Motivations for the commitment of Algerian companies to social responsibility: An analytical study of a number of agri-food companies

Today’s environmental and social concerns are taking on an important role in society, and the introduction of a CSR approach makes sense in order to encourage dialogue between stakeholders, while strengthening credibility and reputation on the market. The aim of this article is to determine the motivations behind the commitment of Algerian companies to a CSR approach. To achieve this, a deductive approach was adapted based on a quantitative method, using a questionnaire intended for a sample of companies in the agri-food sector. The data collected was processed using SPSS software. The results reveal that the motivations for commitment to a CSR approach for the Algerian agri-food companies studied are mainly linked to a number of factors: characteristics of the company, individual, institutional and organizational motivations.

1 Introduction

The company’s objectives have remained the same. Profit maximization has traditionally been seen as the ultimate goal of any business. Today, however, managers set several other objectives for their companies: long-term rather than short-term profits, shareholder remuneration, brand image, company growth, and environmental respect. The large-scale consolidation of CSR has led many researchers to study the motivations behind these voluntary commitments. The question of „voluntary“ commitment in the field of CSR does not seem to be topical (Fernando and Sim 2011). Indeed, even if certain constraints guide companies towards taking CSR into account, others, on the contrary, work against this type of commitment (Johnson and Greening 1999).
Furthermore, in an increasingly complex and uncertain environment, companies’ pressures make it challenging to identify or prioritize them when making strategic decisions (Lee 2011). Whatever a company’s environment, and even if it is increasingly promoting the consideration of CSR, a substantial commitment in this area often requires a voluntary choice on the part of managers. This commitment is the support shown and defended by concrete actions for confident strategic choices and options concerning social and environmental issues (Kardatzki 2022). This commitment is based, moreover, on the choices made by managers according to their perceived interests in the company and their motivations (Christensen, Mackey and Whetten 2014). However, managers face various constraints regarding corporate governance bodies, understood as „the organizational mechanisms that have the effect of delimiting powers, influencing managers’ decisions, and defining their discretionary space“ (Charreaux 1997).
Researchers have identified, on the one hand, motivations linked to specific disciplines such as marketing, human resources management, and financial performance (Kardatzki 2022), and on the other hand, more specific motivations, such as competitive advantages, public subsidies, or fear of sanctions due to non-compliance with regulations, brand image and community satisfaction (Melubo et al. 2019; Zhang et al. 2019).
This article aims to answer the following question: What factors motivate Algerian companies in the agri-food sector to adopt a CSR approach?

2 Theoretical background

The notion of commitment comes from human resources management. Initially, the concept described the relationship between an individual and their work environment (Thévenet 1992). Meyer and Herscovitch propose the following definition: „Commitment is a force that pushes an individual towards a course of action geared towards one or more specific objectives.“ (Mayer and Herscovitch 2001).
Valéau (2007) distinguishes between a behavioral and an attitudinal approach to commitment: Behavioral commitment can be characterized by elements that lead individuals to adhere to a given course of action. Attitudinal commitment refers to how individuals perceive and attribute meaning to their environment.

2.1 Models to explain corporate social responsibility

The social commitment of companies is often analysed using various explanatory models which attempt to understand the motivations and mechanisms underlying this commitment, in this study we have focused on two models (Carroll model 1979 and Wood’s 1991 model).

• Carroll’s model 1979
According to Carroll (1979), „Corporate social responsibility covers the economic, legal, ethical and discretionary expectations that society has at a given time“ (Carroll 1979). The definition proposed by Carroll (1979) defines CSR as a set of economic, legal, ethical, and discretionary obligations of a company toward society. While recognizing the primacy of economic responsibility, the latter assumes its responsibility at several levels, from economic, regulatory to ethical, and discretionary.
This model is adjacent to Friedman’s (1970) idea that companies only take on economic responsibilities while governments look after the social angles. Carroll (1979) proposed this concept in the categorical model of social responsibility, as shown in the figure below:

Figure 1: The four categories of social responsibility
Source: Carroll (1979, p. 499)

Carroll (1991) adopted this model to develop a new concept of corporate social responsibility in the form of a pyramid. At the top of the pyramid is philanthropic responsibility, followed by ethical and legal responsibility, at the bottom of the pyramid is economic responsibility and the fundamental components of corporate social responsibility comprise each of these categories, each compatible with the other.
For Carroll (1979, 1991), the objective of companies is generally to meet the needs of consumers by providing products and services and to satisfy the needs of the company’s various stakeholders (shareholders, consumers, employees, etc.) on the one hand, and to generate profits to ensure its continuity on the other.
The second category of CSR in Carroll’s (1991) model is a legal responsibility, meaning that the company operates by the law represented in the codification of the moral values that exist in society while pursuing its economic objectives.
Thirdly, for Carroll (1991), ethical responsibility means that companies must assume this responsibility while acting in a good, fair, and honest manner. This means considering stakeholders’ expectations in the legislation that the government creates.
The fourth level, represented by philanthropic responsibility, Carroll (1991) integrated the philanthropic aspect to analyze the company’s actions to improve the quality of life of employees and society.
According to Carroll (1991), the various responsibilities of the company can be presented in the form of a pyramid as follows:

Figure 2: The company’s various responsibilities
Source: Carroll (1991, p. 42)

This model refines Carroll’s approach by integrating three levels of corporate responsibility: institutional, organizational and individual. Attarça and Jacquot (2005) propose a list of corporate responsibilities (table below) based on the models of Caroll (1979) and Wood (1991).

Table 1: Level and nature of CSR
Source: Attarça and Jacquot (2005, p. 6)

Wood (1991) proposes a reasoned approach based on what motivates companies to act. The concept of social responsibility is based on the idea that business and society are interdependent rather than two separate entities. This interrelationship creates different expectations at three levels: institutional, organizational, and individual. Three principles emerge from these three levels of analysis: legitimacy, responsibility, and managerial discretion:
At the institutional level, linked to the principles of legitimacy (obligation, social sanctions), companies enjoy legitimacy and power granted by society by operating in an environment shared with multiple actors or stakeholders. For Wood, companies can become illegal if stakeholders lose confidence.
The second level of analysis is the organizational level based on the non-profit principle, according to which companies are responsible for responding to social problems and challenges linked to their interests and commercial activities. The relationship between coordination mechanisms and markets represents primary commitments, and secondary commitments involve externalities.
Finally, at the individual or discretionary level, this principle means that managers act economically and socially responsibly in various organizational and social environments.

Figure 3:Conceptual model of the motivations behind companies’ CSR
Source: Authors

2.2 Corporate social responsibility

This table shows a non-exhaustive list of works that have already dealt with corporate social responsibility in different contexts and the motivations and obstacles to engaging in this approach.

Table 2: Previous studies
Source: Authors

Previous studies have shown that the motivations for CSR commitment are individual, linked to the idealistic values of the company director, doing good for the company and the environment; organizational, such as raising employee awareness and communication with stakeholders; and institutional, in terms of the company’s reputation and brand image, competitive advantage and transparency with the government. Despite the different contexts and sectors of activity, the motivations for committing to this approach revolve around these three levels.

3 Methodology

To analyze our research question, we adopted a hypothetico-deductive approach. The first part will focus on a literature review of the fundamental concepts of our research: corporate social responsibility, individual motivation, organizational motivation, and institutional motivation. These concepts were used to construct this article’s theoretical aspect and the hypotheses’ development. The second part is devoted to presenting the results of a quantitative study using a questionnaire intended for a sample of agri-food companies. The techniques for analyzing the data collected via our survey were processed using SPSS.21 statistical software, and we then proceeded to analyze and interpret the results provided by this software, using the Multiple Correspondence Analysis method to produce representation maps on which we can visually observe the similarities between the categories of qualitative variables and the observations.

In order to answer the question posed, we put forward the following hypotheses:
Hypothesis 1: Company characteristics significantly impact Algerian companies’ commitment to social responsibility in the agri-food sector.
Hypothesis 2: The individual motivations of managers have a significant impact on the commitment of Algerian companies in the agri-food sector to social responsibility.
Hypothesis 3: The company’s organizational motivations have a significant impact on the commitment of Algerian companies in the agri-food sector to social responsibility.
Hypothesis 4: The company’s institutional motivations have a significant impact on the commitment of Algerian agri-food companies to social responsibility.

Our empirical study is based on a quantitative survey conducted using a questionnaire aimed at agri-food companies. We focused on the agri-food sector’s contribution to the national economy. This sector, which comprises a sizeable population of companies, is a crucial component of the national industrial fabric, both in terms of the value added it generates and its contribution to the development of exports. The verification of the research hypotheses, as outlined below, was carried out using a questionnaire in which 35 companies took part. The main criterion for choosing the survey sample was the concentration of companies of different sizes and legal status, which had taken part in the Algerian Production Fair (SAFEX), held from 13 to 24 December 2022 in the capital, Algiers. We administered the questionnaires and were in close physical contact (face-to-face), recording the responses ourselves. It allowed us to clarify and explain the questions to get the best answers. We then analyzed the results using SPSS software.

Table 3: Target and final sample size and structure
Source: Authors

4 Results and discussion

This section will present the analysis and interpretation of the results of our research. Firstly, we will present a cross sorting based on a database (company and manager characteristics, motivation for CSR involvement), and secondly, a multiple correspondence analysis using SPSS.21 software.

4.1 Identification and characteristics of the company

The first area involves gathering general data on the company, i.e., where it is based, its legal status, and its business sector – finally, the size of the company and the target market. We will show the impact of the characteristics of Algerian companies in the agri-food sector on their commitment to CSR through a flat sort from a database using SPSS.21 software. To this end, we will present our results below.

Table 4: Distribution of companies by location
Source: Authors

The results of Table 4 show that 57.10% of companies are located in industrial zones. It is followed by 31.40% of companies in business parks and 5.70% on private land and urban areas.

Table 5: Breakdown of companies by legal status
Source: Authors

Limited liability companies account for the majority, at 51.40%, followed by joint-stock companies, at 42.80%. A rate of 5.70% represents the non-trading company status.

Table 6: Breakdown of companies by sector of activity
Source: Authors

The results also show that beverage production, with a rate of 37.10%, and milk production, with 25.70%, top the list for our sample. The olive and cereal sectors accounted for 20% and 17.10%, respectively, of the total responses received.

Table 7: Breakdown of companies by size
Source: Authors

The number of employees measures the size of the company. In our sample, SMEs of various types dominate, with small companies accounting for 17.10% of cases and medium-sized companies for 45.70%. Large companies account for 37.10% of cases.

Table 8: Breakdown of companies by target market
Source: Authors

Regarding the target market, 65.70% of companies do not aim to go international, while 34.30% operate on local and international markets through exports.

4.2 Socio-economic profile and trajectory of the entrepreneur

The second section is a sequel to the first, going into more detail about the background of the person being interviewed. It includes questions about their education level, position, age, and years of experience. We will show the impact of the individual values of Algerian managers in the agri-food sector on their commitment to CSR through a flat sort from a database using SPSS.21 software. To this end, we present the results below.

Table 9: Distribution of respondents by age
Source: Authors

Most respondents in our sample were aged between (35-44) and (45-54). This age group represents 42.90%, indicating they are entrepreneurs with a particular maturity.

Table 10: Distribution by level of education
Source: Authors

Concerning the level of education of the managers in our sample, we note that 80% hold a university degree.

Table 11: Distribution of respondents according to their position within the company Source: Authors

Our sample found that 51.40% of respondents were HR managers, 25.70% held managerial positions, and 11.40% and 5.70% were CEOs, MDs, and sales representatives.

Tabule 12: Distribution of respondents by year of experience
Source: Authors

In our sample, 48.60% have accumulated experience ranging from 5 to 10 years, and 37.10% have been in their job for more than ten years. It can be explained primarily by job satisfaction and management skills.

4.3 Motivations for committing to a CSR approach within the company

In the third axis, we will focus on corporate social responsibility and the motivations that have led companies to commit to this approach.

Table 13: Organizational motivations
Source: Authors

At the organizational level (cost reduction, employee well-being), 34.30% of the sample studied were motivated by cost reduction. A CSR approach can reduce waste management costs, energy consumption, etc.
The need to guarantee the well-being of employees in the area of health and safety at work is represented with a rate of 20%. Employees are increasingly keen to work in an environment where they feel useful. Involving employees in CSR initiatives can be a significant motivating factor. Moreover, an employee who feels good about his or her working environment will be more productive. This commitment can reduce turnover and absenteeism within the company.

Table 14: Institutional motivations
Source: Authors

This table shows the motivations for corporate commitment to social responsibility at the institutional level (competitive advantage, customer expectations, legislation, international trade, parent company, and subsidy). Companies that engage in this approach benefit from a competitive advantage; a company committed to CSR can improve its image with its customers, partners, and society. In second place are customer expectations. Companies are becoming more involved in making CSR a source of overall performance, enabling them to keep pace with new societal challenges while innovating and meeting stakeholder expectations. Other companies are committed to complying with regulations through new legislative and regulatory provisions, which represents the most important source of pressure on companies to commit to the CSR approach. Finally, one category states that the human and financial subsidies from the State or other international bodies influence companies’ commitment to CSR.

4.4 Multiple Correspondence Analysis (MCA)

Multiple Correspondence Analysis (MCA) is a method used to study the association between at least two qualitative variables. It produces representation maps to visually observe the similarities between the categories of the qualitative variables and rule on the hypotheses formulated.

• The MCA carried out on the company characteristics database
In this section, we chose the following variables: location, legal status, industry, company size, and target market. In what follows, we will examine the results of the multiple correspondence analysis using SPSS.21 software. The results of the MCA are presented below.

a. Cronbach’s alpha is based on the mean eigenvalue.

Table 15: Summary of models
Source: Authors

Total inertia of 95% is considered very satisfactory, and an average Cronbach’s Alpha of 72% shows us the satisfactory reliability of our item. In detail, the alpha index for dimension 1 is 0.827, and that for dimension 2 is 0.571.
The following figure shows the joint diagram of the modality points relating to the result of the MCA on the axis identifying the company’s characteristics.

Figure 4: Joint diagram of modality points relating to the result of the MCA on company characteristics
Source: Authors (ACM with SPSS.21)

We note that the most important contributions are those of „industrial zone and activity zone“ related to the question „Location“ and the modalities „beverage, dairy and cereal,“ and „SPA, SARL“ related to the questions „activity sector“ and „Please identify the legal nature of your company“ and the modalities, „50 to 250 and more than 250“ and „mixed“ related to the questions „Total workforce of the company, and target market.“ In other words, the projection of the results of the ACM onto the table and graph we are dealing with in our case modalities such as:
1. The answer: More than 250 employees, when asked about the company’s total headcount, generally large companies that are committed to social responsibility.
2. The answer: mixed, to the question of the company’s target market, a rate of 34.30% operate both on the local market and internationally through exports, proof of certification to ISO 22000, 9001 and 14001 standards. These results confirm our first hypothesis:
3. Hypothesis 1: Company characteristics have a significant impact on the commitment of Algerian agri-food companies to social responsibility.

• The MCA carried out on the database of the individual characteristics of a manager
We chose the following variables for this section: age, level of education, years of experience and position within the company.

a. Cronbach’s alpha is based on the mean eigenvalue.

Table 16: Summary of models
Source: Authors

The average Cronbach’s alpha value is based on the average eigenvalue. The reliability of the results obtained depends on the value of the alpha Cronbach coefficient. The average of the Cronbach alpha indices associated with the two dimensions retained in our analysis is 0.771, which attests to the reliability of the results. In detail, the alpha index for dimension 1 is 0.880, and that for dimension 2 is around 0.593.
The following figure shows the joint diagram of the modality points relating to the MCA results identifying managers’ characteristics.

Figure 5: Joint diagram of the modality points relating to the result of the MCA on the individual characteristics of a manager
Source: Authors (ACM with SPSS.21)

To the right of the first axis, the largest contributions are from the „5 to 10 years“ and „more than 10 years“ categories, relating to the question „Please indicate your years of experience“. Similarly, the largest contributions are from the „35 to 44 years, 45 to 54 years“ category, relating to the question „How old are you?“ and the „HRD, CEO“ category, relating to the question „Please indicate your position within the company“, and finally the „university and vocational training“ category, relating to the question „What is your level of education?” By projecting the results of the ACM onto the table and graph, we can see that, in our case, the modalities are:
1. An executive’s years of experience or professional career positively influences a company’s commitment to CSR.
2. The age of the individuals surveyed positively influences a company’s commitment to CSR.
3. The individual’s position and education level positively influence companies’ commitment to social responsibility. These results show a positive correlation between an executive’s characteristics and commitment to CSR.
4. These results confirm the second hypothesis: „The individual motivations of managers have a significant impact on the commitment of Algerian companies in the agri-food sector to social responsibility.”

• The MCA carried out on the database of organizational and institutional motivations
The results of the MCA on the axis of organizational motivations (cost reduction, employee well-being) and institutional motivations (competitive advantage, customer expectations, legislation, subsidies, international trade, and parent company) are presented below.

a. Cronbach’s mean alpha is based on the mean eigenvalue.

Table 17: Summary table of models
Source: Authors

The average Cronbach’s alpha value is based on the average eigenvalue. The average of the Cronbach Alpha indices associated with the two dimensions retained in our analysis is 0.879, which attests to the reliability of the results.
The following figure shows the joint diagram of modality points relating to the results of the MCA on the axis of motivations for commitment to the CSR approach.

Figure 6: Joint diagram of modality points relating to the result of the MCA on motivations for commitment to corporate social responsibility
Source: Authors (ACM with SPSS.21)

After projecting the results of the ACM onto the table and graph of the SPSS.21 software, the strongest contributions are those of „competitive advantage“, „customer expectations“ and „cost reduction“ in relation to the question „Could you name the main reasons that led you to commit to this approach (CSR)“. These three terms are in line with the two axes.
Looking at the graph, we can see that the variables are very similar. To summarize, the two axes (1,2) characterized:
1. Most of the managers interviewed said that the reasons for their commitment to CSR were institutional: „competitive advantage, customer expectations“ and organizational: „cost reduction.“
2. These results partially confirm our third and fourth hypotheses.
3. Hypothesis 3: The company’s organizational motivations have a significant impact on the commitment of Algerian companies in the agri-food sector to social responsibility.
4. Hypothesis 4: The company’s institutional motivations have a significant impact on the commitment of Algerian agri-food companies to social responsibility.

5 Conclusion

This study aims to identify why Algerian agri-food companies are committed to a CSR approach. As indicated in the previous results, companies may have different motivations for embarking on a corporate social responsibility (CSR) approach. There are many advantages for companies in committing to such an approach, which can contribute to their overall performance and brand image and ensure their long-term survival. Developing a CSR approach allows companies to question how they operate, design, and produce. It is an opportunity that facilitates and stimulates creativity and innovation. CSR is a natural way of standing out from competitors who would have yet to embark on this approach. As a genuine competitive advantage, a well-committed CSR approach can make it easier to win new market share.
This research aims to determine the motivations behind companies’ commitment to a CSR approach and this is theoretical contribution. It is unique in that few studies have addressed this issue. It, therefore, seeks to contribute to the academic literature on the motivations associated with this approach.
Methodological contribution lies in the data collection method. The face-to-face administration of questionnaires at the national production fair (SAFEX) is more costly than other administration methods. However, it is essential to emphasize that we had to work with the major constraint of the unavailability of specific managers and even the need for more cooperation from some. The time constraint, knowing that the fair lasted ten days, prevented us from collecting a maximum number of responses, and even the number of companies that took part in the fair was 66, a very small sample. In addition, the data was only collected at the fair (SAFEX). Extending the field investigation to a larger sample would be more attractive.
Managerial contribution to this research may be necessary for Algerian companies, particularly those in the agri-food sector, as well as for social rating agencies. It also encourages other companies in different sectors, or companies that have yet to embark on this approach, to consider improving societal rating tools.
Research perspectives We invite future researchers to broaden their horizons beyond the motivations presented in our research and to explore new fields such as law and psychology. The aim of this approach is to provide a more in-depth analysis of the reasons why companies engage in CSR. We also encourage researchers to think more deeply about analyzing the variables that measure the influence between the three levels of corporate commitment to CSR: individual, organizational and institutional commitment.
We suggest that researchers working on companies in Algeria focus on a specific geographical area and opt for a face-to-face approach when administering questionnaires, in order to improve the response rate.
Following on from this work, it would be interesting to extend this issue to other sectors of activity and even to other countries with the same cultural environment (Maghreb countries).

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Kľúčové slová/Key words

corporate social responsibility, organizational motivations, institutional motivations, manager, agri-food company
spoločenská zodpovednosť podnikov, organizačné motivácie, inštitucionálne motivácie, manažér, poľnohospodársko-potravinárska spoločnosť

JEL klasifikácia/JEL Classification

D61, M31, Q53

Résumé

Motivácia alžírskych spoločností k sociálnej zodpovednosti: Analytická štúdia niekoľkých agropotravinárskych spoločností
Environmentálne a sociálne otázky dnes v spoločnosti zohrávajú dôležitú úlohu a zavedenie prístupu CSR má zmysel, aby sa podporil dialóg medzi zainteresovanými stranami a zároveň sa posilnila dôveryhodnosť a reputácia na trhu. Cieľom tohto článku je určiť motivácie, ktoré stoja za angažovanosťou alžírskych spoločností v prístupe SZP. Na dosiahnutie tohto cieľa bol prispôsobený deduktívny prístup založený na kvantitatívnej metóde s použitím dotazníka určeného pre vzorku spoločností v agropotravinárskom sektore. Zozbierané údaje boli spracované pomocou softvéru SPSS. Z výsledkov vyplýva, že motivácia k angažovanosti v prístupe SZP v prípade skúmaných alžírskych agropotravinárskych spoločností súvisí najmä s viacerými faktormi: charakteristikou spoločnosti, individuálnymi, inštitucionálnymi a organizačnými motiváciami.

Recenzované/Reviewed

1. May 2024 / 14. May 2024