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Cooperativismo y Desarrollo
versión On-line ISSN 2310-340X
Coodes vol.11 no.3 Pinar del Río sept.-dic. 2023 Epub 30-Dic-2023
Experience of good practices
The process of social responsibility management: particularities in a fishing company
1 Empresa Pesquera Industrial Epicol. Pinar del Río, Cuba.
2 Universidad de Pinar del Río "Hermanos Saíz Montes de Oca". Facultad de Ciencias Económicas. Centro de Estudios de Dirección, Desarrollo Local, Turismo y Cooperativismo. Pinar del Río, Cuba.
Business management is the ability to guide, manage and organize the resources of a company in order to achieve the objectives set. Currently, a set of business management practices, strategies and systems are encompassed in the search for balance between the economic, social and environmental dimensions that are the foundation of Corporate Social Responsibility. At present, it is of vital importance to implement tools and technologies for the management of corporate social responsibility in organizations, as they will allow to analyze the situation of the company in this matter, as well as to identify the actions that must be designed and implemented to incorporate this process as part of the company's strategic planning. Corporate Social Responsibility is a practice that allows organizations to develop competitive advantages and have good relations with the different interest groups that guarantee success in all their activities. The objective of this research was to characterize the social responsibility management process in the Epicol Industrial Fishing Company. For its accomplishment, an analysis of the current situation of the social responsibility management process in the company was carried out, using a set of secondary and primary sources of information according to the defined needs, which allowed the identification of the particularities of the process under study.
Key words: weaknesses; strengths; management; social responsibility
Introduction
Companies must be aware of the need to assume their role within the social environment in which they operate, not only to comply with the profit function, but also to contribute to the sustainability of the environment and the quality of life of its members. It is therefore important to seek alternatives and propose solutions to the different difficulties of the organization to ensure success, based on Corporate Social Responsibility (CSR).
Likewise, it is important that companies not only consider their own benefits, but also their commitment to corporate social responsibility because positive results depend on it, since it influences the image, prestige, higher level of productivity and competitiveness by providing added value, improving the customer experience so that they become loyal and return continuously (David Lopez, 2022).
People admire companies that value their employees, in addition to the fact that in the new generations there is a marked preference for those organizations with social commitment, which helps with recruitment and retention of personnel, better conditions for the internal customer which leads to better retention of talent and therefore lower turnover rates and higher productivity. All this ensures greater loyalty from customers, suppliers, consumers and a better company image.
Despite the efforts that have been generated to promote the adoption of socially responsible behavior in developing countries, few companies have incorporated CSR as a business philosophy (Ojeda Hidalgo et al., 2019).
In Cuba, the State, in its entrepreneurial function, plays an essential role in economic activity. With the triumph of the Revolution in 1959, the process of building socialism began, for which it was necessary to replace private ownership of the means of production with state ownership. The State was conceived as the main economic agent, as regulator and guide of development and as the entrepreneur of the activities leading to the production of goods and services required by the country, in accordance with the objectives of the plan. In this sense, it covered all economic sectors and intervened in the acquisition, management and commercialization of small activities (Soto Alemán & Batista Torres, 2019).
The Cuban state enterprise is the fundamental link in the economy; it is responsible for articulating the economic and social objectives in the continuous construction of the society to which Cuba aspires today, based on its anchorage to the communities where it is managed. This anchorage should be favored with the process of institutional and functional restructuring faced by the business sector, which decrees the separation of state and business functions, as well as greater autonomy of the sector.
The actions to be developed by the companies would be aimed at promoting the local development of the environment in which they operate. The territory is understood not as an abstract and undifferentiated space but as a fundamental actor of development, integrated not only by the physical environment but also by the social actors and their organizations, the local institutions, which in addition to the economic and financial capital incorporate the different dimensions of human capital, social and institutional capital and natural capital. In this sense, the economic fabric at the base has in Cuban companies a fundamental actor and greater social responsibility is expected from them (Soto Alemán, 2016).
The same author argues that the Guidelines of the Economic and Social Policy of the Party and the Revolution, approved in 2017 in Cuba, state that the state enterprise is the fundamental link of the economy. In several paragraphs, allusion is made to the social responsibility of these and the necessary link between enterprise-territory-society.
She also considers that the current regulatory framework, half a century after the establishment of the Socialist State, continues to be diffuse and that little work has been done on CSR, which leads to an analysis of the institution from the economic and social context of the country and its link with the municipality as a niche of relevant actors for the achievement of the development to which it aspires. She also argues that there is a dilemma for those who argue that CSR is the answer to the failure of state regulation on environmental, social and labor issues, and that a mandatory framework would reduce the social behavior of companies to strict compliance with legal norms without going beyond what is established by law.
The Epicol Industrial Fishing Company has the challenge of managing social responsibility as part of business management and strategic planning, in order to improve the standard of living and quality of life of its employees, managers and community members.
The objective of this research is to characterize the social responsibility management process in the Epicol Industrial Fishing Company. For its accomplishment, an analysis of the current situation of the social responsibility management process in the company was carried out, using a set of secondary and primary sources of information according to the defined needs, which allowed the identification of the particularities of the process under study.
Materials and methods
The research used theoretical and empirical methods. Among the theoretical methods, the following were used:
Historical-logical: It was used to analyze the main trends of the Corporate Social Responsibility management process
Analysis and synthesis: It was used for the division of the Corporate Social Responsibility process according to its dimensions
Among the empirical methods, the following were used:
Measurement: It was used in order to quantify numerically the nature of the research object. For this purpose, interview and surveys guides were developed, which were conducted with Epicol's employees and managers, as well as with members of the community, in order to recognize the need and importance of the social responsibility management process as part of business management.
Participant observation: This allowed to observe the behavior of the group in the tasks and activities they perform and to determine the social needs that are manifested inside and outside the company
The following research techniques were used:
The programs used to process the information include:
Results y discussion
The global market trend has led organizations to adopt a new role, no longer seen as a simple economic element with purely lucrative purposes, but rather to assume a more inclusive position with their social environment, which leads them to extend beyond the economic sphere.
Man is a social being by nature and this leads him to seek to live in society. When groups of people join together to establish and develop an economic sphere, it is called an organization and they have legal representation and are accepted by the community. Likewise, associations can be of various kinds, not only in the field of business, hence the recognition of man in the organizational field. Indeed, exercising this right of associativity and creation of companies not only brings benefits, but also various obligations and commitments to the members of the company and to society in general, hence the initiative of Corporate Social Responsibility (Pérez de Paz & Londoño Cardozo, 2021).
Corporate Social Responsibility is a concept that has been taken into account by organizations since the last century, and has generally been related to philanthropy, a voluntary and charitable action of support and mutual aid to the less favored.
Traditionally, the study of CSR has focused on large companies, regardless of their economic sector; however, CSR allows organizations to identify their areas of opportunity, since it generates positive effects among all stakeholders: company, shareholders, government, society and activists (all of whom are called "stakeholders"). However, despite the growth and diffusion of the concept, there are companies where its implementation is not considered because it is seen as a product of the will and not of legality, which undermines the economic development not only of the company, but also of the region in which it is located and the consequent reduction in the quality of the products and services provided to the client.
Corporate Social Responsibility is defined as the ethical and moral capacity that should govern organizations and this motivates businesses to commit and participate in the welfare and progress of the community, which is achieved through sustainable development, and this component would be the essential instrument to promote optimal relationships that are maintained over time and do not cause negative impacts for future generations (Canizales Muñoz, 2020).
According to Wulf Betancourt (2018), corporate social responsibility has gained fame over time, as it appears as a fundamental element in advanced economies, this is because it has been considered as an added incentive to hoard more market or gain reputation at the corporate level. In this way, CSR is seen as a strategy for creating a competitive advantage over rivals and thus surpassing them, with the long term in mind.
CSR should be interpreted as a conscious and congruent commitment of companies to their environment, but it is a cultural revolution that requires time and awareness-raising so that its norms can be respected (Valencia Sandoval et al., 2023).
One way for companies to achieve their economic objectives, while respecting the communities and environments where they are based or carry out their activities, is through CSR practices, promoted internationally by ISO 26000:2010, which serves as a reference for organizations seeking to initiate or continue sustainable development practices (Milwood, 2020).
The CSR process should be applied gradually, progressively, sustainably, over time, to ensure the obligations and commitments of organizations to society and the environment (economic and legal), considering the favorable effects of its implementation because they have the ethical responsibility for its faithful fulfillment (Ormaza Andrade et al., 2020).
Therefore, the CSR process is implemented through management strategies that substantiate a correspondence based on harmony between business and the environment, considering a level of progress in the following parameters (Tamayo Cevallos & Ruiz Malbarez, 2018):
Economic: it consists of the conformation of consistent structures in the business with the purpose of saving, achieving the motivation of the collaborators and exceeding the expectations of the clients (satisfaction of the good/service)
Social: activities aimed at providing better working conditions and working environment, investment in the social sphere and maintaining excellent relations with the community
Environmental: the capacity to manage the impact of production, optimization of resources, minimization of waste emissions, reduction of energy consumption, environmental management policies and systems
However, in order to implement and initiate the CSR system in companies, it is necessary to include various social clauses in the planning process, create documents that dictate codes of ethics and publish sustainability-related reports. With these activities it will be possible to verify progress in governance, effectiveness of compliance with policies, promote the proactive participation of stakeholders through continuous communication. All of the above would demonstrate a transparent and reliable profile in which the progressive development of the community and environment at a general level is sought, which will expose the formalization of CSR management (López Armes, 2021).
It is important to start with the outline of what the organization wants to achieve with its operations and how it intends to contribute to the integral development of its entire environment.
In Cuba, according to Betancourt Abio (2016), it is conceived as implicit within its state forms of production, a socially responsible performance in its forms of management, which reflects practices over time, such as: attention to man, collective spirit, voluntary work, solidarity, social investment and support to the community, in consequence to these practices.
The same author argues that CSR has been implicit throughout the Cuban socialist stage as part of the humanist essence of the process, which from its beginnings has led the business system to assume a responsibility towards society in different areas of economic and social life, which can be seen through the commitment and contributions made systematically to the State and society itself. CSR can be seen as a driving force for positive social transformation and is closely linked to the company's social purpose.
To develop Corporate Social Responsibility within the company, it has the obligation to implement actions that generate environments that contribute to the improvement of social welfare, the use of natural resources or the impact on the environment. Generally, these practices are recognized and assumed voluntarily by the company, and also constitute a strategic vision in which the relationships established between the company and each of its stakeholders must be considered.
The Epicol Industrial Fishing Company, as part of the Cuban business system and in line with the country's policy, recognizes the importance of social responsibility for its development and the need to practice it in order to improve the standard of living and quality of life of its workers and the members of the community in which the organization is located.
Characterization of the Epicol Industrial Fishing Company
Epicol, which belongs to the Food Industry Business Group of the Ministry of the Food Industry, was created on November 30, 2001, under Resolution 291, and is made up of six functional divisions and seven Basic Business Units, located in:
Extractiva Coloma, municipality of Pinar del Río
Industria Coloma, municipality of Pinar del Río
Aseguramiento Coloma, municipality of Pinar del Río
Pesquera Boca de Galafre, municipality of San Juan y Martínez
Pesquera Cortés, municipality of Sandino
Pesquera Arroyos de Mantua, municipality of Mantua
Pesquera Puerto Esperanza, municipality of Viñales
The Head Office is located at 23 Puerto Avenue in the town of La Coloma in the municipality of Pinar del Río and has a general direction and an assistant direction. The functional directions are:
The current workforce is 1,755 employees. Of the total number of employees, 341 are women and 1,416 are men.
Traditionally, Epicol has developed social actions spontaneously, without responding to its strategic planning and as a consequence of the business management process. The main actions that have been carried out are: donations to hospitals and municipal entities that provide provincial service, attention to social cases, social communication actions, among others. These activities have been financed through the use of the fishermen's fund, created by them with the objective of contributing to their development and that of the community.
Characterization of the La Coloma community
The La Coloma Popular Council is made up of seven districts. This Popular Council is made up of 1,936 families, made up of 6,267 inhabitants, including 3,112 women and 3,155 men.
In the Popular Council there are: five warehouses, two butcher shops, a point of sale of construction materials, an industrial products store, an ideal market, seven medical offices, a clinical laboratory, an extended emergency service, a stomatology office, a physiotherapy office, a pizzeria-restaurant, a processing center, a family care system, a cafeteria for rent, a communal area, a funeral parlor, a Cimex Corporation store, a Currency Collection Store, a Gas station, Cupet, (within Epicol), a Flora and Fauna Company (for the protection of the keys), a children's circle, two elementary schools (semi-boarding), and two primary schools (semi-boarding), two elementary schools (semi-boarding schools), a special school, a mixed center, a classroom annexed to the School of School Sports Initiation, a sport fishing base, sports complex, a punch bowl, two fish shop (Epicol, Pescario), an office of the Cuban Telecommunications Company, an office of the Saving Popular Bank, a post office, two bakeries, a candy store, the Epicol Company, three agricultural markets, a pharmacy, a Consumer Registration Office, an office of the Electric Company, a unit of the Technical, Personal and Home Services Company and Las Canas Beach.
In the La Coloma Popular Council, there are four social workers, 55 mothers with more than three children, some of them protected by social assistance, 34 bedridden people, 59 people with disabilities; of them, 27 from the Cuban Association of People with Physical-Motor Disabilities, 20 from the National Association of the Blind and Visually Impaired and 12 from the National Association of the Deaf of Cuba, 28 underweight children, 24 people with criminal sanctions, 16 critical cases, 36 people assisted by the family care system, 25 people assisted, 58 houses with dirt floors and 70 pending total collapses.
Methodology to be used for the empirical diagnosis based on the characterization of the social responsibility management process at Epicol Industrial Fishing Company
The methodology of Vallejos Díaz (2008) is used, which implies an empirical diagnosis, for which it is necessary to resort to secondary and primary sources according to the information needs, as well as to use scientific methods, procedures and techniques for its collection, processing and analysis that contribute to the determination of the strengths and weaknesses of the social responsibility management process in the Epicol Industrial Fishing Company. The methodology consists of four fundamental steps: 1) determine the researcher's information needs; 2) define the sources of information to be used to obtain the required information; 3) design the formats for collecting the information; 4) once the data has been collected, the information is analyzed and processed.
Step 1. Determination of information needs
The information needs are identified in order to determine the main regularities of the social responsibility management process in Epicol Industrial Fishing Company, for which it is important to know:
Level of appreciation of managers, workers and members of the community about corporate social responsibility
Level of preparation of employees in the economic area to support the social responsibility management process
Associated institutional framework (policies, programs, projects, agenda of meetings of the management bodies according to the corporate social responsibility management process)
Social actions developed by Epicol
Mechanisms used to carry out social actions
Level of knowledge of tools and instruments for corporate social responsibility management
Regulatory framework and policies associated with social responsibility
Extent to which the corporate strategy contemplates social responsibility
Potential for developing corporate social responsibility
Constraints to corporate social responsibility management
Treatment given to social responsibility in the Conceptualization of Cuba's Economic and Social Development Model, in Cuba's National Economic and Social Development Plan until 2030 and in the Guidelines for Cuba's Economic and Social Policy (2021-2026)
Step 2. Definition of information sources
Secondary information sources: A set of available reports and documents that allowed a first approach to the problem were used, among which are the following:
Minutes of the Board of Directors
Minutes of labor union meetings
Company's accounting procedures manual
Epicol's business strategy to 2030
Development strategy for the Fishing Industry Business Group
Development strategy of the Ministry of the Food Industry
Effectiveness measurement reports for each of the processes
Documents of the 7th Congress of the Communist Party of Cuba approved by the 3rd Plenary Session of its Central Committee (May 18, 2017) and endorsed by the National Assembly of People's Power (June 1, 2017)
Conceptualization of the Cuban Economic and Social Model of Socialist Development
Bases of the National Economic and Social Development Plan to 2030: Vision of the Nation, Axes and Strategic Sectors
Guidelines of the Economic and Social Policy of the Party and the Revolution for the 2011-2016 and 2016-2021 periods
To complement the information provided by the secondary sources of information, the measurement method was used through interview and survey techniques.
Primary information sources: A semi-structured individual interview was conducted with Epicol managers, institutions, organizations and bodies related to the CSR management process, in which each interviewee was free to express his or her opinions and considerations about the process.
In addition, a survey was applied to Epicol employees to determine their level of knowledge of corporate social responsibility and the particularities of its management.
Step 3. Design of the formats for data collection
For the documentary analysis, each one of the documents that guide the corporate social responsibility management process is evaluated in an orderly and specific manner.
Based on the elements analyzed above, the interview guide is designed, for which the following tasks were taken into account:
Determining the objectives of the interview
Selection of the type of interview
Elaboration of the interview guide
Establishment of the essential conditions for the interview to take place
Application of the interviews
Evaluation of the information collected
For the elaboration and application of the surveys, the following tasks were carried out:
Step 4. Data collection, analysis and processing of the information
In the documentary analysis, several documents were reviewed, which allowed:
Identify different conceptions of corporate social responsibility
Determine the accounting mechanisms for the registration of corporate shares
Identify policies for corporate social responsibility management
Determine the mechanisms used for corporate social responsibility management
Know the existing regulations regarding corporate social responsibility
Identify the main potentials for corporate social responsibility
Evaluate whether the company's strategic planning instruments emphasize aspects related to corporate social responsibility management
Analyze the main constraints to corporate social responsibility management
Primary information sources: Individual semi-structured interviews are conducted. Each interview lasts approximately 20 minutes, in which each interviewee can express his or her opinions and considerations about Epicol's social responsibility management process, as well as its progress and limitations. Prior to this, the objective of the interview and its future use is explained to the interviewees.
In the case of interviews, 49 were conducted. The interviewees were:
Epicol executives (14)
Leaders and representatives of community political and mass organizations (10)
Executives and representatives of central government agencies (15)
Representatives of Local Bodies of People's Power (5)
Existing economic actors in the community (Self-employed) (5)
The interviewees were selected based on the information requirements, their accessibility and willingness to collaborate, as well as their responsibilities in the company and in institutions, organizations and bodies that are linked to the company's social responsibility management process.
The survey was applied to Epicol workers. The sample size was determined using the SAMPLE estimation program, and SPSS software version 21 was used for the statistical processing of the information. For this purpose, the most relevant questions for the study were analyzed with numerical and ordinal variables, the latter were coded to numerical scales to facilitate the analysis of the results. The simple random sampling method was chosen for the workers. The number of workers surveyed was 315.
The purpose of these instruments is to identify the main strengths and weaknesses of the social responsibility management process at Epicol.
General diagnostic results
With respect to the elements that limit the corporate social responsibility management process, a list was drawn up based on the findings of the diagnosis. The Vester Matrix method was then applied. The limitations were as follows:
Little knowledge of the social responsibility process of those involved in the process
Lack of an accounting procedure to ensure the proper recording of economic events related to social responsibility
Lack of a social needs diagnosis to support the social responsibility process
There are no incentives for the social responsibility process
Prevalence of the analysis of economic-productive aspects over aspects related to social responsibility
No tools for corporate social responsibility management are applied in the company
Limited analysis of the company's performance with respect to social responsibility
Lack of organization and control of social responsibility actions
Lack of communication regarding the company's social responsibility processes and actions
The social responsibility actions developed in the company do not respond to a strategic planning process
Next, the classification of the constraints according to the cause-effect characteristics of each one was carried out, based on their location on a coordinate axis as shown in table 1.
Table 1 Weighting of the problems according to the Vester method
| Vester Matrix "Corporate Social Responsibility Epicol" | |||||||||||
| Problems | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | Total assets |
| 1 | 1 | 3 | 1 | 3 | 3 | 2 | 1 | 1 | 1 | 16 | |
| 2 | 0 | 0 | 0 | 1 | 1 | 1 | 2 | 0 | 1 | 6 | |
| 3 | 0 | 0 | 1 | 1 | 0 | 1 | 1 | 1 | 2 | 7 | |
| 4 | 0 | 0 | 1 | 0 | 4 | 1 | 1 | 1 | 0 | 8 | |
| 5 | 0 | 0 | 1 | 1 | 1 | 1 | 1 | 1 | 2 | 8 | |
| 6 | 1 | 2 | 3 | 3 | 3 | 3 | 3 | 3 | 23 | ||
| 7 | 0 | 0 | 2 | 2 | 1 | 1 | 2 | 2 | 2 | 12 | |
| 8 | 0 | 0 | 3 | 2 | 0 | 2 | 1 | 3 | 2 | 13 | |
| 9 | 0 | 0 | 0 | 3 | 0 | 0 | 1 | 0 | 0 | 4 | |
| 10 | 0 | 0 | 2 | 3 | 2 | 1 | 1 | 2 | 2 | 13 | |
| Liabilities totals | 1 | 3 | 15 | 16 | 11 | 13 | 12 | 13 | 14 | 13 | |
Source: Prepared by the authors
Based on this table, the matrix was configured, assigning a categorical valuation to the degree of causality of each problem with each of the others, calculating the totals by rows and columns. The constraints were classified according to the cause-effect characteristics of each one based on their location on a coordinate axis. Problems 6, 7, 8 and 10 are located in quadrant I (critical), as shown in figure 1. These are problems of great causality and are in turn caused by most of the others.
In quadrant II (passive), there are the problems: 3, 4, 5 and 9. These are problems without great causal influence on the others, but are caused by the majority.
In quadrant IV (active), problem 1 is located, which has a high influence on most of the others and, in turn, is caused by others.
By prioritizing the constraints, priority should be given to the problems in quadrant IV, which are the active ones, followed by the problems in quadrant I and taking into account the problems corresponding to quadrant II.
Each of the problems is then placed in the tree according to the previous analysis, as shown in figure 2, with number six as the central problem, which is the one with the greatest mobility and the highest dependence. The other problems found in this quadrant will be the primary causes of the central problem determined, and the rest will be the effects.
The applied technique corroborates that the main problem that limits the management process of corporate social responsibility in Epicol lies in the lack of tools for such purposes, so that, in turn, the analysis of the company's performance with respect to social responsibility is limited, there is a lack of organization and control of the actions that are developed, and they do not respond to the strategic planning of the entity.
The empirical diagnosis of the research, based on the consultation of primary and secondary sources of information, made it possible to identify the regularities of the social responsibility management process and its particularities in Epicol Industrial Fishing Company.
The insufficient knowledge about social responsibility of those involved in the process, the lack of an accounting procedure that guarantees the adequate recording of the economic facts generated, the lack of a diagnosis of social needs to support the social responsibility process and the lack of incentives for such purposes, limit the process of corporate social responsibility management.
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Received: September 25, 2023; Accepted: December 14, 2023
