The influence of manager turnover and tenure on the institutionalisation of CSR in large South African firms.

Abstract

BSTRACT This qualitative study undertakes an explanatory comparative analysis of the internal barriers to the institutionalisation of corporate social responsibility (CSR) in five large South African firms. Specifically, the research aims to determine whether staff turnover at the middle management level and length of tenure at the senior executive level create firm-level impediments to advancing with CSR objectives. The study utilises Mirvis and Googins’ (2006) five-stage Corporate Citizenship Model to determine the extent to which CSR has been embedded in Gold Fields, Eskom, Sasol, Nedbank and Woolworths. Semistructured interviews with middle and senior managers associated with CSR in each firm, together with a comprehensive review of secondary data, are used to ascertain the impact of turnover and tenure. The results of the study agree with the core theoretical and empirical findings reflected in the literature on how to institutionalise CSR in organisations. Institutionalisation is a complex, multifaceted process requiring time, structural changes and a commitment from all staff, particularly managers, for its longterm success. The research findings suggest that the impact of middle manager turnover and senior manager tenure is more of an outcome of a much earlier strategic decision by top management to integrate economic, social and environmental sustainability into all aspects of their business, planning and culture, than the actions of a specific individual. By seeking to understand employees’ intrinsic desires and expectations and aligning them with the extrinsic values and policies of the organisation, the right people are attracted and appointed into management positions. Such measures directly strengthen the psychological bond between managers and their organisations resulting in higher job satisfaction and commitment levels, in turn contributing to lower rates of turnover and more productive tenures. Proactively identifying and addressing internal barriers to the institutionalisation of CSR also provides organisations with the resilience needed to manage their external barriers. It also creates opportunities to leverage internal capabilities to influence consumer product preferences and supplier behaviours, thus effecting broader societal change.