CSR in Jordan Construction Industry

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Table of Contents

Abstract
Introduction
Reference list

Abstract

Corporate social responsibility (CSR) gained popularity in the 1970s as a policy function to encourage corporations to run their operations responsibly. Since then, it has continued to gain popularity in different regions, especially as governments embrace it as a way of obligating businesses to help in dealing with different social and development challenges that arise in different communities. This is achieved through laws and regulations, as well as training on CSR.

In the construction industry, CSR plays a significant role in ensuring that projects create employment for the locals, the environment is protected, energy is conserved, the land is utilized in an economically sound manner, construction projects are sustainable, and safety is observed, among many other areas where CSR is applicable. In Jordan, the construction industry is experiencing a vibrant growth, especially from the governments support for less-energy intensive sectors.

This paper analyzes the role of CSR in the construction industry, using Jordan as a case study. Data and information are collected through interviews and the study of past academic resources. The findings support the dissertations hypothesis, which states that CSR programs play a significant role and can contribute to responsible business practices and sustainable development in communities where organizations operate. The paper, however, concludes that this is only possible if CSR programs and initiatives are implemented in the right way. Recommendations are focused on how corporations can achieve this.

Introduction

Corporate social responsibility

Different authors have presented different definitions for CSR. Among them is Banerjee (2007) who defines it as a built-in, self-regulating mechanism, whereby business monitors and ensures its active compliance with the spirit of the law, ethical standards, and international norms. CSR activities affect investors, management, employees, consumers, communities, the environment, and other stakeholders. All these stakeholders play different roles to ensure CSR initiatives benefit each of them equally.

The right CSR initiatives in different regions are ensured through laws and regulations, awareness and training corporations on how they can benefit from CSR. Benefits are spread across all stakeholders and include supported development in communities, allowing employees a chance to participate in beneficial activities to the communities, building a reputation for a business and its brands, as well as support for government-initiated development activities and plans. Major challenges for corporations in their efforts to implement CSR include lack of finances, resistance by communities, lack of support by governments, and legal challenges that arise as a result of being involved in different community activities.

CSR in Jordanian construction industry

Construction contractors are beginning to include aspects of corporate social responsibility into their construction projects, but, arguably, the role of CSR is still not clear (n.a., 2010). Every stakeholder has a role to play to enable the industry to mature in its implementation of CSR. Investors have to be willing to input more finances to support CSR initiatives. Communities play a significant role in helping construction companies identify social needs that need to be addressed. Clients play a role by putting pressure on construction companies to do business responsibly. Construction clients are now asking contractors to embrace and deliver CSR as an integral component of construction activities (Santorella, 2011).

Real estate sector flourished in the middle east region till the recent global recession and the associated setbacks that affect the sector at varying degrees in different parts of the world (Kokash, George and Salem, 2011). In Jordan, the construction industry is considered among the most successful in the region, mainly due to the level of support accorded by the government on less-energy intensive sectors, where construction falls. Nonetheless, several issues remain contentious and the role of the industry in promoting sustainable development in the surrounding communities remains a topic of heated debate among stakeholders.

Purpose of research

The research which forms the basis of the dissertation was inspired by the continuous debates that keep arising on the role of CSR in different industries. It was also inspired by the recent wave of pressure from governments in different regions on businesses to address the issue of CSR seriously. As a researcher, I believe that corporations should be responsible for the negative environmental and social impacts resulting from their day-to-day operations. Therefore, my recommendations will support the implementation of CSR initiatives in corporations, as well as laws that hold businesses accountable for any social and environmental irresponsibility.

Research design

The concept of corporate social responsibility has been adopted by several companies in a variety of industries (Hill, Alan, and Wendy, 2006). As Whellams (2007) continues to explain, CSR programs address a wide array of social and environmental issues, from human rights and working conditions to climate change and greenhouse gas emissions. For this dissertation, it would not have been possible to investigate CSR programs and implementation in all the industries. Instead, the dissertation focuses on the Jordanian construction industry as a case study.

As explained by Whellams (2007), there are two types of case studies, the intrinsic case study in which the case is the focus of research due to its uniqueness, and the instrumental case study where the focus of research is specific issues that the case serves to illustrate. This dissertations case study serves the purpose of an instrumental case study, shedding light on the role of CSR in the Jordanian construction industry. The case is then used as a reference point for other industries in different regions.

Aim

Discuss the role of CSR in the construction industry, using Jordan as a case study

Objectives

Define CSR
Understand the role of CSR in different business environments
Discuss the role of CSR in the construction industry
Discuss the role of CSR in the Jordanian construction industry

Hypothesis

CSR programs play a significant role and can contribute to responsible business practices and sustainable development in communities where organizations operate. However, this is only possible if CSR programs are implemented properly. This paper suggests that the success of CSR and its purposes are dependent on the chosen initiatives, how they are designed, their implementation, as well as the support of the beneficiary communities.

Methodology

As Hill, Alan, and Wendy (2006), many aspects of local sustainable development cannot be quantified, and those which can, often only paint a partial picture of what is happening in a particular community. To test my hypothesis, a variety of research methods were adopted for this dissertation. Primary data was gathered from five semi-structured interviews with people at a management level in the Jordanian construction industry. Secondary data was gathered through observation and studying academic resources such as books, online articles, journals, and past research projects by different individuals and organizations. Conclusion and recommendations were formed from the compilation and analysis of the gathered data and information.

Dissertation structure

The first chapter of the dissertation is the introduction, which briefly summarizes the rest of the dissertation, as well as highlighting the purpose, aim, and objectives to be met by the rest of the work. Chapter two is the literature review, which presents the theoretical aspects of the paper. These include definitions, various discussions by different authors and researchers, the application of CSR in different industries, the role of CSR in the construction industry, the background of the Jordanian construction industry, CSR obligations, and obstacles in the country. The third chapter presents the methodology, which is an explanation of how primary and secondary data is collected. The data analysis chapter presents the data and information collected in chapter three. Finally, chapter five and six are conclusions and recommendations chapters respectively. The last two chapters are formed from data and information collected and analyzed in chapters 3 and 4.

Summary

This paper analyzes the role of CSR in the Jordanian construction industry. The case study is designed to meet the objectives of the paper by studying the background of the topic, collecting data, and forming a conclusion and recommendations based on the results. The introduction chapter defines CSR and briefly highlights several factors that influence its implementation in the construction industry. It further outlines the purpose of the research, the research design, dissertations aim, objectives, and the hypothesis. The methodology and data analysis will all be designed to prove or disapprove the hypothesis of the paper, which states that CSR programs play a significant role and can contribute to responsible business practices and sustainable development in communities where organizations operate.

Reference list

Banerjee, S.B., 2007. Corporate social responsibility: The good, the bad and the ugly. Cheltenham [u.a]: Elgar.

Hill, J., Alan, T., and Wendy, W., 2006. Sustainable development: National aspirations, local implementation. Aldershot: Ashgate, Cop.

Kokash, H., George, T. and Salem,A., 2011. Motivations, obligations, and obstacles to corporate social responsibility in Jordanian real estate companies. International Research Journal of Management and Business Studies, 1(4): 107-118.

n.a., 2010. The role of corporate social responsibility in construction seminar. Web.

Santorella, G., 2011. Lean culture for the construction industry: Building responsible and committed project teams. New York: Productivity Press.

Whellams, Melissa., 2007. The role of CSR in development: A case study involving the mining industry in South America. Web.

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