Assessment of Corporate Social Responsibility concepts implementation by construction

companies in Botswana. A lesson of Gaborone.

Background of the study

The construction industry plays a very important role in the socio-economic development of a
country (Khan, 2008).In Botswana construction industry it is important as it is the biggest
contributor to economic growth. Its importance can be reflected by the positive impacts it
brings on people’s lives, from buildings that are used for occupancy and work, infrastructure
facilities , water and electrical connection that make life easier are all because of
construction activities. This activities generate 10.71% of GDP and employ majority of
skilled personnel and labours (central statistics Botswana, 2018).Due to this fact, construction
companies are expected to override their expectation of delivering projects within time,
quality and cost in to more of meeting society expectation of behaving in a societal ethical
manner of being socially responsible in any activities they execute (Barthope 2010). This
accounts for sustainable construction which goes hand in hand and can be reflected by
companies practicing corporate social responsibility in their works. Despite its positive
contribution on the one side, the construction industry tends to have negative effects on the
other hand. This may be attributed to the significant environmental and social impacts created
by the activities of the industry which often attract negative and hostile attention (Bartthope,
2010). In general, the ethical reputation of the construction industry (Huang, 2014) has been
quite poor, widely deemed by the public as a sector rife with problems such as corruption,
health and safety hazards, and environmental pollution. Cartridge (2011) further says,
construction works account for over 30 % waste generated in the UK and it’s responsible for
over 40 % carbon related problems around the globe. Boudet et al. (2006) also identified
infrastructure as a source of conflict in many communities. Construction professionals (i.e.
architects, quantity surveyors, engineers etc.) can play important role in addressing these
issues in their respective disciplines. (Chartered institute of buildings, 2018) argues that, by
recognising the importance of protecting the public from those that operate under the illusion
of being qualified, competent and experienced in construction and actively supporting and
belonging to industry initiatives such as Trustmark and the Anti-Corruption Forum. These
professionals can act in corporate responsible and ethical manner by participate in the issue
of sustainability through opting for sustainable concepts during design, reducing negative
impacts of buildings on environment by using environment friendly materials and having
less maintenance, less operational and lifecycle costs while ensuring maximum benefit to the
society.

Besides that CSR should include: (1) external dimensions regarding relationships with
suppliers and commitment to local community engagement and protection; (2) internal
dimensions regarding relationships between employee and unions and (3) transparency and
accountability including commitments to issue CSR reports (Yandong, 2007). From studies
available it can be made clear that Companies adopting CSR make good sense of the
business, encounter less risks and CSR act as a marketing tool.(Jones,Comfort and
Hillier,2006) argues that, the potential benefits of CSR for companies include enhanced
reputation, competitive edge, better risk management and a more committed and efficient
work force; all of which could have a considerable effect on profits and practicing greater
responsibility could also have a positive impact on the wider society and the environment. If
business becomes successful, then the environment in which it operates must prosper as well
and different companies have different ways of approaching CSR that uniquely suit the
company operating activities .Winnie mwangi (2015) argues that ,Social responsibility
becomes an integral part of the wealth creation process - which if managed properly should
enhance the competitiveness of business and maximise the value of wealth creation to
society, and also when times get hard, there is the incentive to practice CSR more and better -
if it is a philanthropic exercise which is peripheral to the main business, it will always be the
first thing to go when push comes to shove.

From the above discussions, it can be said that CSR is a concept whereby organizations
consider the interests of society by taking responsibility for the impact of their activities on
customers, suppliers, employees, shareholders, communities, and stakeholders. It’s the
responsibility of companies to take steps to improve the quality of life for those that it comes
into contact with companies.
STATEMENT OF THE PROBLEM

Due to activities in construction being one of economic generators, there is need for social
and environmental sustainability. Companies mainly focus on profit and returns and neglect
the need for being corporate social responsible. Moreover, despite the importance played by
CSR in construction industry some contractors still lack awareness on it and this may be an
inhibiting factor for their growth as expected. This may be a worry as CSR put contractors on
the market spotlight through social welfare services they provide and some clients believe on
contractors who engage in community and social activities than those focusing on profit only.
This study therefore seeks to assess the implementation, significance and importance of
corporate social responsibility in by construction contractors companies in Botswana as well
as provide ways of promoting it in the construction industry
RESEARCH OBJECTIVES

In order to answer the research questions, this study aims to achieve the following
objectives:

• To mention measures that can help construction companies in Botswana implement CSR

•To highlight process conducted by contractors in implementing CSR

•To establish whether CSR helps construction companies achieve greater success.

•To discover whether or not construction companies in Botswana practice CSR

RESEARCH QUESTIONS

•What are measures that can help construction companies in Botswana implement CSR?

•What process are processes conducted by contractors in implementing CSR

•Can CSR help construction companies achieve greater success?

•Does construction companies in Botswana practice CSR?

 Future Research
This research will provide literature and form theories for future researches on CSR.

To the contractors

•The research will motivate contractors in implementing csr CSR and acknowledge its
significance. The research aims to exert csr implementation to contractors by issuing the
unstructured questionnaire to collect data that will test the respondent’s knowledge.

To the Government

•The research will help the Government to formulate sustainable procurement policy hence
the interests of the consumers are safeguarded and environment is protected from unethical
practices by certain careless contractors.

ASSUMPTIONS

•All respondents are going will respond to data collection tools and provide honest responses.
The tools will have 25 respondents to ensure validity.

Delimitation

 The research will be based and conducted in Gaborone only; thereby .limited limiting
research is available pertaining to the construction industry.

Limitations

•The data to be used in this research needs to be sourced from different books, journals,
documentaries and the insert from contractors therefore there will be variation of information
which highlight the same concept and extra care is needed will be taken by the researcher to
link the information . The research needs to be completed in short time hence putting the
researcher under pressure and extra effort may be needed for full time basis

SIGNIFICANCE OF THE STUDY

To the contractors

 The research will motivate contractors in implementing csr and acknowledge its
significance.

To the government
 The research will help government to formulate sustainable procurement policy hence
the interests of the consumers are safeguarded and environment is protected from
unethical practices by certain careless contractors.

ASSUMPTIONS

 All respondents are going to respond to data collection tools and provide honest
answers.

Delimination
 The research will be conducted in Gaborone only, thereby limiting research pertaining
construction industry.

Limitations
 The data to be used in this research needs to be sourced from different books,
journals, documentaries and the insert from contractors therefore there will be
variation of information which highlight the same concept and extra care will be taken
by researcher to link the information .The research needs to be completed in short
time hence putting researcher under pressure and extra effort may be needed for full
time basis
DEFINITION OF TERMS
 Chapter 2: literature view

Introduction
This chapter seeks to recognise researchers whose work are relate to this study .The
information will directed to implementation of CSR concepts in construction
companies, there significance and importance

2.1 CSR dimensions

CSR practices in construction industry are mainly executed and categorised into social,
environmental and economic dimensions.

2.1.1 Social dimension

The social dimension is to set a connection between business and society. (Rahim ,2014 )
states that the basic objective of social dimension is that corporation should work for building
up a better society as whole and integrate social concern in their business and consider the
full scope of the impacts in society . (Udine, 2008) reinforces that the social dimension of
CSR is the obligation to make choices and take actions that contributes to the welfare and
interests of the society and those in the organisation where businesses are conducted.
(Jamal,2008) further says the social dimension include practices in the areas of public
health, public controversies, skills and education, social justice, workplace safety, working
conditions human/labour rights and equal opportunity in the construction industry .(Sharma ,
2003) argues that when addressing the social dimension, you should aim to use your business
to benefit society as a whole ,this could involve sourcing fair trade products ,it could also
involve taking on endeavours that benefit society, for instance using your resources to
organize charitable fundraisers. (katamba,2008) further argues companies are to a great
extent involved in communities, but the range of their activities varies widely in scope, the
top 5 social CSR activities are education, sponsorship of events related to the company’s
marketing strategy, health, HIV/AIDS related issues, and employee volunteerism of which
respondents indicated that these activities directly contribute to sustainable business
development and shape the economic future especially if people are healthy and educated.
(Bo Xia etal, 2017) identified that traditional procurement practices in the construction
industry, for instance, the large work packages and excessive tender compliance burdens,
prevents social enterprises to thrive, and thereby leading to zero community impact in the
industry.(Loosemore,2015 ) states another barrier as the enormous cost and time
requirements for implementing these CSR practices, especially to carryout community
consultation before embarking on project delivery, or a corporate volunteering activity during
a period of tight project delivery schedules. To carry out some of these CSR practices such as
community engagement require specialised skillsets which are lacking among construction
professionals (Bridge man, 2107)

2.1.2 Environmental dimension

The environmental dimension focuses on the impacts of construction activities both on the
living and non-living in the ecosystem. This includes activities in accordance with the
adopted law, supports environmental awareness in the given surrounding, and also creates its
own solutions to minimize the harmfulness of core business. All these elements do not
function in isolation – they interlace to create a model of economic management which is
responsible for the natural resources (Etyma, 2007).this could be reinforced according to
shah, (2011) with environmental policy that is publicly accessible document defining the
organization’s intentions toward the environment. Jiang, (2016) states that the environmental
dimension of CSR incorporates practices such as environmental protection, reducing
pollution and waste, use of resource efficient materials, management of carbon emissions and
sustainable design and construction. Schaefer,( 2015) states that programs and actions for the
most efficient use of natural resources are the recent trend in activities undertaken on a broad
international level and in the UK ,Sullivan,(2014) states that it has begun preparations to
integrate the value of natural resources into the calculation of GDP by 2020.

2.1.2.3 Economic dimension

The economic impact refers to the considerations given to both direct and indirect economic
impacts that an organisation's operations have on the immediate community and stakeholders
(Udine et al., 2008).It refers being profitable. (Carroll, 2008) states profits from selling goods
and services go to shareholders and other investors to keep a company survive and grow and
in addition, they also need to pay their employees, increase value for their shareholders, and
take care of the other stakeholders’ interests.

2.3 csr performance

According to Cambra-Fierro (2013), construction organisations need to understand their

customers better and their social responsibility concerns as part of the strategy for
implementing CSR practices. Barthope, (2009) argues that the formal CSR implementation
has been imported from social science discipline and that is why the scope of CSR solution is
just limited to social science techniques with regard to adaptation and mitigation on
construction issues. Loosemore (2017) found that CSR in construction organisations is
largely informal, unsophisticated and narrowly focussed. Othman,( 2011) argues that one
common strategy is for construction companies to embed CSR as a part of organisational
vision, mission or policy.

3.0 CSR perception in the construction industry

CSR means approaching the organisation’s business objectives responsibly, with an

awareness of its surrounding social and environmental needs, in order to fulfil stakeholder
demands, achieve a profit and remain competitive, (Loomore, 2004).According to Yong liu,
(2005) some firms may opt not to voluntarily undertake any form of CSR activity; raising the
question of whether it requires to be enforced through law. (Jones, 2006) argues that the
potential benefits of CSR for construction companies include enhanced reputation,
competitive edge, better risk management and a more committed and efficient work force; all
of which could have a considerable effect on profits. Frankental, 2004 further states that
under the guise of CSR, companies have been involved in various activities in sports,
environment, health, education and training, helping the needy in society and even national
leadership and governance. (Myers, 2005) says the notable perception of CSR is to help
achieve sustainability while (Roberts ,2008 ) reveals that property developers in Malaysia are
divided on the meaning of CSR, as some see the concept as conducting businesses as
stipulated by the law while others opine that CSR is going beyond the stipulations of the law
in the conduct of businesses of which the effect of these is lack of common definition of
CSR which reduces the understanding of true CSR activities in the construction industry.
(Myers, 2005) states that another factor is organisational size, whereby those large
organisations with enormous resources favour CSR more than the smaller organisations.
 Chapter 3

3.1 research design

The research involves the use of survey and descriptive research designs. Research technique
used to gather information from companies is the use of questionnaires and interviews.
Descriptive research was used in this context since it helped with analysing the CSR concept
in construction companies in Botswana.

3.2 research approach

The indicative content analysis method is used to analyse the research. According Kyng,
(2008), this method is useful where there is lack of formal knowledge about the subject.
Bengtsson, (2016) states that the process involves developing conclusions from obtained data
by weaving together new information into theories. The data obtained will be analysed with
correspondence to concept of study while data obtained is presented.

3.3 target population

The researcher has used construction companies in Botswana as population for the project.
The research is based in Gaborone, Botswana. This is because majority of the category of
construction companies targeted are located in Gaborone area.

3.4 sampling technique

The survey entailed approaching contractors undertaking construction work in Botswana and
registered with PPADB sub code 1(building construction) and sub code 01 civil engineering
works .The contractors were chosen because they are responsible for carrying out works of
up to unlimited amounts, of high magnitude works and which give rise to CSR matters .
There are about 125 sub codes 01 for both building and civil engineering works contractors
registered to carry works in Gaborone. Out of this 108 (86%) are registered to operate in
Gaborone. Simple random sampling was used to get desired manageable number of
contractors.
 3.5 research instruments

The research instruments used is literature survey. A questionnaire data gathering consisting
of set of questions in a different form of question type was used to collect information from
the respondents for the study.

3.6validity and reliability

To ensure reliability, a questionnaire questions were kept brief and presented in likert scaling
for easy understanding. To ensure validity of the project simple random sampling will be
used which gives population an even and likelihood of being selected in the sample. The
project will have a sample of 25 respondents to ensure validity.

3.7data collection procedures

The data collection for the research is questionnaire. The questionnaire is distributed to 25
respondents .communication is used to collect data from respondents to obtain desired
information using questionnaire.

3.8 data presentation and analysis procedure

Data analysis is the process of systematically applying statistical and/or logical techniques to
describe and illustrate, condense and recap, and evaluate data. The statistical package for
social sciences will be used as a data tool. The data presentation tools to be used are bar chat
and bar graphs.

3.9 ethical considerations