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CSR OF MAERSK COMPANY

CORPORATE SOCIAL RESPONSIBILITY:


DISSERTATION AN
ACTIVITY MEANT FOR VALUE ADDITION OF
[Title details]
SOCIETY VERSUS
VALUE ADDITION OF THE
COMPANY (A.P MOLLER-MAERSK GROUP)

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NAME OF THE STUDENT:


DEPARTMENT:

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SUBMITTED TO:

MODULE CODE:
PROGRAM:
NAME OF THE UNIVERSITY

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ABSTRACT

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With the changing times, the business world has also evolved itself. No longer are profits the main
thing people look at. Nowadays, companies also look into the welfare of their employees and the

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people who are directly and indirectly affected by the nature of their business. This is why many

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companies have started looking into Corporate Social Responsibility
(CSR). Touted as a way of giving
back to the society, many corporations try to come up with many CSR activities in order to compensate
people and make up for any problem they might have caused the society while going about with their
business. But research show that acts falling under the category of CSR cannot be exactly compensated

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as each act is relative to each situation. Because of this, it is important to know as to whether

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companies do CSR acts as a means of adding value to their company
or if they are truly acts of giving
back to the society. With the aid of interpretive methods and a descriptive framework (Kumar, 2011),
the study has exemplified the case of A.P. Moller Maersk Group Company which is a shipping and
transportation organization based in Denmark (Copenhagen). This organization was used for the case

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study to see whether companies only do CSR activities to help out the society or in order to get more

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funds for their organization. Results showed that CSR does affect
the Corporate Financial Performance
(CFP) via its influence on the stockholders. Although it does not directly contribute to the CFP, they are
still correlated. As most businesses look at CSR activities as modes of investment, results showed that
the higher the CSR, the more involved the company and the businesspeople which results in increased

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productivity. As they view CSR activities as means of making more money, they tend to put in more

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effort as they grow bigger. Results also showed that a companys
disclosure of their CSR activities
directly affects the profitability of the company. The more involved companies are in CSR activities,
the better the profits of the company. Therefore if corporations and companies address the social
concerns of people, their business will grow and they will get positive feedback from the rest of the

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society, causing their business to become stronger. Because CSR activities are directly related to

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company profits, many companies or managers would make DISSERTATION


the use of CSR activities to just boost up
profits. This forfeits the whole idea of having CSR activities. Lastly this study also took a look at the

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way environmental and safety measures taken by the company towards CSR.

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This study aims to help look at the way companies have evolved
to fit the changing times. It also aims
to see how corporations function and how they view their role in the society in line with the other

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people they interact with on a day to day basis.

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DECLARATION STATEMENT

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I confirm that the dissertation I am submitting is an original and authentic piece of work written by
myself that satisfies the University rules and regulations with respect to Plagiarism and Collusion. I
further confirm that I have fully referenced and acknowledged all material incorporated as secondary
resources in accordance with the Harvard system.

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I also certify that I have taken a copy of the dissertation, which
I will retain until after the Board of
Examiners has published the results, and which I will make available on request in pursuance of any
appropriate aspect of the marking and moderation of the work within the University Regulations.
Name

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Registration Number

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Course

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Date

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Signed ..

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Please note that Dissertations will not be assessed without the inclusion of this declaration by the

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student.

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Supervisors Signature;............. Date:

ACKNOWLEDGEMENTS
Acknowledge anyone who has helped you in your work such as your supervisor, technical support
staff, fellow students or external organisations. Acknowledge the source of any work that is not your
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own.

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ABSTRACT......................................................................................................... 2
DECLARATION STATEMENT..................................................................................4
ACKNOWLEDGEMENTS.......................................................................................5

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TABLE OF CONTENTS:............................................................................................ 6

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1. INTRODUCTION.............................................................................................. 9
CHAPTER 1 INTRODUCTION:..............................................................................10
1.1. OVERVIEW:................................................................................................ 10
1.2 BACKGROUND OF THE STUDY:.....................................................................11
1.3 THE CONCEPT OF CORPORATE SOCIAL RESPONSIBILITY:...............................13
1.4 AIMS AND OBJECTIVES OF THE RESEARCH:...................................................14

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1.5 RESEARCH QUESTION:................................................................................14

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1.6 RESEARCH STRUCTURE:..............................................................................15


2. LITERATURE REVIEW.....................................................................................16
CHAPTER 2: LITERATURE REVIEW......................................................................17
2.1 INTRODUCTION:..........................................................................................17

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2.2 CONCEPT OF CORPORATE SOCIAL RESPONSIBILITY: AN OUTLOOK FROM VARIOUS


LITERARY WORKS:............................................................................................18

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2.3 INTEGRATION OF CORPORATE SOCIAL RESPONSIBILITY IN THE BUSINESS


PROCESSES: HOW CSR ACTIVITIES AFFECT THE EFFICIENCY AND PROFITABILITY OF AN
ORGANIZATION?...............................................................................................20
2.3.1 MANAGEMENT APPROACHES

TO

CORPORATE SOCIAL RESPONSIBILITY:......................................23

2.4 CSR ACTIVITIES OF A COMPANY: COMMITMENT OF STAKEHOLDERS FROM FIRST TO


LAST THROUGH OUT THE PROCESS:..................................................................27

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2.4.1 STAKEHOLDER CLASSIFICATION AND STAKEHOLDER DEMANDS:...............................................28


2.4.2 STAKEHOLDER COMMITMENT THROUGH CONVERSATION AND FAITH-SUPPORTED JOINT PROCESSES:30

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2.4.3 MAINTAINING THE REPUTATION OF THE COMPANY THROUGH CSR:...........................................31


2.4.4 CONCEPT OF CORPORATE GOVERNANCE AND ITS ROLE IN CORPORATE SOCIAL RESPONSIBILITY
CHANNELIZATION:................................................................................................................... 32
2.4.5 THE REQUIREMENT FOR RESPONSIBLE ADMINISTRATIVE LEADERSHIP:.......................................34
2.4.6 ASSESSING THE CORPORATE CULTURE IN A COMPANY PREMISES:............................................35
2.5 VARIOUS METHODS AND ACTIVITIES OF THE COMPANIES TO EMPLOY THE PRACTICE
OF CSR: THE ACTIVATION CHALLENGE IN DEVELOPING DEXTERITIES AND EFFICIENCIES:
....................................................................................................................... 36

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2. 6 THE CASE OF A. P MOLLER MAERSK GROUP OF COMPANIES:........................39

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2.7 CONCLUSION AND CLOSING REMARKS:........................................................41


3. RESEARCH METHODOLOGY............................................................................43
CHAPTER 3: RESEARCH METHODOLOGY.............................................................44
3.1 INTRODUCTION:..........................................................................................44
3.2 TYPE OF RESEARCH METHODOLOGIES AND THE APPROPRIATE METHOD FOR THE
CURRENT PAPER:.............................................................................................. 44

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3.3 CLASSIFYING DESIGN AND DEVELOPMENT RESEARCH GOALS- METHOD OF ANALYSIS


OF THE RESEARCH:..........................................................................................47

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3.4 THEMATIC APPROACH OF THE RESEARCH AND THE APPROPRIATE APPROACH IN THIS
PAPER:............................................................................................................ 49
3.5 RESEARCH PARADIGM:................................................................................50
3.6 DATA COLLECTION METHODS:......................................................................52
3.7 RESEARCH PHILOSOPHY:.............................................................................54
3.8 SAMPLING AND SAMPLE POPULATION IN THE PRESENT RESEARCH:...............55

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3.9 RELIABILITY, VALIDITY AND ETHICAL CONSIDERATIONS:................................55

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4. CONCLUSION:............................................................................................... 56
4. DATA ANALYSIS AND FINDINGS- A.P MOLLER MAERSK GROUP.........................59
CHAPTER 4: FINDINGS AND ANALYSIS................................................................59
4.1 INTRODUCTION:..........................................................................................59
4.2 DATA COLLECTED FROM SURVEY QUESTIONNAIRE ANALYSIS AND JUSTIFICATION BY
SECONDARY DATA:........................................................................................... 60

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4.3 SUMMARY OF STAKEHOLDERS SURVEY ANALYSIS OF MAERSK IN THE CONTINUUM


OF THE LIKERT SCALE:......................................................................................84
4.4 CLOSE SUMMARY:.......................................................................................86

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FIGURE 1: DYNAMICS STAGES OF CSR DEVELOOMENT. SOURCE: BENN AND BOLTON, (2011). P; 60.
....................................................................................................................................... 21
FIGURE 2: STEPS OF SOCIAL RESPONSIBILITY. SOURCE: FERRELL, FRAEDRICH AND FERRELL, (2010).
P; 39............................................................................................................................... 26
FIGURE 3: THE MODEL OF CSR IN AN ORGANIZATION. SOURCE: IDOWU AND FILHO, (2009).P: 75
....................................................................................................................................... 37
FIGURE 4: SUSTAINABILITY MODEL OF MAERSK GROUP. SOURCE: SUSTAINABILITY REPORT (2010).
....................................................................................................................................... 62
FIGURE 5: HISTORY OF ACCIDENT RATES AND HEALTH AND SAFETY CONCERNS IN THE COMPANY.
SOURCE: SUSTAINABAILITY REPORTS, (2010).................................................................65

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FIGURE 6: SUSTAINABILITY MANAGEMENT MODEL IN MAERSK. SOURCE: SUSTAINABILITY REPORT,


(2009)............................................................................................................................ 70
FIGURE 7: MAJOR STAKEHOLDERS OF THE COMPANY; SOURCE: SUSTAINABILITY REPORTS, (2009).
....................................................................................................................................... 71
FIGURE 8: FOLLOW OF HUMAN RIGHTS, LABOUR STANDARDS, AND ANTI-CORRUPTION MEASURES IN
THE COMPANY................................................................................................................ 72
FIGURE 9: GLOBAL CSR COMPACT MEASURES OF MAERSK. SOURCE: COMPANY SUSTAINBAILITY
REPORTS, (2009)............................................................................................................ 73
FIGURE 10: VALUE ADDITIONS TO PROFITEERING BY FOLLOWING CSR PRACTICES.................74

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FIGURE 11: EHICAL BUSINESS PRACTICES LEAD TO INCREASE PRODUCTIVITY LEVEL IN MAERSK.
....................................................................................................................................... 77
FIGURE 12: BUSINESS PRODUCTIVITY LEVELS OF BUSINESS OF MAERSK. SOURCE: SUSTAINABILITY
REPORTS (2010)............................................................................................................. 78
FIGURE 13: VALUE ADDITION BY CSR PRACTICES TO BUSINESS AND SOCIETY IN MAERSK......79
FIGURE 14: MAINTAINING THE WORK ATMOSPHERE TOWARDS CSR BY TRAINING OF EMPLOYEES.
....................................................................................................................................... 81
FIGURE 15: TRAINING AND DEVELOPMENT THROUGH VETTING IN THE COMPANY. SOURCE:
SUSTAINABILITY ACTION PLAN REPORT (2011)...............................................................82

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FIGURE 16: CSR AS A CONTINOUS PROCESS OF IMPROVEMENT AND UPGRADATION IN MAERSK.


....................................................................................................................................... 83
FIGURE 17: ACTIVITIES OF MAERSK IN OPEN SEA OPERATIONS TO INCREASE SAFETY CONCERNS
AND ENVIRONMENTAL PROTECTION. SOURCE: MAERSK SUSTAINABILITY REPORTS, (2010).
....................................................................................................................................... 91

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LIST OF TABLES:

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TABLE 1: NECESSARY SKILLS FOR CSR....................................................................................38


TABLE 2: GRAPH REPRESENTING AWARENESS OF CSR IN MAERSK.........................................61
TABLE 3: GRAPH REPRSENTING HEALTH AND SAFETY CONCERNS OF MAERSK.......................63
TABLE 4: GRAPH REPRESENTING ENVIRONMENTAL SAFETY CONCERNS OF MAERSK..............66
TABLE 5: ENVIRONMETAL SAFET POLICIES OF MAERSK COMPANY. SOURCE: SUSTAINABILITY
REPORTS. (2009)............................................................................................................ 68
TABLE 6: SUSTAINABILITY MANAGEMENT BY CORPORATE GOVERNANCE................................69

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1. INTRODUCTION

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CHAPTER 1 INTRODUCTION:
1.1. Overview:

With new information it is learnt on a daily basis that lives are constantly evolving. In order to cope up

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with the changing times, it is important that even businesses and corporations learn to adapt to the

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current trends. Old methods that were employed by people and
effectively flourished in the past can no
longer work as efficiently and effectively in the present. In the past corporations had very stiff working
relations between bosses and employees. But along with the changing times, work relations have

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evolved and mentoring programs have emerged. Not only have these changes made the foundations of

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corporations stronger and better, but these changes have also DISSERTATION
strengthened the bonds and loyalty ties of
employees to their respective companies.
In the past, businesses and corporations often functioned as a single and separate entity in our society.
They often portrayed themselves to be a part of the society and never really delved into any of the
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societal problems and issues. However this is quite impossible as each business in every industry is

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indeed interconnected with the rest of society, both directly and
indirectly. As time passed by, the direct
connection between the rest of society and various business sectors became more apparent with the
emergence of environmental and social problems that arose because of different businesses. Because of

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this, multi-national corporations came up means to be able to look after the sector of society negatively

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affected by their business. With this, Corporate Social Responsibility
(CSR) became one of the top
issues in the corporate world.
Initially seen as a burden imposed or mandated by the law on an organization (Orliztky et al., 2003),
CSR was not popular with a lot of corporations. It was only seen as a restriction in making more money
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for the company. However due to events in the recent decade, there has become a more in depth view

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of the world and the role businesses play in society. There has
become a deeper awareness about the
role of businesses in the ecological imbalance and its great impact on the environment (Wagner, 2005).
Because of this, businesses started looking into CSR acts in order to look after the rest of society and
earn more profits along the way. More in-depth analyses of organizations have realized that businesses

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do have a responsibility not only to their clients, but their shareholders and stakeholders as well

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(Sweeny and Couglan, 2008). And in order to be able to do their
part, they need to integrate themselves
with the society and alter their methods and goals to fulfil their responsibility. With this, businesses
have changed their mind-sets and are now more integrated with the rest of the world. By meshing
themselves with social and environmental sustainability programs, they are able to ensure that the rest

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of the world is taken care of, aside from looking after their own corporate financial performance. In

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doing so, they are able to understand their target market better,
have better relationships with the
consumers, and are able to exceed standard performance levels. In turn, they reap greater benefits as

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seen in better financial performances.

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1.2 Background of the Study:

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As the current market now embraces the idea of CSR, it has been seen that corporations are now
integrating their businesses with CSR in order to be able to sustain the business. Moreover by

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integrating CSR into their business, they will be able to gain ranking in the market through their

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connections and integration with society. Companies are noDISSERTATION


longer entirely profit oriented. They no
longer determine their success as a corporation or business by the amount of their monetary
transactions. Companies nowadays have a more holistic manner of looking at their business. Making
money is still one of the main goals in a business. However many factors have to be taken into

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consideration before reaching the stipulated goals for profits. In fact companies already include social

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responsibilities and activities as part of what they need to spend.
As corporate partners have become
more aware about the interplay of their business alongside the society, the higher the value of CSR
goes. Slowly as time passed by, CSR is starting to become a norm. Not only does this benefit and help
the corporations, but this does wonders for the people in the society. By learning to work hand in hand,

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businesses can not only get a glimpse of the consumers point of view, but they will be able to

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effectively market themselves to their target audience. With the
help of CSR, they will able to climb up
the success ladder and at the same time, look after their consumers whom they are also depending on
for profits. In the long run, with the help of CSR, both the business sector and the merchant sector will

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be able to function independently and yet coexist harmoniously.

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The present dissertation covers the CSR activities of A.PDISSERTATION


Moller Group-Maersk Company. The
company is a world famous multinational corporation which has its operations in almost 130 countries.
Its main business is that of shipping but it has other subsidiaries like Maersk Line Limited in U.S.A,
Damco, Maersk Container, Saframarine, Maersk Tankers and Drillers, Maersk oil etc. The headquarters

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are located in Copenhagen (Denmark) and are a Danish company. The company was incorporated by

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Mr. Arnold Peter Moller in 1904. Since then it has expanded
its business because of its business
policies and safety measures. This company has been chosen because Maersk is well known for its
sustainable initiatives towards CSR policies and has created a Green Image where the company

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always believes in Constant Care and Safety. It will be interesting to investigate the CSR policies of

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such a well renowned company. For convenience of location
Maersk Group (Singapore Branch) has

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been chosen for collection of data and information.

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1.3 The Concept of Corporate Social Responsibility:

As CSR has proven to be a very integral part of a corporation, gone are the days when companies tend
to be very detached from the rest of the society. Because of CSR, corporations have integrated
themselves with people and causes in the society. In the past, businesses have just functioned as profit

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making bodies. In fact CSR was coined as a term that pertained to the different routes by which an

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organization would surmount the least obligation to the stakeholders
as specified by the regulations of
the government (Sweeney and Coughlan, 2008). But in its traditional business sense, CSR would be
referred to the burden the government imposes on organizations. Moreover this burden can only curtail
the profit making of the company (Orliztky et al, 2003). But after much thought and analysis, the

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modern business groups now view CSR as a structure of the business helps the company meet required

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demands as stated by the consumer. With CSR, they are able DISSERTATION
to meet the consumer demands by means
of supplying them the goods and services they want and at the same time hold obligation for making
profits and increasing the employability market (Bhattacharya and Sen., 2010). With the new direction

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of CSR, it is not surprisingly why many bigger corporations are flourishing in the present. By engaging

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in CSR activities, companies not only give their consumers aDISSERTATION


feeling of satisfaction and wellbeing, but

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they also give them a sense of security that pushes clients to continue patronizing their services.

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1.4 Aims and Objectives of the Research:

The research aims to investigate whether the implementation of CSR into the fleet operational
management policies of A.P Moller- Maersk Group (Singapore Branch) has enabled the organization in
reducing the impacts on the environmental and societal concerns or it has facilitated it in achieving

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more economic performance.

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The research objectives are identified to be:

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1. To investigate the CSR activities of a company and how these activities affect the
organizations efficiency and profitability

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2. To understand the various methods and activities the company would try to employ CSR

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3. To get the point of view and thoughts of the employees
and other people involved in the
CSR activities of the company.
4.

To create a CSR model for the company that would cater to their needs and to help them

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function more effectively and efficiently.

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1.5 Research Question:

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As CSR has started to play an important role in the business setting, this research aims to find out as to
whether CSR is truly an activity meant for value addition of society and if companies really engage in
this because of the society. This research also aims to find out if maybe CSR activities are just done to

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add value to the company and to be able to market the company. By comparing both beliefs, this

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research aims to see the real cause as to why CSR activities are
being done in the first place by many of

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the corporations.

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1.6 Research Structure:

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In order to be able to complete this research, the study was done on the company, Tanker Pacific
(Singapore PVT Ltd. Being one of the premier companies in Singapore in their line of industry, this
research aims to find out as to whether CSR activities are indeed being employed by companies in

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order to just merely add value to the company or are they actually being done to help out the society. To

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be able to conduct the study, a phenomenological method was
conducted on their employees. To be
able to better understand the culture of the company and the way they function, it is essential to know
the ideas and thoughts of the people working in that company. Questionnaires were given out to the
employees to have a better grasp of how CSR activities work. All the qualitative data was then analysed

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and compared to one another to get a deeper insight and general perspective of how CSR activities are

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employed in this particular company. By getting a better glimpse
of how CSR activities would be done
in this company setting, the researcher would be able to understand and see as to whether the company
indeed employs CSR activities only for their own value or because they care about the greater good of

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society.

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2. LITERATURE REVIEW

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CHAPTER 2: LITERATURE REVIEW


2.1 Introduction:
The key rationale of this section is to focus on the theoretical background of the topic of current

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exposition. The chapter evaluates in its own systematic ways the accessible and existing literary works

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which have been already done by previous authors in the
same field and in this process have
contributed some significant hypothesis and theories related to the same. The literature review holds
importance in a dissertation because it helps the readers to understand the interconnected concepts of
the investigation and to link the data with the theories explained herewith. This chapter will elaborate

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both the theories related to the value addition to the society because of the corporate social

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responsibilities and the value addition to the company for the DISSERTATION
same. Thus the present chapter will try to
elaborate the process of corporate governance by which an organization can enhance their image and
helps the society to maintain the health and safety of the population and hence can bring profitability in
its credit. It is the role of every business organization not only to improve its yearly turnover, but also

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to bear some responsibilities towards society and environment. If these two things collaborate together,

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then only success is achieved in the business forefront. This
is the reason why most of the large
corporate companies today succumb to the practice of CSR value additions and activities. This chapter
also concerns the review of the company policies of the exemplary shipping and transportation
company A.P Moller- Maersk Group in CSR activities in a brief outline so that the data analysis can be

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carried out in the same line.

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2.2 Concept of Corporate Social Responsibility: An outlook


from various literary works:
The concept of corporate social responsibility was introduced by Bowen (1953) almost 50 years ago
where he recommended that businesses have the responsibility to pursue those policies, to make those
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decisions, or to follow those lines of action which are desirable in terms of the objectives and values of

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the society (Bowen, 1953, p; 6). From that time the concept DISSERTATION
of CSR has gained significant importance
not only in trade and commerce but also in other places such as in finances, ruling, and political affairs
(McKie, 1974). In recent times this concept has become more prominent (Hopkins, 2006) thus making
the concept into a universal policy to be ingrained in companies, management, non-governmental

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associations, and communal civilization companies (Matten and Moon, 2004; Sahlin-Anderson, 2006).

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There are numerous factors which are attracting the attention DISSERTATION
of major establishments in CSR, counting
the mounting authority of influence activists and sociologists (Amaeshi et al., 2008; de Bakker and den
Hond, 2008), drawing the attention of media to highlight the business accountabilities (Hogan, 2007;
Tench et al., 2007), and the arousing the compassion for principled and environmental consumerism

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(Harrison et al., 2006). The growing of support groups and agencies that conduct activities related to

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CSR (Schafer et al., 2006), thus making changes in the initiatives
of the major organization of the
world in setting an awareness to develop a more and more sustainable structure, and the loyalty to
worldwide principles give evidence of the popularity of the concept of CSR. Now almost all the
companies try to follow the principles of CSR administrative performances (Wilson and Bonfiglioli,

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2002).

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Although many evidences in the literature can be cited which
give theories related to CSR, its
formulation and practices through times immemorial, there are many arguments, controversies and
contradictions associated with the same. (cf. Lindgreen et al., 2009; Frankental, 2001; Garriga and
Mele, 2004). But the central idea of CSR is fundamental of all the contradictions and ideas and it

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entails that however the main notion of business organizations is profit generation but there is another

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aspect which is ignored by many businesses and that DISSERTATION


is the concept of social responsibility
(McWilliams and Siegel, 2001, p; 117). It is believed from various examples that organizations need to
be more responsible and structure their functions in the social aspect which should reflect shared
values, ethics and principles. These are the main ingredients of the CSR concept which makes each and

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every individual responsible towards the society and community (Lichtenstein et al., 2004; Lindgreen

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and Swaen, 2005). The European Commission (2001) hasDISSERTATION


defined CSR as: a concept whereby
companies integrate social and environmental concerns in the business operations and in their
interactions with their stakeholders on a voluntary basis (European Commission, 2001, p; 8).
In spite of the huge demands and popularity of the concepts and awareness of CSR many organizations
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still doesnt understand the essence of the concept and struggles to balance their activities likewise.

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The main intention of the dissertation is to understand the fundamentals
of CSR and in this venture, this
section tries to elucidate various examples from different literature to elaborate and create awareness
about the concept of CSR. Evaluated and critically scrutinized CSR practices are thematically
expressed to a pre-determined format in order to emphasize essential formulations and directions in the

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path of CSR adopting processes. In the explanation process, existing works regarding the concepts of

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CSR values and principles have also been explained so that reader
gets a clear impression of the topic.
In the light of the existing literature on CSR implementation, the analysis leads to the identification of

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key challenges faced by the company (Maersk) in the CSR mainstreaming process.

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2.3 Integration of Corporate Social Responsibility in the


Business Processes: How CSR activities affect the efficiency

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and profitability of an organization?

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In due course of time more and more organizations try to identify
the issue of CSR through the practice
of concise, formative and pre-determined methods; they amend strategies and develop modulated
programs, form directional focus groups, assess specific ventures, measure environmental and societal
routine effects, and distribute yearly sustainable developmental reports. From this it can be assessed

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that companies are aware of the terminology of Corporate Social Responsibility but whether they

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really understand the meaning of the same and ingrain the DISSERTATION
necessary policies in the companies are
difficult to assess unless and until they are scrutinized carefully (Laufer, 2003).
Organizations exhibit numerous parameters of perceptive annotations, dedication and integrity to the
concept of CSR. There are several frameworks and models given in literature which outlines the
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tactical and regulative aspects of the company in the following aspects. These models explain the

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administrative, individual and organizational capabilities needed
in the practice of CSR phenomenon
(Davis and Blomstrom, 1975; Mirvis and Googins, 2006; Van Marrewijk and Were, 2003; Zadek,
2004). The level which is exhibited by the organization of CSR in understanding and following
ultimately decides the degree to which the CSR policies are embraced by the particular organization in

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their corporate culture. If properly followed then there are certain values which are added in turn to the

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company portfolio. These value additions result in more
profitability, good relationship with

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stakeholders and off course good reputation of the company in relation to social activities.

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Figure 1: DYNAMICS STAGES OF CSR DEVELOOMENT. SOURCE: BENN and BOLTON, (2011). P; 60.

To acquire success in the CSR approach, organization needs to traverse from being a tangential append
to becoming an incorporated nucleus transaction purpose (Dickson, 2004; Pederson and Neergaard,
2008); it is very important how an organization comprehend its business values and how it makes

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strategic decisions to append the CSR policy in its mission, vision and objectives (Lyon, 2004; Maon et

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al., 2008a; Zadek, 2004). The adoption of the policy of CSR
by a company is not an easy task and
needs considerable premeditated formulation and decision making. The concept of CSR in an
organization includes philosophies like rights of employees, rights of supply chain collaborators;
paucity mitigation, safety and security of the employees, environmental responsibilities and awareness

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of pollution. The company should not conduct any such practice which is threatening to the

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environment and workers. These measures are often not DISSERTATION


predictable and decided previously and
changes from time to time and from one place to another Schultz, 2006).
To guarantee long-standing ecological and communal accountability an organization must point out the
responsible factors which are important and should be formulated with appropriate measures, skill sets
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and programs. As well as to firmly adopt the policies of CSR in its organizational level, the CSR

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awareness should be introduced in various functional departments
of the companies (Cramer et al.,
2006; Nijhof and Jeurissen, 2006) and, next to make possible a discourse between the organization and
its responsible stakeholders and other customers who are related to the company in many other ways

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(Basu and Palazzo, 2008). Only after such practices and rigorous policies, the CSR values can be

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profoundly ingrained and adopted by the company, its administration
and culture. Then only the CSR
policies can be the source of value additions, creativity and profitability thus generating a bright future.
Corporate social responsibility is an imperative issue for any society. When a community is declining,
corporate social responsibility becomes an attractive concept for community development. Bessers
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research (1998) shows a connection between business social responsibility and community. Defining

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the concept, she uses three dimensions of business social responsibility
developed by the Council of
Economic Development (Post, 1996). The earliest dimension is accountability to consumers,
employees and shareholders. A company is expected to produce cheap and safe products and carry out
healthy operations, to consider the welfare of its employees (i.e., are the employees benefits goods? Do

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they work in a safe place?), and to provide shareholders a reasonable return on their investment. The

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second aspect is conscientiousness to the atmosphere. Corporations,
especially extractive and
manufacturing industries, have degraded the environment in the past. Now, corporations are anticipated
to be atmosphere responsive. The third element is a responsibility to the population. This consists of
contributions to the arts, solving social problems, and supporting community improvement programs.

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The company looks whether the operations of the company add value to the society while protecting

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the environment? In her research, Besser focuses on the DISSERTATION


third dimension, a responsibility to the
community. Though there are various studies on business social responsibility in relation to employees,
shareholders, consumers and the employment, there are not many studies that investigate the
relationship between business social responsibility and community directly. Thus, her lessons are a

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significant donation to this area.

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2.3.1 Management Approaches to Corporate
Social Responsibility:
There has been many research conducted on CSR in the field of businesses (Yotsumoto, 2010; Cramer
et al., 2006; Nijhof and Jeurissen, 2006). Business scholars have been interested in questions like:
what is corporate social responsibility? and how can they apply it to business? In the beginning,

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the debate was whether business should embrace the idea of corporate social responsibility or be

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against it. As the social expectation of corporate social responsibility
grew, it was gradually accepted
by business. When the concept became defined as a component of the business function, discussions
shifted from the issue of its legitimating to the best way to incorporate social responsibility into general

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business strategies.

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Davis (1971) succinctly summarized the early debate of whether
business should engage in social
responsibility or not, listing several arguments for and against it. In his discussion, he defines corporate
social responsibility as the firms consideration of, and response to, issues beyond the narrow
economic, technical, and legal requirements of the firm. He further says that, It is the firms

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obligation to evaluate in its decision-making process, the effects of its decisions on the external social

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system in a manner that will accomplish social benefits along
with the traditional economic gains
which the firm seeks. It shows that social responsibility begins where the laws end (Davis, 1971, p;
313).
As put forward by Yotsumoto (2011) major reasons for social responsibility are: long run self-interest,
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public image, avoidance of government regulation, and socio-cultural norms. By improving the

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community where they do business, the company also receives
long-term benefits. For example, when
a company helps to improve local education, the company may expect to get a better quality labor force
in the future. This will trim down the expenditure of educating the workers and augment output.
Corporations are conscious about creating a good public image. Companies have experienced sanctions

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from consumers and community residents when they received bad publicity from problems such as

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pollution and mismanagement. A good public image may bring
in more customers, better employees
and other indirect benefits. It will increase a competitive advantage relative to other firms. In recent
years, corporate social responsibility is strongly tied to branding strategies. A corporations program in
which planting a tree for reducing carbon dioxide is carried out when consumers purchase goods from

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them is good example of a branding image (Yotsumoto, 2011, p; 18).

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Yotsumoto (2011) has also argued that business also may want
to be socially responsible in order to
avoid government regulations, which can be costly and restrict corporations decision making.
Therefore, business acts for society before the government intervenes (Himmelstein, 1991). When a
society moves towards norms of social responsibility, business is also moving toward the norms,

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whether consciously or not. The business sector is a part of the societal structure where averages

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persuade the activities of its communal actors. When social expectations
are heightened, legislation is
considered, further intensifying social expectation. The importance of norms and social expectations
were well discussed in the paper of Himmelstein and Galaskiewicz (1991). Major reason for value
additions to a company by CSR activities are: profit maximization, lack of social skills, costs of social

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involvement, and a weekend international balance of payment. The idea of earnings maximization is

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the main sound and persuasive dispute aligned with social liability.
It says that a business function is an
economic one. Friedman (1971) argues, when business pursues only profit maximization, it is making
its highest contribution to the society. This argument, however, gradually lost its persuasiveness as

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social expectation for CSR intensified in society. Also, many accounts indicate that profit maximization

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often leads to corporate behaviour that affects society negatively,
the cost of which must be borne by
everyone.
An influential business scholar in the field of Corporate Social Responsibility is Caroll, who clarified

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the concept by identifying components of CSR. In his discussion, corporate social responsibility and

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corporate citizenship are almost the same. Caroll (1998) identifies
four phases of corporate social

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responsibility: economic, legal, ethical and philanthropic as shown in Fig. 2.

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Figure 2: STEPS OF SOCIAL RESPONSIBILITY. SOURCE: FERRELL, FRAEDRICH and FERRELL, (2010).
P; 39.

1. Economic Dimension: The economic dimension of corporate citizenship is the most basic one
for a corporation for adding profitable values to the corporations. Corporations have to be
profitable to stay in business: their goal is to maximize sales revenues and minimize costs.

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Without maintaining this goal, corporations are doomed to fail.

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2. Legal Dimension: The legal dimension of corporate
citizenship is also a requirement for
corporations, who must obey laws and adhere to regulations such as environmental laws,
consumer, laws, and laws protecting employees. When desecrated, businesses receive

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approvals.

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3. Ethical Dimension: The moral aspect of corporate DISSERTATION


citizenship comes next. Society expects
businesses to fulfill this responsibility, yet it is not a legal requirement of businesses. In this
dimension, obeying laws is a minimal behavior, and corporate behavior is expected to exceed
this minimal requirement. For example, there are several performances that while not violating

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laws are morally dubious, and corporations are expected to avoid these debatable practices.

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4. Philanthropic Dimension: The final dimension ofDISSERTATION


corporate citizenship is philanthropic
responsibility. This is the highest level of responsibility that corporations strive for and this is
the responsibility that is the focus of corporate citizenship or corporate social responsibility in

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literature.

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As the responsibility is desired by society, corporations
make monetary contributions to
community improvement programs, youth development programs and so forth. They also
encourage their workers to take part in society agendas as volunteers. In this case, volunteer
time is paid for by the corporations. The third and fourth dimensions (ethical and philanthropic)

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are not focused but are anticipated to meet the expectations. So firms embracement of these

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dimensions is highly conditional to the social norms ofDISSERTATION


each society. Carolls concept of the four
dimensions of corporate citizenship became a benchmark for defining the concept of corporate
social responsibility and generated research to operationalize or empirically measure the

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concept (Aupperle, 1982 and Pinkston, 1996).

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2.4 CSR activities of a company: Commitment of Stakeholders


from first to last throughout the Process:
The activities of the company include incorporating specific capabilities at the directorial echelon that
permit the corporation to virtually connect with its important stakeholders in the course of selfCSR OF MAERSK COMPANY

motivated two-way procedures. In agreement with the opinion of Andriof and Waddocks (2002)

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stakeholder commitment progression, organization needsDISSERTATION


primarily to recognize the pertinent
stakeholders and what are their shares before deciding the significant ways to act in response through
discussion and faith-supported mutual practices (which is identified as the main interactive course of

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development).

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2.4.1 Stakeholder Classification and Stakeholder
Demands:
The stakeholders of the company have been defined as the group of people who have interests in the
company products and processes. From the definition provided by Freeman: stakeholders are further
typified as individuals and constituencies that contribute, either voluntarily or involuntarily, to its

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wealth-creating capacity and activities, and who are therefore its potential beneficiaries and/or risk

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bearers (Post et al., 2002, p; 8). Stakeholders invest some DISSERTATION


type of assets, either being in person or
monetarily that is dependent on the conduct and proceedings of the company (Clarkson, 1995), which
establishes a bi-directional extremely reliant affiliation among organizations and their major investors

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(Gao and Zhang, 2006).

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In every business processes, organization will have to deal with
the prospects of its important clients,
patrons and investors (Andriof and Waddock, 2002). Shareholders are a major group of the stakeholder
community but are from being the only group who expect to benefit from and influence business
activity and, accordingly, are just one of those groups that have a legitimate right to influence a

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companys strategic objectives (Campbell et al., 2002, p; 26). From a straight point of view,

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organizations bear a moral commitment towards the wellbeing
of major shareholders because
stakeholders cannot be considered as a way to commercial outcome. They are precious in their own
ways of rights and individualities, and they draw the margin themselves limiting the choice of the
organizations (Evan and Freeman, 1988). From an influential perspective, the management of

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commitment towards these individuals is critical and efficient as well as tactical ways must be

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employed to sustain a beneficial relationship with them (Post
et al., 2002). This is because these
persons donate to the profit and resource foundation of the business in an organization and in their
individual unique ways morph the framework of the company and atmosphere in which the
organization thrives. They are also the creator of social or political mindset in which the organization

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operates (Miles et al., 2006, p; 199). The recognition of pertinent stakeholders is for that reason vital in

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array to deem and tackle the contending assertion that DISSERTATION


organizations visages and therefore the
companies need to formulate their policies of CSR by taking into consideration the interests of the
stakeholders.
The classification model given by Mitchell et al., (1997) offers a strengthened platform for an energetic
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typification of stakeholders and also provides a basis for a detailed examination of their profound

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significance on the objectives of the organization and also help
to achieve the targeted values of the
company. Particular rejoinders are coherently shaped by executives according to the role of each and
every stakeholders of the company, their roles in the organization and the nature of their shares. In this
process, those stakeholders who bear valid and essential claims are conferred particular consideration

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and contemplation. This process of recognizing the vital stakeholders of the company demands specific

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skills and good decision making attributes of the managers. DISSERTATION


This overall process may face additional
intricacies in situation when various stakeholders exert individual distinctive prototype of authority
(Andriof and Waddock, 2002). Then the companies not only have to tackle the various authorities of
different stakeholders but also the organizations have to understand the various modus operandi of

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individual stakeholders. Then the companies have also to decide the various strategies to handle these

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various claims through one common platform (Crane and
Livesey, 2003). These intricacies of
stakeholder operations must be understood well before a company can take any strategic decision

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related to the claims of individuals.

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2.4.2 Stakeholder Commitment through
Conversation and FaithSupported Joint Processes:
Stakeholder commitment is a procedure of conference, announcement, conversation, and barter that is
intrinsically interactive and founded on shared interdependence and indulgence related to one another

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(Preston and Post, 1975). The process aims at seeking stakeholder views on their relationships with the

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organization in a way that may realistically be expected to elicit
them (Institute of Social and Ethical
Accountability, 1999, p; 91). Four diverse stages of stakeholder commitment are recognized in the text

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(Gao and Zhang, 2001):

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1. A passive level: in which knowledge about the organizations
CSR policies are reported and
published in various media; both the methods are meant from the bulk community of

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stakeholders and the broader community.

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2. A listening level: in which chosen stakeholders opinion
are pulled out through focus group
interviews and formal discussions; various pertinent knowledge is also gathered from

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suggestive opinions and questionnaire analysis.

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3. A two-way process level: in which a restrictedDISSERTATION


and important group of considerable
stakeholders connect through conversation, negotiations and response sharing, and accordingly

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the performances meant for stakeholders only are formulated.

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4. A pro-active level: in which a stakeholder committee
is particularly formed; this committee is
distinguished by the incorporation of feedback from a particular representative and accordingly
the decisions are made by the corporations.
The given categorization is marked by an expanding corporate freedom and a tightening of the
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associations with chosen stakeholders of the (in relation to the fundamental zones of concern).

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Therefore it is evident from the above discussion that the kindDISSERTATION


of stakeholder relations and their claims
could therefore profoundly persuade the approach of commitment down the gamut. The degree of

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claims and expectations of the stakeholders are changeable over due course of time.

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2.4.3 Maintaining the Reputation of the Company
through CSR:
According to Ferrell, Fraedrich and Ferrell (2010), reputation is one of an organizations greatest
intangible assets with tangible value. The value of a positive reputation is difficult to quantify, but it is
very important. A solitary downbeat occurrence is able to manipulate discernments of a corporations

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image and standing instantaneously for the forthcoming future days. It takes companies decades to

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build a great reputation, yet just one slip can cost a company DISSERTATION
dearly. Although an organization does not
control its reputation in a direct sense its actions, choices, behaviours, and consequences do influence
the reputation that exists in perceptions of stakeholders (Ferrell, Fraedrich and Ferrell, 2010, p; 41).
From Ferrells (2010) work it is evident that in order to remove the opportunities for employees to
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make unethical decisions most companies have developed formal systems of accountability, oversight,

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and control-known as corporate governance. Accountability DISSERTATION


refers to how closely workplace decisions
are aligned with a firms stated strategic direction and its compliance with ethical and legal
considerations. Oversight provides a system of checks and balances that limit employees and

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managers opportunities to deviate from policies and strategies and that prevent unethical and illegal

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activities. Control is the process of auditing and improving
organizational decisions and actions

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(Ferrell, Fraedrich and Ferrell, 2010, p; 42).

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2.4.4 Concept of Corporate GovernanceDISSERTATION


and its role in Corporate
Social Responsibility Channelization:
More and more conscientious within the organization about the fundamentals of CSR has resulted in a
wide variety of literature illustrating the CSR policies and necessary actions revolving around it. The

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review of the literature suggests that the property of CSR should be supported with the strong

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foundation of corporate governance, even principles (Welford,
2007). To professionally channelize the
concept of CSR within an organization, corporate social responsibility must be incorporated into the
organizations administrative levels and procedures so that as far as possible, all social responsibility

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issues are foreseen, covered by corporate policies, and dealt with in a way that shows an understanding

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of the issues involved and a willingness to help solve societal
problems (Shahin and Zairi, 2007, p;
766).
The formulation of more ritual ability preparations, such as CSR slat members, shared, environmental,
and monetary hazard records, CSR reports, evidence that associations are focusing on preceding shortCSR OF MAERSK COMPANY

term financial feats in order to compact with the sustainable prosperity and efficiency of the association

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into deliberation (Money and Schepers, 2007). By following the
policies framed by a healthy corporate
governance framework that will permit the managers and board of directors to participate in a
productive function in attaining CSR goals and principles and in gaining the faith of the stakeholders of
the company originally reveal a genuine promise to the attainment of CSR. The structure of corporate

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governance can present a beneficial, highlighted, and symbolic foundation for executing germane,

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competent, and plausible CSR strategies all the way through
the establishment of worth-supported
stakeholder associations (Beltratti, 2005; Wedford, 2007). When corporate governance arrangements
are well-organized they can put off unlawful practices to the stakeholders of the company, at the same
time efficiently and collectively allowing CSR business regulations to thwart proceedings that are

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officially permitted but not suitable (Beltratti, 2005).

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On the organizational level, the board members of the corporate
governance can effectively help to deal
with askew recitals of administrative systems and business failures that often poses hindrance and
become obstacle in achieving the CSR objectives. Boards should constructively address market failure
by establishing board policies supporting government action on relevant issues; they should oversee

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implementation of these policies by the companys lobbying and government relations departments;

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and perhaps also keep a check on the lobbying activities of any
relevant trade associations in which the
company participates. They should also address PMS [performance management systems] incentives
problems (Mackenzie, 2007, p; 942). The major hurdles related to the evaluation and administration of
performances can be dealt by, primarily exploring the hazards that are caused due to the faulty systems

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(and specially when souk breakdown is a difficulty) and, next, adjusting in hand mottos and objectives

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and presentation intentions so that detrimental effects are lessened
considerably or can be conquered
quickly (Mackenzie, 2007, p; 942).
It should be marked that the dedication of the company towards CSR through the formulation of
personalized corporate governance and directorial frameworks-cannot be accomplished if not the true
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keenness to the model of entrenched CSR policy is exhibited and painstakingly ingrained within the

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mission and vision of the company; this readiness should be DISSERTATION


a compliment to a burly CSR headship at
the decision-making echelon to guarantee that CSR is cuddled by the employees of the company

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(Maak, 2007).

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2.4.5 The Requirement for responsible Administrative
Leadership:
The administrative squad is accountable for management and navigation of the organization to ensuing
with its long-standing thought-out statements. The whole group plays an important and functional role
in communicating the tactical stance of the organization (Thomas and Simerly, 1994) and by this

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effective management enforces a core and profound impact on the expansion and incorporation of the

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CSR policies and orientation within the culture and thinking of
the company (Banerjee, 2001; Maxwell
et al., 1997; Waddock, 2002; Waldman et al., 2006). According to the survey records of world
management executives and businessmen conducted by McKinsey in 2006, 74% amongst the 4,238
executives interviewed, understood that head of the organization i.e. chief or director should take the

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front in the administration of societal and political matters and their responsiveness towards the

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community. The materialization of a strapping guidance andDISSERTATION


headship, consequently, emerges as the
principle factor which helps to ingrain the ethics of CSR in the corporate culture (Ciulla, 1999; Weaver
et al., 1999) and civilizing the organizations pledge to CSR.
Executives bear an accountability to mobilize and align the energy of different people for achieving
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common objectives and support the realization of a common and good vision (Maak and Pless, 2006,

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p; 104). The capacity to widen and uphold productive andDISSERTATION


continuing associations with pertinent
stakeholders then turns out to be a crucial attribute of conscientious supervisors (George, 2003). Not
only this supervisor should also have to look that people from different society, backgrounds and
classes are integrated and intertwined together to make the attempts to uphold CSR policies effective.

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They should also be concerned with the health and safety of the local communities which surrounds the

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company; they should be enough responsible not to carry outDISSERTATION


any offensive practices which may harm
or possibly challenge the environment. They should look forward to understand and comprehend the
needs and necessities of the stakeholders and should keep a watch so that by any means the relationship
with the stakeholders are not affected or spoiled (Maak and Pless, 2006). The first and foremost criteria

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which a manager should possess in this context in the power and ability of communication and he

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should be enough efficient not to lose dialogue with stakeholders
and establish a stretchy and healthy
relationship with them through his broad and open-minded outlook. The second most important skill
which a manager should possesses is behaving with honesty and authentically thus exhibiting true
concern about the societal groups of people (Wilson et al., 2006) Accountable managers must make

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efforts to possess in the due course, poignant intelligence and polite wisdom (Maak and Pless, 2006).

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While the first criteria makes the manager to foster the sense
of morality and reflectivity and also
provides as a foundation for creative and inventive CSR course of action, the second is understood to
constrain emotional consciousness, manifestation, and emotional control. The amalgamation of the two
qualities discussed above helps the managers to influence the subordinates of the company and to

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manoeuvre the process of CSR quite smooth and effectively. This also helps them to achieve a balanced

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and comfortability with the stakeholders of the company thusDISSERTATION


adding ultimate value to the organization

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both in terms of productivity and proficiency.

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2.4.6 Assessing the Corporate Culture inDISSERTATION


a Company Premises:
To augment directorial fit, a corporate social responsibility program must align with the corporate
culture of the companies. The purpose of this first step is to identify the organizational mission, values,
and norms that are likely to have implications for social responsibility. In particular, relevant existing

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values and norms are those that specify the stakeholder groups and stakeholder issues that are deemed

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most important by the organization. Very often, relevant organizational
values and norms can be found
in corporate documents such as the mission statement, annual reports, sales brochures, or websites

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(Ferrell, Fraedrich and Ferrell, 2010, p; 52).

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2.5 Various Methods and Activities of the Companies to


employ the practice of CSR: The Activation Challenge in

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developing dexterities and Efficiencies:

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The changing character of CSR and the intricacies involvedDISSERTATION


in the overall concepts calls for certain
challenging factors like dedication and prior formulation, as well as specific know how and expertise as
suggested by Maignan et al., (2006). It has been recommended that where they have to integrate it in
their day-to-day management involving their whole supply chains, companies employees and

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managers need training and retraining in order to acquire the necessary skills and competence (Wilson

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and Bonfiglioli, 2002, p; 1). The review of specific studies done
by other authors does not offer a very
clear concept or work that expansively recognizes the know-hows and efficiencies that are necessary in

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this method (Fig. 3)

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DISSERTATION

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Figure 3: THE MODEL OF CSR IN AN ORGANIZATION. SOURCE: IDOWU and FILHO, (2009).P: 75

Based on the literature reviews of (DTI, 2003; Dunphy et al., 2003; Maignan et al., 2006; Maon et al.,
2009) there are some necessary proficiencies and characteristics which are categorized into three wide

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parameters: Broad business and administration proficiencies, individual related expertise and scientific

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and CSR-associated skills. These three groups are strappingly
intertwined with one another and are

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described below in Table. 1.

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Table 1: NECESSARY SKILLS FOR CSR.

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Skills Areas

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Key Required Competencies

Key Features

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1. Broad Business
Administration
Proficiencies:

and A. Environment understanding 1. Capacity to recognize the wider


and diagnosis establishment:

2.

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3.

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situation of trading actions and


procedures
Capacity to query and take note
of others, to relate serious
imminent and to formulate
unprejudiced verdicts.
Capacity to employ various
resources and means of

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examination.
1.
2.

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B. Project Management:

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3.

Capability to grab innovative


openings.
Ability to lithely drum up
assets.
Capacity to haul directorial
alterations in alert and
prepared methods.

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1.
Ability to espouse
2.
3.
C. Effectual Communiqu:

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2.
Individual
Expertise:

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related A. Training and development of 1.


workforce:

manifold
perspectives.
Ability to plainly communicate
thoughts and information.
Ability to recognize and
acclimatize
to
discrete
noticeable addressees.
Capacity to arouse company
oriented
information
and
consciousness.

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2.
Capacity to train particular
3.

1.

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B. Ability to influence various


innovative philosophies:

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2.

identified workforces and


executives to specific matters.
Capacities
to
formulate
effectual
man-power
recruitment process.
Capacity to separately make
queries
of
dealings
customarily.
Capacity to bring about free

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and
unprejudiced
3.

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3. Scientific and
associated skills:

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CSR- A.

Stakeholder
Administration:

Association

1.
2.

governmental ambiance.
Capacity
to
implement
structured procedures and to
encourage the enhancement of
creative thinking and groundbreaking thoughts.
Capacity to foster combined
affiliations.
Capacity
to
bargain,
manipulate
devoid
of

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2. 6. The Case of A. P Moller Maersk Group of Companies:
The present dissertation has taken the Danish shipping company of A.P Moller- Maersk Group for

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studying its CSR activities in value addition to society and organization. After outlining the theoretical

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background of CSR and its role in the organization, it willDISSERTATION


be interesting to sketch the outline and
literary evidences for A.P Moller- Maersk Group. The main intention for including the literature review
of Maersk is to lay the foundation of analysis of data which will be dealt in the forthcoming section. It
will also help to understand the concepts of CSR discussed above and how it is being followed in the

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company which will later be supported by primary and secondary data gathered for the company.

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From the review of the sustainability report (2010) of the A.PDISSERTATION


Moller- Maersk Group, it is evident that
the company stresses a lot on the issue of corporate social responsibility. There are two important
aspect of the company in line with the CSR activities. One is the Sustainability and the other is the
Constant Care phenomenon. In the words of Anderson, group CEO of the company: Constant Care

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involves a stretched view, thereby involving in routine processes and activities of the company the

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ethics and responsibility of taking care of the employees, DISSERTATION


stakeholders, society and environment
(Anderson, 2010, Sustainability Report, p; 1). The major noteworthy point in the issue of the company
corporate responsibility is safety. In every employees of the organization the value and worth of
safety and societal responsibilities are ingrained from the day of inception in the company. The

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corporation thrives on the go-getting target of Drive to Zero. This aim includes in the vision of the

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company that they will try to reduce the harmful incidents against
society to a level of zero and carry
out their performance likewise. They believe in the notion that if tried that all catastrophes can be
evaded. In the words of Reinhart (2010), CEO and president of Maersk subsidiary: Accidents happen
is unacceptable (Sustainability Report, 2010, p; 1). This policy necessitates the company to be obvious

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and clear in their activities and report the chances of calamity beforehand. The company carries out

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these policies by proper training of the employees in DISSERTATION


a program called Safety in Motion
(Sustainability Report, 2010, p; 1). Because the business revolves around transportation and maritime
responsibilities so they are well sentient about the global atmosphere and what can be harmful for the
society. In 2010, they established a novel crusade called as Every Voyage has a Purpose which

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underscores the significance of their operations in the field of corporate social responsibilities. They

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understand that besides profit making, they have also a considerable
vital role toward the society and
community and for this reason they believe that they should behave in every way as responsible
citizens and not only as business minded geeks. They also carry well their responsibilities towards the
expectations and demands of their shareholders and stakeholders to whom they owe every possible

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notion to maintain proper image and reputation.

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2.7 Conclusion and Closing Remarks:

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Corporate social responsibilities have been identified by business and government circles, as well as
citizens, as approaches to solving social problems. Governments in many countries try to balance their
budgets and reduce the responsibilities of government. Therefore, they look to alternative actors, who

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can take on some of the responsibility for solving social predicaments. On the side of business,

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participation in social contribution is appealing because it enhances
their positive image in society. It is
a constituent of their promoting strategy. While a large body of literature exists in this area, most has
been concluded by scholars in business/ management fields. It is natural to see the publication from
those scholars since corporate social responsibility is a function of businesses and research form the

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field has provided direct implications for better management. CSR is day by day getting massive

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popularity in the recent years and it has become the new mantra
of conducting business. Altman (1988)
for this reason has recommended the necessity of a responsible and attentive administrative and
corporate team who understands the concept and growing awareness of CSR. But often it has been
found that companies overlook the concepts of CSR and it becomes a confounding phenomenon. This

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chapter thus tries to make understandable the theories associated with CSR and for dealing the matter

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sensitively. The overall description given in this chapter is related
to the altercations and challenges
faced by the corporations in adopting the CSR concept in their organizational culture. More
prominently, the hurdles faced by the organization in carrying out the practice, commencement and
ambition are dealt in each of the sub sections given under particular headings. The goal of

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implementing CSR policies can be attained by combinatorial policies and interaction between the

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understanding and progress of social awareness and continuous
discourse and involvement of the
employees of the company with the stakeholders to whom they are responsible. The necessity of
competent skills and expertise at the various administrative levels of the organization fulfils the criteria
of maintaining the pedagogy of CSR within the premises of the organization. This should be properly

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channelled under appropriate leadership and supervision. This part has tried to explain the previous

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published work and theories of various eminent authors regarding
the concept of CSR. In the process,
the explanation has handled the chief objectives which will be investigated in the present paper. It has
tried to outline the basic contention of the definition of CSR, why and how it is important for the
organization, what efforts the organization can take in order to achieve the objectives of the CSR. It has

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also described the responsibility of the organization in the aspect of CSR towards the stakeholders and

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shareholders of the company, what initiatives the companies can
take in order to ingrain the concept in
the minds of the employees and how efficient leaders and managers should deal with the responsibility.
In turn it has shown how companies can add value to its own efficiency and productivity level along

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with the environmental and societal level. The various debates and arguments present have nicely

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elucidated the concept in a systematic way so that readers canDISSERTATION


comprehend the necessity to conduct this

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dissertation in an effort to understand the CSR activities.

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3. RESEARCH METHODOLOGY

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CHAPTER 3: RESEARCH
METHODOLOGY

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3.1 Introduction:

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Investigation for dissertation is not only a process of accumulating knowledge as it is considered


sometimes. It is somewhat about exploring the answers to the raised question in the paper and to create
a background of information which does not subsist at present. Before conducting research in any fields

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it should be properly reviewed which methods of analysis will be appropriate for the decided topic and

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why the chosen method is appropriate for the particular topic.
In this section, the major tools of
analysis and type of research will be detailed as this will help the readers to understand the analytical
process. For further considerations, the various limitations faced while conducting the research such as
lack of resource, space, time and scope, the factor or reliability, validity and authenticity will also be

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given along with.

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3.2 Type of Research Methodologies and the Appropriate


Method for the Current Paper:
According to Wimmer and Dominick (2010) there are two principal methodologies in conducting a

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social research. They are (1) Qualitative Methods and (2) Quantitative Methods.

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1. Qualitative Research Methods: Discussing the qualitative
research method can be confusing
because there is no universally acknowledged description of the word qualitative (Wimmer and
Dominick, 2010, p; 115). The word qualitative has been employed to submit a sense of expansive
viewpoint and loom to researcher, a study method, and a precise collection of examination procedures.

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Qualitative research generally employs a lithe inquiring move. Even though a central set of query is

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framed to initiate the exploration. The investigator can shuffle
over questions or make follow-up
queries at any point during the investigation tenure. It is mainly employed where the investigator wants
to comprehend a particular situation. Finally the researcher is the main instrument in qualitative data
collection and analysis and therefore must prepare before beginning the task of investigation. Guba and

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Lincoln (1985) has recommended that qualitative method uses various techniques for analysis of data

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like relative transfer of occurrences and groupings, amplification
and alteration of groupings,
penetrating for associations and premises among groupings, and finally simplifying and integrating
data into a coherent theoretical structure.
Limitations of this method: In qualitative methods, sample sizes are sometimes too small to allow the
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researcher to generalize the data beyond the sample selected for the particular study. For this reason,

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qualitative research is often the preliminary step to further investigation
rather than the initial phase of
a project. Although qualitative research can prove to be a very preferred method of collection of
information and assessing them, investigators must remember that the outcome of such methods has

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certain limits of representation if the size of the sample is minute. Since this method does not include

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any mathematical concept and calculation, so the matter of specificity,
reactivity, reliability and validity
is a limitation. This may put the credibility of the research into a question.
2. Quantitative Research Methods: According to Wimmer and Dominick (2010) this method utilizes
a stagnant and homogeneous clout of questions. All candidates are put through identical questions and
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choices. Interviewers conducting the interview are not allowed to stray from the questionnaire

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(Wimmer and Dominick, 2010, p; 118). Quantitative approachDISSERTATION


waits until all the numbers are collected
before analysis begins. Quantitative research also involves several methods of data collection, such as
telephone surveys, mail surveys, and Internet surveys. In these methods, questioning is static or
standardized-all respondents are asked the same questions and there is no opportunity for follow-up

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questions. Quantitative research requires that the variables under consideration be measured. The form

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of research is concerned with how often a variable is present
and generally uses numbers to
communicate this amount. Quantitative research has certain advantages. One is that the use of numbers

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allows greater precision in reporting results.

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Limitations of this method: One of the limitations that are present
in this method is that the notion of
the researcher may get diluted from the main target of the research paper since the main principle of the
method considers mathematical or numerical verdict rather than spawning them.
3. Mixed Methods of Research in this Paper and Justification: It has already been discussed that in
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some research paper, in order to attain the objectives the application of one particular method is not

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sufficient. In this case the mixed methods are taken help of. In
this the qualitative methods are applied
in the inception stage which is later proved by the theoretical quantitative data. In the present
dissertation also, mixed methods are most apt. But half of the portion will be qualitative in nature since
the present topic is based on a general issue of social responsibilities. The matter involving the concept

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of cultural and societal responsibilities is a concept which cannot be quantified or measured but still in

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order to present the opinion, quantitative method is applied toDISSERTATION


give more specificity to the concept. The
quantitative nature will be reflected in the graphs and charts in survey analysis of the primary data
gathered from questionnaire analysis of the employees of A.P Moller- Maersk Group. These figures

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will be represented in the form of graphs or pie charts depending upon the nature of the data and the

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demand of the representation. But otherwise there will be DISSERTATION


no as such mathematical calculation or

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variables related to this research.

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3.3 Classifying Design and Development Research GoalsMethod of Analysis of the Research:
As put forward by Singleton and Straits (2005) most of the investigations are exploratory, descriptive,

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or explanatory in nature. The authors describe these three distinctions as given below:

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1. Exploratory Research: This method is mainly connected
with those subjects about whom little
information is available. For this reason, there are certain courses of action to tag along and the
research structures are less ordered than is descriptive research. These lessons have a propensity to be

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categorized in the qualitative criteria.

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Limitations: The constraint of this category of purpose explanation
is that it constricts downwards the
probability or chances in an analysis.
2. Descriptive Research: Descriptive research is more of a fact-finding enterprise, focusing on

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relatively few dimensions of a well-defined entity (Singleton and Straits, 2005, p; 68). It can be both

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DISSERTATION
quantitative and qualitative in nature. The most important methodological
consideration in respect of
descriptive studies is the collecting of accurate data on the domain phenomenon to be studied. The
researcher describes accurately and carefully that which is (Mouton and Marais, 1988, p; 43).
Limitations: The main weakness of this method is that it cannot indicate and reason the explanations
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associated with a discernible. The explanation can only be expounded.

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3. Explanatory Research: Explanatory studies are initiated DISSERTATION


not only to describe phenomena, but also
to test relationships between elements of the problem. They are typically designed to seek the answers
to problems and hypotheses (Singleton and Straits, 2005, p; 69). These studies usually employ

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quantitative methods. The purpose of explanatory research is to reveal the causality between variables.

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The researcher attempts to show both the direction and the causes
of connections (Mouton and Marais,
1988, p; 45).
Limitations: This process also suffers from the imperfection of relevancy to a pernickety

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circumstance of interactions than the well-built distinctive features for which exploration is necessary.

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4. Conception applied in the present research: The appositeDISSERTATION


rationale and conception applied in the
present paper is descriptive in nature. This examination will assist the readers to identify the reasons
of the necessity of Corporate Social Responsibility in every organization and how it can add value to
a particular company in relation to society and corporate image. The exemplary organization chosen

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in order to explain the selected phenomenon of CSR is A.P Moller- Maersk Group, a Danish shipping

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and maritime company. As the temperament of the investigation
is descriptive, so the establishment
of data will employ both primary and secondary data by analysing the opinion of the employees and
data collected from as sustainability reports of the company, periodicals, publications, paperbacks &

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websites.

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3.4 Thematic Approach of the Research and the Appropriate


Approach in this Paper:
As Saunders et al. (2003) identified the two types of thematic move towards conducting a particular

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research work, in the same way Blaikie (2009) explained the concepts of these two types in a simple

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and effective manner: The two types of approach as identified
by Saunders et al. (2003) are: (1)
Inductive Reasoning and (2) Deductive Reasoning.
1. Inductive Reasoning: Research surrounded by the inductive approach involves gathering
information by data by running philosophies, and then probing for prototypes in the records. Schemes
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become generality and association of sweeping statement are well thought-out to be a hypothesis.

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Theory development consists of accumulating generalizations
and producing further support for
them. The use of models in the Inductive research strategy is confined to abstract descriptions and
mathematical representations. The former consists of relatively low-level generalizations and possible
networks of such generalizations, while the latter involves the mathematical modelling of data. This

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modelling can range from basic statistical summaries to more complex forms (Blaikie, 2009, p; 154).

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The inductive investigator additionally strives to make sagacity
from the interview opinions while
analysis of data. The main disadvantage of this kind of reasoning is the persistence since the analysis
of data is reliant upon the numerical representation of the data.
2. Deductive Reasoning: The concept of this strategy is opposite to that of the inductive
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strategy. Rather than presumption being the upshot of study, it has to be formed, hired or made-up at

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the onset. Conjecture is obtained from a deductive squabble.DISSERTATION


Based on the rationale at dispense, the
finale to the spat can be a theory, a prophecy, or the constancy that is to be described. Therefore this
reasoning needs a great covenant of hypothetical toil earlier than information is gathered. It is

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possible to regard a deductive argument as a theoretical model, a formal system and an

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operational system (Willer, 1967). The method suffers from
the weakness of ingenuousness and
suppleness.
3. Thematic Reasoning for this particular research: For this thesis, Inductive reasoning is resolute
as appropriate to evaluate the importance of corporate social responsibility in the value addition to
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society and organization in A.P Moller- Maersk Group. By means of the annotations of the evidences

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and demand of the research pattern, inductive reasoning will
help the investigators to ascertain
necessary implications and analysis of the data collected. Further this method employs quantitative
method of data analysis as a part hence inductive reasoning will also explain the relation between the
opinion collected from the rating questionnaire responses and the statistical representation of the data

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by graphs and charts.

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3.5 Research Paradigm:

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A research paradigm is a perspective about research held by a community of researchers that is based
on a set of shared assumptions, concepts, values and practices. Neuman (1997) and Blaikie (1993)
suggested that there are three distinct approaches to social science research, positivism (or

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objectivism), interpretive, and phenomenological.

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1. Positivist Paradigm: The positivist paradigm is the oldestDISSERTATION


and still the most widely used in mass
media research. Derived from the writings of philosophers such as Comte and Mill, positivism is the
paradigm most used in the natural sciences. The positivist paradigm involves such concepts as

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quantification, hypotheses, and objective measures.

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2. Interpretive Paradigm: The endeavour of interpretive
paradigm is to comprehend how
individuals in daily ordinary surroundings generate connotation and construe the proceedings of the
planet.
3. Phenomenological Paradigm: The phenomenological paradigm is based on a qualitative outlook
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and employs the inductive reasoning method for analysis of data. This paradigm considers the whole

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world as socially connected and the inferences are drawn based
on the generation of connotations,
acquisition of handy knowledge from the observable fact. Hussey and Hussey (1997) opined that
phenomenological paradigm is related with comprehending the activities performed by individual and

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accomplices personal edge of orientation (Collis and Hussey 2003; Howell 2004a).

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Paradigm of Inquisition for this Investigation: Based on the
above classification of analysis and
research paradigm, there can be interrelated paradigms chosen for this particular research paper for
the analysis of corporate social responsibility phenomenon in organizations. The most apt paradigm
which can explain the present analysis is the amalgamation of interpretive and phenomenological

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paradigm in which the behaviour of individuals in natural settings is considered for the purpose of

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CSR activities in companies and the whole world is connected
to the one common agenda of CSR
while performing business transactions.
The main points of consideration about the employment of the two paradigms to explain the analysis

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includes the research demand in the present paper concerning the exemplary organization of A. P

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Moller- Maersk Group for gaining knowledge about the process
of CSR in the organization and to

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understand the value additions involved in the CSR concept.

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3.6 Data Collection Methods:

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There are two major types of data depending upon the sources from which they are collected. They
are: (1) Primary Data and (2) Secondary Data. The necessity of the selection of the methods of data
collection depends on the methodology and technique adopted for the research. As quantitative

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method demands collection of primary data through questionnaire and interviews based on which

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statistical analysis, ratings are analysed. But the qualitative
data demands the presentation of
secondary data. Qualitative data can also be gathered from in-depth interviews, focus group
interviews and personal discussions.
1. Primary Data: According to Srivastava (1998) primary data is gathered by the researcher for
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some specific use related to the objectives of the dissertation. It may be gathered by techniques such

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as individual investigation and or/questionnaires. A questionnaire
is either filled up by the researcher
himself from the responses given by the candidates or by the candidate himself/herself. Since the data
is collected for the particular use according the objectives of the research paper, hence relevancy is
more in a primary data. Since the data is collected by the investigator and monitored in his presence

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so there is greater degree of regulation in these kinds of data. Such data confers a realistic and holistic

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view to the researcher and better insight is gained. The control
of bias is more in this kind of data.
But the primary data has certain disadvantages like the collection process requires a lot of time and is
costly. It needs skilled persons to analyse the data and cannot be done by an inexperienced individual.

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The framing of questionnaire is critical in this case.

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2. Secondary Data: According to Srivastava (1998) it is theDISSERTATION


data disseminated through some media
like reports (external or internal), magazines, hand books, periodicals, manuals and internet company
web-pages. The most advantageous point of secondary data is that it is easily available and requires
less time of collection than primary data. Reliable sources for collecting secondary data can remove

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the creepiness in primary data. It is also less expensive than primary data since it does not involve

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any elaborate process. The biggest challenge while using secondary
data is that the data should be
relevant, recent and reliable for the given objectives of study. Secondary data sometimes may lack
specificity and the qualities of such data vary with the source of collection. Sometimes the researcher
has to compromise with the objectives of the research is only the data are secondary.

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Collection of Primary Data through Interviews:

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Conducting interviews is the most effective method when DISSERTATION


the objectives of the research revolve
around noting the opinion of people. It gives self-reported primary data. Interviews can be of various
types. If the research follows a qualitative framework of analysis then depth interviews, focus group

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techniques and projective methods are the main techniques of gathering primary data. But if the

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research is based on a quantitative framework then the interviews
are mostly based on ratings,
answering multiple choice questions and paired comparisons which are mainly used in this research.

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Pattern of Questionnaire in the present research:

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Survey questionnaire will be formed based on the theoretical
knowledge gained in the literature
review section. Since the analysis is quantitative, hence the pattern of questions in the questionnaire
section will be close ended in nature. In the body of instrument of the questionnaire, the pattern used
is that of rating scales analysis. There can be various scaling techniques like semantic differential

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rating, Likert scale rating. In this case Likert ratings of the continuum representing strongly agree to

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strongly disagree metrics have been represented. This method
will surely help us to judge the
attitudes and perceptions of the stakeholders towards the CSR policies of Maersk Group.
Source of Data Collection in the present research: Since the present research investigates the
company social policies hence it will be perfect to achieve the opinion of the employees of the
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company. That will be possible through appropriate questionnaire designing and obtaining the

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answers to these questions. In order to strengthen the analysis,
secondary data from the company
manuals, website will also be elaborated so that personal bias, reliability, specificity and validity are
maintained in the present research. The data will be a combinational representation of primary and

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secondary data. The partial quantitative nature of the dissertation will be reflected from the analysis

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of the questionnaire responses and ratings of the employees through
graphs. Qualitative nature will be
reflected in representation of the secondary data gathered from various authentic sources.

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3.7 Research Philosophy:

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The rationale and philosophy of the research aims to acquire
insightful knowledge in CSR
philosophies and the value additional concept of the same. This confers the research a pure nature as
contradictory to the applied nature. The quantitative data will be in the form of structured and closeended rating scaled interviews with the employees of A. P Moller- Maersk Group. The concept of

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triangulation will be followed while framing the questionnaire which will be open-ended and

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structured in nature. The data gathered from the employees will
be quantitatively expressed through
graphical interpretations which will be inductive in nature. The secondary data will be mostly
qualitative in nature which will support the primary data. The study will spawn universal suggestions

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from the data collected and theoretical conclusion will be derived from the same.

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3.8 Sampling and Sample Population in the present Research:


As given by Schiffman and Kanuk (2007) a sample is a subset of the population that is used to
estimate the characteristics of the entire population (Schiffman and Kanuk, 2007, p; 56). The two

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kinds of sampling methods are:

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1. Probability Sampling: (Plain casual sampling, Methodical
random sampling, Stratified chance
sampling, and collective (region) sampling).
2. Non-probability Sampling: (Expediency Sampling, Decision Sampling, Proportion Sampling).
For the current investigation, methodical random sampling has been employed and the sampling

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particulars have been outlined below:

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1. Sampling Unit: A. P Moller- Maersk Group (Singapore Branch).
2. Sampling Population: 50 participants (stakeholders) selected arbitrarily from company.
3. Sampling Style: Methodical Random Sampling (In this an affiliate of the populace is selected at

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arbitrary choice and then each nth individual is elected.

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3.9 Reliability, Validity and Ethical Considerations:

The main approach behind social studies is that is should be purposeful and should not reflect any
biased opinion. Investigator should not cosset in sustaining a prearranged finale by means of prejudiced
opinions, predisposed inquiry, manoeuvring graphical results, or disregarding germane knowledge.

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These all considerations have been properly maintained in the analysis and representation of the data.

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For this purpose, random sampling secondary data have been DISSERTATION
lined up to validate analysis. Some moral
values should also be followed while gathering the responses from the employees and customers of the
companies so as not to ask any questions which can lead to contradictions and controversies. The
employees and customers who are willful to given their responses have been chosen and no

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enforcements or plea have been made to those who are reluctant because many may not like the idea of

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giving answers to questions. It has been kept in mind to intervene
in the normal schedules of the
interviewee and data has been collected only after prior approval from the company. The seclusion and
obscurity of the candidates have been preserved all the way through.
Schiffman and Kanuk (2007) recommended that an investigation holds validity if it reports the apposite
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data from authentic sources. Hence keeping in mind of the validity mixed methods has been employed

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in the research so as to strengthen the data authenticity. Absolute
consistency with objective set in the
beginning of the research has been sustained and only those data has been reported which are
significant for the thesis The steadfastness of the entire progression is reflected in the outline of
questionnaires which are identical for all the candidates and elucidation of the answers are done

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immediately from the feedback supported by the secondary data gathered devoid of any exploitation.

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4. CONCLUSION:

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This chapter thus outlines in brevity the philosophy, approach, techniques of data collection and
analysis and purpose of the research considering the necessary justifications of each and every process
and their limitations. The main points to be reckoned during data analysis are that the research follows

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a descriptive approach with an inductive reasoning. The methods and framework takes a mixed

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approach of both qualitative and quantitative methods depending
on primary and secondary knowledge.

CSR OF MAERSK COMPANY

Primary data is represented through graphs based on the rating scales of respondents.

250

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251

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252

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253

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254

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4. DATA ANALYSIS AND FINDINGS- A.P


MOLLER MAERSK GROUP

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CHAPTER 4: FINDINGS AND ANALYSIS


4.1 Introduction:
The chief purpose of this chapter is to present the data which has been collected from primary

CSR OF MAERSK COMPANY

(questionnaire analysis of the stakeholders of the company) and secondary analysis (data from

257

company reports) which is related to find the value additions DISSERTATION


in relation to organization and society for
Maersk Group. Throughout the lessons of this chapter, the investigator will manifest the statistics
composed from survey questionnaire analysis of Maersk Group in Singapore and will conduct a
qualitative analysis of secondary documents. The responses will then be compared with the overall

CSR OF MAERSK COMPANY

objectives of the study and conceptual model. Preliminarily with a concise foreword about the duration

258

and span of the CSR policies followed in Maersk Group, thisDISSERTATION


subdivision will scrutinize and appraise
the CSR policies espoused by the business and the value additions because of the CSR policies to
institute justification in a competitive dynamic environment. The analysis of questionnaire responses
will be justified by the secondary data collected. The main purpose of data analysis is to establish the

CSR OF MAERSK COMPANY

objectives of the dissertation in relation to Maersk group for its CSR activities and awareness. It is also

259

needed to show the programs conducted by Maersk towards DISSERTATION


the dimension of CSR and to cross check
the opinion of stakeholders who are important in relation to value additions of the company. The
procedure of examination was supported on the truth that recognized scaffold is not only well-ordered
and methodical but additionally it is significant for constructing judgment, illuminating and exploring

CSR OF MAERSK COMPANY

those agendas which are indispensable creeds of CSR framework. As explained earlier, the method will
employ a mixed method of analysis. The primary data is quantitative and the secondary documentation

260

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Sample Population
50 candidates

261

Sampling Method
Methodical
Random

DISSERTATION
Response Rate

Sampling Unit
A.P Moller-Maersk
Group (Singapore
Branch)

80% (40 out of 50


responses received)

Question 1: Likert Scale analysis and representation of DISSERTATION


data regarding awareness of CSR in

CSR OF MAERSK COMPANY

Maersk Group by the scales given from 1 to 5:

262

DISSERTATION
Awareness of CSR in MAERSK COMPANY
20
20
18

CSR OF MAERSK COMPANY

P
e
r
c
e
n
t
a
g
e

16
14
12

10

10
8

25%

50%

13%

Opinion

263

Percentage

4
2

Opinion

5%

8%

DISSERTATION

Table 2: GRAPH REPRESENTING AWARENESS OF CSR IN MAERSK.

Question 1: Analysis of the Response Rate and Graph: The above data gathered from the feedback
of the stakeholders shows that 25% strongly agree that Maersk is aware of the concept of CSR and
50% stakeholders show agreement to the statement. 12.5% have showed no views and 5% showed

CSR OF MAERSK COMPANY

disagreement while 7.5% showed strong disagreement. If the agreement values are considered then a

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total of 75% that is major population shows agreement to the
statement which shows that Maersk is
well aware of the concept of CSR. Now those who have disregarded may express two things, one they
are not happy with the CSR activities of Maersk or rather they are not well informed of the policies.

CSR OF MAERSK COMPANY

The importance of this question is based on the need to explore whether the company is well aware of

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DISSERTATION
the CSR policies and what the stakeholders feel about the company
policies. This can well elaborate
that Maersk group believes in the concept of sustainability and development.
Secondary Data in response to the above analysis: The sustainability report (2010) of the company
(Maersk-A.P Moller group) shows that they are well aware of the concept of CSR and follow the
CSR OF MAERSK COMPANY

roadmap depicted in Fig. 4. This shows that Maersk is well aware of the concept of CSR. The sense of

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DISSERTATION
social responsibility has always existed on the mission, vision,
values, and principles of the company.
Previously, it was just an ordinary annexe to the quest of being liable traders but later on with time and

CSR OF MAERSK COMPANY

growing demands a more well-ordered approach was constructed.

267

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268

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Figure 4: SUSTAINABILITY MODEL OF MAERSK GROUP. SOURCE: SUSTAINABILITY REPORT (2010).

Question 2: Likert Scale analysis and representation of health and safety measures as a CSR

CSR OF MAERSK COMPANY

initiative in Maersk Group by the scales given from 1 to 5:

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Health and Safety Measures of Workers in MAERSK
15

16

CSR OF MAERSK COMPANY

14
P
e
r
c
e
n
t
a
g
e

12

10

10
7

8
5

Percentage

4
2

25%

38%

8%

Opinion

270

Opinion

13%

18%

DISSERTATION

Table 3: GRAPH REPRSENTING HEALTH AND SAFETY CONCERNS OF MAERSK.

Question 2: Analysis of the Response Rate and Graph: The above data gathered from the feedback
of the stakeholders shows that 25% strongly agree that Maersk takes sound initiatives for the health
and safety of the workers in consideration of CSR values and 38%% stakeholders show agreement to

CSR OF MAERSK COMPANY

the statement. 7.5% have showed no views and 12.5% showed disagreement while 17.5% showed

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DISSERTATION
strong disagreement. If the agreement values are considered then
a total of 63% that is a good number
of population shows agreement to the statement which shows that Maersk follows the practice of CSR
by taking serious and sound initiatives towards the health and safety issues of employees. Now those
who have disregarded may express two things, one they are not happy with the health and safety

CSR OF MAERSK COMPANY

policies of Maersk or rather they are not well informed of the policies. The importance of this question

272

is based on the need to explore whether the company takes DISSERTATION


care of its employees. This is one of the
integral issues of CSR. Besides being a profit expedition, the company should also know to take care of
its workforce since they are the main supports behind the companys success.
Secondary Data in response to the above analysis: The sustainability report (2010) of the company
CSR OF MAERSK COMPANY

(Maersk-A.P Moller group) shows that the company have included several metrics towards the

273

improvement of health and safety of working employees DISSERTATION


in the company and they believe that
Constant Care philosophy is one of the core values of the company CSR policy which adds more
value to the company work atmosphere and retain the employees. They also periodically conduct health
screening tests of the employees and conduct Pre-Employment Medical Evaluation before

CSR OF MAERSK COMPANY

recruitment of the mariners as depicted in Fig. 5 which shows the incident of related injuries and total

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recordable data. This makes sure how much the company cares
for the health and safety issue of the

CSR OF MAERSK COMPANY

workers.

275

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276

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Figure 5: HISTORY OF ACCIDENT RATES AND HEALTH AND SAFETY CONCERNS IN THE COMPANY.
SOURCE: SUSTAINABAILITY REPORTS, (2010).

Question 3: Likert Scale analysis and representation of environmental safety initiatives as CSR

CSR OF MAERSK COMPANY

measure in Maersk group by the scales from 1 to 5:

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DISSERTATION
Environmental Safety Measures in MAERSK
25
25
20

CSR OF MAERSK COMPANY

P
e
r
c
e
n
t
a
g
e

15
10

Opinion
5

5
12.50%

62.50%

2
5.00%

Opinion

278

3
7.50%

12.50%

Percentage

DISSERTATION

Table 4: GRAPH REPRESENTING ENVIRONMENTAL SAFETY CONCERNS OF MAERSK.

Question 3: Analysis of the Response Rate and Graph: The above data gathered from the feedback
of the stakeholders shows that 12.5% strongly agree that Maersk do not conduct any such activities
which may contribute for the environment pollution and threaten the marine life and 62.5%%

CSR OF MAERSK COMPANY

stakeholders show agreement to the statement. 5% have showed no views and 7.5% showed

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DISSERTATION
disagreement while 12.5% showed strong disagreement. If the
agreement values are considered then a
total of 75.0% that is a large number of population shows agreement to the statement which shows that
Maersk does not conduct any harmful operations. Now those who have disregarded may express that

CSR OF MAERSK COMPANY

are not well informed of the policies or they dont agree to the statement above. The importance of this

280

question is based on the need to explore whether being in DISSERTATION


the shipping business, Maersk is enough
responsible towards the community and society.
Secondary Data in response to the above analysis: The sustainability report (2009) of the company
(Maersk-A.P Moller group) shows that the company takes prior check not to perform any operations
CSR OF MAERSK COMPANY

which may be harmful to the environment and marine life. For e.g., they take care of the emission of

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DISSERTATION
harmful gas and heat emission. They have also reduced the emission
of harmful carbon particles in the
environment. They also check the quality of the cans and tankers which are released in the water. These
efforts are eminent in the table of group environmental performance given below in Table.5. This
shows that the company follows the rules and regulations of CSR thus adding value to the environment.

CSR OF MAERSK COMPANY

Particularly in the Singapore branch they follow the strategy of more efficient anti tainting paints which

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DISSERTATION
are comparative less noxious and helps the tankers to lessen
the pull, thus balancing the energy
consumption and brunt of the containers on the surroundings (APMM, Group Brochure, 2011).
Creativity and innovativeness are also encouraged to enhance the corporate image of the company
whereby Maersk enhances technological advances like nanotechnology to improve environmental

CSR OF MAERSK COMPANY

safety aspects.

283

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284

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Table 5: ENVIRONMETAL SAFET POLICIES OF MAERSK COMPANY. SOURCE: SUSTAINABILITY


REPORTS. (2009)

Question 4: Likert Scale analysis and representation of direct stakeholder engagement and
presentation of sustainability reports as a duty of CSR in Maersk group by the scales from 1 to

CSR OF MAERSK COMPANY

5:

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DISSERTATION
Corporate Governance Management in MAERSK
20
20
18

CSR OF MAERSK COMPANY

16
P
e
r
c
e
n
t
a
g
e

14
12

10

10
8
6
25%

50%

2
8%

Opinion

286

Percentage

4
2

Opinion

13%

5%

DISSERTATION

Table 6: SUSTAINABILITY MANAGEMENT BY CORPORATE GOVERNANCE

Question 4: Analysis of the Response Rate and Graph: The above data gathered from the feedback
of the stakeholders shows that 25% strongly agree that Maersk follows a dialogue engagement with its
stakeholders and they produce sustainability reports each year from their corporate governance boards

CSR OF MAERSK COMPANY

each year and 50% stakeholders show agreement to the statement. 7.5% have showed no views and

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DISSERTATION
12.50% showed disagreement while 5% showed strong disagreement.
If the agreement values are
considered then a total of 75.0% that is a large number of population shows agreement to the statement
which shows that Maersk holds a responsibility towards their stakeholders by engagement of major
stakeholders and providing sustainability reports of each year. Now those who have disregarded may

CSR OF MAERSK COMPANY

not be happy with the major dialogues or they are not well informed of presentation of the

288

sustainability reports of the company. The importance of thisDISSERTATION


question is based on the need to explore
whether the company feels the importance and role of corporate governance for directing CSR
philosophies.
Secondary Data in response to the above analysis: The sustainability report (2009) of the company
CSR OF MAERSK COMPANY

(Maersk-A.P Moller group) shows that the company they provide annual sustainability reports, provide

289

DISSERTATION
advice from the corporate governance committee, and believe
in efficient leadership to carry out
effectively the policies of CSR. This is evident from the Fig.6 and Fig. 7 about sustainability

CSR OF MAERSK COMPANY

management model and the major stakeholders of the company.

290

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291

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Figure 6: SUSTAINABILITY MANAGEMENT MODEL IN MAERSK. SOURCE: SUSTAINABILITY REPORT,


(2009).

292

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DISSERTATION

293

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Figure 7: MAJOR STAKEHOLDERS OF THE COMPANY; SOURCE: SUSTAINABILITY REPORTS, (2009).

Question 5: Likert Scale analysis and representation of sustainability governance framework in

CSR OF MAERSK COMPANY

Maersk by the scales from 1 to 5:

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DISSERTATION
Follow of human rights, labour standards, and anti-corruption measures in Maersk
16

15

15

14

CSR OF MAERSK COMPANY

12
P
e
r
c
e
n
t
a
g
e

10
8
Percentage
3

4
2

2
37.50% 37.50%

7.50%

Opinion

295

Opinion

12.50%

5.00%

DISSERTATION

Figure 8: FOLLOW OF HUMAN RIGHTS, LABOUR STANDARDS, AND ANTI-CORRUPTION MEASURES


IN THE COMPANY

Question 5: Analysis of the Response Rate and Graph: The above data gathered from the feedback
of the stakeholders shows that 37.5% strongly agree that Maersk follows global CSR protectoral
measures against human rights, labour standards, and anti-corruption and 37.5% stakeholders show

CSR OF MAERSK COMPANY

agreement to the statement. 7.5% have showed no views and 12.50% showed disagreement while 5%

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DISSERTATION
showed strong disagreement. If the agreement values are considered
then a total of 75.0% that is a large
number of population shows agreement to the statement which shows that Maersk holds a
responsibility towards their labours, concerned about human rights and anti-corruption. These are the
major norms which should be tackled while maintaining CSR responsibilities as seen in the literature

CSR OF MAERSK COMPANY

reviews. This shows that Maersk are well collaborated and prepared for carrying out the responsibilities

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DISSERTATION
of CSR. The importance of this question is based on the need
to explore whether the company adds
value to community by avoiding unlawful practices, avoid corruption in the business and well follow

CSR OF MAERSK COMPANY

the human rights and labour standards in their business.

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DISSERTATION
Secondary Data in response to the above analysis: The sustainability
report (2009) of the company
(Maersk-A.P Moller group) shows that the company takes well-defined measures in the case of human

CSR OF MAERSK COMPANY

rights, anticorruption and labour standards as evident from the table given below.

299

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300

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Figure 9: GLOBAL CSR COMPACT MEASURES OF MAERSK. SOURCE: COMPANY SUSTAINBAILITY


REPORTS, (2009).

Question 6: Likert Scale analysis and representation of value additions to profiteering in

CSR OF MAERSK COMPANY

Maersk by the scales from to 5:

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Value Additions to Profiteering by following CSR
20
20
18
16

CSR OF MAERSK COMPANY

P
e
r
c
e
n
t
a
g
e

14
12

10

10
7

Percentage

6
4
2

2
5.00%

50.00%

1
2.50%

Opinion

302

Opinion

25.00%

17.50%

DISSERTATION

Figure 10: VALUE ADDITIONS TO PROFITEERING BY FOLLOWING CSR PRACTICES.

Question 6: Analysis of the Response Rate and Graph: The above data gathered from the feedback
of the stakeholders shows that 5% strongly agree that Maersk attains considerable value additions in
terms of revenues and profits by following a holistic approach to CSR policies and 50% stakeholders

CSR OF MAERSK COMPANY

show agreement to the statement. 2.5% have showed no views and 25% showed disagreement while

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DISSERTATION
17.5% showed strong disagreement. If the agreement values are
considered then a total of 55.0% that is
a satisfactory number of population shows agreement to the statement which shows that Maersk attain
value additions in terms of revenues by following CSR. Those who dont agree or strongly disagree to
the above statement may not be aware of the reports or really they do not agree to the statement

CSR OF MAERSK COMPANY

because of other reasons. The importance of this question is based on the need to explore whether CSR

304

can really add value to society, environment and community.DISSERTATION


It has been theoretically explained in the
literature review section that CSR adds value supplements but is it true or not can be evaluated only
after analysis of the present questionnaire.
Secondary Data in response to the above analysis: The annual financial reports of the company in
CSR OF MAERSK COMPANY

2011 of the company (Maersk-A.P Moller group) shows that the company has attained considerable

305

DISSERTATION
profit in business as evident from the Table.7 below. This may
be due to other reasons but the most
prominent activities have been the sustainable activities again are confirmed by Table. 8 which show

CSR OF MAERSK COMPANY

revenues earned from shipping and other activities.

306

CSR OF MAERSK COMPANY

DISSERTATION

307

DISSERTATION

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Table 7: FINANCIAL REPORT OF MAERSK COMPANY. SOURCE; INTERIM REPORTS OF MAERSK,


(2011).

308

CSR OF MAERSK COMPANY

DISSERTATION

309

DISSERTATION

Table 8: OFF SHORE SHIPPING ACTIVITIES AND REVENUES. SOURCE: INTERIM REPORTS OF
MAERSK, (2011).

Question 7: Likert Scale analysis and representation of conduct of ethical practices in business

CSR OF MAERSK COMPANY

thus following CSR policies and increasing overall productivity levels by the scales from 1 to 5:

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DISSERTATION
Ethical Business Practices lead to Increase in Productivity Level in Maersk
18
18
16

CSR OF MAERSK COMPANY

14
P
e
r
c
e
n
t
a
g
e

12

10

10
8

Percentage

4
2

2
25%

45%

10%

Opinion

311

Opinion

5%

20%

DISSERTATION

Figure 11: EHICAL BUSINESS PRACTICES LEAD TO INCREASE PRODUCTIVITY LEVEL IN MAERSK.

Question 7: Analysis of the Response Rate and Graph: The above data gathered from the feedback
of the stakeholders shows that 25% strongly agree that Maersk exhibit conscientious activities towards
its business and attains considerable high productivity levels by practicing ethical business practice and

CSR OF MAERSK COMPANY

codes of conduct and 45% stakeholders show agreement to the statement. 10% have showed no views

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DISSERTATION
and 5% showed disagreement while 20% showed strong disagreement.
If the agreement values are
considered then a total of 70% that is a large number of population shows agreement to the statement
which shows that Maersk follows ethical business practice and attain value additions in terms of
productivity level. Those who dont agree or strongly disagree to the above statement may not be aware

CSR OF MAERSK COMPANY

of the reports or really they may not be happy with the practices of business. The importance of this

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DISSERTATION
question is based on the need to explore whether being Maersk
gain competitive value addition in
efficiency and profitability by following CSR measures.
Secondary Data in response to the above analysis: The annual sustainability reports of the company
in 2010 (Maersk-A.P Moller group) shows that the company has attained considerable higher
CSR OF MAERSK COMPANY

productivity levels in business as evident from the Fig. below. As inferred from the responses of the

314

DISSERTATION
stakeholders that this productivity level is mainly due to the good
business practices which follows the

CSR OF MAERSK COMPANY

rules and regulations and ethical codes of conduct.

315

CSR OF MAERSK COMPANY

DISSERTATION

316

DISSERTATION

Figure 12: BUSINESS PRODUCTIVITY LEVELS OF BUSINESS OF MAERSK. SOURCE: SUSTAINABILITY


REPORTS (2010).

Question 8: Likert Scale analysis and representation of data of value additions contributed by

CSR OF MAERSK COMPANY

CSR to society and organization by the scales from 1 to 5:

317

DISSERTATION
Value Addition by CSR to Business and Society in Maersk
17

18
16

CSR OF MAERSK COMPANY

14
P
e
r
c
e
n
t
a
g
e

12

10

10
8

Opinion

6
4
2

25.00%

42.50%

7.50%

Opinion

318

Percentage

3
1
2.50%

22.50%

DISSERTATION

Figure 13: VALUE ADDITION BY CSR PRACTICES TO BUSINESS AND SOCIETY IN MAERSK

Question 8: Analysis of the Response Rate and Graph: The above data gathered from the feedback
of the stakeholders shows that 25% strongly agree that the conduct of CSR practices by Maersk add
considerable values to the society and environment and 42.5% stakeholders show agreement to the

CSR OF MAERSK COMPANY

statement. 7.5% have showed no views and 2.5% showed disagreement while 22.5% showed strong

319

disagreement. If the agreement values are considered then aDISSERTATION


total of 65.5% that is a good number of
population shows agreement to the statement which shows that CSR practices are important for an
organization since it adds substantial value additions to the society and business. Those who dont
agree or strongly disagree to the above statement may not be aware of the concepts of CSR or they are

CSR OF MAERSK COMPANY

not well received with the treatment.

320

DISSERTATION
Secondary Data in response to the above analysis: This has
already been established by the figures
of revenues, productivity, environmental safety and labour health safety figures from the company
provided above in relation to the particular criteria. This shows that the company foster a sound
business atmosphere by regarding the value of the employees which results in better productivity. The

CSR OF MAERSK COMPANY

value of constant care and the philosophy of maintaining safe environmental practices also lead to

321

better value creation by the company in respect to society andDISSERTATION


community. When a company establishes
its business in a particular locale, then along with it the company also provides the opportunity of
employments, pays tariffs to Governments and exchange knowledge. Maersk has also set a
philanthropic background for the community where it operates and serves the society by donations to

CSR OF MAERSK COMPANY

education, offering free transportation facilities, and contributions during natural disasters. This shows

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DISSERTATION
that the company is enough responsible not only towards its businesses
but also towards the population.
This helps in creating a good reputation and image of the overall business group. There are few figures
attached in the Appendix 2 section which have been collected from the various reports of the company.

CSR OF MAERSK COMPANY

This will make the conception more clear.

323

Question 9: Likert Scale analysis and representation ofDISSERTATION


data conducting CSR practices by

CSR OF MAERSK COMPANY

training workforce in Maersk Group by the scales from 1 to 5:

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DISSERTATION
Maintaining the work atmosphere towards CSR by training of employees
30
26

CSR OF MAERSK COMPANY

25

P
e
r
c
e
n
t
a
g
e

20

15
Opinion
Percentage

10

4
10.00%

65.00%

5.00%

Opinion

325

2
12.50%

7.50%

DISSERTATION

Figure 14: MAINTAINING THE WORK ATMOSPHERE TOWARDS CSR BY TRAINING OF EMPLOYEES.

Question 9: Analysis of the Response Rate and Graph: The above data gathered from the feedback
of the stakeholders shows that 10% strongly agree that the company take additional efforts for training
the employees for CSR awareness and 65% stakeholders show agreement to the statement. 5% have

CSR OF MAERSK COMPANY

showed no views and 12.5% showed disagreement while 7.5% showed strong disagreement. If the

326

agreement values are considered then a total of 75% that DISSERTATION


is a good number of population shows
agreement to the statement which shows that Company has embraced the concept of CSR in its
employee culture also. The importance of this question is based on the need to explore whether the

CSR OF MAERSK COMPANY

company carry out knowledge giving programs to encourage CSR initiatives.

327

Secondary Data in response to the above analysis: TheDISSERTATION


Fig. 15 given below adapted from the
sustainability action plan report (2011) of the company shows that Maersk have taken considerable
efforts and initiatives in incorporating the atmosphere of training, development and auditing for

CSR OF MAERSK COMPANY

inculcating the awareness of CSR within their employees.

328

CSR OF MAERSK COMPANY

DISSERTATION

329

DISSERTATION

Figure 15: TRAINING AND DEVELOPMENT THROUGH VETTING IN THE COMPANY. SOURCE:
SUSTAINABILITY ACTION PLAN REPORT (2011).

Question 10: Likert Scale analysis and representation of data whether to continuously upgrade

CSR OF MAERSK COMPANY

and improve CSR practices in Maersk group by the scales from 1 to 5:

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DISSERTATION
CSR as a continous process of improvement and upgardation in Maersk
18

17

16

CSR OF MAERSK COMPANY

14
P
e
r
c
e
n
t
a
g
e

12

10

10

Opinion
Percentage

6
3

4
2

2
42.50%

25.00%

7.50%

Opinion

331

5.00%

20.00%

DISSERTATION

Figure 16: CSR AS A CONTINOUS PROCESS OF IMPROVEMENT AND UPGRADATION IN MAERSK.

Question 10: Analysis of the Response Rate and Graph: The above data gathered from the feedback
of the stakeholders shows that 42.5% strongly agree that the company should continuously upgrade
and improve the CSR practices within the company and 25% stakeholders show agreement to the

CSR OF MAERSK COMPANY

statement. 7.5% have showed no views and 5% showed disagreement while 20% showed strong

332

DISSERTATION
disagreement. If the agreement values are considered then a total
of 67.5% that is a satisfactory number
of population shows agreement to the statement which shows that Company should upgrade
continuously and strive to enhance the CSR performances. The percentage who has disagreed to the

CSR OF MAERSK COMPANY

above statement may not be happy with the initiative plan for CSR up gradation for the company. The

333

importance of this question is based on the need to explore DISSERTATION


whether Maersk is enough responsible to

CSR OF MAERSK COMPANY

monitor, regulate, upgrade and improve its existing CSR policies.

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DISSERTATION

4.3 Summary of Stakeholders Survey Analysis of Maersk in


the continuum of the Likert Scale:

CSR OF MAERSK COMPANY

Table 9: SUMMARY OF RATINGS BASED ON STAKEHOLDER'S FEEDBACK FROM MAERSK SINGAPORE


BRANCH.

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DISSERTATION
Strongly

Strongly

Agree

No

Disagre

Agree 1

View

Disagree

10=25%

20=50

3
5 =12.

4
2=5%

5
3=7.5%

10=25%

%
15=38

5%
3=7.5

5=12.5

7=17.5%

%
25=62

%
2=5%

%
3=7.5%

3 = 9%

CSR OF MAERSK COMPANY

Statement

336

12.5%

.5%

DISSERTATION
The Table. 9 is made by combining the responses achieved from questionnaire 1 to 10. In this the
responses of 40 stakeholders of the A.P Moller-Maersk Group (Singapore branch) have been
amalgamated. These stakeholders include trade union employees, shareholders and investors and

CSR OF MAERSK COMPANY

customers of the company. First, the details of these stakeholders have been gathered from the

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DISSERTATION
company office and then 50 stakeholders have been approached.
Among them 40 were ready to fill in
the questionnaires based on which the data have been compiled. The judgment of the respondents
has been rated on the basis of Likert Scale (range from 1to5). The best way to represent the responses

CSR OF MAERSK COMPANY

are the bar graphs which have been given in each case to make the analysis more clear quantitatively.

338

The reason for choosing Likert Scale of Analysis: SinceDISSERTATION


in this dissertation, it is intended to
establish the objectives by studying the attitudes of the stakeholders, so Likert scale analysis is the
most suitable method which represents continuum from strongly agrees in the right hand extreme to
strongly disagree in the left hand extreme. This type of analysis was first introduced by Renesis

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Likert in 1932 after which it is popularly known as Likert Scale. It is usually a five point rating

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scale in which responses are added and overall attitudinal percentages
can be represented. In this
analysis Likert scale very well represents the opinion and attitudes of the stakeholders of Maersk

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regarding the company CSR policies.

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4.4 Close Summary:

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The present section thus clearly analyses each and every response given by the stakeholders which
are quantifiably expressed through the Likert rating scale analysis. In order to show the reliability and
validity of the responses further, secondary data collected from the company reports have been given

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below each and every questionnaire analysis so as to make things more clear and acceptable.

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CHAPTER 5: ANALYSIS AND


INTERPRETATION OF DATA

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5.1 Analysis of the Methods Applied in Collection of Data:


In the previous chapter, both primary and secondary data have been represented and interpreted. It is
evident that the dissertation has taken the help of qualitative secondary analysis while representing the
study of documents gathered from the company reports, annual reports and sustainability reports. The

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primary data collected by survey analysis of the questionnaire and Likert Scale ratings represent the

347

primary quantitative analysis. Thus this paper has employed DISSERTATION


the mixed method of research employing
both primary quantitative data and secondary qualitative data. The data has been interpretive in
showing the outcome of research and how the stakeholders of Maersk Group views the organizational
CSR measures and is phenomenological in considering that the stakeholders of Maersk are socially

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connected with one another and to the organization. Hence both the interpretive and phenomenological

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paradigm describes the outlook of the research. Since the data
collected in a way describes the CSR
policies of the Maersk group hence the descriptive pattern of the paper has helped to gain further
insights regarding the various arena of the research study. The analysis has shown the following points

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as outlined below:

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5.1.1 Awareness of CSR in the organizational
setting of Maersk
Company:
The analysis of the survey questionnaire 1 and the document reviewed from the company reports shows
that Maersk foster a organizational concern for corporate social responsibility. The majority response of

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the stakeholders towards the agreement continuum in the rating scale moreover strengthens the fact that

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they are well aware of the CSR initiatives of the company.DISSERTATION


In the literature review section, theories
have shown that management should be enough responsible for growing the awareness of CSR in an
organization. Following the roadmap of the company it is clear that the policies of sustainability and
social responsibility are well inbound with the administration of the company. Again the literature

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review has explained the role of corporate governance in CSR in an organization. It has explained how

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the formulation of more ceremonial authority arrangements, DISSERTATION


such as CSR board members, communal,
ecological, and financial jeopardy chronicles, CSR news, proof that organization are concentrating on
previous short-range monetary feats can deal with the sustainable profitability and productivity of the
organization into contemplation. This has been picturised and represented well in the questionnaire 4

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where it has been shown that Maersk follows a sustainability governance framework (Fig. 6) and this

352

committee looks for the various issues like engagement ofDISSERTATION


stakeholders in dialogue, looking after
health and safety aspects and also welfare programs which are reported year by year in the
sustainability reports published by the company. The company has received CSR Reporting Award in

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the year 2010 from the ISAPA (Denmark) as indicated from company sources.

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5.1.2. The four phases of corporate social
responsibility in Maersk:
It has already been described in the literature review section how Caroll in 1998 identified the four
phases of CSR. After studying both the primary and secondary data from Maersk it is evident that all

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these four phases are present in the company CSR policies: The fourth dimensions explain the

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attainment of the second objective of the research paper andDISSERTATION


has elaborated the various methods and
initiatives that the company can undertake in attaining the CSR goal.
1. Philanthropic Issue: This issue is highly prioritized in the company whereby they consider the
philosophy of Constant Care and health and safety of marine workers working in the sea. This
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has been represented in questionnaire 2 where by the stakeholders report their feedbacks

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regarding the company policies towards health andDISSERTATION


safety measure of employees and also
supported by the secondary documentation of total fatalities and injuries in the company (Fig.5)
2. Ethical Issue: There are certain ethical concepts embedded in the policy of CSR like antipollution measures and environmental consciousness. This is basically an outlook towards the

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society and community which surrounds the company as described in the literature review

356

section. Following the same trail, Maersk also follow DISSERTATION


environmental safety measures as opined
by the stakeholders in questionnaire 3 and documental shows the environmental policies of the
company. Maesrk is also well known about its Green Image. The company has received
Environmental Protection Award in Singapore 2010 from Lloyds List Asia group as indicated

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from company sources. Not only this, the company also applied ethical measures in its work

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force whereby it has designed a program called Safety
in Motion (Sustainability Reports,
2010). This program trains the mariners how to balance the stress level in work.
3. Economic Issue: This relates to the profitability of the company which has been represented
through the financial reports in Table. 7 and 8. It also shows the productivity enhancement in

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Fig. 12. This shows that the company not only has added value to the society and environment

358

but also to the organization through its coveted CSRDISSERTATION


practices. This analysis attains the first
objective of this paper which aims to show that CSR activities of the company can increase
efficiency and profitability.
4. Legal Issue: This issue is well elaborated in questionnaire 5 where the graph shows that the

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company follows certain measures in labour standards and welfare, HR practices, and anti-

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corruption measures. The Global CSR compact measures
of Maersk have also been documented

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from the company reports in Fig. 9.

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5.1.3

Value

Additions

achieved

by

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Maersk through

its

CSR

Initiatives:
The main research question aims at understanding the process of value additions to society and
organization by employing CSR practices. In this context it is also important to study the CSR model

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or sustainability roadmap of the company that caters to the various needs of society, stakeholders and

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DISSERTATION
organization itself. The literature review has explained lucidly
that the reputation or image of the
company is an important aspect in the transaction of business. From the study of questionnaire 8 and
considering all the points above, it is evident that Maersk has created a good image of itself in the
zone of social responsibility and employee satisfaction. This in turn has added value to the company

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by enhancing its productivity, profitability and retaining the employees. The policy of Maersk shows

362

a responsible attitude towards its stakeholders who are the DISSERTATION


most integral part of the business. By
engagement of dialogue with the stakeholders and by satisfying its customers through its services,
Maersk have attained the epitome of good will and beneficial value added relationships. Since
Maersk Group is a company which is related to the shipping operations, so the safety of marine life

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becomes an integral part of the CSR. It has gained more values by excluding unwanted and harmful

363

operations in the sea which can threaten the environment, DISSERTATION


and can cause global warming. If the
environmental safety issue is analysed in light of the research question then it will be seen that
company has added considerable values to the society in the merciless business environment where
businesses are many a times not at all considerate for the environmental safety aspects. This can be

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considered as vital measure by Maersk group for certifying the safety of the environment.

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DISSERTATION
Wellbeing and Safekeeping in the Marine Business: From
the nature of the business of the
company it is evident that Maersk Group works in unbolt ocean locales. This open ocean arenas are
often perilous and susceptible to undeclared changes. Piracy issues, unpredictable weather changes,
increase the risk of workers in the day to day activity. Not only this, the operations of the company if

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not monitored can cause harm for the ocean life and destroy the natural purity. Therefore the

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DISSERTATION
company should be concerned about all this contingency issues.
The review of the sustainability
document (2010) of Maersk shows that extra care is taken by the company while handling transport
of hazardous materials as for example the Mooring Operations. The chart shown below in Fig. 17
will make more prominent how the company is effective in handling the environmental, health and

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safety aspects.

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Figure 17: ACTIVITIES OF MAERSK IN OPEN SEA OPERATIONS TO INCREASE SAFETY CONCERNS
AND ENVIRONMENTAL PROTECTION. SOURCE: MAERSK SUSTAINABILITY REPORTS, (2010).

This shows how the company is increasing the value additions to society and workers while following
the track of CSR. This consciousness can only be seen when the company is well aware of the CSR

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concepts which makes it more responsible towards, society, community and environment.

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The literature review has also shown that the culture of DISSERTATION
CSR should be created through proper
employee training and awareness. This is evident in questionnaire 9 where it has been shown that the
company takes necessary measures to train and educate its employees to become more responsible and
understand the concept of CSR. For this the company has also motivated the workforce by initiation of

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the Safety Spot Awards whereby every fellow employee or mariners are rewarded a cash prize of

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$100 for thwarting catastrophes in off shore operations, exhibiting
headship in the wellbeing of society
and workforce (Source: Sustainability Reports, 2010). This kind of encouraging culture will motivate
the workforce more and more to be responsible and dedicated. In the philanthropic side, many workers

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have munificently bequeathed the cash prize amongst orphanages and ill-fed to help the society and

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community which surrounds them. This shows that CSR is not
a mere phrase for the company but it is
well nurtured from the grass root level.
From all this it is evident that the performance of Maersk in the line of CSR is successful in adding

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values to society, community, stakeholders and organization itself.

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5.1.4 Stakeholders opinion:

DISSERTATION

The third objective of this paper aims to study the thoughts and opinions of the employees, and
stakeholders of Maersk. This is the sole reason why stakeholders opinion matters a lot. The literature
review section has been instrumental in explaining who the stakeholders are and how their feedbacks

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matter for the organization. Stakeholder commitment is another procedure which is convoked by

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DISSERTATION
consultation, declaration, tte--tte, and negotiate that is essentially
interactive and established on
communal interdependence and immoderation related to one another. Based on this assumption, it is
logical that the company should engage in some kind of dialogue with its major stakeholders. It is very

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important that the organization in its course of business should not ignore the expectations of its

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employees. The study above shows how Maersk have taken care
of its employees and has justified its

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vision and philosophy of Constant Care.

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CHAPTER 6: CONCLUSION AND


RECOMMENDATIONS

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The closing section of the dissertation will be effective in pointing
out how the objectives set in the
beginning have been achieved and what have been inducted from the overall study. Few points which
were targeted to investigate have been discussed and analysed in the previous section and bear

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considerable relevance in explaining the social philosophies of the paper.

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1. Analysis shows that Maersk Group is well aware of the activities
of CSR. Because of this they take
active participation in engagement of stakeholder dialogues, employee concerns and environmental
contributions.
2. That CSR is an important phenomenon for all the organizations have been shown in the value
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additions gained by Maersk Group in the overall process.

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DISSERTATION
3. Value additions refer to good image and reputation of the company,
healthy relationships between the
stakeholders and the administration. It also adds considerable competitive advantage to the company in
relation to specific activities. The Maersk group is well recognized for its social and sustainable
movements and for this it has been awarded several accolades from various organizations. Not only has

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this it maintained a sound work atmosphere which fosters health and safety valued for the workforce.

380

This is the reason why company faces less attrition ratesDISSERTATION


and more productivity. Wherever the
organization takes good care of its workforce, in return it gets numerous value added services from the
workforce.
4. CSR is not only a mere phrase which is incorporated in the principles of the organization, but it is a
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vital tool which can help companies gain profitable signature.

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5. It is the duty of every company to upgrade and improve the
practices of CSR because with time the
values, policies and framework of culture may change. So this practice is a continuous effort.
Companies should not only embrace it but should also monitor it. The same perspective has been

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noticed in Maersk where they plan, implement, regulate and upgrade their CSR activities on a yearly

382

basis. This has been depicted in the sustainability action plan DISSERTATION
of the company which takes several vows
to foster a better culture of CSR:
1. Better focus on customer service and maintaining a good relation with them.
2. Try to preserve the values of environmental safety and minimize the number of operations

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which threaten the environment.

383

3. Inventing new and safe employment services whichDISSERTATION


takes into consideration the concept of
diversity.
4. It is surprising that being in the shipping and tanker business, the company is still maintaining
its green image.
5. It is trying to introduce more practices which can benefit the community, and will conduct some

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social programs to help the illiterates, ill-fed and uneducated sector.

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6. With introduction of more and more stakeholders, customers,
the company is trying to segregate
and prioritize its more important stakeholders and customers and to care for their demands.
7. They are planning to commence the PEX Projects (from sustainability action planning
manual of Maersk Group, 2011) which will take care of the CSR decisions and the ways to

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integrate them.

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8. To take care of the strategic partners like Petrobras/
Shell and to maintain a healthy

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relationship with the suppliers.


9. Helping the governing committees to expand potential conventions.
10. Reduce the percentage of harmful of carbon dioxide emissions by 15%.
11. To collaborate with non-governmental organizations and clean-tech organizations.

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Limitations and Validity of the Research:

In the research methodology sections the limitations of the research has been described in detail. While
conducting the data analysis the limitations, validity and ethical aspects have been dealt in the

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following manner:

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1. No biasness from the investigator has been included
while interpretation of data. This has
helped to maintain transparency in the overall study.
2. There has been no manipulation of the responses and feedbacks which are obtained in the
survey questionnaire analysis.
3. Validity of the primary data has been supported with the secondary documentation from

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company reports.

388

4. All reports have been collected with prior permission DISSERTATION


of the company and only those data have
been given which are external and public. No intervention of internal records has been done to
maintain the professional ethics.
5. Only those respondents have been approached who were ready to answer the questions or

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express their opinions.

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DISSERTATION
6. No enforcements have been done to obtain 100% responses.
It has been kept in mind that
stakeholders are busy in other activities, hence the survey have been carried out by prior
appointments and consent.
7. Authentic recent secondary data (from the period 2010 to 2011) have been documented in the

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reports to maintain validity and decency of records.

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8. Before the final presentation, all that have been documented
in the research especially about the
company have been reviewed by company employees so that no controversial issue is
presented.
9. The seclusion of the identity of stakeholders has been maintained throughout to consider

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privacy and confidentiality.

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10. No wrong interpretations have been formulated DISSERTATION


which may hamper the image of the
organization.
In spite of the above precautions, the study may get prone to some limitations which are because of
lack of proper sources, time and space. Since this is the first endeavour of the researcher, so the
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presentation may contain some flaws but the percentage is negligible.

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Recommendations:

DISSERTATION

After conducting the whole analysis, there are very few lines which can be recommended:
1. The company should focus more on the customer service domain and very little knowledge has been

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gained through the reports and survey about this aspect.

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2. The company should also look after the emissions of other matters like nitrogen dioxide, sulphur
3.
4.
5.
6.

particles, and other particulate matters.


The spills percentage should also be lowered.
The organization should also focus on effective sewage disposal and handlings techniques.
The company should conduct more society and welfare programs to induce the concept of CSR.
The company should encourage training and education of employees regarding environmental safety

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programs.
7. The company should venture Ballast Water Management Systems.

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8. Nothing has been focussed about the child labour issues which is an important aspect of CSR. So the

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company should take more serious measures regarding this issue.

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Future Scope of Studies:

DISSERTATION

The matter of CSR is gaining importance day by day in every organization. More academic research
works are getting conducted all over the world to highlight the significance of the issue. The scopes of

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studies which can be attempted are:

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DISSERTATION
1. To study the approaches the companies can undertake to assist
Government to make best utilization
of the CSR philosophy and to leverage tariff and loyalty compensations.
2. To study and explore the contribution of employees and managers in the key operational areas of

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CSR within the organization.

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3. To study in detail the role of corporate governance in the
management of CSR techniques in an
organization.
4. To explore whether the concepts of CSR is craze or reality?

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5. To investigate the role of efficient leadership in embracing the culture of CSR in the organization.

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50. ORTS, E and STRUDLER, A. (2002): The ethical DISSERTATION


and environmental limits of stakeholder
theory, Business Ethics Quarterly, 12 (2). 215-233.
51. OWEN, D., SWIFT, C., and HUMPHREY, B. M. (2000): The new social audits:
Accountability, Managerial capture or the agenda of social champions, European Accounting
Review, 25 (3). 81-99.
52. SAHLIN-ANDERSSON, K. (2006): Corporate Social Responsibility: A Trend and a
Movement, but of What and for What? Corporate Governance, 6(5). 595-608.

414

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53. SAUNDERS, M., LEWIS, P., and THORNHILL, A.DISSERTATION


(2007): Research Methods for Business
Students. Pearson Education Inc: Dorling Kindersley (India) Pvt. Ltd. Pp. 120-130: (4 th
Edition).
54. SCHAFER, H., ZENKER, J., BEER, J and FERNANDES, P. (2006): Who is who in Corporate
Social Responsibility Rating? A Survey of Internationally Established Rating Systems that
Measure CSR. Gutersloh, Germany: Bertelsmann-Stifung.

415

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55. SWEENEY, L. and COUGHLAN, J. (2008): Do different
industries report Corporate Social
Responsibility differently? An investigation through the lens of stakeholder theory, Journal of
Marketing Communications, 14 (2). 113-124.
56. TENCH, R., JONES, B., and BOWD, R. (2007): Perceptions and Perspectives: Corporate
Social Responsibility and the Media, Journal of Communication Management, 11(4). 348-370.
57. WAGNER, M. (2005): Sustainability and Competitive Advantage: Empirical Evidence on the
Influence of Strategic Choices between Environmental Management Approaches,
Environmental Quality Management, 14 (3). 31-48.

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58. WILSON, A. and BONFIGLIOLI, E. (2002): Integrating
CSR into Corporate Strategy,
Management and Systems. Proceedings of the Second International Global Compact Learning
Forum Meeting, 11-12 December, Berlin, Germany.
59. YOTSUMOTO, Y. (2010): Sociological Approaches to Corporate Social Responsibility, In
Americanizing Japanese Firms. University Press of America.
60. ZADEK, S. (2004): The Path to Corporate Social Responsibility, Harvard Business Review,
82(12). 125-132.

417

Reference of Websites:

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1.
Sustainability
Report
of
Maersk.
(2010):
[Online]
Available
from:
www.maersk.com/Sustainability/.../Maersk_Sustainability_Report_2010.pdf. [Accessed on 19th
September, 2011].

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2.
Sustainability
Action
Plan
of
Maersk.
(2011):
[Online]
Available
from:
th
www.maersktankers.com/Sustainability/Documents/SAP%202011.pdf. [Accessed on 20 September,
2011].

418

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3. Health, Safety, Environment and Quality Report of Maersk.
(2010): [Online] Available from:
th
www.maersk-lng.com/Resource.ashx?rid=326. [Accessed on 18 September, 2011].
4. A.P Moller-Maersk A/S Financial Report. (2011): [Online]
investor.maersk.com/financials.cfm. [Accessed on 19th September, 2011].

Available

from:

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5. Annual Report 2010 for A.P Moller-Maersk. (2010): [Online] Available from:
www.maersk.com/Press/.../Lists/...081612/APMM_PressRelease_UK.pdf.
[Accessed
on
18th
September, 2011].

419

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6. Information about the company: [Online] Available from:
www.maersk.com/. [Accessed on 12th,
18th, 19th and 20th of September, 2011].

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7. Baron, D., Maretno, A., and Hoje Jo. (2009): The Economics and Politics of Corporate Social
Performance. [Online] Available from:
http://ussif.org/resources/research/documents/2009WinningPrize-Moskowitz.pdf. [Accessed on 08th
June 2011].

420

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8. Brown, L., Caylor, M., and Brown. (2004): Corporate Governance
Study Links Bad Boards to
Higher Risks and Increased Volatility, A Study Commissioned by ISS. [Online] Available from:
http://www.jamesegrantcpapc.com/docs/Corporate%20Governance%20and%20Performance
%20Correlation_study_020304.pdf. [Accessed on 11th June 2011].
9. Claessens, S. (2003): Corporate Governance and Development. [Online] Available from:
http://wbro.oxfordjournals.org/content/21/1/91.short. [Accessed on 12th June 2011].

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10. The Economist. (2008): A survey of corporate social responsibility: Just good

421

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business. [Online] Available from: http://www.economist.com/node/10491077.
[Accessed on 11th June
2011]

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APPENDIX 1: SURVEY
QUESTIONNAIRE
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Name of the Company: A.P Moller-Maersk Group, (Singapore Branch)

423

Date of Survey:

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Name of the Investigator:


Please take some time and select the most appropriate choice from the scales 1 to 5 for the given

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questions. This is solely for academic purpose and bears no intention to intervene in the ethical

424

policies of the company. This report will not be published DISSERTATION


or copied or represented in electronic
media.
1. Maersk Company is well aware of the concept of CSR and maintains the social

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responsibility:

425

1. Strongly Agree: 10
2. Agree: 20
3. No Views: 5

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4. Disagree: 2

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5. Strongly Disagree: 3

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2. Maersk Company takes serious initiatives in the health and safety measure of the workers
thus sustaining CSR policies which in turn adds value to the company

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1. Strongly Agree: 10

427

2. Agree: 15
3. No Views: 3
4. Disagree: 5

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5. Strongly Disagree: 7

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3. Do you agree that Maersk does not conduct any such
operations which can harm the
environment and leads to marine pollution?
1. Strongly Agree: 5

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2. Agree: 25

429

3. No Views: 2
4. Disagree: 3

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5. Strongly Disagree: 5

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4. Do you agree that Maersk follows the dialogue between
direct stakeholder engagement and
produce an annual sustainability report from the corporate governance?
1. Strongly Agree: 10

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2. Agree: 20

431

3. No Views: 3
4. Disagree: 5

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5. Strongly Disagree: 2

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5. Do you agree that Maersk follow the policies of human
rights, labour standards, and anticorruption measures? These are the major ingredients of CSR policies. Follow of the above
principles will show whether they are adding values to the company and community.

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1. Strongly Agree: 15

433

2. Agree: 15
3. No Views: 3
4. Disagree: 5

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5. Strongly Disagree: 2

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6. Value additions to profit level are attained by Maersk
in enterprising corporate social
responsibility inventiveness:
1. Strongly Agree: 2

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2. Agree: 20

435

3. No Views: 1
4. Disagree: 10

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5. Strongly Disagree: 7

436

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7. Do you agree that Maersk Group conduct business in an
ethical manner under law and CSR
codes of conduct which increases its overall productivity level?
1. Strongly Agree: 10

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2. Agree: 18

437

3. No Views: 4
4. Disagree: 2

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5. Strongly Disagree: 6

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8. Do you agree that Corporate Social Responsibility confers
considerable value additions to
society and business altogether creating a profound effect on the image of the company?
1. Strongly Agree: 10

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2. Agree: 17

439

3. No Views: 3
4. Disagree: 1

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5. Strongly Disagree: 9

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9. Do you agree that Maersk conduct employee trainings
in creating the awareness of CSR
practices in the company.
1. Strongly Agree: 4

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2. Agree: 26

441

3. No Views: 2
4. Disagree: 5

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5. Strongly Disagree: 3

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10. Do you agree that CSR process in a company should
be continuously improved and
upgraded?
1. Strongly Agree: 17

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2. Agree: 10

443

3. No Views: 3

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4. Disagree: 2
5. Strongly Disagree: 8

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Thank you for your time and participation

444

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APPENDIX 2: VARIOUS CSR


MEASURES OF MAERSK: SNAPSHOTS

447

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SNAPSHOT 1: THE GROUP CEO WITH THE COMPANY TAG LINE POLICY (COURTESY: APMM GROUP
BROCHURE, 2010)

449

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450

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SNAPSHOT 2: SINGAPORE ANTI-TAINTING PAINTING METHOD (COURTESY: APMM GROUP


BROCHURE, 2010)

451

CSR OF MAERSK COMPANY

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452

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SNAPSHOT 3: THE LOW CARBON LEADERS PROJECT CLIMATE INITITAVE WITH WWF (COURTESY:
2010 SUSTAINABILITY REPORT)

453

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454

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SNAPSHOT 4: THE CONCEPTUAL MODEL FOR IMPROVEMENT OF CSR (COURTESY: APMM SAP
REPORTS, 2011)

455

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456

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SNAPSHOT 5: ENVIRONMETAL ACTION PLAN 1 (APMM SAP REPORTS, 2011)

457

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458

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SNAPSHOT 6: ENVIRONMETAL ACTION PLAN 2 (APMM SAP REPORTS, 2011)

459

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460

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SNAPSHOT 7: ANTI CORRUPTION MEASURES OF THE COMPANY (COURTESY: APMM SAP REPORT,
2011)

461