Raising Corporate Social Responsibility By Green Strategy
Ghi-Hwei Kao
1, Shuo-Fang Liu
2,
Che-Ching Chu
21
Dept of Industrial & Commercial Design, Oriental Institute of Technology
2Dept of Industrial Design, National Cheng Kung University
Abstract
Among the many issues of corporate social responsibility, the environmental responsibility on enterprises is continuously emphasized. Increasingly business operation and development is affected by the rising tide of expectation over green consumption in the global society. Some regional economic areas take advantage of this expectation and use it to build trade barriers which affect the market competition of industries. Green strategies are not legal negative enactments for all enterprises. Successful international enterprises believe green policies help to strengthen enterprise superiority. They believe they not only consolidate enterprise actual strength, reduce future risk, but also represent the difference in regard to corporate image and brand distinction.
This thesis plans to combine the theory and reality. The objective is to build up a green strategy structure explaining corporate benefit, motive, required company internal resources and execution method. Further, consumer quantification questionnaires will be conducted to construct several corporate image strategies elucidating how green strategy implementation affects the perception of enterprises in the eyes of consumers. This thesis plans to identify corporate green strategy methodology: combining motive, corporate reaction, strategy process, green
strategy correlation, implementation and the innovation level in enterprises. And five basic green image factors ： (social responsibility image, technique image, market image, leader image, authenticity image) are judged or assorted by consumer comprehension of corporate green behavior. Green strategy in different innovation level result in different corporate image: this thesis explains diverse green strategy actions in four innovation levels bringing about the corporate image diverseness
Keywords ： Green Strategy, Green Management, Innovation Management, Corporate Image
Study process
This study probes the relationship between green strategy and corporate image in enteriprises. We collect the documents, which related to green strategy, green management, and the motive to execute green activities. We investigate several international corporates to carry out this case study. Then, we proposed the major elements of green strategy activities by interview enterprises and research documents. In order to strengthen the comprehensibly consideration in green strategy in this research, the study accepts that corporate practice carries on actually also joins research of documents of green activities, assessment projects of
enviroment reward. We discover 72 items of green strategy activities in the study, and group the 72 items under 11 classifications called corporate green strategies in the study.
Bullinger(1994) bring up innovation management level concept. We consult the paper, and group 11 corporate green strategies under 4 corporate inner innovation level and 5 green strategy areas. We combine the above building up “corporate green strategies select model” for explaining motive, strategies in different level.
The corporate image can be regarded as consumer's total of the complicated image in the heart. In order to probe into different green strategies influence on the corporate image of tactics. We bring up “green corporate image factors” for explaining the corporate image effected by different green activities. First we bring up 43 corporate image factors from documents and carry on the previous questionnaire. Better factors easily to be associated with green corporate in thinking will be choose called “green corporate image factors”.
Base on “corporate green strategies select model” and “green corporate image factors”, the questionnaire named “different green strategies carried out by green corporate influence green corporate image factors in consumer mind” is brought up. This questionnaire content understands every green corporate image factors influence degree affected by different green strategies. We can use the questionnaire statistics data for quantification study explaining the relationship between green strategy and green corporate image.
The motive of corporate carry out green
strategy activities
Influences corporate adopt green strategy activities or not quite a lot of factor. We get together the documents and divide the factors that enterprises adopt
the green strategy activities of conduct into domestic and foreign two parts of factor. The domestic factors include below items: 1.Accord with the regulation and government policy. protection group or consumer's pressure. 3. International market demand. 4. The supplier requires. 5. The cost is considered to reduce the unexpected risk. 6. Can obtain making the investment, such as fund or the loan, etc. 7. Green science and technology adopting. And the foreign factors include below items: 1.Promote the corporate image, improve the value of brands, 2.The inside layers of management or shareholder of organization support. 3. Promote the competitiveness 4. Reflect ahead of time; transfer it to the crisis as the competition advantage. 5. Responsibility for the environment.
Case corporate study
This research select two internationalized enterprises: ASUS computer and CHIMEI; which own the green management experience and achievements for many years to mold their corporate image; to probe into the relationship between enterprise's green strategies and corporate image.
Green strategies proposed
According to the above document and interview, we select two enterprises with strong industrial design background as our sample; to classify 11 green strategies and 72 items by KJ method for this study. Table 1. Green strategies and Green strategies activities A :Asus done B:Chimei Done C:Thesis strength case not done D:Case done but documents not mentioned
11 Green strategy
A B C D Green strategy activities
● ● green of staff manage quality Implement education and training , improve
● Train talents managing continuously forever
● ● establishment and personnel to train Environmental protection specializes in unit's 1
Enterprises
mold the
green culture
of inside ● ● to the staff Implement environmental protection to educate
● ● and assess the contest Participate in the green group's environment
● environmental protection Help to promote the social efforts at
● ● to enable having environmental protection concepts Promote the environmental protection products for the people
● protection group that environmental protection is Support the activity or environmental correlated with 2 Enterprise's behavior influences the external environment ●
Reveal the environmental reports of the company regularly
● Set up a green supplier and supply a database
● ● guaranteed to offer , package environmental Require the material that the supplier protection
● ● international relevant norms of environmental Require the supplier to pass various kinds of protection
● abolishing, set up the whole green and supply the Promote centre halfback's system to reduce chain administrative system
3 Promote the
green supply
chain
● ● going to , downstream factory cooperate and help The efforts at environmental protection to the situation
● Considered products life cycle when design
● ● management standard systematic ISO 14001 Pass the international environmental authentication
● ● correlates with environmental protection the Product design and development needs all and department assess the homework together
● ●
Set up environmental protection topic and discuss the committee, discuss the relevant topic of environmental protection with relevant departments and follow the trail of the effect regularly
● the market evaluation of carrying on the products Take environmental protection as the direction, and serving 4 Combine the product development procedure with green manage concept
● the pricing strategy, include the potential While making and managing and growing up environmental cost in the future
● ● material Make prevention and control of pollution of
● ● norm The products accord with Rohs material forbid
● destroy the substance of the ozonosphere Forbid all production or consumption that will
● the environment for a long time Avoid accumulating the chemical material in
● Use synthetic technology of water-borne
● products Increase the biological decomposability of the
● ● harmfully when product design Chemical material of pollution is not used
● ● consumers or others products should be avoided endanger 5 The original supplies use forbid the noxious substance
● coming from the scarce animal or natural resources The products material avoiding using and
6 Reduce ● substitutability energy Use low to pollute clean technology or
11 Green strategy
A B C D Green strategy activities
● ● products or the service Reduce the energy demand and cost of the
● ● technology, realize saving energy and reducing the Reform the equipment, develop the new cost
● ● Improve and increase production efficiency
● in production Save the energy to consume while making one
● products Should avoid the excessive packaging of the
● ● Adopt resource as packaging material
● the least energy are disposed The products transport should be chosen to use consuming
with the
transportation
and sales
energy
● energy Use pollution lower means of transport and
● ● treatment , such as waste water produced , waste Set up appropriate mechanisms of offal gas ,etc.
● ● prevention and control of pollution of the whole Plan the situation in measure of whole factory
● make offal discharge to reduce
7 The offal treatment and discharge of production process are considered ● ●
Establishment of the facility for prevention and control of pollution
● ● norm Accord with European Union WEEE retrieve
● retrieving free or the convenient products Retrieves the system to offer service of retrieving system
● ● hurting materials to appear, such as heavy metal The products trash deal with should avoid
● ● are discarded Easy to classify and handle after the products
● ● perfected after the products are discarded Handle technology finally and must be 8 The abandonment after the products are used is dealt with and served
● can't bear using There can be other uses when the products
● Improving material recoverablity
● technology, make renewable resource , products Set up and retrieve the system and recycled easy to retrieve , resolve , utilize again
● retrieving material make the products Use the lasting regenerated resources, and
● ● retrieving Retrieving part sign the label the sign of
● ● improve the material and component retrieveing Design and utilize in order to retrieve again, possibilit 9 The products retrieve use and recycled system of material again
● ● the simplifying design The products are easy to disassemble, adopt
● ● The products accord with Eup norm
● example: Wind-force , solar energy Develop the substitutability energy, for
● ● recoverable , low pollution , province energy Improve products, make the green products of '
● technology and function innovate Develop the breakthrough green products that
● ● and service Strengthen the practicability of the products 1 0 Design and develop green products of environmenta l protection
● ● administration's authentication of environmental The environmental protection of obtaining protection of the products marks the chapter
11 Green strategy
A B C D Green strategy activities
● ● greater pollution The products used should avoid causing
● ● change the part and maintenance It is easy for products to disassemble, to
● that the environment that may cause is struck The products operation instructions points out
● equipment Reduce the energy demand for using the
● Use the regenerated resources
● ● Design the multi-functional products
● ● Lengthen the durability of the products
● Avoid using corrosive and flammable material
● Offer the function of set free pressure
● It is possible to reduce seepage
● Use and avoid the cover that children opened
1 1 The humanization design of green products
● Avoid the design that customer's mistake uses
Corporate green strategies select model
We use “Corporate green strategies select model” to explain the overview of corporate green strategies executing.
Fig 1. Corporate green strategies select model
As globe environment changes rapidly, the enterprises receive great environmental pressure from all kinds of aspects, and it will cause to different management and strategies layers. While the enterprises mold their corporate image, the impressions offered to consumers also will be different by different strategies directions.
1. Long–term develop corporate culture aspect: The aspect will aim at the “Mold green society” stage; which contain” Enterprises mold the green
culture of inside “Enterprise's behavior influences the external environment” two green strategies. The cultural innovations level let mainly enterprise getting more social responsibility to strengthen inside as degree, make constant innovation of spontaneity inside the enterprise, and promote the green to management. Thus, become one the social culture influence power, with the superiority of enterprises, various kinds of propaganda medias and various kinds of information circulation ways. The consumers will regard enterprise image as part of their life style.
2. Middle-term develops corporate structure aspect: The aspect mainly develop an “Overall green management” area, which contain “Promote the green supply chain”, “Combine the product development procedure with green manage concept” two green strategies. In this stage, the main operation is to re-design an institutional framework for enterprise, not only a corporate, but all supply chain system for whole the industry. It consists of material refining, production, composing, packaging, transport etc. Therefore, the green structure innovation level relies on more overall green management and strategy inside framework for all supply chain system.
3. Middle–term develops corporate process aspect: The aspect mainly develop “Save the consumer energy, and prevention and control of pollution” and “Offal treatment and retrieving” area, The former include “The original supplies use forbid the noxious substance” , “Reduce consuming with the transportation and sales energy” two green strategies. The later includes “The offal treatment and discharge of production process are considered”, “The abandonment after the products are used is dealt with and served”, “The products retrieve use and recycled system of material again” three green strategies. The aspect main operation is considering more impact to the
environment of life cycle in development process. Corporate consider every process activities pollution environment, not only pay attention to the last discharge material. Enterprises consider the influence on every developing stage on the environmental cost again, for example the energy is consumed, disposal of pollutants, material regeneration, discarding retrieving etc., in whole operation, there are a perfect supplementary measure and intact system. Help enterprises to improve the use of the energy and resource, reduce the environment to strike, promote the corporate image. 4. Short–term develops corporate product/service aspect:
The aspect mainly develops “Green product”, which include design and develop environmental protection and the humanization design for products. Robert Brunner points out that the green products are needed in enterprise's idea, a correct design might let the products to be completely different from the other companies. A good design through the entity, enterprises can set up the position from the consumer’s mind. The innovation for green products not merely be able to save resources and consume, reduce the environmental pollution in using, it also construct consumer’s loyalty and enterprise position to the social topic.
Bring up “Green corporate image factors”
In order to probe into different green strategies influence on the corporate image of strategy. We bring up “green corporate image factors” to explain the corporate image affected by different green activities. First select factors suitable for describe corporate image has positive meaning while collecting documents, according to examining the questionnaire and selecting the top ten factors to determine as “Green corporate image factors”. Arranged below (there are three factors having same score on tenth grade)
1. Contributory to society 2. Enthusiastic to public
hazards
3. Consider consumer conscientiously
4. Courteous customer service 5. Favorable
6. Trust
7. Conform to the tendency 8. International competitive 9. Lead 10. Expansionary 11. Enthusiastic to research 12. Technology competent
Questionnaire goes on
We use the electronic questionnaire investigation on network, adopt the random sampling pattern to run it, retrieve 91 effective questionnaires altogether.
Reliability test
Via the statistics of the questionnaire, the content includes the answers of 91 persons who are examined, is analyzed with reliability test by SPSS 13 editions. The result shows that: Alpha is bigger than 0.7, it means the questionnaire has reliability.
Construct “The matrix of green strategies
and green corporate image factors”
Sum up 11 green strategies and 12 green corporate image factors questionnaire result; put them in order by way of matrix. The table is as follows:
Table 2.The matrix of green strategies and green corporate image factors The matrix of green strategies and green corporate image factors
1.Contributory to society 2.Enthusiastic to public hazards 3.Consider consumer conscientiously 4.Courteous customer service 5.Favorable 6.T
rust
7.Conform with the tendency 8.Inte
rna tiona l c ompe titi ve
9.Lead 10.Expansionary 11.Enthusiastic to resea
rc h 12.T echnology competen t averag e
1. Enterprises mold the green culture of inside
3.73 3.60 3.03 3.03 3.70 3.54 3.84 3.74 3.77 3.73 3.29 3.22 3.52 2. Enterprise's behavior
influences the external environment
3.85 3.78 3.34 3.40 3.85 3.75 3.70 3.60 3.67 3.74 3.19 3.15 3.58
3. Promote the green supply chain
3.71 3.79 3.34 3.21 3.55 3.68 3.82 3.71 3.63 3.75 3.75 3.65 3.63 4. Combine the product 3.53 3.73 3.27 3.16 3.56 3.45 3.63 3.71 3.75 3.65 3.63 3.52 3.55
development procedure with green manage concept
5. The original supplies use forbid the noxious substance
3.63 3.87 3.63 3.31 3.73 3.64 3.67 3.53 3.64 3.70 3.67 3.67 3.64
6. Reduce consuming with the transportation and sales energy
3.70 3.67 3.45 3.31 3.63 3.47 3.71 3.51 3.64 3.60 3.63 3.66 3.58
7. The offal treatment and discharge of production process are considered
3.69 3.81 3.26 3.03 3.58 3.57 3.55 3.51 3.59 3.60 3.48 3.44 3.51
8. The abandonment after the products are used is dealt with and served
3.74 3.86 3.55 3.68 3.76 3.71 3.84 3.82 3.73 3.58 3.60 3.53 3.70
9. The products retrieve use and recycled system of material again
3.77 3.89 3.64 3.56 3.68 3.65 3.75 3.85 3.74 3.81 3.78 3.79 3.74
10. Design and develop green products of environmental protection 3.76 3.79 3.59 3.57 3.84 3.81 3.82 3.80 3.86 3.86 3.84 3.85 3.78 11. The humanization design of green products 3.67 3.69 3.75 3.65 3.74 3.74 3.64 3.71 3.63 3.77 3.73 3.74 3.70 average 3.71 3.77 3.44 3.36 3.69 3.64 3.72 3.68 3.69 3.71 3.60 3.56
Construct five main corporate images axial
In order to understand that enterprises’ green behavior, the main image axial in consumer's mind, we carry on the questionnaire factor analysis.
The factor analysis adopts composition analysis, varimax. The counting amount adopts KMO value to test. The result is as follows: KMO value is 0.936 bigger than 0.5, means suitable for factor analysis.
After factor analysis, reduce 12 green corporate image factors into 5 main image axles. This research extracts out five main composition groups. The corporate image factor is summed up and classified, then five pieces of main axial of corporate image to environmental protection consumers happens in the inference . It is respectively for ' community responsibility image axle ', 'Technological image axle ', ' Market image axle ', Lead image axle ', ' Trust image axle '. The following form shows.
Table 3. Five corporate image axials
Green corporate image factors Component Varian ce axial definition 1.Contributory to society 2.Enthusiastic to Component one 22.238 % Community responsibility image axle public hazards 3.Consider consumer conscientiously 4.Courteous customer service 5.Favorable Component two 22.080 % Technological image axle 6.Trust 7.Conform with the tendency
Component
three
18.364 %
Market image axle
8.International competitive 9.Lead 10.Expansionary 11.Enthusiastic to research Component four 17.214 %
Lead image axle
12.Technology competent Component five 11.699 %
Trust image axle
Green strategy in different innovation level
cause different corporate image
In order to know how green strategies in different innovation level cause different corporate image result. We calculate, arrange the relationship between green strategies and corporate image, and consider the corporate image factors have high influence.
Corporate image mold by green strategy in
corporate culture innovation level
This level includes two strategies, ‘Enterprises mold the green culture of inside’, ‘Enterprise's behavior influences the external environment’. To know how strategies influence image, calculate the influence summation to the corporate image by strategies. In addition, arrange in an order, the intensity of influence to the corporate image of green strategies will appear.
Under such a practice, it lean to strategies in corporate culture innovation level on promoting corporate image the’ Contributory to society’, ‘Favorable’, ‘Conform with the tendency’, ‘Expansionary’.
1. Corporate image mold by green strategy in corporate structure innovation level
This level includes two strategies, ‘Promote the green supply chain’, ‘Combine the product development procedure with green manage concept’. It lean to strategies in corporate structure innovation level on promoting corporate image the’ Enthusiastic to public hazards’, ‘Conform with the tendency’, ‘International competitive’, ‘Expansionary’.
2. Corporate image mold by green strategy in corporate process innovation level
This level includes five strategies, ‘The original supplies use forbid the noxious substance’,’ Reduce consuming with the transportation and sales energy’, ‘The offal treatment and discharge of production process are considered’, ‘The abandonment after the products are used is dealt with and served’, ‘The products retrieve use and recycled system of material again’. It lean to strategies in corporate process innovation level on promoting corporate image the’ Enthusiastic to public hazards’, ‘Contributory to society’, ‘Conform with the tendency’, ‘Favorable’. 3. Corporate image mold by green strategy in
corporate process/service innovation level
This level includes two strategies, ‘Design and develop green products of environmental protection’, ‘the humanization design of green products’. It lean to strategies in corporate process/service innovation level on promoting corporate image the’ Expansionary’, ‘Technology competent’, ‘Favorable’, ‘Enthusiastic to research’.
Different corporate innovation level related different green strategies, at the same time while
molding the corporate image, cause different impressions directions. Therefore, green strategy in different innovation level cause different corporate image.
The green strategies selection strengthening
five green corporate image axial
Five axial have been extracted by factor analysis from “Green corporate image factors”, they are ‘Community responsibility image axle’, ‘Technological image axle’, ‘Market image axle’, ‘Lead image axle’, ‘Trust image axle’. We bring up five strategy to raise corporate image corresponding five axial called ‘Green community responsibility image strategy’, ‘Green technological image strategy’, ‘Green market image strategy’, ‘Green lead image strategy’, ‘Green trust image strategy’,
Table 4. Five raising image strategy
Raising image strategy name Highly related image factor
Contributory to society Green community responsibility
image strategy Enthusiastic to public hazards
Enthusiastic to research Technology competent Green technological image
strategy
Expansionary Courteous customer service Green market image strategy
Consider consumer conscientiously
Lead
Conform with the tendency International competitive Green lead image strategy
Favorable Green trust image strategy Trust
every raising image strategy, sum the score in the questionnaire, and understand which green strategies highly related with the factors under the raising image strategy. The following of the chart, the analysis thend as follows:
Green community responsibility image strategy, highly related three green strategies are’ Enterprise's behavior influences the external environment ’. ‘The abandonment after the products are used is dealt with and served’. ‘The products retrieve use and recycled system of material again’.
Green technological image strategy, highly related three green strategies are’ The products retrieve use and recycled system of material again’, ‘Design and develop green products of environmental protection’, ‘the humanization design of green products’.
Green market image strategy, highly related three green strategies are ‘The abandonment after the products are used is dealt with and served’, ‘The products retrieve use and recycled system of material again’, ‘The humanization design of green products’.
Green lead image strategy, highly related three green strategies are’ Enterprises mold the green culture of inside’, ‘the abandonment after the products are used is dealt with and served’, ‘Design and develop green products of environmental protection’.
Green lead image strategy, highly related three green strategies are ‘Enterprise's behavior influences the external environment’, ‘Design and develop green products of environmental protection’, ‘the humanization design of green products’.
Future direstions
The goal of this study is to find the relationship between green strategy and corporate image, to know how corporate behavior influence consumer's impressions. However consumer receives information
come from various source, this study do not consider how much information percentage did consumer receive. If future research study can consider more variable in the relationship between green strategy and corporate image, maybe bring out a better accurate result.
Acknowledgments
At last we deeply appreciate ASUS and CHIMIE for interview and questionnaire. Thanks for their cooperation in this paper.
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