CSR has components of both social and environmental concerns. The social
aspects of CSR involve business ethics, relationships with stakeholders, workers, and
external customers as influenced by the political and cultural framework. Ethical issues
encompass a wide array of concerns; corporate governance, communication with the
public and stakeholders and human rights. Working conditions, health, and safety are
also social aspects of the CSR.
Environmental issues also fall under the umbrella of CSR. Pollution control, recycling,
waste treatment, green initiatives, and the efficient use of energy and resources are
environmental aspects of CSR. Efforts to conserve energy, reduce emissions or use
fewer resources throughout the manufacturing and distribution channel are part of CSR.
390 International Journal of Management Vol. 29 No. 1 Part 2 Mar 2012

The concept can also be applied to products that incorporate energy efficiency or a lower
environmental impact either during useful life, disposal or both.
It is important to recognize that CSR is a global issue. Firms in countries around the world
apply the concepts of CSR to their businesses. CSR is a form of regulation that provides
a framework for social and environmental strategies. Self-regulation via adoption of
CSR represents rules and controls used to guide various organizational activities. This
type of regulation is based on internal ethical frameworks at the firm level. Other aspects
of CSR represent voluntary or mandated regulation in response to external factors or
authority. Companies respond to external factors via the more formal legal environment
or informal pressures of public opinion or customer and stakeholder demand.
The goal of this study is to focus on selected CSR issues as they relate to manufacturing.
The global implementation of CSR principals and activities in different countries provides
an opportunity to compare and contrast practices across cultures. To the extent the
external legal environment and cultural framework affect CSR, it is important to study
differences or similarities among countries. This study uses survey data collected in
various countries and industries to look at specific aspects of CSR in manufacturing as
self-reported by study participants.
Overview
The data for this study were collected by The Global Manufacturing Research
Group (GMRG), an organization of academic researchers interested in international
manufacturing research. GMRG has administered surveys of manufacturing practices
to companies worldwide. This paper uses the results of the third survey, collected in
2003-2004, to examine the extent to which firms invest in pollution prevention, recycling,
waste reduction, work place health and safety, statistical process control, and total
quality management; how this varies by country; and how their activities compare with
their competitors. These activities can be described as those that reflect commitment to
corporate-social responsibility.
Firms that participated in the surveyed included firms from the following manufacturing
industries: electronics, machinery, cables, plastic furniture, plastic containers, plastic
packaging, food products, textiles, and building materials. The firms and countries were
not randomly selected for inclusion, but participated based on location, availability of
management information, willingness to participate and products manufactured. The
sample included 325 firms, including 90 from Canada; 67 from Hungary; 40 from Italy;
20 from Lebanon; 63 from Taiwan; and 45 from the United States. The firms ranged
in size from 6 to 9,500 employees, with a median of 130, and from $100,000 to $16.3
billion in sales, with a median of $17 million. The data used is from a much broader
and extensive study of multiple manufacturing topics.
Willingness to invest resources in pollution prevention, recycling, waste reduction, and
work place health and safety may be indicative of overall attitudes toward corporate-
social responsibility issues. This paper seeks to examine the extent to which these firms
391 International Journal of Management Vol. 29 No. 1 Part 2 Mar 2012

are willing to invest in these activities, how their actions vary by country, and whether
investments in responsible resource use are correlated with investments in statistical
process control (SPC) and total quality management (TQM). We hypothesize that the
use of SPC and TQM techniques are consistent with other management practices that
demonstrate responsible resource use.
Statistical process control is “a collection of strategies, techniques, and actions taken by
an organization to ensure it is producing a quality product or providing a quality service”
that involves the use of statistics to demonstrate results (Lind, et al, 2010, p. 704). Total
quality management is “an approach that emphasizes quality and continuous improvement
of products and services in which increased emphasis is given to process improvement
and optimization of the total system” (Berenson, et al, 2009, p. 854). TQM includes the
use of statistical process control to track improvements in quality.
Literature Review
A well-developed literature of CSR reviews the concepts and issues on many levels.
Research in the past and present continues to define and explain what constitutes CSR
and its related activities in organizations. An ongoing effort exists to refine the scope
of CSR. Another stream of research considers why companies might implement CSR
initiatives. Both internal and external drivers are studied. Another area of research
involves how CSR is implemented. The extent of CSR throughout the organization
and the specific social and environmental aspects are reviewed. Finally, CSR research
exists that considers the practice and implementation of concepts in various industries
and countries. This research is not only descriptive, but also attempts to study and
explain differences.
The definition of CSR and the perception of the specific activities it entails continues to
evolve over time. A comprehensive review of this literature is beyond the scope of this
article but a brief summary will provide insight to help frame the current study within
the CSR construct.
CSR as a separate and distinct framework in business literature began in the 1950s with
Bowen (1953). The idea of a social role for business evolved over decades in books,
textbooks and articles. Environmental aspects of CSR were introduced in a book by
Backman (1975). His definition included both social and environmental components.
This represented a major step toward the current CSR construct. The idea of CSR from
a stakeholder perspective appeared in Jones (1980).
Environmental issues were separate from formal definitions of CSR but there was
recognition that business in society needed to consider resource use and environmental
impacts in decisions and operations. The environmental literature did not use the term
CSR but focused on sustainability and its benefits. As with SCR, initial definitions of
sustainability were discussed and introduced in books and working papers including
Carpenter (1993), Gladwin (1993), and Pezzey (1989).
Government and regulation played a role in ecologically sustainable development (ESD)
392 International Journal of Management Vol. 29 No. 1 Part 2 Mar 2012

but Shrivansta (1995) proposed companies needed to recognize their role in environmental
issues. He suggested companies focus on broader goals that included ESD. The benefits
he discussed accrued not only to the firm, but also to a broader community.
Both the environmental and social aspects of CSR are listed in the United Nations
Convention Against Corruptions (2003). Human rights, labor, the environment and
corruption are included in a list of attributes in the voluntary initiative. The combination
of social and environmental issues was consistent with the convergence of the concept
of CSR.
The wealth of CSR research defining the concept over several decades does not mean there
is a single, globally accepted definition or list of activities. Clarkson (1995) considered
the issue and suggested a stakeholder perspective to include social and environmental
concerns and issues. There are many perspectives on CSR and Okoye (2009) suggests
that the definition of CSR may remain an essentially contested concept. As a result it is
unlikely that CSR can be distilled to one definition. Instead Okoye indicates the exemplar
is a core of common reference points that consider various aspects of the relationship
of corporations to society over time. Dahlsrud (2008) identified 37 definitions of CSR
and this number does not include other definitions in the literature.
There is not a simple definition of CSR nor is there a definitive list of the issues and
concerns. There are several ideas and concepts that thread through the literature
including the relationship of a corporation to internal and external stakeholders and the
environment. The current study examines selected aspects of CSR from both the social
and environmental perspective.
Although there might be some general perception that business should be accountable
to society and produce products using environmentally sustainable methods, questions
remain about why a company would choose to change or spend corporate resources on
CSR initiatives. The basic premise of CSR is that businesses have a responsibility to
shareholders beyond earnings. One important issue is whether or not CSR has a negative
effect on financial performance. Margolis and Walsh (2003) did not find evidence of
a negative relationship between financial performance and CSR. Orlitzky et al (2003)
found positive support for a relationship between CSR and financial performance.
There are several perspectives on the economic motives for CSR. Firms may voluntarily
adopt components of CSR because they believe it provides benefits. An alternative
motivation for social or environmental CSR is to meet regulatory requirements. Economic
motives might be one explanation for CSR as researched by Siyaranamual (2009) who
concludes that there may be demand for socially responsible goods. Another aspect
of voluntary CSR is that it may be less costly than government intervention. Without
referencing the stakeholder literature, Siyaranamual seems to suggest third-party
involvement in firm CSR plans.
There are several perspectives to CSR. One is to look at firm size and CSR. Another
is to look at CSR by industry. A third approach is to consider CSR practices and their
393 International Journal of Management Vol. 29 No. 1 Part 2 Mar 2012

similarities and differences among countries. The focus of this paper is on country
differences but a brief review of the literature provides a perspective on the various
research streams. Smaller and medium-sized enterprises (SMEs) are studied by
Williamson et al (2006) who used interviews to try and determine the extent to which
these firms are motivated to implement CSR voluntarily. The research studied the
environmental components of CSR at SMEs. The study concluded that SMEs will not
voluntarily adopt CSR practices. The reputation issues relevant to large companies
are less important to SMEs. The conclusion is that regulation has an important role to
improve the social and economic behavior.
Vintilia and Moscalu (2009) provide a review of the literature comparing CSR at SMEs
and larger firms. Their goal is to examine whether or not there is a link between firm
size of EU firms and CSR initiatives. Their study does not conduct a separate empirical
analysis but a review of the prior research which indicates SMEs and large firms likely
have different motivations for investment in CSR.
Comparisons between SMEs and large corporations are also considered by Russo and
Perrini (2010). The authors suggest that SMEs and large corporations may need two
different constructs to examine their respective CSR activities. Large firms are more likely
to take a stakeholder approach while SMEs follow the principles of social capital.
Bronn and Vidave-Choen (2009) asked Norwegian companies why they engaged in CSR
activities. Ethical considerations, internal values and external pressures can all influence
CSR. Analysis of the survey responses indicated improving image, being recognized
for moral leadership and serving long-term company interests were statistically the
top reasons why companies engaged in CSR. The study found significant industry
differences.
There is a perception that environmental initiatives are costly and erode companies’
competitiveness. Ambec and Lanoie (2008) look at seven different mechanisms that
could lead to lower costs by using better environmental practices. The list included better
access to certain markets, differentiating products, selling pollution control technology,
risk management and relations with external stakeholders, cost of material, energy and
services, cost of capital and the cost of labor. They provide insight into the circumstances
and the kinds of firms that might result in “win-win” situations.
An overview by Carroll and Shabana (2010) examines the business case for CSR. It looks
at the reasons why companies might adopt CSR. The business case for CSR is often
interpreted as the relationship between CSR and financial performance. They review
the relevant literature and find that there is growing support for the idea that CSR has a
positive economic impact of firms but it not always favorable. Firms need to identify
their stakeholders and implement CSR initiatives that support them. The authors suggest
there may be both direct and indirect benefits from CSR that make a ‘business case’ for
companies to adopt the concepts. Companies may find direct benefits in the form of
enhanced financial performance or indirect benefits for CSR opportunities.
394 International Journal of Management Vol. 29 No. 1 Part 2 Mar 2012

Studying what might constitute CSR practices and why companies might implement those
leads to studies describing what steps companies take to implement CSR. Research in
this area typically involves empirical data that uses primary data in the form of surveys
or interviews or secondary data. Case studies of one or more companies are another
avenue of research into how companies use CSR. This body of literature considers
CSR from the perspective of companies in different countries which leads to questions
regarding similarities and differences across cultures.
The design and implementation of CSR is an important one for companies. Methods
selected depend on the definition and orientation of CSR. A stakeholder perspective
is based on the concept that companies have internal and external stakeholders. There
is an extensive framework for CSR design and implementation within the stakeholder
framework. Khoo and Tan (2002) consider four cyclic stages involved in transforming
companies into more socially responsible organizations.
Panapanaan et al (2003) indicate that companies must assess CSR areas to implement
and then decide whether to proceed. Werre (2003) focuses on internal but not external
stakeholders. Maignan et al. (2005) have eight steps from a marketing perspective to
implement CSR with two feedback loops for stakeholders. Cramer (2005) lists six
activities to implement CSR. Although stakeholder dialog is important, it is not clear
on their role in the process.
Maon, Lindgree and Swaen (2009) have a model that included primary stakeholders;
buyers, suppliers, employers, social and mainstream investors and secondary stakeholders.
Change then occurs at the corporate, organizational and managerial levels. This more
complex model is designed to help companies better identify stakeholders and include
feedback. Further work by the authors (2010) results in a model which considers both
cultural and organizational issues companies need to include or resolve to implement
CSR.
A recent survey article (Ergri and Ralston, 2008) provides additional insight into the
contribution of the current study to literature. The authors conduct a comprehensive
review of CSR studies for the period 1998 through 2008 in 13 international management
and business journals. The study found three issues addressed by the results in this
research. Studies typically focus on one or a few countries. Sixty-three percent of
empirical studies based on survey data focused on one country, sixteen percent were two
country studies, eleven percent looked at 3-5 countries with the remainder examining
anywhere from 6-21 countries with the average 2.46 countries per study.
An example of a single-country focus (Katsioloudes and Brodtkort, 2007) looks at
CSR in the United Arab Emirates via survey data to determine awareness of CSR. The
environment, community issues and consumer protection were considered in various
categories of companies. Companies had a sense of CSR issues with the authors
concluding a strong but indirect awareness.
Our research includes a total of six countries. The countries included in our study are
important for two reasons. The survey article by Ergri and Ralston (2008) found that
395 International Journal of Management Vol. 29 No. 1 Part 2 Mar 2012

some countries are not well represented by current research and that studies did not
include countries that might have different demographic characteristics. Those issues
are addressed by our study which includes 325 firms in total representing companies
from Canada, Hungary, Italy, Lebanon, Taiwan and the United States. Of these countries
only Canada and the United States were countries included in studies most frequently
with the U.S. in 65 articles and Canadian companies in 21 articles.
Another contribution to the literature of this study is inclusion of health and safety
issues. Although employees as stakeholders and issues related to their well-being
appear at various points in the literature of CSR, research is limited on this aspect
of the concepts. Studies consider the value of health and safety initiatives but not as
part of overall CSR activities. A case study of the chemical industry (Ogilvie et al.,
2002) mentions the importance of communicating health and safety as part of overall
communication with stakeholders about CSR. A key outcome in the case study was
stakeholder satisfaction.
Zwetsloot and Pot (2004) suggest the benefits of integrating health and safety initiatives
as part of quality management at companies. They suggest that the issues of health and
safety and corporate social responsibility are closely linked. The research indicates
benefits from implementing health and safety initiatives. The current research reviews
the extent to which several health and safety initiatives are implemented and adopted in
companies in the study countries. This represents a unique contribution to the literature
by providing insight into how and to what extent companies incorporate health and
safety.
Finally, the emphasis of this article to include environmental issues addresses an
additional topic for further research raised by the Egri and Ralston (2008). A survey
of the articles published in international management journals showed an emphasis on
ethics and governance issues. Environmental responsibility was not emphasized as
much as the other aspects of CSR. That contrasts with the current study which examines
environmental, health and safety issues. Another unique aspect of the research is the
hypothesized relationship between the use of statistical process control techniques and
responsible resource management.
There is a limited literature focusing on the relationships between TQM and CSR.
CSR and its relationship to other management standards including quality initiatives is
examined by Castka et al. (2004). The authors provide a framework to translate CSR into
an organizational agenda to better integrate with other systems and performance measures.
The authors propose implementation should occur within a quality management and
systems approach. Zwetsloot (2003) presents a conceptual framework for CSR that
builds on ISO and TQM management systems. Our study offers a unique perspective
by considering the relationship between TQM and SPC in manufacturing companies in
various countries.
The next section provides an overview of the survey questions, issues and responses along
with a statistical analysis of the results. The survey data used represents six different
396 International Journal of Management Vol. 29 No. 1 Part 2 Mar 2012

countries, two of which, Hungary and Lebanon, have not been studied as extensively
in the current literature. Although it is beyond the scope of this study to hypothesize
why there are country differences, we find that there are significant differences between
countries for some of the aspects of CSR studied.
Results
Firms were asked to what extent they had invested resources including money, time and/or
people in programs in pollution prevention, recycling of materials, waste reduction, work
place health and safety, statistical process control, and total quality management over the
last two years. Companies rated their investment in resources on a scale of 1 to 7, with
1 being “not at all” and 7 being “to a great extent.” Table 1 reports mean responses to
each of these items, by country and for the entire sample. To look for differences among
countries, the Kruskal-Wallis test for significant differences among medians was used
due to the rank-order nature of the data.
Overall, firms reported investing the most in work place health and safety, with an average
rating of 5.5 out of 7. Waste reduction was next with an average rating of 4.6, followed
by recycling of materials (4.3), pollution prevention and TQM (4.1), and statistical
process control (3.8). Of the six countries, Taiwan reported the highest ratings in every
category. Hungary reported the least amount of investment in every activity except SPC,
in which the US was last with a rating of 3.0. Work place health and safety ratings were
not available for Hungary.
Although Taiwanese companies appear to be the most conscious of conserving resources,
it may be that companies in the other countries had invested more resources at an earlier
point in time, or may be planning to do more in the future. This survey, conducted in
2003-2004, asked only the extent to which resources were devoted over the previous
two years.
Work place health and safety was the only program for which differences among countries
was significant at only the 10% level. Taiwan was the only country which was significantly
different than the others, and it reported higher average investments in resources devoted
to this activity (5.8 out of 7 versus 5.3-5.5 for the others). Likewise,
Table 1. In the last two years, to what extent has the company invested
resources in programs in the following areas?
All Canada Hungary Italy Lebanon USA Taiwan KW p
Pollution 4.1 4.0 3.1 4.3 4.3 4.2 5.2 .000
prevention
Recycling of 4.3 4.2 3.9 3.9 4.2 4.3 4.9 .003
materials
Waste reduction 4.6 4.4 4.4 4.4 4.7 4.4 5.2 .012
Work place health 5.5 5.3 NA 5.4 5.3 5.3 5.8 .089
and safety
Statistical process 3.8 3.6 3.2 3.5 3.9 3.0 5.5 .000
control
Total quality 4.1 4.5 2.2 4.4 5.2 4.0 5.2 .000
management
397 International Journal of Management Vol. 29 No. 1 Part 2 Mar 2012

differences in resources devoted to waste reduction were higher in Taiwan at 5.2, versus
a range of 4.4 to 4.7 for the other countries, and this difference was significant at the 5%
level. For all other activities, the differences among countries were significant at the 1%
level, with Taiwan consistently reporting the highest ratings.
To examine whether companies who demonstrate corporate-social responsibility in
pollution and waste issues are also more willing to invest resources (money, time and/or
people) in TQM and SPC, Pearson correlation coefficients of SPC and TQM with the
various activities were calculated. Tables 2 and 3 summarize correlations of investing
in SPC and TQM with investments in pollution prevention, recycling of materials, waste
reduction, and work place health and safety.
The correlation of investing resources in SPC with investing resources in pollution
prevention was .449 over the previous two years for the entire sample, and this is
significant at the 1% level. It appears that companies willing to invest resources in SPC
are also more likely to invest in pollution prevention. The same is true for investing
resources in recycling, waste reduction, and work place health and safety.
All countries except Taiwan had significant correlations of investment in resources for
pollution prevention and SPC (for Taiwan, r = .096). However, Taiwanese companies
that invested in SPC also tended to invest in waste reduction and work place health and
safety. Overall, the weakest correlations were for the U.S. and Lebanon. U.S. companies
had no significant correlation of investments in SPC with recycling (r=.047) and waste
reduction (r=.127).
Table 2. Correlations of investing resources in SPC with investments in
pollution prevention, etc.
All Canada Hungary Italy Lebanon USA Taiwan
N=90 N=66 N=39 N=20 N=44 N=63
Pollution .449*** .266** .368*** .457*** .499** .447*** .096
prevention
Recycling of .360*** .269** .351*** .678*** .297 .047 .109
materials
Waste reduction .357*** .268** .201*** .411*** .384* .127 .329***
Work place
health and safety .395*** .457*** NA .245 .271 .297* .360***
***Significant at 1% level; ** significant at 5% level; *significant at 10% level.

Table 3. Correlations of investing resources in TQM with investments in

pollution prevention, etc.
All Canada Hungary Italy Lebanon USA Taiwan
N=89 N=65 N=39 N=20 N=44 N=63
Pollution prevention .391*** .270** .368*** .240 .216 .226 .033
Recycling of materials .285*** .204* .351*** .515*** .177 0.000 -.001
Waste reduction .268*** .289*** .201 .440*** .063 0.000 .343***
Work place health and .335*** .448*** NA .246 .123 .247 .298**
safety
***Significant at 1% level; ** significant at 5% level; *significant at 10% level.
398 International Journal of Management Vol. 29 No. 1 Part 2 Mar 2012

Table 3 shows the correlations of resource investments in TQM and pollution prevention,
recycling of materials, etc. Like the correlations in Table 2, there is a positive and
significant correlation of investing in TQM and investing in pollution prevention, etc.
The correlations are not quite as strong as those with SPC.
Interestingly, there is no significant correlation between investing in TQM and investing
in these corporate-socially responsible activities in Lebanon or the U.S. It does appear
that Canadian companies who invest in TQM are more likely to also invest in each of
these activities, and the correlations are significant at the 1% level, with the exception
of recycling (significant at 10% level).
The strongest correlations of investing in TQM and pollution prevention were found in
Canada and Hungary; the strongest correlations of investing in TQM and recycling of
materials was found in Canada, Hungary, and Italy; and the highest correlations of TQM
and waste reduction were in Canada, Italy, and Taiwan. Correlations of TQM with work
place health and safety were found in Canada and Taiwan.
Across the six countries, the highest average rating was 5.2 out of 7 for how companies
rated themselves against their competitors with water emissions, and the lowest average
rating was 4.8 for their health and safety records. Companies compared themselves to
their competitors on a seven-point scale, with 1 = far worse than competitors and 7 =
far better than competitors. No significant differences existed across countries for their
average ratings for air and water emissions. Taiwanese companies rated somewhat higher
than companies in the other five countries in terms of how they rated themselves against
their competitors for solid waste disposal, but the effect was significant at only the 10%
level. Finally, significant differences (at the 1% level) were apparent for health and safety
record comparisons, with Taiwan having the highest average rating (5.5), followed closely
by Italy and Lebanon, and Hungary having the lowest average rating (2.6).
Although these data are a rich source of information and insight into decision-making
by these companies, several limitations must be noted. First, the sample is biased and
is not representative of all companies, even in the countries included in the sample.
Companies were included in the sample based on willingness to participate rather than
being randomly sampled.

Table 4. How does the company compare with its competitors?

All Canada Hungary Italy Lebanon USA Taiwan KW p
Solid waste 4.9 4.8 4.8 4.8 5.0 4.8 5.2 .065
disposal
Air emissions 5.1 5.0 4.9 5.2 5.0 5.1 5.4 .144
Water emissions 5.2 5.1 5.0 5.2 5.4 5.2 5.5 .138
Health and 4.8 5.3 2.6 5.4 5.4 5.1 5.5 .000
safety record
***Significant at 1% level; ** significant at 5% level; *significant at 10% level.
399 International Journal of Management Vol. 29 No. 1 Part 2 Mar 2012

Another limitation involves the data itself. Investments in resources were self-rated by
companies on a scale of 1-7, with 1 being not at all and 7 being to a great extent. Resource
use was not actually measured in dollars spent or man-hours logged by employees.
And, they were asked to rate the extent of their investment over the previous two years,
which would miss major investments made prior to or after that time. It is possible
that a company may not have invested much over the previous two years because they
already had health and safety procedures, waste reduction, etc. in place to a large extent.
Also, the ratings reflect the companies’ perceptions of how they have invested resources
or how they compare to their competitors, which could vary considerably from how an
outside organization would rate them.
Finally, the extent to which companies invest in these resources are no doubt influenced
by laws and regulations in their home countries, especially with respect to safety and
health, and to a lesser extent with pollution prevention and recycling.

Conclusions
Corporate Social Responsibility covers a broad range of issues. This study focused on
work place health and safety and environmental issues, and examined differences in
resource investments in these programs across six countries, Canada, Hungary, Lebanon,
Italy, Taiwan and the U.S. using data collected by the Global Manufacturing Research
Group in 2003-2004. Two of these countries, Lebanon and Hungary, have little or no
representation in the CSR literature to date. In addition, this study looked for associations
between investments in these programs and investments in TQM and SPC.
Work place health and safety was rated as the highest priority by the firms that participated
in this study, as evidenced by the amount of resources they reported to have invested in
health and safety programs in the last two years (at the time of sampling). Taiwanese
firms reported the highest level of investments in health and safety programs relative
to the other five countries, as well as in pollution prevention, recycling, and waste
reduction. It would seem that firms recognize the importance of this issue to various
stakeholders. The results may also reflect the role of external factors like regulation in
resource allocation decisions.
Overall, investments in SPC are positively and significantly correlated with investments
in pollution prevention, recycling, waste reduction, and work place health and safety, but
the strength of association varies by country. The strongest correlations between these
variables by country were in Canada, Hungary, and Italy. Similar results were noted
for TQM. This result supports previous research that seemed to indicate CSR can be a
part of an overall focus on quality initiatives and that its implementation has perceived
benefits to the organization.
When these firms were asked to compare their efforts in solid waste disposal, air and
water emissions, and health and safety, they believed that were doing better than their
competitors. In particular, the Taiwanese firms in this sample on average rated themselves
between 5.2 and 5.5 on a scale of 1-7, with 7 being far better than their competitors.
400 International Journal of Management Vol. 29 No. 1 Part 2 Mar 2012

Firms in the remaining five countries also ranked themselves consistently higher on
average than their competitors.
This study provides a unique perspective on the actual CSR practices of manufacturers
in different countries based on survey responses to the GMRG data for 2003-2004. The
results suggest that work place health and safety have been a priority of companies
regardless of the country where the manufacturing process occurs. To a lesser extent,
pollution prevention, recycling, and waste reduction are valued as well.

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