Making sense of corporate social responsibility in international business: experiences from Shell

Abstract

International business organizations are regularly addressed on their corporate social responsibility (CSR). As illustrated in this paper, it is not yet clear exactly what CSR means to organizations and how to deal with it. In this paper, the authors explore how a sensemaking approach helps to understand the business challenges of CSR within an organizational context. The theories of Karl Weick are applied to the experiences of CSR in Royal Dutch Shell. The authors argue that the key to CSR in international business organizations is to engage stakeholders and start a process of joint sensemaking. Three main competencies are crucial in this: the competency to engage stakeholders through listening and understanding; the creation of an organizational language so that CSR makes sense to members of the organization; and recognizing the momentum of taking action.

A sensemaking approach to trade‐offs and synergies between human and ecological elements of corporate sustainability

“…The perceived contradictions presented by corporate sustainability stem from its counter-cultural nature (Waddock and Bodwell, 2007), in that the dominant economistic view of the fi rm treats corporate sustainability as a disruption to its operations (Schouten and Remme, 2006). This prompts interpretation, the process where new data or circumstances are translated and given meaning and is followed by learning, 'a new response or action based on the interpretation' (Daft and Weick, 1984, p. 286).…”

When Suits Meet Roots: The Antecedents and Consequences of Community Engagement Strategy

“…More strategic approaches emphasize fit with a firm's resources (Buchholtz et al, 1999;Wagenet and Pfeffer, 2007), capabilities (Schouten and Remm, 2006), organizational structure (Brammer and Millington, 2003) and budgeting and strategic planning processes (O'Donnell, 2002). Other typical organizational characteristics addressed within the community engagement literature, and often included as control variables, include organizational performance, age and size (Shropshire and Hillman, 2007;Wicks and Berman, 2004).…”

“…Transformational engagement requires the competency to engage participants through listening and understanding, the creation of a shared organizational language so that engagement makes sense to members of the organization, and a strong connection with moving beyond talk into action (Schouten and Remm, 2006). Frequent interaction with a small number of partners leads to the development of trust based on personal relationships and mutual understanding.…”

Inverting the Pyramid of Values? Trends in Less-Developed Countries

“…The Royal Dutch Shell believes that in certain cases, the misuse of these revenues can cause poverty, corruption, and conflict. The company started implementing the EITI in many host countries, and overall stockholders have a positive view of EITI (Schouten and Remmé, 2006).…”