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EuroMed Journal of Business
The evolution of strategic corporate social responsibility

Paul Andrew Caulfield
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Paul Andrew Caulfield , (2013),"The evolution of strategic corporate social responsibility", EuroMed Journal
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EMJB
8,3
The evolution of strategic
corporate social responsibility
Paul Andrew Caulfield
University of Bath, Bath, UK
220
Abstract
Purpose Corporations and businesses have been a major influence on society since before the
industrial revolution, but academic focus on corporate responsibilities is a recent phenomenon
which focuses predominantly on globalised multi-national corporations of the late twentieth century.
The purpose of this paper is to consider the evolution of the corporate responsibility and community
involvement tracing the development of corporate behaviours in the UK from medieval guilds to the
modern form of corporation seen at the end of the last century.
Design/methodology/approach The analysis considers the institutional forces which have
shaped responsible business behaviours in a context of changing power and influence.
Findings Drawing on Webers notion of the ideal-type, this paper demonstrates that many modern
corporate social responsibility (CSR) concepts such as codes of conduct, stakeholder consultation, and
corporate donations have considerable heritage.
Originality/value This paper develops an important precedent by examining the evolution of CSR
and other aspects of corporate engagement. It develops a long-term instrumental context for corporate
donations, whilst revealing that practices such as employee volunteering are considerably more recent,
and less institutionally developed.
Keywords Strategy, Corporate social responsibility, Business history
Paper type Research paper
The influence of business on society can be imagined to coincide with the earliest
origins of commercial activity, and an expectation of responsibilities to society beyond
that of making profit may also have existed for centuries (Carroll and Shabana,
2010). However, literature on specific practices in which promote societal contributions
have only been evident since Bowen published Social Responsibilities of the
Businessman in 1953 (Bowen, 1953; Carroll, 1999), and academic studies probably
emerged in the 1950s in the United States with little consideration of earlier practices
(Banerjee, 2007, p. 5).
These academic interests are now widely discussed and corporate social
responsibility (CSR), defined as practices of the firm which appear to further some
social good, beyond the interests of the firm and that which is required by law
(McWilliams and Siegel, 2001, p. 117). These CSR practices exhibit characteristics of
being voluntary acts of engagement with external stakeholders that further social or
environmental objectives (Dahlsrud, 2008). Within the CSR literature, considerable
attention has been drawn to instrumental practices that seek to align management of
stakeholder relations and the achievement of various corporate performance goals
(Donaldson and Preston, 1995, p. 67) (see also: Jones, 1995; Berman et al., 1999). These
practices often termed strategic CSR were defined by Porter and Kramer (2006) as,
a new way to look at the relationship between business and society that does
EuroMed Journal of Business
Vol. 8 No. 3, 2013
not treat corporate success and social welfare as a zero-sum game (Porter and
pp. 220-242 Kramer, 2006, p. 80, emphasis added by author). An example of Microsofts partnership
r Emerald Group Publishing Limited
1450-2194
with community colleges is identified as an example of this new form of symbiotic
DOI 10.1108/EMJB-05-2013-0030 relationship where the company directly undertakes stakeholder engagement which
positively influence its operating environment, in this case the training of potential Evolution of
employees in relevant skills (Porter and Kramer, 2006, p. 89). strategic CSR
In the introduction to The Social Responsibilities of Business: Company and
Community, 1900-1960; Heald (1970) provides a limited commentary on earlier US
practices suggesting [y] the foundations of much contemporary business social
thought were laid in the practical needs of a swiftly developing [19th Century] economy
and acknowledging that ample evidence exists of employer involvement in many aspects 221
of community life [y] which remain to be fully explored (Heald, 1970, pp. 2-3). Carroll
(2008) also identifies a number of earlier practices in the mid-to-late 1800s primarily
concerned with ensuring the productivity of workers or addressing social problems
such as labour unrest, poverty, slums, and child/female labour(Carroll, 2008, pp. 20-21).
Whilst several authors hint at earlier precedents such as a tradition of philanthropic

donations [y] in the 1900s (Banerjee, 2007, p. 5) or provide illustrative examples,
e.g. Henry Ford saying Business is a service not a bonanza in 1917 (Lee, 2008 citing
from: Lewis, 1976); there appears to be few systematic attempts to expand the field of CSR
beyond: those activities conducted by large multinationals, or those in the last two or three
decades (Johnson, 2012).
Early sociological theorists such as Max Weber (1922) stressed the
importance of historical analysis in developing an understanding of contemporary
institutions. A view echoed by Alfred Kieser (1994) who claimed that [y]
behaviour in present organisations reflects culture-specific historical developments
and practices have developed in response to past innovations, issues, and
opportunities forming a repertoire of alternatives which may resurface (Kieser,
1994, p. 611).
This paper contributes to the body of CSR literature by expanding our knowledge
of the precursors to contemporary CSR practices and by providing a structured
meta-analysis of historical exhibits to determine examples of practice in early
commercial entities.
An ideal-type for strategic CSR

The methods for this historical inquiry have been to establish a hypothetical ideal-type
generated from contemporary practices around strategic CSR and then to examine
characteristics of earlier implementations of such practices by means of a structured
meta-analysis of archives and local historical chronicles. Utilising this method the
investigator is not proving [the] model by historical facts, but identifies forces [y]
influential in certain historical processes focusing on in what respects the historical
case deviates from the ideal-type (Kieser, 1994, p. 617). This approach, favoured
by Max Weber, positions an ideal-type (derived from contemporary materials) to
represent a hypothetical, but viable, choice between a set of alternative lines of action
as they may appear to earlier participants in the process (Stinchcombe, 1978, p. 62;
Weber, 1922).
Following this method enables a comparison of historical exhibits with the ideal
construction so that deviations [y] are thrown into relief (Watkins, 1952, p. 25),
distinguishing those practices which are truly contemporary from those which have
merely resurfaced.
Porter and Kramer (2006) suggest that firms following a more strategic
and instrumental approach would favour CSR practices that have the potential to
improve the underlying drivers of a companys competiveness (Porter and Kramer,
2006, p. 85). These competitive contexts were considered by the authors to include:
EMJB secure business inputs, e.g. access to human resources or infrastructure, improved
8,3 governance of competition, e.g. incentives or rules related to protecting intellectual
capital or beneficial labour regulations, increasing demand potential, e.g. product
quality or safety, and ensuring supply conditions, e.g. supporting key inputs
and services (Porter and Kramer, 2006). Firms adopting a strategic approach to
CSR approach pursue CSR practices and select social objectives that leverage
222 [firm] capabilities to improve salient areas of competitive context (Porter and
Kramer, 2006, p. 89).
Following the considerations offered by Porter and Kramer the following
generalised characteristics are chosen to encapsulate the ideal-type of strategic CSR
(see Figure 1). In applying this ideal-type to historical exhibits, attention was focused
on common contemporary practices seen as representative of strategic CSR namely:

the application of strategic corporate philanthropy and the adoption of voluntary codes
of conduct (Godfrey and Hatch, 2007).
Strategic corporate philanthropy interpreted as donation of corporate resources
to address non-business community issues that [may] also benefit the firms
strategic position, is a much-contested concept (Saiia et al., 2003, p. 170). Several
scholars have challenged meaning of the term and its relationship with altruism
(e.g. see: Gan, 2006; Godfrey, 2005; Saiia et al., 2003). Several authors suggest that
strategic corporate philanthropy can: create goodwill and buy influence (Gan, 2006,
p. 218), generate positive moral capital (Godfrey, 2005, p. 782), and achieve a
synergistic outcome by targeting corporate resources at societal [y] issues that
resonate with [the firms] core values and mission (Saiia et al., 2003, p. 170). The
salience of social issues can be seen to promote alignment between prominent
corporate objectives and salient stakeholder issues along lines suggested by Mitchell
et al. (1997); namely a consideration of definitive stakeholder groups who exhibit
power in the competitive context, hold legitimate claims on the business, and require
more urgent response.
Voluntary codes of conduct (codes) have been defined as as written guidelines,
recommendations or rules issued by actors within society in order to enhance
corporate responsibility (Kolk et al., 1999, p. 147). Kaptein (2004) suggests that that
codes offer corporations a vehicle to [y] to boost stakeholder confidence in the
Strategic CSR
ideal-type of strategic CSR suggests practices and activities that:
practice
Improve or protect the quality and availability of human resources, Secure business
infrastructure, or other business inputs inputs
Affect the normative operating environment by reducing the impact of Improve governance
competition or protecting existing intellectual property of competition
Stimulate local demand by improving the quality, accessibility, or Increase

availability of products/services demand potential
Ensure the availability of service and supporting industries which Ensure supply
maintain the core business operations conditions
Figure 1.
Characteristics Effectively and efficiently leverage existing competencies, resources, Leverage
of the ideal-type or other properties of the firm capabilities
company and to encourage the authorities to relax regulations and controls Evolution of
(Kaptein, 2004, p. 14). Instrumental rationales for self-regulated codes of conduct strategic CSR
have been expressed by several authors who identify, improved corporate reputation
and the avoidance of negative media attention as possible rationales for the adoption
of such practices (e.g. see: Diller, 1999; Van Tulder and Kolk, 2001; Lenox and Nash,
2003). In an analysis of 200 of largest global companies, more than half were
seen to be utilising codes as part of their CSR practices with particular focus on 223
the company responsibilities regarding quality of products and services,
adherence to local laws and regulations, and the protection of the natural
environment (Kaptein, 2004, p. 13). Codes of conduct may then be considered
explicit contracts with stakeholders which if established [y] on the basis of
mutual trust and co-operation may create competitive advantage over others
(Jones, 1995, p. 422).
Data for this paper were collected from various historical commentaries and
specialist materials available in archives, libraries, and other relevant texts. When
selecting academic text, particular attention was shown to academic business texts that
predate Social Responsibilities of the Businessman (Bowen, 1953), the objective
being to identify practices from original sources untainted by concepts of CSR
introduced thereafter. Further evidence of practice was retrieved from local business
archives of Wiltshire and Swindon History Centre and Calne Heritage Centre.
Social responsibilities of the medieval guilds

The guilds of medieval Europe formed the first type of business associations
identified as corporations[1]. Whilst the monopolistic characteristics of the craft guilds
were undoubtedly a source of great wealth, Herberts detailed analysis of the
C15th London Guilds (written in 1834), paints a picture of a well-ordered group of
businesses with self-imposed standards of behaviour amongst members and
mechanisms to ensure that trade reputations were upheld. The guilds have been
said to have evolved in response to market failures in the medieval economy, and
were pivotal in establishing institutionalised markets in many goods and services
by providing economic, educational, and regulative functions (Ogilvie, 2004).
The guilds were established under Royal Charters (or patents) which granted
exclusive rights for trade activity and licence to operate an effective monopoly
(Herbert, 1834; Ashley, 1914). In negotiating charters consideration was given by the
Monarchy that the guild should be operated for the greater good and profit
of the people (Herbert, 1834, p. 41) after a period of strong public opinion developed
[for the need] to protect purchasers from fraudulent or defective workmanship
(Ashley, 1914, p. 31).
Guild codes of conduct

Once established charters were enforced by strict codes of conduct, and
wardens of the crafts were required to swear annual oaths to uphold [y]
all the goode reules and ordynnces of the same craft that been approved and to
report defautes that ye fynde in the same Craft ydon to the Chambleyn of
yCitee (ca. 1375) (Herbert, 1834, p. 35). These codes, known as Pointz were self-
regulated and contained guidelines for appropriate membership, standards of
apprentice education, rules for intellectual property (keeping of craft secrets),
processes for grievances, and other management principles (Ashley, 1914;
Herbert, 1834) (Exhibit 1.1).
EMJB A number of common features identified in the London Guild Companies Charters include: principles of
8,3 self-organisation, conditions of membership, and rights to own property
1.1.1 They may have and hold their gild [general meeting] once a year [y] settle and govern their
mysteries [operations] (Merchant Tailors Guild c1480) (Herbert, 1834, p. 41)
1.1.2 They may elect their own officers being honest, lawful and sufficient [skilled] men [y] to inquire
of the concerns of their trade [y] [and] correct and amend the same (Goldsmiths Guild c1480)
(Herbert, 1834, p. 41)
224 1.1.3 They may confirm the ancient right of search [y] [to] detect dishonest practices and punish
offenders (Tapicers [Tapestry Makers] Guild c1360) (Herbert, 1834, p. 42)
1.1.4 They must restrict admission to those who have served the term of apprenticeship [and been
approved] [y] by advice of wardens [y] who were ascertain he was of good name (Grocers Guild
c1460) (Herbert, 1834, p. 46)
1.1.5 They may make exclusion of strangers from the city due to their irregularities and defects
which may disgrace [y] honest men of the said mysteries [occupation] (c1450) (Herbert, 1834, p. 41)
1.1.6 They may acquire property tenants and rents [y] for relieving their poor and infirm and for
maintaining a chaplain and a chantry [endowment] (Goldsmiths Guild c1480) (Herbert, 1834, p. 42)
Exhibit 1.1.
Charters of the London Source: The History of The Twelve Great Livery Companies of London; Herbert (1834)Translated
Guild Companies from old English and Norman French
The system of apprenticeship and mastery established an important secular precedent for
education and established standards of professionalism in the masterpiece (assessment
of work to be of sufficient quality for admission a guild master) (OED Online, 2013; ). A
further function of the guild rules was to establish and inspect universal trading standards
and measures known as the assize[2]. For example, the merchant tailors company was
required to keep a silver yard and direct fit persons [y] to see that a proper yard
measure be used (ca. 1575) (Herbert, 1834, p. XX). In this way guilds have been seen by
many historians as essential in establishing market-based consumer standards which
generated considerable wealth as [y] only guild members could be trusted to produce
wares of an acceptable quality (Ogilvie, 2004, p. 12).
Ashley (1914), Professor of Commerce at University of Birmingham, lecturing on the
organisational practices of the guilds identified them as exerting an institutional-type
pressure on society, claiming that by the middle of C15th there was substantial
uniformity both in the craft organisation and in the municipal constitution which
rested upon it (Ashley, 1914, p. 33). Several examples of the application and
enforcement of guild pointz can be seen in Herberts text and confirmed in archival
evidence (see Exhibit 1.2)[3].
As a major market town on principle transport routes Calne developed a local tradition of regulating
trading standards. From 13th Century, onwards, the lord of Calne manor (Bowood House) had the right
to hold view of frankpledge [Court], with an alderman, appointed under the Guild Steward to monitor
local practices and quality standards. Records show that the regulation of assize formed a significant
part of the borough charter until the early C19th (Crowley, 2002b).
1.2.1 The alderman presented [for punishment] 3 innkeepers, 2 bakers, 5 butchers, 1 tanner, and
1 chandler [Candle maker] for overcharging or supplying inadequate goods (ca. 1491)
1.2.2 The men were amerced [punished] for throwing dying liquor and emptying lime pits, into the
Exhibit 1.2. [River] Marden (ca. 1680)
Local enforcement of guild
codes of conduct Source: Economic History of Calne (Bowood House Archives) (Crowley, 2002b, pp. 94-100)
Guild philanthropy Evolution of
Prior to C14th, the Roman Catholic Church was the only established vehicle strategic CSR
for social welfare and philanthropy in England (Kendall and Knapp, 1999, p. 29),
practices such as tithing (the donation of one tenth of spoils to the Church) were
widespread across Europe (Constable, 1964). Early Tudor legislators were slow to
engage with social problems of the age, and state intervention against poverty in
England was limited to controlling vagrancy and the prohibition of begging by the 225
able bodied who were compelled to labour for their sustenance by Edward III (1312-
1377) (Jordan, 1959, p. 83).
Ashley (1914), suggests that guilds were themselves closely modelled on
religious fraternities, giving rise to guild practices such as the celebration religious
festivals, widespread adoption of almsgiving, and assistance of members of the

brotherhood in distress (p. 31). Guildsmen of particular occupations often lived in
close proximity dominating particular streets and localities [y] [as evidenced]
by the street names of our older towns (Ashley, 1914, p. 31). By the late C14th
the guilds were an established secular base for philanthropy; with mutuality
(the provision of social insurance for selected members) and the provision of
alms-houses and doles for their poor (Chesterman, 1979; Kendall and Knapp,
1999). Most Pointz included some form of direct responsibility for the poor
and for maintaining public works such as city walls (Herbert, 1834). For example, the
Grocers company in their charter of 1429 required members to contribute to a land
endowment fund to have and to hold them and their successors forever, in aid of
sustaining the poor men of said community (Herbert, 1834, p. XX; Ashley, 1914)
(Exhibit 1.3).
Records of notable community donations by leading guildsmen are recorded in the annals of each of the
Twelve Great Livery Companies of the City of London associated with the main trades of the period.
Examples of major donations from the Mercers Company (Traders in luxury fabrics, such as silk, linen,
and hemp-cloth) include: William Elsinge, 200 to establish Cripplegate Hospital for the blind in 1332
(Approx. 1.8M current value), and William Elkin, 800 Funds for Christs Hospital in 1593 (Approx.
2.0M current value). Exhibit 1.3.
Philanthropy of the
Source: The Twelve Great Livery Companies of the City of London, Herbert (1834) London guild companies
As well as establishing precedents for corporate philanthropy, the guilds may also
have given rise to a number of famous business leaders who became established as
role models. Richard Dick Whittington (1354-1423), Lord Mayor of London,
Member of Parliament, and Master of the Guild of Mercers established a legacy of
philanthropy and public works as early as the C15th (Bremner and McCutcheon,
1996, p. 35). During his time in the City of London, Whittington, established some
early public health initiatives (drinking fountains and public lavatories),
established shelters for unmarried mothers, alms-houses for the poor, and
donated 400 for a library in Gray Friars in 1421 (approximately 2.0M current
value)[4] (Herbert, 1834). Whittington died childless and made the radical move to
leave his entire estate[5] (25-35M current value) to be administered by the
Mercers Guild, breaking the existing norm of leaving ones estate to the church
(Bremner and McCutcheon, 1996, p. 35). Later bequests followed similar form, for
example Sir William Sennoke (died 1433), Lord Mayor, MP and Master of the
EMJB Grocers company, left monies to found Sevenoaks School (the oldest secular school
8,3 in England) and began a tradition of free schools (outside church control) supported
by London guildsmen (Bremner and McCutcheon, 1996).
Social responsibilities of Elizabethan merchants

During the reign of Elizabeth I (1533-1603) a significant wealthy merchant class arose
226 from the increase in Atlantic based trades with the New World. Elizabethan
Governments took a very active part in the regulation of trade with an active focus on
national commercial and political interests (Warner, 1899, p. 128). Trade routes were
obtained by treaties between rulers and selectively granted as charters and put in
the hands of known and responsible persons (Warner, 1899, p. 172). With the increase
in trade new economic roles became common such as trade brokers, shipping agents
and bankers (Ojala and Luoma-aho, 2008, p. 750); and the precedent of intermediaries
between producer and customer was established (Ashley, 1914, p. 35). For the
merchants, success depended on navigating a more complex supply chain and actively
maintaining privileges of trade from the Monarch (Warner, 1899, p. 172).
Prior to the dissolution of the monasteries (ca. 1530), the church had been the
primary provider of social services to the poor, administering alms-houses, and
hospitals. The breach between Church and State transferred a great deal of property,
wealth and employment from monasteries to state or private control ( Jordan, 1959,
1961; Bremner and McCutcheon, 1996). The institutional changes instigated by Henry
VIII had a profound affect for business donations by simultaneously: removing the
facilities for social welfare, and by replacing the moral authority of the Catholic Church
with a more economic focus set by Elizabeth I and later monarchs (Warner, 1899,
p. 145). During the late C16th an extended period of bad harvests and continuing wars
with Spain, created a severe economic downturn with large-scale unemployment and
desperate conditions for the poor (Mantoux, 2006).
In 1597, parliament conducted a major review that codified the state and
private actors role in providing welfare to its poor citizens ( Mantoux, 2006, p. 432).
The statutes which followed this debate were designed to deal severely with the
professional poor by increasing penalties for vagrancy, and create employment by
enforcing the tillage and husbandry of suitable agricultural land ( Jordan, 1959, p. 94).
The Statute of Elizabeth (see Exhibit 2.1) passed in 1601, was the first legislation that
established direct responsibility of the State to address issues of poverty by creating
powers of taxation under a parish system of churchwardens, justices, and substantial
householders made accountable for the provision and governance of social services
(Bremner and McCutcheon, 1996). The Statute also defined which philanthropic
activities could be classified as charitable and free from taxation; these charitable
The principles of the Statute remain in UK law today, a 2002 cabinet review of Charities Law (HMRC,
2002, p. XII) notes To be charitable, purposes must be within the spirit and intendment [of the
Statute]. The four heads were later interpreted as follows:
(1) Relief of poverty (or more specifically the aged, impotent or poor);
(2) Advancement of education;
(3) Advancement of religion; and
(4) Other purposes beneficial to the community, not falling under any of the preceding three heads.
Exhibit 2.1.
Statute of Elizabeth (1601) Source: HMRC (2002, appendix I)
purposes (or heads) show a great deal of similarity with the types of secular Evolution of
philanthropy demonstrated by the guilds. The Statute of Elizabeth that may be strategic CSR
interpreted as the government codifying an earlier style of philanthropy effectively
legitimising a secular form of corporate philanthropy favouring education, health, and
public works (after: DiMaggio, 1988; Jepperson, 1991; Suchman, 1995).
Merchant philanthropy
Perhaps resulting from favourable tax treatment and a desire to keep favour with the
227
Monarchy, the emerging merchant class assumed greater social responsibility for
the poor, including a system of charitable collections that was said to be well
established in London (Jordan, 1959). In the book, Philanthropy in England 1480-1660,
a detailed analysis of donations shows that by 1660 private merchant donors in

London contributed 1.9M (approximately 5 per cent of GDP in 1660 and equating to
2.9BN current value) (Jordan, 1959, p. 243).
Jordon suggests that philanthropy in England had seen a revolution [y] [where
previous] religious interests had yielded to social aspirations that were
aggressively secular, the merchant class wrestled control from the church [y]
[of] the direction of the institutions which lend care to mens bodies and tuition to
their minds, resulting in the secularization of society and its institutions ( Jordan,
1959, pp. 240-241). The impact of the Statute of Elizabeth and the four heads can be
seen in the type of philanthropy that had evolved at the end of the C17th, with the
major focus of donations being to promote education (31 per cent) and other secular
activities (37 per cent) (see Exhibit 2.2). Increased criticism of the tithing system
and abuses by the Church, resulted in the collapse of religious bequests from 53
per cent of probate funds ca. 1480-1530 to only 7 per cent in the period 1560-1600
(Jordan, 1959, p. 243).
Charitable cause Percentage
Education 31
Religious donations 22
Public Works 15
Alms-houses 14
Hospitals 8
Unknown 10
Total 100 Exhibit 2.2.
Distribution of donations
Source: Collated from Jordan (1959, pp. 287-335) by cause
By the late C16th, business donations had become the main source of welfare, often
established by the capital endowments, favoured in the Statute of Elizabeth,
yielding perpetual income streams (Bishop and Green, 2008). Exhibit 2.3 shows the
extent of mercantile contribution to charitable causes in the period which account
for 43 per cent of all recorded donations, with business contributing more than half
of all charitable donations in the sample (Jordan, 1959); and with the average
donation of merchants was nearly three times that of aristocracy (crown, nobles
and gentry).
EMJB As merchants became a dominant economic force in the late C16th,
8,3 they promoted a more solution orientated approach to philanthropy influenced by
humanist thinkers such as the Spanish Philosopher Juan Luis Vives (1493-1540)
who was influential at Court and the University of Oxford (Bishop and
Green, 2008). Vives perspectives on education as a means to address poverty
(e.g. De subventione pauperum (On assistance to the poor), 1526) are said to have
228 influenced the pattern of giving by merchants (Bishop and Green, 2008, p. 21; Casini,
2009; Ibanez, 1994), leading to a more strategic and circumspect form of
philanthropy, with very little in religion or direct alms, and focusing on capital
aggregates to create permanent measures for the rehabilitation of the salvageable
poor (Jordan, 1959, p. 349).
Total donations Average donation

Donor type in 1660 % of total in 1660 in 2010
Aristocracy 621k 20 126 192k

Crown and Nobility 268k 9 1,176 1,799k
Gentry 352k 11 75 114k
Businesses 1,683k 54 234 358k
Merchants 1,338k 43 364 557k
Professions 196k 6 226 346k
Tradesmen 149k 5 57 87k
Others 796k 26 35 53k
Clergy 295k 10 170 260k
Others (Yeoman, etc.) 148k 5 10 16k
Unidentified 353k 11 54 82k
Totala 3,100k 1.06 59 90k
Exhibit 2.3. Note: aApproximate current value of total is 4.7BN
Donation by business Source: Adapted from Jordan (1959, pp. 287, 338)
An example of this focus on educational donations can be seen in Thomas Sutton

(1532-1611) a prominent banker held high public office and through shrewd
investment became one of the wealthiest men in Jacobean England, left a legacy
for the establishment of a hospital for pensioners and a school for boys which
was to become Charterhouse School (Zillekens, 2010). Another businessman, printer
Thomas Guy (1644-1724), established a major hospital (now Guys and St Thomas
NHS Trust) of which Daniel Defoe (1659-1731), author of Robinson Crusoe, said
the greatest [gift] of its kind [y] founded by one person [y] not excepting the kings
themselves (Defoe, 1724/1978).
In The Worthies of England, Thomas Fuller (1662) presents a more critical
view of merchant philanthropy saying we live in an age whenin men begin
to be out of charity with charity itself noting that many unscrupulous wealthy
people giving in charity an amount which is insignificant with the misery
they have caused (p. 39). Fuller also criticised what he identified as the corrupt
operation of many charitable institutions in C17th, Hospitals have the
rickets, whose heads [Masters] grow over great and over rich, whilst their
poor bodies [beneficiaries] pine away. A view supported by the poet and
economist Bernard Mandeville in Fable of the Bees: Or, Private Vices, Publick
Benefits (1714) who declared pride and vanity have built more hospitals than all
the virtues together (Bremner and McCutcheon, 1996; Mandeville, 1714) Evolution of
(Exhibit 2.4). strategic CSR
Records of benefactors to the Borough of Calne celebrating those leaving legacies or gifts to be lett to
poore craftesmaen and artificer of this borrowe of Calne, and alsoe to buy lands for the mayntenance of
the poore hereof, included: 229
2.4.1 Mrs Wooton [Baker] for to paye in 4 [per] yeare in bread (7,995 current value) (c1630)
2.4.2 00 William Swaddon, [Woollen Mill owner], per annum 4 from rental of lands00 (c1610)
2.4.3 00 an annuity of 40 shillings (4,970 current value) by Walter Fynamore for the education and
bringing up of 10 children of the poor inhabitants to be paid from the rental of lands in the parish
(1557) (Marsh and Brakspear, 1903, p. 208)
2.4.4 In 1664, a free school for English language was built and maintained for 30 boys by the estate and
endowment of John Bentley, a barrister (80,000 per annum current value) (Crowley, 2002a) Exhibit 2.4.
Local business donations
Source: Guild Stewards records of benefactors in Calne (1598-1664) (Mabbs, 1953) and support for education
Social responsibilities of early industrialists

Where the Elizabethan period had seen the rise of merchants and traders,
the C18th saw the emergence of production and manufacturing as the
dominant business activity with changes in working practices from the former
artisan model of small home workshops towards employment in centralised
manufactories, and a system where pay was based on hours of work (Wren,
2005). The new labour force came from mainly agricultural backgrounds
with limited education or skills; they migrated to the emerging towns
from rural villages and were unfamiliar with regular repetitive activities that
created issues of reliably and obedience for the employer (Wren, 2005; Fitton and
Wadsworth, 1958).
Philanthropy as an instrument to attract employees

Early factories were built close to available water-power and faced the problem of
attracting larger numbers of workers to central locations (Gospel, 2007). In the
textile industry, where women and children made up a substantial proportion of the
workforce, factory housing became prevalent as a means of supporting families of
workers (Gospel, 2007). In the early stages of the industrial revolution children,
from the age of seven, formed a considerable part of the workforce, and mills were
run on the basis of family employment as it was considered to be in the employers
advantage to build up family earnings and local attachments (Fitton and
Wadsworth, 1958, p. 225).
Early industrial utilised various tactics to retain and attract workers such as:
establishing new communities with brick built cottages, and some with additional
facilities such as Inns, Chapels, and Sunday Schools (Mantoux, 2006; Porter, 1982).
Such idealised communities were offered in Cromford (Strutt and Arkwright),
and New Lanark (David Dale) with considerable intervention in food supplies and
other supporting services (Fitton and Wadsworth, 1958, pp. 97-98; Porter, 1982)
(see Exhibit 3.1). From ca. 1760, Strutt and Arkwright were noted for the provision
compulsory education for young workers to keep them out of trouble (Fitton and
Wadsworth, 1958); these tactics tamed and trained the labour force, to facilitate
longer working hours and increase discipline (Porter, 1982).
EMJB On the death of David Dale Esquire
8,3 [y] formerly proprietor of the Lanark Cotton Mills, and one of the Magistrates of Glasgow generally
known and admired for a noble spirit of philanthropy in whose character were strikingly combined,
successful commercial enterprise with piety, active benevolence, and public spirit [y] [To the mills of
Lanark] were transplanted, and trained to virtuous habits, numerous orphans and outcasts of the streets
who had been prey to vice and misery. Possessed of a kind, hospitable and benevolent, of a heart
generous, sincere, and truly philanthropic, his charities, public and private were probably not surpassed
230 by any individual in Scotland. The poor will feel the want of a bountiful benefactor. Glasgow is deprived of
an illustrious citizen. Public institutions have lost him who was looked up to [y] Humanity has lost a
Exhibit 3.1. warm and steady friend.
The philanthropy of
David Dale Source: Obituary, Scots Magazine, January 1806 (McLaren, 1999)
Philanthropy in the industrial village

Declining urban working and living conditions led a number of reformers to
consider a more radical future of working and living in purpose designed industrial
villages (Ashworth, 1951). Discussion on the motives of Salt and other philanthropists
of the nineteenth century suggest that aspirations to be a good employer but
recognises greater worker productivity and less risk of labour disputes (Smith, 2003).
It could also be argued that Saltaire also benefited from the ability to attract and
retain key staff. Commentators have suggested that Salts community investment may
have been motivated by securing a compliant, captive workforce [y] [with]
disciplined behaviour that ensured continued profits (Crawford, 1995; Smith and
Oppenheimer, 2005). The example of Saltaire was quickly adopted by other
industrialists: Cadburys began plans for Bourneville in 1879 with profits from
tenancy used to improve and extend accommodation, Lever Brothers Port Sunlight
opened in 1890 involved prosperity-sharing where workers gained lower cost
housing with longer service (Ashworth, 1951). Other examples followed in
similar moulds including: Foyers Estate on Loch Ness (built by British Aluminium
in 1895), Earswick near York (built by Joseph Rowntree in 1904) (Smith, 2003;
Ashworth, 1951) (Exhibit 3.2).
On the life and works of Titus Salt Esquire

Titus Salt (1803-1876) leveraged his extensive political contacts to lobby for improvements in the city
mills of Bradford (Hamer, 2007), which was known as the most polluted town in England with low life
expectancy and high instance of cholera and typhoid (Smith, 2003, p. 3). In 1851, Salt began a more
substantial intervention by establishing a new rural community, known as Saltaire of 4,500 residents
with improved working and living conditions, and utilising existing canal and railway networks
(Ashworth, 1951). The facilities of Saltaire included a reservoir, library, school, hospital, church and
open recreational space. An account provided at the time states Bradford was polluted, unhealthy and
immoral; at Saltaire the physical, material and moral improvement of the workers was to be promoted by
Exhibit 3.2. a good employer (Smith, 2003, p. 4). Salt efforts in Saltaire were widely publicized, and in 1868 he was
Titus Salt and Saltaire awarded a baronetcy for his work (Ashworth, 1951).
Industrial codes of conduct on working conditions

With the advent of steam power factories could be more flexibly located and workers
could be assembled in even greater numbers. Slums developing from intense
industrialisation brought issues of pollution fog, sulphurous smoke, and choking
chemical wastes and waves of feverous diseases in the major industrial towns Evolution of
(Porter, 1982, pp. 351-352). As the industrial revolution progressed working conditions strategic CSR
and issues of labour discipline began to affect operations in the overcrowded industrial
towns and attracted high-profile objections and labour revolts (Porter, 1982).
A number of socially minded business leaders with progressive attitudes towards
working conditions implemented employee training and mechanisms for consultation
with workers (Gospel, 2007). Many practices centred around instilling values supportive 231
of proper attitudes to work; an approach favoured by the Quaker owned businesses
(e.g. Cadburys) who promoted education and religious readings (Wren, 2005, p. 49).
The Strutt and Arkwright families were prominent cotton mill owners from the 1760s,
they had made money early and easily; they had assured position in the trade and
felt responsibility as heads of the community (Fitton and Wadsworth, 1958, p. 226).
In Derby, the partnership employed approximately 1,500 staff of which only 6 per cent
were children and the majority had been given rudimentary education in Lancasterian
schools associated with the firm (Fitton and Wadsworth, 1958). The firm conducted
surveys of worker retention from exit interviews (1805-1812) which showed low staff
turnover at approximately 8 per cent per annum and a very small proportion of
complaints against the firm (i.e. only 7 per cent of leavers recorded insufficient pay or
dissatisfaction as reasons for leaving) (Fitton and Wadsworth, 1958, pp. 231-232).
David Dale (1739-1806) was an industrialist the self-made man son of a grocer who
began life as an apprentice weaver (OxfordDNB, 2004b). In the late 1700s David Dale
entered a business partnership with Arkwright at New Lanark which was surveyed as
being a good factory site with very powerful command of water and potential workers
in the presence of clockmakers who could repair machinery (Donnachie and Hewitt,
1993, pp. 23-24). Dale set out to use his influence with Glasgow politicians to attract
widows with large families, and orphans from the citys orphanages those who have no
parents here and who get their maintenance, education and clothing for their work
(Donnachie and Hewitt, 1993, p. 40). Later, he was said to actively leverage his social
position to help grow the business, e.g. as director of a local hospital Dale took active
control of education and training inmates for a suitable trade in the world outside
as a result children in the hospital were taught how to set [y] cotton and woollen
[machinery] and enrolled as pre-apprentices in his Mills (McLaren, 1999, p. 81).
Dale became particularly interested in health and safety issues in factories and
collaborated with Thomas Bayley (President of the Manchester Board of Health) on
means to combat disease in the over-crowded mills (Donnachie and Hewitt, 1993;
McLaren, 1999); Research from Dales factories on ventilation, fumigation and hygiene
considerations was published in the London Magazine in July 1796 (Donnachie and
Hewitt, 1993). Recommendations followed on the reduction of working hours for
children under 14, which led to regulation in Lancashire which restricted night
work and limited hours for Parish Apprentices (Donnachie and Hewitt, 1993). This
collaboration towards a code of conduct between Dale and Bayley, led to a more
wide-spread questionnaire on conditions, health and treatment of employees and
the pair lobbied Parliament for an improvement in factory working conditions
(Donnachie and Hewitt, 1993). The later Peels Act (1802) established formal standards
for apprentices in cotton mills; conditions which New Lanark already satisfied providing
significant competitive advantage.
Robert Owen (1771-1858), socialist and philanthropist, married the daughter
of David Dale, and established a partnership in 1799 to buy New Lanark Mills for
60,000 (approximately 50M current value) (OxfordDNB, 2004a). Following his
EMJB father-in-laws attempts to improve labour conditions, Owen proclaimed New Lanark to
8,3 be an experiment in philanthropic management, reducing childrens working hours,
and providing learning interesting to young minds as an alternative to corporal
punishment for disobedience (OxfordDNB, 2004a).
Under Owen, New Lanark mills thrived and attracted considerable
curiosity across Europe; a reputation embraced by Owen with the production of
232 pamphlets describing his management principles (Donnachie and Hewitt, 1993,
pp. 115-116) and speeches to the Glasgow Cotton Masters in 1803 (Donnachie
and Hewitt, 1993, p. 119). Owen also actively participated in government
reforms (1815-1819), producing a pamphlet Observations on the effects of the
Manufacturing System which he distributed to all members of parliament, calling
for further reduction in working hours and limitations to childrens employment.

Doubtful of the willingness of the commons to pass further legislation, Owen
undertook a personal inspection of factories before the committee met; he found
conditions in many mills to be utterly disgraceful to a civilised nation (Owen, 1813;
Claeys, 1991, p. 121).
Robert Owen became an accomplished user of propaganda and took
considerable effort to ensure that his political and philanthropic messages reached
a wider audience; for example distributing tens of thousands of newspapers in which
his speeches were published amongst those he wished to influence (Claeys, 1991, p. XV;
Donnachie and Hewitt, 1993). Robert Owen enraged contemporaries by calling for
improved standards and his highly public political lobbying (Seaman, 1990, p. 57).
Whilst the Strutt and Arkwright partnership had been early adopters of factory
reforms, they directly opposed Owens calls for further improvements in working
conditions calling it interference and claiming the reduction of time and subsequent
reduction of wages, would have a most serious and lamentable effect on the working
class [y] Everything should be done to enable the working class to procure sufficient
food and clothing [y] it is very difficult to instruct and improve the hungry and the
naked and those who are degraded against their own will into pauperism[6] (Fitton
and Wadsworth, 1958, p. 229).
The philanthropy of public goods

In the C17th and C18th legacies for education and hospitals formed an important
part of philanthropic activity. Many industrialist provided support for public
works and community amenities, which were not typically provided by the state.
It has been noted that many nineteenth century businesses operated in uniquely
favourable economic environment several of which such as Arkwrights enjoying
long-term technological patents or David Dale with established relations with
financiers allowing them to accumulate vast amounts of capital which could be used to
fund significant community investments (Payne and Society, 1988, p. 30; Donnachie
and Hewitt, 1993, p. 19).
The Strutts contributions to public works stretched across several generations and
included the provision of Derwent Bridge (1788), town paving and lighting (1792),
the Derby Infirmary (1810), and Lancasterian Schools (1812). As their involvement in
local government grew many industrialists took roles in establishing local social
institutions, for example, by 1831 William Strutt established local Friendly Societies,
Savings Banks, and a Gas Company in Derby (Fitton and Wadsworth, 1958). The
Strutts also supported local celebrations of coronations and other national events,
during one such event in June 1814 over 10,000 (0.6M current value) was spent on
entertaining of 1,100 staff and town residents with Roast Beef, Plumb Pudding [y] Evolution of
and ample ale (Fitton and Wadsworth, 1958, p. 258). strategic CSR
Public parks and recreation grounds were uncommon and in 1842 only one public
park existed in Lancashire. In 1840 Joseph Strutt donated an arboretum of 11 acres to
the town (approximately 7.7M current value), stating there was an urgent and
important need in the large and increasing town for the opportunity of enjoying with
their families, exercise and recreation in the fresh air [y] and grounds devoted to that 233
purpose[7] (Fitton and Wadsworth, 1958, p. 187) (Exhibit 3.3).
C&T Harris (Calne) Limited was first established in Calne as a local butchers shop by a widow Sarah
Harris in 1770 (CHC, 1992, 2007). The family firm grew into a large scale bacon curing business, gaining
several patents for meat curing, and acquiring factories in Totnes, Eastleigh, and Ipswich. (Bromham,
1980; FMC, 1975; MMC, 1975). Articles of Association in 1888, established the capital of the firm as
300,000 (25M current value) (CHC 2267/23)
3.3.1 In a review of factory conditions conducted in 1890 the Harriss factories were observed to have
high standards of Health and Safety (especially praised for having a factory fire brigade) and offering
clean well-ventilated workspaces (SWHC 2140/119).
3.3.2 During the 19th Century the Harris family had been established as a major benefactor to the town.
Between 1850 and 1890 the family firm had: donated land for a town police station, funded the building
of Calne Free Church in1866, and funded more than half of the budget for a New Town Hall in 1886
(2.5M current value). Other public works donated by the Harriss included a public recreation ground
and sport club facilities in 1891, central town gardens and swimming pool in 1896. (CHC, 1992; Crowley,
2002a).
3.3.3 In 1905, Thomas Harris co-founded a library in town with the American philanthropist Andrew
Carnegie (0.6M at current value) although the Harris family chose not to be named on the
commemorative plaque (CHC, 192).
3.3.4 In 1863 a significant capital investment was made in the economic interests of both town and firm
when C&T Harris provided capital to connect the town to the Great Western Railway (22.6M at
current value). The firm added electric power generation in 1919 (Marsh and Brakspear, 1903) and
expanded generation to supply the whole town with power that continued until 1948 when production
was switched to the National Grid (CHC, 1992; Bromham, 1980). Exhibit 3.3.
Philanthropy of C&T
Sources: Calne Heritage Centre (CHC) and Swindon and Wiltshire History Centre (SWHC) Harris (Calne) limited
Strategic philanthropy of corporate foundations

During the late C19th and early C20th the large-scale industrial form of business
became fully developed as transportation and communications developed ever larger
production capacity (Chandler, 1992). Historian Alfred Chandler (1992) considered this
period to be characterised by the development of new organisational capabilities such
as problem solving in large scale production (p. 84); and pressure to establish
harmonious relations with employees, stockholders, customers and the public at a
time of increased trade unionism (Heald, 1961, p. 130).
Between 1870 and 1930 a number of large philanthropic foundations were established
by a new breed of multi-millionaire industrialists with outspoken views about their
preferred type of philanthropy and took a more wholesale and systematic
approach given the vast sums available to them (Bremner and McCutcheon, 1996,
pp. 159-160). This approach which shares many characteristics with that seen in
Elizabethan times, was championed by the Charity Organisation Society (est. 1857)
introduced strategic objectives for philanthropy characterised by an ambitions to
EMJB contribute to long-term public benefit and the application of scientific methods of impact
8,3 assessment (Bulmer, 1995). The trusts established by Joseph Rowntree (1836-1925)
(OxfordDNB, 2004c) and Andrew Carnegie (1835-1919) are said to exemplify this new
approach to philanthropy that was mirrored in US foundations (e.g. John D. Rockefeller)
(Bishop and Green, 2008) (Exhibit 3.4)
234 Joseph Rowntree (1836-1925) was a cocoa and chocolate manufacture base in York. His best-known
philanthropic act occurred in 1904, when he used half of his wealth to create three trusts. The Joseph
Exhibit 3.4. Rowntree Charitable Trust was charged with supporting social research, adult education, and the Society
Joseph Rowntree of Friends [Quakers] [y] On their founding, the Rowntree trusts held over 52 per cent of the company0 s
Foundation (est. 1904) shares (OxfordDNB Oxford DNB)
In Andrew Carnegies The Gospel of Wealth the author advises

followers to avoid donations to individuals where the burden of determining the
worthy could be problematic and to pursue more public goods (Carnegie,
1889; Bishop and Green, 2008). Carnegie urges philanthropists to provide
the ladders upon which the aspiring can rise parks, and means of recreation, by
which men are helped in body and minds; works of art, certain to give pleasure
and improve the public taste, and public institutions of various kinds, which will
improve the general condition of the people; in this manner returning their
surplus wealth to the mass of their fellows in the forms best calculated to do them
lasting good (Carnegie, 1889, p. 660).
After such strong advocating for public goods, later industrial foundations in the UK,
e.g., Lever Brothers (Leverhulme Trust est. 1925)[8] and Morris Motors (Nuffield
Foundation est. 1943)[9] followed a remarkably similar pattern to that established by
Rowntree, and both business leaders were awarded peerages for their philanthropic
efforts. These new institutions were immensely powerful and their control and influence
as non-elected forces was criticised for furthering the interests of elites (Bulmer, 1995),
and challenged for having limited public oversight (Bishop and Green, 2008).
Meta-analysis using the ideal-type

Returning to the ideal-type, it is now possible to seek evidence of earlier CSR practices
that: secure business inputs, improve governance of competition, increase local
demand factors, ensure supply conditions, or leverage capabilities in such a way that
strategic CSR practices which improve areas of competitive context or address issues
of stakeholder concern might be inferred (Porter and Kramer 2006; Mitchell et al., 1997).
Guild strategic CSR practices

The guilds can be seen to have established effective codes of conduct that may be
interpreted as strategic CSR practices under the criteria suggested in the ideal-type.
These codes were negotiated with monarch to establish rules for governing
competition (Exhibits 1.1.5, 1.1.3 and 1.2.1) whilst addressing highly salient issues by
correcting market failures (Exhibit 1.1.5) and in doing so promote local demand. The
codes also addressed business inputs by establishing a precedent for apprenticeships
(Exhibit 1.1.4) that can be said to effectively leverage existing capabilities to support
the craft (Exhibit 1.1.6). There is little evidence to suggest that the guilds acted directly
on their supply chains, however, given the artisan nature of craftsmen, and
monopolistic character of their operation this was likely to be of limited importance.
A similar pattern can be seen with guild philanthropy in which poverty was Evolution of
addressed in close geographic concentration to members and places of business strategic CSR
(Exhibits 1.1.6) and legacies of members was leveraged as a resource for philanthropy
(Exhibit 1.3). Interestingly the guilds can be seen to have established a precedent for
substantial donations to secular causes such as schools and hospitals (e.g. Richard
Whittington). It is interesting to note that many of the guild companies continue to
administer land endowments for charitable purposes. For example, the Mercers Guild 235
holds over ten acres of central London (0.5BN current value) and [y] administers a
large programme of charitable grant making [y] [providing] housing for the elderly,
wide ranging support for education and has active links with many churches totalling
5.6M in 2010 (Mercers, 2010).
Whilst bequests as a form of guild philanthropy may be considered institutional

norms of the religious expectations of the time, the association between donations and
the guild is perhaps indicative of a link between the legacy and the reputation of the
corporation. This management of reputational capital is suggestive of strategic CSR
practice as discussed by Godfrey (2005).
Elizabethan merchant strategic CSR practices

There is little evidence to suggest that voluntary codes of conduct were prevalent in the
merchant periods. There are two factors potentially related to the lack of self-
regulation: first, that the organisational form of business was typically small
enterprise; and second, the period saw a dramatic increase in regulation. Both these
factors have been associated with resistance to the adoption of governance measures
such as codes of conduct in modern era (Millington, 2008; Jackson and Deeg, 2008).
Many examples of merchant philanthropy may be interpreted as leveraging
capabilities by their use of gifts-in-kind (Exhibit 2.4.1) and extensive use of property as
endowments. Further, the scale of business philanthropy in the period is significant
(Exhibit 2.4) and may linked to pursuit of trade concessions by supporting the crowns
efforts to deal with poverty. Comments by Defoe and Fuller suggest that critical
discourse on legitimate philanthropy was emerging which may have influenced the
credentials of merchants; this is supportive of an instrumental approach to acquiring
reputation or seeking public endorsement. Alternatively, the wide spread adoption of
philanthropy of similar types may be interpreted as the result of coercive regulation,
critical discourse, and other institutionalising forces to establish a social-norm in later
periods (Deephouse and Suchman, 2008).
Overall, it is hard to accept that ideal-type characteristics of strategic CSR are fully
met in the Elizabethan Merchant era as much of the information available deals with
legacies and individual contributions. However, there appears to be considerable
institution building around.
Early industrial strategic CSR practices

Much has been written by social-historians about this period and development of
relationships between owners and workers, however, many of these reports focus
on prominent personalities, such as Owen and Dale, with little systematic attempt to
frame practices in the contemporary CSR concepts. An analysis of the ideal-type,
shows practices in the industrial revolution show considerable parallels with the
concept of strategic CSR. Codes of conduct around working conditions (see Exhibit 3.1)
appear to take proactive responsibility for both business inputs (employees) and
highly salient social issues whilst delivering competitive advantage to Dale who
EMJB already met standards of governance. The industrialists leveraged their capital base to
8,3 establish public works simultaneously improving supply conditions by providing
housing (Exhibit 3.2) and infrastructure such as transport and power (Exhibit 3.3.4).
The extensive use of propaganda and lobbying of government secured
resources for firms (such as Dales training of pre-apprentices in hospitals) whilst
undoubtedly raised the reputation of his business and demand for its products. Many
236 of these practices are mirrored in CSR activities outside of London (see Exhibit 3.4)
with similar patterns of public works and other philanthropic efforts. Other practices
such as the improvement of working conditions from Arkwright (1760) to Dale (1790)
to Owen (1815) show considerable lineage with efforts being adopted and developed
over a time.
The adoption of similar practices between manufacturers can be seen in the

building of industrial villages (e.g. Salt, Cadbury, Rowntree Lever, etc.) and the
establishment of foundations (e.g. Rowntree, Lever, Morris, etc.). This mimetic
behaviour may be considered similar to that observed in other elements of corporate
philanthropy in the modern age (e.g. see: Galaskiewicz and Wasserman, 1989;
Haveman, 1993; Westphal et al., 2001).
Conclusion back to the future

What has been will be again, what has been done will be done again; there is nothing new
under the sun (Ecclesiastes 1:9).
Considering the evolution of strategic CSR there appears to be significant evidence
of the mimetic adoption of previous business practices (see Figure 2). Considering
Microsofts sponsorship of IT education, identified by Porter and Kramer (2006)
as exemplifying this new form of relationship between business and society,
has roots which can be traced back over 500 years to the guilds apprenticeships
and secular schools.
Far from being a new phenomenon led by pioneering value chain innovators as
suggested by Porter and Kramer (2006), evidence suggests that there exists a
considerable tradition of instrumental CSR practices and the activities of these business
ancestors represent historical precedents which have resurfaced in the repertoire of CSR
practices of contemporary corporations, much as Kieser (1994) suggests.
Social responsibilities of Social responsibilities of the Social responsibilities of the Strategic CSR
medieval guilds Elizabethan merchants early industrialists practice
Establish apprenticeships Large-scale support for Efforts to attract, train, and
and fund secular education education and health retain employees Secure business
(1460) (1600) (1812) inputs
Negotiate charters to Government intervention to Established improvements

Improve governance
protect monopolies codify charitable causes to working conditions
of competition
(1480) (1601) (1802)
Act to create and enforce Highly public use of

Increase
quality standards (assize) propaganda
demand potential
(1491) (1813)
Interventions to provide
Ensure supply
housing and other services
conditions
(1851)
Figure 2. Use of endowments to fund Use of endowments and Capital accumulation for
Leverage
Evolution of strategic CSR philanthropy gifts in kind public works
capabilities
(1332) (1630) (1840)
Whilst this study provides evidence of at least examples these practices, it is limited by Evolution of
the availability of archival data to discover how wide spread these practices were. The strategic CSR
fact that records exist perhaps demonstrates their significance for stakeholders at the
time, or more sceptically the resilience of corporate positioning of these practices. In
particular two aspects of this research are possibly worthy of further attention: the
relationship between business power and calls for more intensive CSR activities, and
the detailed mimetic processes by which earlier practices disseminate over time as well 237
as between organisations.
It is reported that before Warren Buffet joined Bill Gates in the largest single actor
of philanthropy in history, he first gave Gates a copy of Andrew Carnegies The
Gospel of Wealth (Carnegie, 1889; Bishop and Green, 2008). The advice of Carnegie is
reputed to be fundamental in the decision to establish the Gates Foundation, one the
largest philanthropy funds in the world with assets of $33.3BN[10] (Bishop and Green,
2008). This example of previous philanthropy affecting the decisions of today can be
seen throughout the historic exhibits used in this paper.
So what of the future? Which other practices and forms may re-emerge as strategic
CSR? Proposals by the UK supermarket Tesco to enter the housing market were
criticised in the Guardian as enacting the practices of industrial villages (Exhibit 4.1).
Perhaps nothing in CSR is new but perhaps, as suggested by the author, some practices
are best not resurrected.
Tesco towns: a super place to live? Do you remember the good old days? When you worked for
the mill owner, lived in houses he built, shopped in shops he owned and if you were very lucky paid the
rest of your wages over to him in the local pub [y] Well, good news! Tesco has announced that it is
moving into house building [y] You will be able to buy or rent a Tesco house, potentially via a Tesco
estate agent, get a Tesco mortgage and furnish it with Tesco home wares on your Tesco credit card.
Vertical integration just came of age, and with extra Clubcard points.
Exhibit 4.1.
Source: The Guardian (Mangan, 2010) Tesco towns
Notes
1. Corporation: an incorporated company of traders having (originally) the monopoly and
control of their particular trade in a borough or other place; a trade-guild, a city company.
(Now so called only in legal or formal language.) Usage: Ther is a corporacyon made by the
auctorite of the Mayre amongst fischmongers wtyn the [y] towne (1530). The greatest of
our Common-wealth have inrolled their names into the protection of some Corporation in this
City (1634). The several Corporations, or City Companies, marched from their respective
Halls (1703) (OED Online, 2013).
2. Assize: ordinances regulating weights and measures, and the weight and price of articles
of general consumption. The standard of quantity, measure, or price ordained by such
ordinances: hence, customary, required, or prescriptive standard (OED Online, 2013).
3. Frankpledge identified in Exhibit 1.2 was known to be a system by which every member of
the local business community was answerable for the good conduct of or the damage done
by, any one of the other members (Ashley, 1914, p. 38).
4. Current equivalent value calculations throughout this analysis are made using average wage
comparisons with 2010 representing affordability for the average person as recommended
by Lawrence H. Officer, Purchasing Power of British Pounds from 1264 to Present,
Measuring Worth, 2009, www.measuringworth.com/ppoweruk/
EMJB 5. Estate estimated as 5,000-7,000 by various sources (source: Mercers web site www.mercers.
co.uk/).
8,3
6. Joseph Stutt giving evidence at the Royal Commission Factories Inquiry in 1834.
7. From the Derby Mercury, 23 September 1840.
8. Leverhume, available at: www.leverhulme.ac.uk/about/about.cfm (accessed 21 October 2010).
238 9. Nuffield, available at: www.nuffieldfoundation.org/About-the-foundation (accessed 21

November 2010).
10. Asset Trust Endowment as of 31 December 2009 (source: www.gatesfoundation.org/about/).
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About the author

Paul Andrew Caulfield is a Senior FME Fellow in the Centre for Business Organisations
and Society at the University of Bath. His research includes institutional and organisational
influences on Corporate Community Investments, Corporate Social Performance, Corporate
Reputation, Social Enterprise and Sustainable Business Design. Prior to joining University of
Bath he held senior roles in strategic resource planning, focusing on business modelling and
origination for major European and US corporations. He also has operational experience of
operations in the developing world covering sustainable business development and capability
building in Angola, Russia, Vietnam, and Bangladesh. Paul Andrew Caulfield acts as external
advisor for several UK organisations on their community engagement practices. Paul Andrew
Caulfield can be contacted at: pac25@bath.ac.uk
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1. Lee D. Parker. 2014. Corporate social accountability through action: Contemporary insights from British
industrial pioneers. Accounting, Organizations and Society 39:8, 632-659. [CrossRef]

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The evolution of strategic corporate social responsibility

*Related content and download information correct at time of download.

Whilst several authors hint at earlier precedents such as a tradition of philanthropic

An ideal-type for strategic CSR

on common contemporary practices seen as representative of strategic CSR namely:

Stimulate local demand by improving the quality, accessibility, or Increase

Social responsibilities of the medieval guilds

Guild codes of conduct

festivals, widespread adoption of almsgiving, and assistance of members of the

Social responsibilities of Elizabethan merchants

a detailed analysis of donations shows that by 1660 private merchant donors in

Charitable cause Percentage

Total donations Average donation

Aristocracy 621k 20 126 192k

An example of this focus on educational donations can be seen in Thomas Sutton

Social responsibilities of early industrialists

Philanthropy as an instrument to attract employees

Philanthropy in the industrial village

On the life and works of Titus Salt Esquire

Industrial codes of conduct on working conditions

for further reduction in working hours and limitations to childrens employment.

The philanthropy of public goods

Strategic philanthropy of corporate foundations

Foundation (est. 1904) shares (OxfordDNB Oxford DNB)

In Andrew Carnegies The Gospel of Wealth the author advises

Meta-analysis using the ideal-type

Guild strategic CSR practices

Whilst bequests as a form of guild philanthropy may be considered institutional

Elizabethan merchant strategic CSR practices

Early industrial strategic CSR practices

The adoption of similar practices between manufacturers can be seen in the

Conclusion back to the future

Negotiate charters to Government intervention to Established improvements

Act to create and enforce Highly public use of

238 9. Nuffield, available at: www.nuffieldfoundation.org/About-the-foundation (accessed 21

Deephouse, D. and Suchman, M. (Eds) (2008), Legitimacy in Organizational Institutionalism,

Academy of Management Review, Vol. 20 No. 2, pp. 404-437.

Oxford, available at: www.oed.com

About the author

To purchase reprints of this article please e-mail: reprints@emeraldinsight.com

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