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Corporate Social Responsibility in U.S. Hispanic Businesses

Permanent Link: http://ufdc.ufl.edu/UFE0021104/00001

Material Information

Title: Corporate Social Responsibility in U.S. Hispanic Businesses An Analysis of Levels of Participation and Support
Physical Description: 1 online resource (64 p.)
Language: english
Creator: Solaun, Leticia Maria
Publisher: University of Florida
Place of Publication: Gainesville, Fla.
Publication Date: 2007

Subjects

Subjects / Keywords: csr, hispanic, philanthropy, social, volunteerism
Journalism and Communications -- Dissertations, Academic -- UF
Genre: Mass Communication thesis, M.A.M.C.
bibliography   ( marcgt )
theses   ( marcgt )
government publication (state, provincial, terriorial, dependent)   ( marcgt )
born-digital   ( sobekcm )
Electronic Thesis or Dissertation

Notes

Abstract: The Hispanic-owned business demographic is a burgeoning component of the business sector. As the business class continues to increase likewise does the relevance and importance of conducting research to better understand their characteristics and behavior. This study explores one undocumented area of this demographic, specifically its perceptions, attitudes, and participation in corporate social responsibility (CSR). Within this analysis, several factors are evaluated, including: the extent to which these businesses incorporate a framework for CSR, whether the organizations communicate the core values of social responsibility with key publics using a U.S. model of giving as a basis; the notion of CSR from a cultural perspective, and whether these organizations build relationships with stakeholders through socially responsible initiatives. Fifteen in-depth interviews were conducted with Hispanic business owners in Florida, Texas, and California. The results of these interviews indicate that, among other factors, Hispanic business owners generally understand the term CSR, support philanthropy and employee volunteerism, and establish a link between their support and relationship building with stakeholders.
General Note: In the series University of Florida Digital Collections.
General Note: Includes vita.
Bibliography: Includes bibliographical references.
Source of Description: Description based on online resource; title from PDF title page.
Source of Description: This bibliographic record is available under the Creative Commons CC0 public domain dedication. The University of Florida Libraries, as creator of this bibliographic record, has waived all rights to it worldwide under copyright law, including all related and neighboring rights, to the extent allowed by law.
Statement of Responsibility: by Leticia Maria Solaun.
Thesis: Thesis (M.A.M.C.)--University of Florida, 2007.
Local: Adviser: Molleda, Juan Carlos.

Record Information

Source Institution: UFRGP
Rights Management: Applicable rights reserved.
Classification: lcc - LD1780 2007
System ID: UFE0021104:00001

Permanent Link: http://ufdc.ufl.edu/UFE0021104/00001

Material Information

Title: Corporate Social Responsibility in U.S. Hispanic Businesses An Analysis of Levels of Participation and Support
Physical Description: 1 online resource (64 p.)
Language: english
Creator: Solaun, Leticia Maria
Publisher: University of Florida
Place of Publication: Gainesville, Fla.
Publication Date: 2007

Subjects

Subjects / Keywords: csr, hispanic, philanthropy, social, volunteerism
Journalism and Communications -- Dissertations, Academic -- UF
Genre: Mass Communication thesis, M.A.M.C.
bibliography   ( marcgt )
theses   ( marcgt )
government publication (state, provincial, terriorial, dependent)   ( marcgt )
born-digital   ( sobekcm )
Electronic Thesis or Dissertation

Notes

Abstract: The Hispanic-owned business demographic is a burgeoning component of the business sector. As the business class continues to increase likewise does the relevance and importance of conducting research to better understand their characteristics and behavior. This study explores one undocumented area of this demographic, specifically its perceptions, attitudes, and participation in corporate social responsibility (CSR). Within this analysis, several factors are evaluated, including: the extent to which these businesses incorporate a framework for CSR, whether the organizations communicate the core values of social responsibility with key publics using a U.S. model of giving as a basis; the notion of CSR from a cultural perspective, and whether these organizations build relationships with stakeholders through socially responsible initiatives. Fifteen in-depth interviews were conducted with Hispanic business owners in Florida, Texas, and California. The results of these interviews indicate that, among other factors, Hispanic business owners generally understand the term CSR, support philanthropy and employee volunteerism, and establish a link between their support and relationship building with stakeholders.
General Note: In the series University of Florida Digital Collections.
General Note: Includes vita.
Bibliography: Includes bibliographical references.
Source of Description: Description based on online resource; title from PDF title page.
Source of Description: This bibliographic record is available under the Creative Commons CC0 public domain dedication. The University of Florida Libraries, as creator of this bibliographic record, has waived all rights to it worldwide under copyright law, including all related and neighboring rights, to the extent allowed by law.
Statement of Responsibility: by Leticia Maria Solaun.
Thesis: Thesis (M.A.M.C.)--University of Florida, 2007.
Local: Adviser: Molleda, Juan Carlos.

Record Information

Source Institution: UFRGP
Rights Management: Applicable rights reserved.
Classification: lcc - LD1780 2007
System ID: UFE0021104:00001


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4028625ec6f92a48a5350a09351999e68c744869









CORPORATE SOCIAL RESPONSIBILITY IN U.S. HISPANIC BUSINESSES:AN
ANALYSIS OF LEVELS OF PARTICIPATION AND SUPPORT






















By

LETICIA M. SOLAUN


A THESIS PRESENTED TO THE GRADUATE SCHOOL
OF THE UNIVERSITY OF FLORIDA IN PARTIAL FULFILLMENT
OF THE REQUIREMENTS FOR THE DEGREE OF
MASTER OF ARTS IN MASS COMMUNICATION

UNIVERSITY OF FLORIDA

2007

































2007 Leticia M. Solaun









ACKNOWLEDGMENTS

I wish to express my sincere gratitude to Dr. Juan-Carlos Molleda, my thesis chair, and Dr.

Kathleen Kelly and Dr. Jennifer Robinson, supervisory committee members, for serving on this

committee and providing valuable insight, mentoring, and support in the design and

implementation of this research. Their thoughtful input distinctly improved the research process.

I would also like to thank each of the Hispanic CEOs who participated in the interviews.

Their enthusiasm, willingness to participate, and time dedicated to the discussions reflects their

commitment to community, to business research, and to the leadership roles they occupy. Their

honesty and sincerity contributed to the richness of the results.

I am sincerely grateful to CH2MHILL for funding my coursework and to colleagues who

tirelessly supported me during this process, specifically Karen Smittle, Carla Bare, Lorraine

Jameson, and Sara Vivas.

Without the love and support of friends and family, much of life's accomplishments are

simply impossible. Thanks to my partner, Paula Patterson, for her unfailing patience, love, and

clinical excellence, and to my parents, Felix and Hilda Solaun, the first Hispanic business owners

in my life, for their continued encouragement and for the lifelong lessons in the spirit, value, and

importance of philanthropy. Cherished friends, Antoinette Jackson, Jeannie Cisneros, Ali DePaz,

and Stephanie Becker, provided academic and personal support likely far and away beyond their

call to duty as friends. I am grateful to each of them for the assistance they so liberally extended

to me.

Finally, I will be eternally grateful for the lessons of love, hope, strength, and presence

taught to me by a friend, Tracy Ann Banks. I share this master's degree with her and dedicate

this thesis to her memory.









TABLE OF CONTENTS

page

A C K N O W L E D G M E N T S ...............................................................................................................3

LIST OF TABLES ......... ..... .... ....................................................6

ABSTRAC T ...........................................................................................

CHAPTER

1 PURPOSE OF THE STUDY............................................................. ............... 8

G ap s in R research ....................................................... 8
R elevance to P practitioners ..................................................................... .......................... 9
Study O objective ........................................................................... . 9

2 LITERATURE REVIEW ........................................................... ..... ............. ..11

The U .S. Latino/Hispanic Community ................................................... .................... 11
Current Status ................................. .......................... ..... ..... ........ 12
Id en tity an d B beliefs .................................................................................................... 13
Perspectives of Philanthropy ........................................................................... 13
G iv in g p ra ctic e s ......................................................................................................... 14
K ey attributes and m otivators.............................................................. .... ................ 14
C corporate Social R responsibility ........................................... ....................................... 16
O overview ................... ...... ... ......................................... 16
Elements of Corporate Social Responsibility................. ........ ................... 19
Corporate volunteer program s....................................................... .. ................. 19
E m ployee program s........... .......................................................... .. .... ...... 20
E nvironm ental program s ................................................. ............................. 21
Ethical codes ................................................. ..... 21
Corporate Social Responsibility in Latin America.....................................................22
US Minority Business Corporate Social Responsibility Research..............................25
B lack-ow ned business studies....................................................... .................. 26
Hispanic business research............................ ................. ..... ............... 26
T heoretical F ram ew ork .......... .................................................................... .................. 27

3 METHODOLOGY ............................. ...................... ........30

B asis for R research M ethod Selection........... ........................... ............... ............... 30
Interview Research M methodology .......................................................................... 30
Form ulating the R research Question ........................................ .......................... 31
C categories of Q uestions......... .................................... ........................... ............... ..3 1
Selected Sample, Locations, and Procedure.................... ................................32
M ethod of Analysis and Verification ......................... ......... ... ................. 33



4









4 F IN D IN G S ................... ................... ...................5..........

General Corporate Social Responsibility..................... ...... ........................... 35
E nvironm mental Stew hardship ............................................................................. .............. 39
E ethical an d L eg al ................................................................4 1
Financial Implications ............................... .. .. ... .... ................... 42
Stakeholder R elation ship s ............................................................................ ....................42

5 DISCUSSION AND CONCLUSIONS ............................................................................44

D isc u ssio n ............... ........ .. ..................................................................................4 4
Interview Response Them es........................................................................... 44
Im pact of identity ................ ........... ........... .... .. .. ................. 44
Narrow perspective of corporate social responsibility ...................... .............45
Cultural influence on support........................ .................. ................... 46
Perceptions of the organization as a community ....... ......................................47
Recognized social responsibility .......... .. ... ..................... ...... .........47
Connection between stakeholders and corporate social responsibility ..................47
Responses to Research Questions ............................................................................49
Limitations and Future Research ............ ..... ........ ..... ............... 50
C o n c lu sio n s............................. ...... ........................................5 0
Hispanic Business in a Social Context ................... ... ..........................50
Implications for Practice and Education in Public Relations.............. ................51

APPENDIX

A INTERVIEW QUESTION S ............................................................ ................... 52

B M ATRIX OF INTERVIEW EES .................................................. .............................. 54

L IST O F R EFER EN CE S ......... .. ................. ............................................................55

B IO G R A PH IC A L SK E T C H .............................................................................. .....................64









LIST OF TABLES


Table page

B-1 Industry representation, locations, and nationalities...................... ...............54









Abstract of Thesis Presented to the Graduate School
of the University of Florida in Partial Fulfillment of the
Requirements for the Degree of Master of Arts in Mass Communication

CORPORATE SOCIAL RESPONSIBILITY IN U.S. HISPANIC BUSINESSES:
AN ANALYSIS OF LEVELS OF PARTICIPATION AND SUPPORT

By

Leticia M. Solaun

August 2007

Chair: Juan-Carlos Molleda
Major: Mass Communication

The Hispanic-owned business demographic is a burgeoning component of the business

sector. As the business class continues to increase likewise does the relevance and importance of

conducting research to better understand their characteristics and behavior. This study explores

one undocumented area of this demographic, specifically its perceptions, attitudes, and

participation in corporate social responsibility (CSR). Within this analysis, several factors are

evaluated including: the extent to which these businesses incorporate a framework for CSR,

whether the organizations communicate the core values of social responsibility with key publics

using a U.S. model of giving as a basis; the notion of CSR from a cultural perspective, and

whether these organizations build relationships with stakeholders through socially responsible

initiatives. Fifteen in-depth interviews were conducted with Hispanic business owners in Florida,

Texas, and California. The results of these interviews indicate that, among other factors,

Hispanic business owners generally understand the term CSR, support philanthropy and

employee volunteerism, and establish a link between their support and relationship building with

stakeholders.









CHAPTER 1
PURPOSE OF THE STUDY

The Latino/Hispanic community is composed of persons from more than 20 countries in

Latin America and the Caribbean. This community comprises the largest minority in the United

States and approximately 14.9% of the total population, or 44.7 million people. ("From 200,"

2006). In accordance with the burgeoning Hispanic population, the emergence of Hispanic-

owned businesses is also notable. In 2004, 2 million Hispanic-owned businesses were reported in

the United States, and that number is expected to increase to more than 3.2 million by 2010

(HispanTelligence, 2004). Given this rate of growth, the business and social impact of this

demographic will be formidable.

While it is essential to understand business models and drivers for Hispanic businesses,

recognizing the social dimension in business and the existence or failure of Hispanic businesses

to build relationships with stakeholders through Corporate Social Responsibility (CSR) is also

critical. Specifically, it will be important to know the social behavior of these organizations and

how they integrate within the established systems or contribute a new dimension to current

interpretations of CSR. As the Hispanic population continues to grow, likewise does the

relevance and importance of addressing Hispanic issues at every level. This study explores one

aspect of the Hispanic community, specifically the business interest and participation in socially

responsible initiatives.

Gaps in Research

Although there is a well formulated organizational and market understanding of Hispanic

businesses in the United States (Medina, 2006; Palmaffy, 1998) and likewise thoroughly

researched recognition of the occurrence of CSR in U.S. corporate culture and its relationship

building function between an organization and its publics (David, Kline, & Dai, 2005; Hall,









2006;Yoon, Gurhan-Canli, & Schwarz, 2006), there is a dearth of research addressing the

incidence of intersection between them. There are, however, no definitive studies describing

Hispanic business owner and management beliefs and participation in CSR.

Relevance to Practitioners

The growth of this sector will undoubtedly promote interest in serving these potential

clients among public relations and communication practitioners in the private and nonprofit

sectors. For this reason, within a communication context, it will be essential for public relations

practitioners to understand Hispanic businesses beyond the currently understood notions of

culture in order to serve and reach this public. Given the continued growth of the sector, this

analysis is well timed to provide necessary insights into one dimension of corporate behavior.

With this understanding, practitioners will be poised to counsel clients effectively while

recognizing motivations and underlying (culturally induced) desires and objectives.

Study Objective

This study explores one undocumented area of this burgeoning business demographic,

specifically its perceptions, attitudes, and participation in corporate social responsibility (CSR).

It describes one element of the Hispanic business perspective, assesses the extent to which these

businesses incorporate a framework for CSR, and evaluates whether they communicate core

values of social responsibility with key publics using a U.S. model of giving as a basis. This

study will also explore the notion of CSR from a cultural perspective and whether these

organizations build relationships with stakeholders through socially responsible initiatives. In

particular, the social behavior of these organizations has and will either integrate within the

established systems or contribute a new dimension to current interpretations of CSR. For the

purpose of this study, philanthropy is "the organization, methods, and principles of voluntary

actions for public purposes." (Payton, 1988, p. 260).









In addition to serving as a foundation for further research involving U.S. based Hispanic

businesses, this study will contribute to ongoing research that explore the Latin American

business within cultural, and economic constructs. These results will also confirm or reject

specific nationalistic characteristics involving social responsibility in the region.









CHAPTER 2
LITERATURE REVIEW

This study of levels of participation in CSR initiatives among U.S. Hispanic-owned

businesses demands a comprehensive understanding of specific social, cultural, business, and

public relations research conducted to date. While the implications of research in each of these

areas are individually significant, insight into the landscape derived from the combination of

factors is central to this study. To this end, this literature review provides

* A comprehensive understanding of the current Hispanic demographic

* A broad understanding of elements of Hispanic social identity and individual and corporate
beliefs and practices concerning philanthropy

* An explanation of the components and criteria used to gauge responsible corporate social
responsibility

* A theoretical framework under which to conduct this study

An overview of these issues follows. Further, the term client is used throughout this document to

indicate business to business and consumer publics served by the businesses interviewed.

The U.S. Latino/Hispanic Community

The U.S. Latino/Hispanic community is composed of persons from more than 20 countries

in Latin America and the Caribbean, each with distinct cultural, social, and political traditions.

These variations contribute to a demographic that is complicated to define beyond the common

understanding that has evolved. The community is a group that is effectively bicultural, in other

words aligned to elements of the U.S. cultural narrative and their original cultural identity. While

the Hispanic identity includes several common social and cultural links, including a tendency

towards vertical collectivism (i.e., high power distance or deference to/for authority [Trinadis,

2002]) and shared geographic association. Sanchez and Zamora (1999) believe that the diverse

realities, specifically "circumstances and experiences" represented by individual nationalities









present a leading obstacle to social advancement (p. 211). Recognizing the factors of likeness

and dissimilarity among Hispanics is integral to this study, given its potential implication in

business and philanthropy.

Current Status

Hispanics comprised the largest minority in the United States and approximately 14.9% of

the total population, or 44.7 million people in 2005 ("From 200," 2006). A majority of Hispanics

(60%) were born in the United States with the remaining 40% foreign born ("Statistical portrait,"

2005). This statistic implies that, as natives of countries in Latin America, the Caribbean, or

Spain, 40% of Hispanics living in the United States bring cultural understandings and

perceptions external to traditional U.S. norms.

According to the Pew Hispanic Center's Statistical Portrait of Hispanics at Mid-decade

(2005), the greatest numbers of Hispanics are Mexican or of Mexican descent (63.9%) followed

by Puerto Ricans (9.1%), Cubans (3.5%), Salvadorans (3%), and Dominicans (2.7%). The largest

populations of Hispanics live in California, Texas, Florida, New York, Illinois, Arizona, and

New Jersey ("Statistical portrait," 2005). These states have Hispanic populations in excess of one

million. Language, specifically English-speaking ability, continues to be a barrier with 46% of

Hispanics over 18 reporting that they speak English less than well ("Statistical portrait," 2005).

Hispanic youth have the highest rates of high school dropouts in the country (Ramos & Kasper,

1999). The reported earnings of Hispanics show that 49.5% receive less than $20,000 per year

and 39.2% make from $20,000 to $49,999 per year, with median earnings reported at $25,100

("Statistical portrait," 2005). The reality for the Hispanic demographic involves struggle in that

poverty rates hover at more than 29%, a figure that is approximately 20% higher than for non-

Hispanic white families (Ramos & Kaspar, 1999). These data indicate that while vast in









numbers, the Hispanic community continues to struggle in mastering the dominant language and

achieving higher education.

Identity and Beliefs

Although the Hispanic condition is characterized by numerous nationalities, there are

common elements that link this demographic. These shared beliefs center on the importance of

family, religion, collectivism, warm sense of one-to-one interaction (orpersonalismo), pleasant

interactions (or simpatia), and honor for hierarchical positions (Chong & Baez, 2005). Family,

immediate and extended, is at the core of the Hispanic social system, representing the most

valued social system for Hispanics. However religion and religious practices also hold

prominence in the lives of Hispanics (Clutter & Nieto, 2004). There is a strong shared sense of

identity among Hispanics, regardless of nationality, that forms the basis for the sense of

community. The dominant identity and connection, however, is linked to the native country. The

issue of multiculturalism and assimilation has been extensively studied, in particular with respect

to Spanish language ability and cultural adaptation (Chong & Baez, 2005; Gutierrez, 2005;

Hernandez-Truyol, 1998). Studies indicate that a degree of cultural adaptation occurs with

immigrants, creating varying levels of cultural and linguistic variances and beliefs from either

one culture or the other or a hybrid of the two.

Perspectives of Philanthropy

Hispanics at the individual level give generously to philanthropic concerns. This giving is

characterized as informal and occurring between networks of family and friends to satisfy an

immediate need (Abbe, 2000; Diaz, Jaladoni, Hammill, & Koob, 2001; Rivas-Vazquez, 1999;

Wagner & Deck, 1999). This type of informal giving has occupied a role in Hispanic culture for

more than 500 years (Ramos, 1999). This giving establishes the community as a primary social

and economic support structure for assistance. Trust and personal connection are essential









elements in Hispanic giving (Abbe, 2000). Distrusting of organizations, Hispanics participate in

informal philanthropy based on personal relationships instead of participating in the U.S. model

of organized philanthropy (Rivas-Vazquez, 1999). For this reason, the level of informal giving is

expected to be significant. In fact, many Hispanics are still closely connected to family and

friends from their native countries, and remittances to these persons is often the principal area for

giving (Anft, 2002; Pardoe, 2006). The National Council of La Raza estimated that remittances

in 2004 totaled $45.8 billion ("Reforming the," 2005). Formal giving is also common to

Hispanics with nearly 63% of Hispanic households contributed formally to charities in 1998

(Diaz et al., 2001).

In terms of the culturally attributable preferences for giving, Hispanics tend to focus on the

group or community and not discuss negative aspects of life. However, U.S. citizens prefer to

emphasize the individual and discuss both positive and negative issues. Further, benefits such as

tax deduction are generally not perceived as benefits of giving for this demographic (Abbe,

2000; Rivas-Vazquez, 1999) and support for social betterment is a motivating factor.

Giving practices

Philanthropy is well integrated into the Hispanic culture (Arrom, 2005; Peinado-Vara,

2006; Sanborn, 2005), dating back more than 500 years. The tradition of giving is implicit in

Hispanic culture, with customs varying by country. A common cultural theme is that of

reciprocity and communities caring for themselves (Sanborn, 2005). Religion has served an

important role in promoting philanthropy, given the dominance of the Roman Catholic Church

since colonization (Arrom, 2005; Logsdon, Thomas, & van Buren, 2006; Sanborn, 2005).

Key attributes and motivators

Critical elements of this study involve the cultural, historical, and religious implications

affecting Hispanic social responsibility. Cultural attributes stored in the community's collective









unconscious drive Hispanic giving in ways that differentiate the giving preferences of this

demographic from other racial groups. To this end, if a U.S. Hispanic model for giving and

volunteering were to be developed, it would be characterized by integrating elements discussed

in research and include the following attributes.

Informal. It is recognized that support for family, friends, and community generally forms

a basis for giving. Hispanic giving is primarily informal and noninstitutional, occurring

principally through social networks (Abbe, 2000; Diaz et al., 2001; Rivas-Vazquez, 1999;

Wagner & Deck, 1999). Hispanics prefer giving informally as opposed to supporting organized

philanthropy. Given this pattern of informal participation, Hispanic philanthropy is largely

unmeasured (Rivas-Vazquez, 1999) and occurrs extraneously to the nonprofit sector. A 2003

study of communication outreach by community foundations to Hispanic publics in Florida

found that each of the organizations surveyed did not segment this demographic to solicit funds

(Hall & Solaun, 2003). While grants and programs may assist Hispanics, organizations are not

seeking to communicate with them, likely in part given the predisposition of this sector to exist

in an informal philanthropic setting.

At the individual level this disconnect between organized philanthropy and Hispanic

giving is known, but the prevalence to give informally in the business sector has not been

studied. Recognizing the intrinsic nature of this variable, this study will explicitly consider

cultural normative philanthropic behavior and its implication on Hispanic business owners in

terms of level of adaptation of CSR initiatives.

Selective. Hispanics give primarily to churches, education, and personal contacts (friends

and family and typically for children and the elderly) (Abbe, 2000; Diaz et al., 2001; Rivas-

Vazquez, 1999; Wagner & Deck, 1999). A sense of connectedness to the gift is important to









Hispanics, such as support to organizations that serve their community (Rivas-Vazquez, 1999).

This sense of connection is directly linked to the social characteristic of collectivism shared by

Hispanics. Further, social scientists note that Hispanics tend to maintain their ethnic identity

which results in "ethnic loyalty" (Padilla, 2006). This loyalty explains interest in Hispanic

causes. Interestingly, Hispanics do not consider informal giving to family or friends as

philanthropy (Wagner & Deck, 1999). As a core belief, this tradition of giving is understood as

innate, widely accepted, and culturally and socially expected.

Personal and trust based. While Hispanics are distrusting of organizations, in general,

and organized philanthropy, specifically, a sense of connection to the person requesting the

assistance or funding and trust is essential to Hispanic giving. The importance of the personal

contact cannot be overstated. The petitioner is more important to the potential Hispanic donor

than the institution to which the funds will be appropriated (Abbe, 2000; Ramos, 2000; Rivas-

Vazquez, 1999). Specifically, the sincerity of the person asking directly influences giving.

Further, there must be trust for the person asking and this trust is based on an immediate personal

connection (Wagner & Deck, 1999).

Corporate Social Responsibility

The U.S. corporate social responsibility landscape and its relationship building function

has been well documented (David, Kline, & Dai, 2005; Hall, 2006; Yoon, Gurhan-Canli, &

Schwarz, 2006). An overview of CSR, its elements, and the Latin American and minority

perspectives on the subject follows.

Overview

CSR, defined by Carroll (1979), is the total economic and social responsibility (including

regulatory and legal, moral, and philanthropic) of an organization, has become widely known

and accepted as an integral component of the corporate landscape. Since the 1950s, corporate









philanthropy or corporate giving has become a defacto element of U.S. business operations. In

fact, a study by KPMG International found that 52% of the world's 250 largest corporations filed

separate reports on corporate responsibility in 2005 (Byrnes, 2005). Companies are now often

evaluated in terms of their commitment to philanthropy (CRM, 2006), specifically local

organizations (Wilson, 2005). Consumers expect it. There are social demands on companies to

return their profits and invest in society (Daugherty, 2001). For this reason, organizations

strategically align philanthropic programs with their business objectives (Epstein, 2005; Saiia,

Carroll, & Buchholtz, 2003; Kelly, 1991), often creating alliances with nonprofits (Austin,

2003). The most successful programs align these objectives to community needs (Bianchi, 2006).

Supporting charitable causes has become an integral component of doing business (Himmelstein,

1997).

In integrating CSR into business systems and staying true to its framework, organizations

fulfill an implicit cultural and social imperative of "giving back" while capitalizing on a variety

of complementary benefits. These may include enhanced business performance through

increased sales, improved employee retention, and stronger customer allegiance along with

enhanced corporate image and reputation (Verschoor, 2006a; Wilson, 2005). Studies confirm

that these and other tangible organizational benefits are derived from implementing CSR

programs (Cone, 2002; Dowling, 2006). Burlingame and Young (1996) believe, in fact, that the

social and economic elements are "inextricably linked" (p. xiii). Certainly, an organization's

support and commitment to social programs resonates favorably with consumers and becomes a

mission- and value-driven strategic component in corporate planning. Moreover, given an

increasingly visible social mandate, the business and consumer environments are asserting

pressure on organizations to behave as positive corporate role models. The call is to support









efforts that promote diversity, sustain social and community values, and encourage social

progress.

Early CSR and public relations studies showed that experiment participants responded

most positively when exposed to socially responsible messages about a company (Reeves &

Ferguson, 1980). More recent studies indicate that 75% of study respondents consider a

corporation's social record when deciding whether or not to purchase its product or service and

that more than three in four noted that they had selected companies based on corporate social

performance (Saiia et al., 2003).

A 2005 study of 350 chief executive officers concluded that business motivators are

perceived as the leading benefits to organizational philanthropy (Preston, 2005). These

motivators include attracting employees, establishing contacts with business colleagues,

contributing to new contracts, and positive perception from clients. Epstein (2005) believes that

showing support builds brand loyalty and that corporate philanthropy is equal parts business

strategy and giving. In an increasingly competitive market, the ability of philanthropic programs

to differentiate companies from competitors is another critical factor (Epstein, 2005).

U.S. citizens are most influenced by the cause the company promotes (42%) and employee

volunteer time (31%) (Hamby, 1999). U.S. citizens also prioritize a wide disbursal of charitable

dollars to have the most effect on a wide range of issues and develop a more positive opinion on

companies who give to charities to help improve education (30%), programs supporting health

and wellbeing (21%), and environmental causes (10%) (Hamby, 1999). A 2002 Cone Corporate

Citizenship Study noted that 91% of 1,040 consumers surveyed would contemplate changing

brands if they became aware of an organization's corporate misdeeds. There are, therefore,

financial motivators for contributing to social issues. van Buren (1995) believes that an









organization's profitability is reliant on CSR and that organizations are "financially responsible"

when engaging in programs that benefit communities (pp. 51-52). Beyond the social imperative,

then, corporate responsibility has bottom-line implications.

Elements of Corporate Social Responsibility

CSR encompasses a comprehensive set of policies or initiatives, including corporate

philanthropy, environmental sustainability, and organizational policies benefiting internal (i.e.,

employees) and external (i.e., social and economic factors) stakeholders, among others. There

has been significant academic research in the area of corporate philanthropy, including business-

related studies conducted by Carroll (1979; 1991; 1999); Buchholtz, Amason, and Rutherford

(1999); Burke, Logsdon, Michtell, Reiner, and Vogel (1986); and Saiia, Carroll, and Buchholtz

(2003). Public relations studies addressed CSR have been conducted by Daugherty (2001);

Esrock and Leighty (1998; 1999; 2000); Ferguson, Popescu, and Collins (2006); Grunig (1979);

and Lerbinger (1965; 1975), among others. Carroll (1979) attempted to provide a comprehensive

model of social responsibility, suggesting that there are four groupings, specifically those that are

economic, involve legal and/or regulatory issues, ethical elements, and discretionary

responsibilities involved in the model. Later Carroll (1991) would clarify that the discretionary

element of the model referred to philanthropy. His model links shareholders to the four areas.

A corporation's CSR program may be comprised of several essential elements tailored to

satisfying internal and external stakeholders. A discussion of several primary elements of CSR

assessed as part of this thesis follow.

Corporate volunteer programs

Corporate volunteer programs are creating a new synergy between business and social

systems. Corporations who have heavily engaged in CSR programs have been able to

considerably re-strengthen a weakened corporation's reputation (Byrnes, 2005). In addition, free









labor is replacing dollars as companies are now allowing employees to use paid work time to

volunteer. Research is also demonstrating the effectiveness of expanding corporate volunteer

programs, even showing increased rates of productivity (Komgold & Hosler-Voudouris, 1996)

and a relationship between employee retention and recruiting and effective volunteer programs

(Byrnes, 2005). Companies with successful volunteer programs seem to share several common

elements; these programs specifically allow employees to select the organizations they support,

they direct the programs, and the company visibly promotes the volunteerism (Yankey, 1996).

Research in the area of corporate volunteer programs also continues to evolve. New

research has shown that corporate volunteer programs must be measured based on the

effectiveness of the program, not simply the number of participants ("The marriage," 2006).

These programs will likely continue to be seen as an indicator of CSR, given the increased

attention and now measurable outcomes.

Employee programs

A corporation's fair and positive treatment of employees comprises a critical element of

CSR. The component includes specific policies and procedures that support employee wellbeing.

For instance, an organization may establish and routinely evaluate on-site health policies to

protect workers from injury or perhaps lend financial support for employee physical fitness or

weight loss programs. Demonstrating commitment to employees reflects favorably on

organizations from a CSR perspective and corporations in other ways. For instance, employee

satisfaction with an employer will increase retention rates. This will also result in increased

pride, improved employee commitment to the office environment, and improved environmental

and social stewardship (Maignan, Ferrell, & Hult, 1999). The return on investment is

demonstrable and may lead to more stable, consistent management buy-in given the financial

benefits.









A recent survey of U.S. business executives conducted by the Center for Corporate

Citizenship, the U.S. Chamber of Commerce Center for Corporate Citizenship, and the Hitachi

Foundation confirmed that corporate leaders recognize the importance of connecting with this

key organizational stakeholder. The survey found that executives are strongly motivated to

support and promote CSR efforts mostly by their employees and, likewise, responded that 98%

of their employees value these activities ("The state of," 2005).

Environmental programs

Environmental protection and sustainability comprise integral elements of CSR.

Demonstrating organizational responsibility in terms of protecting natural resources and the

environment is an essential element in a CSR portfolio. Beyond regulatory compliance,

corporations foster sustainability initiatives in a variety of ways including supporting internal

programs involving recycling, carpooling, reduced paper use, and energy efficiency activities

that promote sustainability. There is a notable disparity in regulations outside of the U.S. Given

the often inexistent or meager natural resource and environmental legislation and regulations at

an international level, the International Finance Corporation (IFC) of the World Bank Group

developed mandatory (environmental and social sustainability) requirements for funding

recipients ("Environmental and social," 2006). Many multinational organizations through the

global adoption of CSR values and regardless of funding have adopted World Bank protocol as a

measure of social responsibility. Further, specific sectors, such as the oil and gas and financial

sectors (i.e., The Equator Principles) have developed protocols that mirror the IFC guidelines and

specifically provide for resource protection.

Ethical codes

CSR and ethics are closely linked. The ethical values and policies of an organization are a

direct reflection of its commitment to appropriate social norms and expected behavior for









institutions within our society. Further, demonstrating ethical behavior is increasingly considered

an internal corporate requirement. A recent study showed that 94% of employees consider it

essential that their companies behave ethically (Verschoor, 2006a). Six months prior to this

study, a similar study found that 76% of employees felt this strongly about their employers

actions (Verschoor, 2006a). This employee emphasis on ethics underscores the importance of

having sound corporate values. Public relations scholars including Ferguson et al. (2006), Edgett

(2002), Esrock and Leichty (1998), Leeper (1996), Bivins (1992), Pearson (1989), Wright

(1985), and Reeves and Ferguson (1980) have explored the relationship between ethics and CSR,

and its intersection with public relations.

Corporate Social Responsibility in Latin America

While research focusing on CSR within the U.S. Hispanic business context is nonexistent,

a spate of recently published research and case studies involving CSR in Latin America provide

a basis for its current understanding and application in the region (Paul et al., 2006; Araya, 2006;

Sanborn, 2005; Portocarrerro, 2005; Peinado-Vara, 2005; Agtiero, 2005; Landim, 2005; Durand,

2005; Roitter & Camerlo, 2005; de la Maza, 2005; Letts, 2005; Puppim & Gardetti, 2006;

Logdson, Thomas, & van Buren, 2006; Prieto-Carr6n, 2006; Schmidheiny, 2006). While these

studies form a basis for understanding CSR in the region, it is difficult if not impossible and

inappropriate to generalize results for the region and, in some cases, to build consensus of broad

indicators of the influences and trends involving CSR. Schmidheiny (2006) believes that the

issue of defining CSR in the region is complicated not only by different cultures but by the lack

of agreement on what defines CSR. An overview of CSR in Latin America as derived from these

studies follows.

Past studies have shown that CSR is not highly developed in Latin America (Peinado-

Vara, 2006; Paul et al., 2006). However, the rate of CSR is increasing in the region









(Schmidheiny, 2006), in part due to political and economic changes and the shifting nature of

relationships between (weaker) governments and the (stronger) private sector (Agtiero, 2005;

Sanborn, 2005). The private sector fills the social needs that government cannot adequately

address (Puppim, 2006). For instance, a study of organizations in Argentina, Brazil, Chile, Peru,

and Colombia indicated that between 80 and 95% of organization support some type of

philanthropy (Sanborn, 2005). A study conducted in Mexico showed that 10 of 75, or

approximately 13%, of organizations surveyed showed some form of support for CSR, a figure

far less than the aforementioned study (Paul et al., 2006). Support and coordination for

philanthropy continues to be weak and insufficiently impacting society (Sanborn, 2005). Further,

the most traditional form of philanthropy involves distributing food but this action does little to

promote sustainability (Sanborn, 2005).

There is some disagreement about the role of multinationals and U.S. companies in the

development of CSR in Latin America. Schmidheiny (2006) and Sanborn (2005) believe that

these organizations were instrumental. Peinado-Vara (2006) furthers this notion and believes that

most of the CSR initiatives occurring in the region today are supported by multinational firms.

However, Logsdon et al. (2006) believe that this is a myth and that these organizations have done

little to influence the sector, attributing credit instead to the nation's history and culture.

Furthering the concept that local issues and cultural values are driving CSR, researchers

have noted with some consistency that the U.S. and international models of CSR are not entirely

applicable to the Latin American context given that they fail to address prominent social issues

in the region (Schmidheiny, 2006; Logsdon et al., 2006). Issues are perceived as entirely local

and unrecognized by traditional CSR initiatives. For this reason, Schmidheiny (2006) and

Logsdon et al. (2006) believe that there should be multiple models of CSR that are culture and









country specific. For instance, there are nuances specific to the Mexican CSR environment. Paul

et al.'s (2006) study indicated that the personal preferences of founding families of businesses

for philanthropy are directly linked to an organization's CSR participation. Further, engaging in

activities deemed important by organizational founders may not be activities that are recognized

by international standards for CSR (Paul et al., 2006). Continuing within this specific context,

Paul et al.'s (2006) study found that there was little emphasis on CSR within the business

community in Mexico while Logdson et al. (2006) found that there is a cultural expectation for

Mexican businesses to focus on employees and the community, given deficiencies in government

and the public sector. The social and political context and history is the driver for CSR efforts

(Logdson et al., 2006). These studies suggest the importance of considering social, economic,

and political paradigms when defining the CSR landscape in Latin America. Public relations

research has demonstrated the importance of recognizing cultural differences and adopting

measures appropriate to cultures (Botan, 1992; Gabriel & Taylor, 1999; Ihatar, 2000; Molleda &,

Suarez, 2005). Further, organizations are known to coordinate directly with stakeholder groups

and not through government or the nonprofit sector (Logsdon et al., 2006).

A recent survey of 1,300 small- and medium-sized firms based throughout Latin America

noted that the primary organizational motivators are religion, employee morale, relationship

building, and increase in profits (Vives, 2006). Religion is also noted by individual Hispanics in

the United States as a key motivator for participating in philanthropy.

CSR is currently in a nascent but growing stage in Latin America. As with individual

Hispanic philanthropy, corporate philanthropy is rooted in the Latin America tradition,

particularly the Roman Catholic Church (Arrom, 2005; Puppim, 2006). An Inter-American

Development Bank (IDB) report, Corporate Social Responsibility in Latin America, cites weak









institutional (governmental) capacity and corporate infrastructure and an adverse business

environment as factors that impede the advancement of CSR (Peinado-Vara, 2006). However,

studies by Sanborn (2005), Aguero (2005), Puppim (2006), and Logsdon et al. (2006) indicate

that weak governments are the impetus for increased CSR. Peinado-Vara (2006) believes that

formidable support by companies based in Latin America is essential to effectively contributing

to the socioeconomic condition in those countries. Although the findings in the IDB report

present an evolving and somewhat weak system of CSR, Sonia Avelar's (2001) study of

corporate giving in Brazil found that corporations reported contributing $1.5 billion to

improvements in the social sector. This study confirms that there has been an increase in

corporate giving, with 87% of 1,715 companies surveyed responding that they had contributed to

social projects. Of these companies, 67% indicated employee volunteer participation, and 83%

have collaborated with other organizations including nonprofits. These partnerships appear to be

facilitating the growth of CSR in the region.

Brazilian consumers expect social responsibility from corporations. According to a public

opinion survey conducted in 2000, approximately 51% of respondents penalized companies

perceived to behave irresponsibly by verbally discussing their behavior with friends, family, and

associates (Avelar, 2001). Another 30% showed their displeasure by refusing to purchase

products produced by these companies (Avelar, 2001). This social expectation is increasing in

the region.

US Minority Business Corporate Social Responsibility Research

Minority business support for philanthropy and other CSR elements is a relatively

unstudied area. The following subsections capture research conducted to date.









Black-owned business studies

Edmondson and Carroll (1999) conducted the first and, to date, only study of CSR in large,

Black-owned businesses as ranked by Black Enterprise magazine. Their survey findings indicate

that Black-owned business owners commonly hire minorities as their way of contributing to their

communities. A Wall Street Journal sponsored survey of Black entrepreneurs showed similar

results with nearly 86% of Black business owners citing a strong responsibility to give back to

their community (Carlson, 1992). Support for youth programs, charities directly supporting the

Black community, and business advice to other minority businesses top the support offered by

the organizations. The primary motivation for supporting social programs was cited as improving

the immediate community in which they live and work, followed by good corporate

responsibility. Support to churches was also cited among individual preferences of business

owners. These studies indicate that religion and community support is a priority for Black-owned

businesses, factors also prioritized among Hispanic individuals.

Hispanic business research

Research has been conducted on the organizational characteristics of Hispanic businesses

(Medina, 2006; Palmaffy, 1998). There are, however, no definitive studies showing Hispanic

business support of CSR initiatives. Himmelstein (1997) believes that the relationship of the

organization to other organizations, and in a broader context its relationships with society, forms

the basis for allocations to corporate giving programs. With this understanding, it would follow

that Hispanic-owned businesses share a sense of corporate commitment to social causes given

their relationship to other CSR supporting non-Hispanic organizations in the business

environment. This research study seeks to address this issue.









Theoretical Framework

While there is no singular overarching CSR theory, scholars have applied existing public

relations and social science theory to a variety studies. The organizations studied in this thesis

occupy a potent social role and responsibility in our culture. Given a corporation's prominence,

Starck and Kruckberg (2001) suggest that society itself is the most essential public for

organizations. Organizations are bound by the expectations of the stakeholder public. Theories

and constructs involving stakeholders have been selected as the theoretical basis for this thesis.

Young and Burlingame (1996) believe that stakeholder theory provides the most complete

model under which to evaluate corporate philanthropy because it considers several

multidirectional pressures and influences, such as financial and social. It also incorporates

several components of theories that could be applied to corporate philanthropy, including the

bottom line orientation of the neoclassical model, the social considerations of the ethical model,

and the potential for strategic giving to increase organizational power of the political model. For

the purpose of this thesis, this model is applied to interviewee responses.

Pratt (2006) suggests that CSR has evolved to consist of four principal constructs: "returns

on investment, trustee management, self-interest, and corporate social performance" (p. 254).

The latter two constructs are particularly relevant to this study, as they directly address the

organization's relationship with stakeholders. Self-interest suggests that companies should align

their practices with that of stakeholders to continue to benefit from their support and to avoid the

potential for increased regulation (Pratt, 2006). An organization's social performance, described

as encompassing CSR, receptiveness, and the result of organization actions, also relates to the

organization's responsibility to keep stakeholders sufficiently satisfied with an organization that

they continue to promote it.









A corporation's ability to succeed involves maintaining publics satisfied with the services

or products. Implicitly, stakeholders whether employees, customers, investors, or activists -

hold power over organizations and can impact an organization's policies and behavior. To this

end, stakeholder's interests and values impact organizational activities, and in this study,

involvement in CSR initiatives. Maignan et al. (1999) note that there are first order stakeholders

that are directly involved with a corporation's activities and also secondary stakeholders that do

not interact directly with the organization. Maignan, Hildebrand, and McAlister (2002)

categorize an organization's stakeholders into four categories based on an earlier model,

specifically legal, media, community, and organizational stakeholders. Corporations respond to

stakeholders (and their expectations for social behavior) through CSR programs. For instance,

philanthropy can facilitate an organization's relationship with its publics and helps to build

positive long-term relationships. (Kelly, 1991). A recent study sponsored by the National

Consumers League highlights the stakeholder-to-CSR connection and showed that consumers are

more likely to support organizations that treat their employees well and that share common

beliefs (Verschoor, 2006b). For this reason, Paul Argenti of the Tuck School of Business

believes that "corporations must engage in a new level of dialogue that resonates with

stakeholders' personal values" (Verschoor, 2006b, p. 22).

Scholars have applied stakeholder models to advance the understanding of CSR (Maignan

et al., 1999; Maignan & Ferrel, 2004; Maignan, Ferrell, & Ferrell, 2005; Paul et al., 2006).

Corporations operating under this theory are responsible to stakeholders instead of society at

large, so that organizational actions are conducted in ways that provide the greatest maximum

benefits (Maignan & Ralston, 2002). Further, recent studies involving CSR in Latin America

have used this theory. Specifically, in a recent study gauging levels of social reporting conducted









by Mexican corporations, Paul et al. (2006) used stakeholder theory as a backdrop to the

analysis. This research will also apply stakeholder theory and will also consider Galaskiewicz's

(1979) conclusive research that certain stakeholders have more influence over others based on

resources and political influence.

It will also be useful in this study to consider Carroll's (1979; 1991) construct which

proposed four principal groupings involved in CSR activities, specifically those that are

economic, ethical (including appropriate moral behavior), philanthropic, and involve legal and/or

regulatory issues. This model links shareholders to each of the four areas and established

stakeholder prominence early on in CSR scholarship.









CHAPTER 3
METHODOLOGY

Basis for Research Method Selection

The purpose of this research is to determine whether minority, here Hispanic, businesses

promote and share a commitment to CSR as generally understood and accepted in the United

States. Implicit also in this evaluation is to determine how these organizations conceptualize and

interpret traditional concepts of CSR. Given the exploratory nature of this study and the need to

derive data prior to undertaking a quantitative assessment, the qualitative research technique of

conducting in-depth interviews was selected. This qualitative research technique provides

extensive detail about a particular subject and allows the interviewee to further explore issues

suggested by the respondent (Wimmer & Dominick, 2006; Lindlof& Taylor, 2002).

Public relations, business, and social science scholars have used in-depth interviews to

research CSR. For instance, Besser (1998) conducted in-depth interviews of business owners to

gauge levels of support for CSR in local communities; Khoury (1995) interviewed senior

managers of large corporations to discuss investor influence on CSR; and Mohr, Webb, and

Harris (2001) and Shamir (2005) conducted in-depth interviews to determine and evaluate levels

of CSR in organizations. These studies, the information obtained, and the unexplored nature of

this topic form the basis for selection of the interview technique for this thesis.

Interview Research Methodology

Research will follow the process defined by Kvale (1996) in conducting in-depth

interviews. This process involves developing themes (or categories), designing the questions,

conducting the interviews, transcribing the interview itself, analyzing the transcripts, verifying

the data, and integrating the results into a report. Descriptions of these research steps follow.









Formulating the Research Question

The purpose of this study is to identify whether U.S.-based Hispanic-owned businesses

share a corporate commitment to CSR. Given Hispanic individual's cultural predisposition to

informal giving instead of supporting organized programs, is this cultural attribute incorporated

as a business practice in Hispanic-owned organizations? To address this issue, the following

research questions are proposed.

RQ1: What CSR elements do U.S.-based Hispanic-owned businesses support?

RQ2: What are the perceptions of U.S. Hispanic business owners vis-a-vis the
application and implications of CSR in their businesses, and how do these
perceptions impact corporate policy?

RQ3: To what extent does the U.S. Hispanic business model promote building
relationships with stakeholders and adopting CSR measures?

Categories of Questions

Based on the research questions, content categories were developed. In order to analyze

and code for demonstrations of a commitment to CSR, interview categories that include the four

components designated by Carroll (1979; 1991) as defining CSR activities and questions to test

stakeholder theory were developed. A total of 17 questions were developed and organized in the

following categories

General CSR (five questions)
Corporate philanthropy and volunteering (three questions)
Environmental stewardship (two questions)
Ethical and legal (three questions)
Financial (one question)
Stakeholder theory (two questions)

One additional closing question was also included that asked interviewees if there was any

additional information related to CSR that they would like to discuss. Interviewees were also

asked their countries of origin (or cultural background), the size of their organizations (by









revenue and employees), and the type of businesses that they operate (industry and ownership

type). An opening question about their personal histories and a closing question were included.

The interview questions are presented in Appendix A.

Selected Sample, Locations, and Procedure

The sample frame for this thesis is based on a nonprobability sample of Hispanic

businesses based on one of the following criteria: listing on the Hispanic Business magazine

2006 listing of the top 500 Hispanic business list, companies meeting the revenue threshold

required for listing in the magazine, or companies considered industry and community leaders.

The companies selected for study are based in Florida, Texas, or California. Fifteen interviews

were conducted with owners or senior managers of the Hispanic businesses (five per state). A

sample of interviewees diverse in their nationalities was selected, including owners from Mexico

(N = 8), Cuba (N = 3), Ecuador (N = 1), Colombia (N = 1), Venezuela (N = 1), and Spain (N=

1). All five Texas-based CEOs were of Mexican descent and the majority (i.e., three

interviewees) in Florida was Cuban. Hispanic business owners/CEOs were selected to not only

ensures a diverse country of origin, but also representation of the sectors used to rank businesses

by Hispanic Business magazine. A matrix listing the types of organizations by sector, location,

and nationality of owners is presented in Appendix B. Industry and nationality were the primary

drivers in interviewee selection. Five of the eight sectors were selected based on their size and

growth, specifically automotive, construction, service, wholesale, and financial sectors were

selected. The breakdown for interviews by sector follows: one from the automotive sector; six

from the service sector; four from the construction sector; two from financial services; and two

from wholesale industries. All organizations are privately held, a characteristic representative of

most of the organizations listed in the Hispanic Business magazine list of top 500 companies.

The sample includes three female and 12 male interviewees. Education levels of interviewees









varied from high school education through professional business and graduate school

completion. It should be noted that there were no discernable patterns in responses based on

education.

These informant interviews provide detailed information concerning the cultural

implications and an understanding of the corporate behavior (Lindlof & Taylor, 2002).

Interviews were conducted either by telephone (N = 5) or in person (N = 10) with business

owners according to the preference or availability of the participants. The distribution of

telephone interviews were two in each California and Florida and one in Texas. Twelve of the

interviewees were men and three were women (one from each state).

Interview questioning protocol was followed. This standardized protocol involves

arranging questions from general to specific, with personal or difficult questions included at the

end of the interview (Bernard, 1988; Lindlof& Taylor, 2002). Interviews were developed

according to the guidelines established by Lindlof & Taylor (2002) where the order and wording

of questions is predetermined. In this way, while follow up questions based on the responses may

occur, interviewees respond to nearly the same questions and reliability and credibility are

maximized.

Method of Analysis and Verification

The recorded interviews were transcribed and appropriately "filed" or coded within the

categories established after the interviews. Transcription occurred as interviews were completed,

as suggested by Lindlof and Taylor (2002), to effectively manage the material (reducing the

potential for overload), to maintain "fresh memory," and to "alert to the conceptual trajectory of

the study" during the study (pp. 219, 214). These categories represented themes or distinct

information provided. The author also expected that some responses will include the CSR

variables discussed in the literature review and subsets thereof. While some basic variables exist









within the context of the questions and within the categories established in the list of questions,

other variables became evident once the transcribing was completed. In this way, common

themes were identified among interviewee responses.

Total numbers were used to indicate number of respondents mentioning the same theme.

Indicators of consensus among participants were noted. Where diverse views were present, a

breakdown of the different responses was noted. Verbatim quotes were used to highlight

particular points and areas of consensus or lack thereof. The data was interpreted with respect to

stakeholder theory and the implications of research applied to the CSR landscape.









CHAPTER 4
FINDINGS

Interviewee responses form the basis for this study's findings. As such, types of responses

provided and numbers attributed to each question are provided in this section. Section

subheadings correspond to the categories of interview questions. Refer to the interview questions

provided in Appendix A for a listing of the specific questions.

General Corporate Social Responsibility

There is a general understanding of the term CSR among interviewees. Twelve of the 15

interviewees indicated familiarity with the term and each described it as involving support for

philanthropy. Three interviewees included non-philanthropy aspects of CSR in their descriptions.

Of these, one specifically talked about environmental responsibility and two mentioned corporate

governance One California interviewee defined CSR as follows

It is a corporation's role in our society beyond doing business without compromising the
bottom line. I am not saying that we need to give it all away but it is taking a place in a
community to do better. It may be educating a child or contributing to the environment or
what have you. It is some sort of acknowledgement or acceptance of responsibility within
our global organization to make this better.

One Florida interviewee referred to CSR as an integral part of his organization. This owner said,

"It is essential to have [a] social mission for a company in addition to a business mission. It is

essential within a corporate structure to generate positive spirit for giving. It promotes corporate

spirit."

Interestingly, one business owner who was unfamiliar with the term CSR offered

descriptions of employee programs and environmental management systems that his firm has

integrated into its policies. The implication is that knowledge of the formal term does not

translate into participation per se, just as lack of understanding does not equate to an absence of

such initiatives.









In terms of Hispanic business owner's perceptions of their responsibility to society, the

notion of the need to give back is a personal one for most of these individuals. They cited

personal stories of how they were helped along the way by those known and unknown to them.

One interviewee noted how his family supported him as follows

Most of the help that I got came from people who scratched their living out of the dirt. You
know I remember when I went off to Yale and I was at the airport about to take off and my
grandmother and mother were there. My grandmother gave me this box and it had a
blanket in it. My grandmother picked walnuts for a living. She didn't even pick walnuts.
She would go follow and pick up left over walnuts to get extra money for their eight kids.
So she had this blanket and she said "I know it gets cold on the east coast so here's a
blanket it's my way of helping out."...I think people should be responsible for their own
success but I realize that even those who are successful got a lot of help along the
way...Now I am going to help as many people as I can so that I can do my part.

Interestingly, this interviewee said that there was a second motivation for helping and it involves

the tremendous amount of goodwill with clients that it creates.

Interviewees recognized that their organizations have a responsibility beyond their

business to give back because the community is, in large part, a factor in their success. One

Florida owner said "You know I think we're a successful company and we owe that success in

part for where we are whether it is supporting the university here or different projects within the

community." In a sense, then, the community represents an important stakeholder group for these

business owners. Many cited support from family as being integral to their success. The

repayment for them is to help support Latino and sometimes non-Latino community causes.

Further, the decision to participate as a business has emerged from an individual value to do so.

Interviewee's responses varied when asked about their organization's responsibility to

society and their community. The majority (13 interviewees) said that they do have a

responsibility in one form or another, whether it is to employees, clients, or human service

organizations. The two dissenting interviewees felt very strongly about their responses, although

one said that his organization is a significant contributor. One owner said









It's sad that it almost seems that society's trying to put some guilt trip on different
organizations, business people and the rest, to say, hey, this is your obligation. Wrong. It's
not an obligation. It's something that I think you have to feel. If you're doing it for other
reasons, then you're doing it for the wrong reason. If you're not doing it because you feel
like you need to help people, that you need to give back to your community, then you're
not doing it for the right reason. You're not going to generate enthusiasm and that kind of
program I don't think really works.

Positive responses centered along three themes: Hispanic owned businesses have a

responsibility to give back to improve living conditions and future opportunity; support involves

more than giving capital and includes giving time through volunteering; and these interviewees

believe that their responsibility to serving clients is an integral part of their social responsibility.

Religion was cited by two interviewees as the motivation for giving. Three interviewees

suggested that there are some causes that are more important than other causes (i.e., those based

on meeting essential living needs are more important than the arts) and that there is a right and

wrong way to give (i.e., provide support because you believe you should or want to, not because

there is societal pressure to do so).

The questions addressing Hispanic influences and perceptions of specific responsibility

generated strong interest from interviewees. There was nearly unanimous agreement on the issue

of levels of social responsibility among Hispanic versus non-Hispanic businesses. A majority (13

interviewees) said that all businesses share equal responsibility. One California owner said he

believes, "They share an equal responsibility but there is a greater need." Another California

interviewee said, "If I were to generalize, and this is a broad generalization, I would say that for

Hispanic businesses there is a stronger conscience and a commitment to making a contribution

than there is for non-Hispanic." One dissenting interviewee said that Hispanic businesses have a

lesser responsibility until their level of capital and growth increases and the other dissenting

interviewee believes that Hispanic businesses do bear a greater responsibility.









The question of cultural impact on giving drew some interesting and diverse responses.

Two thirds of interviewees believe that their Hispanic culture affects their support for

community programs. Four others, three of whom said that they prefer not to be affiliated with

their nationality, said that it has no impact. Those that perceive a connection cited Latino custom

of family relationship as an influence. This notion of family seems to translate into the

workplace, as many interviewees said that they feel like their employees are part of their family.

Interestingly, one interviewee said that the Hispanic culture has a negative impact on their ability

to generate enthusiasm in some programs among Hispanic employees. For instance, it is

challenging to inspire employees to support environmental or conservation programs because the

cultural has historically not valued these types of initiatives. Therefore, the Hispanic culture

affects giving and also lack of participation.

Informal giving resonated with the majority of interviewees, with 12 of them stating that

they do give informally. Eight of those 12 said that they also give formally through established

501(c)(3)s. A Texas business owner says that he gives informally to employees every day, an

action that has been part of the firm since the first day of operation. One California interviewee

suggested that there is such a strong connection between Hispanics and informal giving because

"Hispanics are likely in closer contact with need so it is logical to give informally." Another

Californian owner who gives informally believes that formal giving is essential for the image of

the Hispanic community. The interviewee said

I think it is incumbent upon us to give formally and for people to know that we have
money and that we are contributing to things that are important to us. Because when you
and others do the research, you don't want to see that Hispanics aren't giving.

The connection between giving and positive image and giving to increase social value, pride,

inclusion, and power of the Hispanic community was reflected in several of the interviews.









These business owners overwhelmingly support community activities (12 of 15 responded

that they do provide financial backing to organizations) and approximately 50% of interviewees

also give pro bono goods or services. Many of those that do not offerpro bono assistance

mentioned that their industry (e.g., wholesale telecommunication equipment sales) does not lend

itself towards this type of support. Business owners consistently stated that there are often

personal reasons for giving to the organizations that they support but that there are others for

which there are no personal motivations. Most give to programs that support children or

education. One business owner in Texas mentioned that the company supports causes to help

find cures and treatments for multiple sclerosis because of a family member with it. Others admit

that their causes are somewhat self-serving, such as the engineering business owner who strongly

supports math and science programs for kids. She is hoping to promote engineering as a

profession to help alleviate the dire need for more engineers.

Finally, a majority of interviewees (N = 11) again encourage employees to volunteer. They

do not steer employees towards specific charities and one owner said that he "does not keep

score" of his employee's efforts. Interestingly, one California owner said that "if they are

interested in something, then the place for them is the board room." He believes that they can

best effect change there and he provides capital to support their participation. Five business

owners allow employees to volunteer on company time, while one splits the time with the

employees. In other words, more than half of those that encourage employees to volunteer pay

for the employee's time to do so.

Environmental Stewardship

Each of the business owners interviewed discussed the integral of employees to the success

of their organizations. The majority of responses involved measures taken to promote employee

health and safety, whether through reimbursement of deductible for health spending accounts,









gym membership reimbursements, or tuition reimbursement. Diversity and good pay were also

cited by interviewees. Interestingly, larger company owners tended not to cite basic employer

provided benefits (e.g., medical and dental insurance), while smaller organizations noted these,

when available, as programs that promote employee well being. This implies that as companies

grow, their attention to employee issues evolves.

The CEO of one large business in Texas explained

We have taken that beyond work but being safe for each other. As a Hispanic-owned
company we have a diversity program as well. We really preach that safety awareness in
the minority owned businesses that we use and we've gotten awards in that area. From the
health area, we are always running some sort of program either on diet, nutrition, or taking
care of yourself.

Safety programs and/or initiatives were mentioned by four interviewees of small and large

organizations. One interviewee in Texas said

Safety on the job is a big deal for us. If you go to one of our job sites, you'll see that for
our industry we are well ahead of the curve. We require hard hats and safety vests at all
times; safety cones at the front and back of our truck at all times. We have monthly safety
meetings. The whole job stops if I go to a site and someone isn't wearing a vest or hard
hat. We have safety kits in trucks and fire extinguishers. We give cash awards for safety.

Interviewees were honest in their self assessments of measures to promote environmental

sustainability. One-third of respondents said that they do not have programs that promote

sustainability. One California interviewee said, "Your carbon footprint you mean. No it isn't part

of our program unless if you sit still long enough in this office the lights will go off." The

remaining two thirds cite some initiatives, including recycling, implementing efficient irrigation,

automating processes to reduce paper waste, and using above ground storage tanks instead of

underground storage tanks. Waste handling was cited by several owners. A Florida owner

proposed a unique perspective on waste management. He said, "From the very beginning, I put

fish in a pond because if I see the fish are dead then I will know that something is wrong. We









have worked very hard to keep the company clean." There does appear to be a concern for the

environment and measures at some level are being taken.

Ethical and Legal

The question of whether owners believe their organizations have a moral responsibility to

society once again drew clear responses. Twelve of the interviewees unequivocally said that they

believe their organizations have a responsibility to society. The perception that a large measure

of this responsibility involves ethically managing their business also emerged. The three

dissenting responses were from three individuals with differing countries of origin, each in

different states. Of these three respondents, one Florida owner said that his responsibility is only

to his employees, while a Texas owner said that he does not believe that his organization is

morally bound but that he, personally, does have a moral responsibility. Religion was repeatedly

cited in response to these questions. One California owner said "It goes back to my roots and in a

belief in God and in my community. And whenever I see something that seems questionable to

me I bring it up at the office and I'll say 'that's not cool man.' I think we have a responsibility to

uphold standards and have ethics."

While the questions about corporate accountability and reporting were designed to be two

distinct questions, respondents seem to understand and answer them better when asked as one

thought. Responses to the question about accountability was nearly equally divided, with nearly

half, or seven, respondents saying that they manage their organizations with transparency and

have open accounting systems, while six owners believe that there is little need for

accountability given that they are the owners. Each of the organizations interviewed is privately

held. Kelly (1998) said in those cases of private ownership, corporate giving emulates individual

giving. The balance of responses tilted slightly in terms of corporate reporting, with the majority,

or eight interviewees) stating that they do not report. Certain business sectors, including the









financial sector and those businesses adhering to ISO standards, said that they conduct regular

industry mandated reporting. In fact, three of the four businesses citing specific reporting

referenced regulatory compliance as a motivating factor. They report because they must.

Financial Implications

Personal satisfaction and positive organizational image were most often cited as the key

benefits to promoting CSR. Owners believe that the sense of giving back, helping the

community, and effecting positive change results from giving. Parallel to that belief is one that a

great deal of goodwill with the community and clients is generated by giving and participating.

Several owners mentioned potential reciprocity. One Texas owner said

I can't say that in the private sector it brings you business because it does not. In the end
you can give as much as you want and it really doesn't. In the public sector it may. The
city and county are pretty fond of us. I can't say that it factors in the selection process but
it might.

Another Texas business owner said that they had been awarded work after providing pro bono

services but that it was not the initial motivator for offering the services.

Three individuals believe that the name recognition created is an invaluable benefit. Most

of the respondents did not name a negative attribute to participating, other than three

interviewees who said that having too many requests and limited funds to distribute is a negative.

Only one owner expressed distrust of organization's ability to manage money; he also said that

he did not financially support organizations.

Stakeholder Relationships

The questions concerning stakeholders were the most difficult for interviewees to answer.

Many said that they had never thought about that question. Relationships with consumers or

clients and employees were cited by all interviewees as the most important relationships to their

companies. Eight owners believe that employees are the most important stakeholders while









seven believe that it is their clients. Those mentioning stakeholders often referred to their

organizations as having a family atmosphere. Interestingly, each of the eight that most value

employees indicated at some point in the interview that they give in some way to their

employees, including the Florida respondent who generally prefers not to give. Three

interviewees also mentioned employee's families as important stakeholders, behind employees

and clients.









CHAPTER 5
DISCUSSION AND CONCLUSIONS

Research findings form a basis for discussion and conclusions. Interviews were coded for

the themes discussed in this section. Additional comments and findings were also noted.

Discussion

Interview Response Themes

A sense of CSR has reached Hispanic business owners. Regardless of whether owners

bring an understanding of CSR, in some way all of the interviewees support at least one of its

elements. Beyond serving clients, owners recognize their role in helping improve communities in

which they live and work. While perspectives varied among owners, several salient themes

emerged from their comments. These overarching concepts involve the following

* Impact of identity individual first, corporate philanthropist second; identification with
Hispanic shared beliefs third
* Tendency to operate within a narrow definition of CSR
* Impact of cultural values
* Organizational notion of "community"
* Recognized social responsibility
* Connection between stakeholders and CSR

Impact of identity

Business owners represented themselves as individuals first, whose personal values drive

them to help others. This confirms that, as noted in Kelly (1998), in those cases of private

ownership, corporate giving emulates individual giving. While these owners believe that their

organizations have a social responsibility, they believe that these stem from their individual

beliefs not from social pressures to give. Further, the responsibility of their organizations is very

closely linked to them as individuals. One Florida owner said

My husband and I are at an age where we feel like we need to give back. We keep getting
and getting and feel like we need to give back. It is important for me personally.









There appears to be little separation between the two or a distinction on some level of the

corporate aspect of responsibility. These business owners also showed that they exert command

and control over all such activities. Even those with marketing and public relations staff

mentioned that they receive calls for support and are ultimately responsible for deciding which

programs or organizations to support. There appeared to be little delegation of decision making

in this area. Further, their personal interest (sometimes family related) influence the human

service organizations selected. Interestingly, none of those interviewed cited their own families

as important stakeholders but as factors that influence their corporate philanthropy. This

contradicts Stakeholder Theory.

Hispanic's strong shared sense of identity forms the basis for the sense of community. The

shared beliefs identified by Chong and Baez (2005) were often noted by interviewees, including

reference to family, religion, collectivism, and importance of personal connection and trust.

Family, the core of the Hispanic social system, was mentioned by all 15 interviewees during the

interviews. Many interviewees describe the support of their families as primary reasons for their

success and desire to participate in philanthropy and note that their sibling or children work with

them in their businesses. The lines between family and community become blurred in many of

these businesses. Family is integrated into the work community and also the work community

becomes part of an extended family. In this environment, running the business takes on an

additional dynamic.

Narrow perspective of corporate social responsibility

While most interviewees provided a basic description of corporate responsibility, each one

described it as providing support for human services. When specifically asked about other

elements of CSR, several of the interviewees explained policies and/or programs but generally

the understanding that social responsibility extends beyond philanthropy was initially absent.









There is a strong connection, however, between the sense of commitment to the community and

actual support for causes. Further, the owners of larger businesses had more formal philanthropy

programs. Two interviewees, in fact, had established and fund foundations. While the size of the

organization related to whether there were formal programs in place, even smaller corporations

seemed to support community causes, with 13 of 15 interviewees confirming financial support.

The two non-giving interviewees said that they financially support employees.

Cultural influence on support

While responses to the question about the Hispanic cultural influence on giving were

divided, those that said that it did not affect giving often later mentioned that they support

elements traditionally valued in Hispanic culture, such as family and religion. In hindsight, this

question should have provided more of an explanation or examples of potential cultural

influence. In instances where I followed up those responses by asking if they considered those to

be more important within a Hispanic context, interviewees unanimously said yes. Therefore,

while it may not be a conscious influence, Hispanic tradition does factor into CSR activities,

particularly giving. We know from research on individual Hispanic giving that philanthropy has

been a cultural phenomenon for more than 500 years, and this research confirms that individual

cultural aspects influence corporate behavior.

There was a connection between actual organizational giving and causes of known cultural

relatedness. This confirms that much of the research conducted on individual Hispanic

philanthropy transfers within a corporate setting among Hispanic business owners. For instance,

there was a strong occurrence of informal noninstitutionall) giving even among those who do not

support any other form of philanthropy. Owners were distinctly selective, another descriptor for

individual Hispanic giving according to Abbe (2000), and give primarily to religious

organizations, education and family causes including the elderly, and personal contacts. The









sense of connection that Rivas-Vazquez (1999) mention was important to interviewees, many of

whom recalled how their own histories impact their giving motivation.

Perceptions of the organization as a community

Hispanic business owners perceive their employees and their work environment as a

community an immediate, interdependent, closed social system. Some used the term "family"

to describe an atmosphere where employees, owners, and management care about one another.

Others described their working environments as collaborative and interconnected and implied

that there is a strong sense of community in their companies. In a sense, then, their companies

are communities within communities. The traditional association, then, that Hispanics have with

their community is transferred into a business setting.

Recognized social responsibility

Hispanic business owners overwhelmingly recognized their role in terms of community

development. Three primary themes describe their beliefs: the notion that Hispanic owned

businesses have a responsibility to give back to improve living conditions and create future

opportunity; the idea that support involves more than giving capital and includes giving time

through volunteering; and concept that serving clients is an integral part of their social mandate.

Connection between stakeholders and corporate social responsibility

The context of CSR in this study emerged as mostly involving philanthropy. The

connection between the primary publics and corporate giving was inconsistently present. More

often, unmentioned stakeholders, such as family, were cited as influences, instead of those

publics mentioned in the stakeholder questions. Interestingly, the families of business owners

were never mentioned as stakeholders by the interviewees. It should be noted that the question

that asked about the organizations most important relationships elicited what Maignan et al.

(1999) would likely order as first order stakeholders that are directly involved with the









company's activities. Further questioning would have been necessary to enumerate secondary

stakeholders, so that a disconnect between may emerge depending on how the interviewees

interpret the questions. This study is meant to be a benchmark. Further study in this area would

clarify this issue.

Certainly, the notion that organizations are bound by the expectations of the stakeholder

public emerged during the interviews as did the self-interest aspect of stakeholder theory. A

Californian business owner said that his clients have come to expect his support for the

community and that it is a big reason why they do it. One Texan owner also said that much of

their support is self-motivated, as they are trying to increase available skilled labor for their

industry. Clients were often mentioned as primary stakeholders and direct mention of their

influence on corporate philanthropy was also often noted. In this context, stakeholder theory

applies to this business demographic. Among other interviewees, however, the connection was

tenuous, if existing.

Employees were also cited as primary stakeholders and many owners emphasized support

for their staff. One owner in Florida and another in Texas said that their businesses' success is

limited only by their ability to hire more staff, noting that they could bring in more work if they

had more staff. Employees are their most valuable commodities. Likewise, much of the support

that they mentioned related to support for employees. One Floridian owner pays for the cost of

gym membership while a Californian owner allows employees to set their own work schedule.

Stakeholder theory contends that corporations are responsible to stakeholders instead of

society at large (Maignan & Ralston, 2002). Many of the interviewees believe that their

organizations have a broad responsibility to their community. Owners of specialized service

companies (i.e., wholesalers) have little business connection with the local economy but









mentioned the importance of supporting programs for women and children in their communities.

The link between corporate philanthropy and community is very strong.

Responses to Research Questions

Three research questions framed this study. Responses to each of these follow.

RQ1: What CSR elements do U.S.-based Hispanic-owned businesses support? Hispanic-

owned businesses support corporate philanthropy and participation in volunteer activities.

Philanthropy was most widely associated with CSR. Most owners (14 of 15) provide financial

and in-kind support to organizations. Support for environmental stewardship and ethical and

legal elements were also noted but with a lesser degree of frequency.

RQ2: What are the perceptions of U.S. Hispanic business owners vis-a-vis the application

and implications of CSR in their businesses, and how do these perceptions impact corporate

policy? The perception among business owners interviewed is that CSR nearly exclusively

involves corporate giving. When asked questions about the other elements, however, certainly

many interviewees mentioned supporting other elements. Most companies do not have formal

policies established, other than those industries that are legally required to disclose

environmental or financial compliance. All giving is authorized by the owners, with some

delegation to public relations and marketing personnel. Certain policies, for instance involving

paid volunteer time, have been developed. While several elements of CSR may be implemented

by companies, owners do not necessarily relate this to the commonly understood notion of CSR.

They may be doing it but they are not calling it so. Further, company size is not an indicator of

support for CSR initiatives. Smaller companies often showed greater support than larger ones.

RQ3: To what extent does the U.S. Hispanic business model promote building

relationships with stakeholders and adopting CSR measures?









The U.S. Hispanic businesses interviewed are committed to giving back to their

communities. The cultural value of community translates to a corporate setting. Relationships

with the community, an implicit stakeholder, are important to business owners. There seems to

be a dual commitment to the community at large and to clients and employees. Whether there is

an awareness of CSR, Hispanic businesses are adopting socially responsible measures.

Limitations and Future Research

An implicit limitation is the process of using interviews as a research method, in particular

because of the influence of the interviewer and possible variance in interview style and manner

of asking questions. The location of the samples selected is a limitation to this study. While

CEOs based in the three states with the highest number of Hispanics were selected, adding

owners based in other states would have resulted in a richer profile. For instance, New Mexico

has the greatest overall proportion of Hispanics to the total population. Further, the states

selected have high percentages of Hispanics from Mexico and Cuba. Adding other states with

other Hispanic populations (e.g., Puerto Ricans in New York) would increase the diversity of the

sample. Given the dearth of specialized research involving Hispanic businesses and their growth,

many opportunities exist in this area. All of the CEOs interviewed expressed great interest in the

research results and interest in providing more assistance. Longitudinal studies of these

businesses from a communications, CSR, or public relations perspective may highlight the

transition and integration of US cultural and business norms with their own Hispanic ones

(noting the degree of business acculturation).

Conclusions

Hispanic Business in a Social Context

This initial qualitative study provides a basis for understanding Hispanic business owner's

perspectives on CSR and offers answers to fundamental research questions. It also provides a









foundation for future Hispanic business research involving CSR and models for giving and

volunteering. There appears to be a clear link between Hispanic cultural values and the direction

and support for human services. CSR is perceived within a limited construct as "giving back,"

whether financially or in-kind through time or services. Clearly both the US business constructs,

such as formal giving, and cultural identifiers, role of family and community, are present in

corporate policies. There is a connection between actual organizational giving and causes of

known cultural relatedness. This confirms that much of the research conducted on individual

Hispanic philanthropy transfers within a corporate setting among Hispanic business owners.

Implications for Practice and Education in Public Relations

Public relations practitioners should understand that Hispanics as business owners tend to

show the same cultural characteristics and philanthropic behavior as Hispanic individuals. For

this reason, campaigns with Hispanics as target publics should consider cultural values and

incorporate tactics that recognize their implications. Further, methods of outreach and

communication should recognize traditional issues of hierarchy and trust.

Charitable organizations should know that Hispanic-owned businesses are committed to

supporting human services and are known contributors. They sponsor volunteerism and actively

promote and financially support community development. Their beliefs in giving are firmly

grounded in their culture and their support for communities is at the core of these beliefs. Efforts

should be made to communicate directly with this sector, recognizing, of course, that informal

giving is universally accepted by Hispanics and issues of transparency and impact will be

important to highlight given issues of personal trust and connection in giving.









APPENDIX A
INTERVIEW QUESTIONS

Company Name Location
Industry
Years in business
Number of employees 2005 (or 2006) Revenue
Nationality of owner Public/Privately Held

Before talking about Corporate Social Responsibility in your company, could you tell me briefly
about your role and responsibilities, and how you came to be in this position?

General Corporate Social Responsibility

Q1: Are you familiar with the term corporate social responsibility (CSR)?

Q1.1 If yes, what does it mean to you?

Q1.2 If not provided in the answer, ask what does CSR encompass for your company?

Q1.3 If respondent asks for examples or for clarification, mention the areas of
community relations, environment, employee relations, governance and accountability,
reporting, supplier relations.

Q.1.4 If no, explain that CSR encompasses several key areas including those mentioned
in Q.1.3. Reask interviewee if the company supports any of these areas.

Q2: What do you perceive as your organization's responsibility to society and
community?

Q3: Do you believe Hispanic businesses share equal, lesser, or greater social
responsibility as non-Hispanic businesses? Please explain.

Q4: Do you believe your Hispanic culture affects your company's support for social
programs? If so, explain the aspects of the Hispanic culture and their effects.

Q5: What are your beliefs about informal giving? Do you give informally? If needed,
provide the following definition of "informal giving." Now I'm going to ask about
Corporate Philanthropy.

Q6: Does your company financially support community activities?

Q6.1 If yes, explain how corporate giving works?









* Q6.2 How much did your organization give and to whom?

* Q7: Does your company give products (or do pro bono work)?

* Q8: Do you encourage employees to volunteer?

* Q8.1 If yes, explain what types of volunteerism and why?

* Q8.2 If yes, is the volunteering conducted on company or personal time?

Environmental Stewardship

* Q9: What policies or programs does your company support that promote employee
wellbeing (safety, diversity, training, etc.)? Please explain.

* Q10: How does your company promote sustainability (i.e., do you encourage
environmental responsibility in the workplace, etc.)?

Ethical and Legal

* Q1l: Do you believe your organization has a moral responsibility to your community?.

* Q12: What measures for corporate accountability have been integrated into your
organization?

* Q13: What type(s) of corporate reporting are regularly conducted?

Financial

* Q14: From a financial perspective, what are the key benefits and negative aspects
involved in supporting community social programs, promoting environmentally
conscious initiatives, and displaying ethical behavior?

* Q14.1 Which of these factors is most important to you? Please explain.

Stakeholder Theory Questions

* Q15: Who are your most important stakeholders (the most important relationships for
your company)?

* Q16: How would you rank them in order of importance and why?

Closing

* Q17: Is there anything else about the company and CSR that you would like to include
and that my questions did not address?









APPENDIX B
MATRIX OF INTERVIEWEES

Table B-1. Industry representation, locations, and nationalities
Interviewee Industry State Hispanic Link

TX1 Automotive Texas Mexico

TX2 Services (Computer/Networking) Texas Mexico

TX3 Construction Texas Mexico

TX4 Services (Engineering) Texas Mexico
TX5 Services (Landscaping) Texas Mexico
CA1 Financial Services California Mexico

CA2 Financial Services California Mexico

CA3 Construction California Colombia

CA4 Wholesale (Telecom distributor) California Mexico

CA5 Services (Public California Spain
Relations/Communications)
FL1 Construction Florida Venezuela
FL2 Construction Florida Ecuador

FL3 Services (Computer/Software) Florida Cuba
FL4 Wholesale (Electrical Equipment) Florida Cuba

FL5 Services (Laboratory) Florida Cuba









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BIOGRAPHICAL SKETCH

Leticia Solaun has worked in consulting for the past 15 years. From 1992 to 1997, she

was a contractor with the U.S. Agency for International Development of the Department of State

working internationally and managing Indefinite Quantity Contracts involving environmental

and natural resource management projects throughout Latin America, the Caribbean, the Middle

East, and Africa. Since 1997, she has worked with CH2MHILL, Inc., an engineering and

planning firm, based in Denver, Colorado. Her work includes proposal management,

development of stakeholder engagement and public relations programs, evaluating social and

economic impacts of develpoment, technical writing and editing, and translation. She has been

involved in a number of international environmental, social, and health impact assessments,

serving as the lead social impact assessor and stakeholder engagement consultant.

She has worked extensively in north Africa and the Middle East. In 2005, she completed

a large social impact assessment for Royal Dutch Shell in Qatar in anticipation of the

construction of the largest onshore and offshore liquefied natural gas facility in the world. She

designed and implemented the first social survey conducted in the country and developed a series

of innovative impact mitigation measures for the program. This social impact assessment was

regarded as the most comprehensive in the country's history and easily passed through the

legislature despite several controversial issues. Recently, she developed five social impacts

assessments and stakeholder consultation programs in Algeria for various multinational oil and

gas producers. These assessments complied with IFC standards and Equator Principle protocols

for impact assessment and meaningful consultation. Leticia holds a bachelor's degree in Spanish,

with an area concentration in Arabic, and a master's degree in mass communication, specializing

in public relations.





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1 CORPORATE SOCIAL RESPONSIBILITY IN U.S. HISPANIC BUSINESSES:AN ANALYSIS OF LEVELS OF PARTICIPATION AND SUPPORT By LETICIA M. SOLAUN A THESIS PRESENTED TO THE GRADUATE SCHOOL OF THE UNIVERSITY OF FLOR IDA IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF MASTER OF ARTS IN MASS COMMUNICATION UNIVERSITY OF FLORIDA 2007

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2 Leticia M. Solaun

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3 ACKNOWLEDGMENTS I wish to express my sincere gratitude to Dr. Juan-Carlos Molleda, my thesis chair, and Dr. Kathleen Kelly and Dr. Jennifer Robinson, supervisory committee members, for serving on this committee and providing valuable insight, mentoring, and support in the design and implementation of this research. Their thoughtful i nput distinctly improved th e research process. I would also like to thank each of the Hispanic CEOs who participated in the interviews. Their enthusiasm, willingness to participate, and time dedicated to the discussions reflects their commitment to community, to business research, and to the leadership roles they occupy. Their honesty and sincerity contributed to the richness of the results. I am sincerely grateful to CH2MHILL for f unding my coursework and to colleagues who tirelessly supported me during this process, specifically Karen Smittle, Carla Bare, Lorraine Jameson, and Sara Vivas. Without the love and support of friends a nd family, much of lifes accomplishments are simply impossible. Thanks to my partner, Paul a Patterson, for her unfailing patience, love, and clinical excellence, and to my pa rents, Felix and Hilda Solan, th e first Hispanic business owners in my life, for their continued encouragement and for the lifelong lessons in the spirit, value, and importance of philanthropy. Cherished friends, Anto inette Jackson, Jeannie Cisneros, Ali DePaz, and Stephanie Becker, provided academic and pe rsonal support likely far and away beyond their call to duty as friends. I am grateful to each of them for the assistance they so liberally extended to me. Finally, I will be eternally grateful for the lessons of love, hope, strength, and presence taught to me by a friend, Tracy Ann Banks. I share this masters degree with her and dedicate this thesis to her memory.

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4 TABLE OF CONTENTS page ACKNOWLEDGMENTS...............................................................................................................3 LIST OF TABLES................................................................................................................. ..........6 ABSTRACT....................................................................................................................... ..............7 CHAPTER 1 PURPOSE OF THE STUDY....................................................................................................8 Gaps in Research............................................................................................................... .......8 Relevance to Practitioners..................................................................................................... ...9 Study Objective................................................................................................................ ........9 2 LITERATURE REVIEW.......................................................................................................11 The U.S. Latino/Hispanic Community...................................................................................11 Current Status................................................................................................................. .12 Identity and Beliefs..........................................................................................................13 Perspectives of Philanthropy...........................................................................................13 Giving practices...............................................................................................................14 Key attributes and motivators..........................................................................................14 Corporate Social Responsibility.............................................................................................16 Overview....................................................................................................................... ..16 Elements of Corporate Social Responsibility..................................................................19 Corporate volunteer programs..................................................................................19 Employee programs..................................................................................................20 Environmental programs..........................................................................................21 Ethical codes............................................................................................................21 Corporate Social Responsibi lity in Latin America..........................................................22 US Minority Business Corporate So cial Responsibility Research..................................25 Black-owned business studies..................................................................................26 Hispanic business research.......................................................................................26 Theoretical Framework.......................................................................................................... .27 3 METHODOLOGY.................................................................................................................30 Basis for Research Method Selection.....................................................................................30 Interview Research Methodology...........................................................................................30 Formulating the Research Question................................................................................31 Categories of Questions...................................................................................................31 Selected Sample, Locations, and Procedure....................................................................32 Method of Analysis and Verification..............................................................................33

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5 4 FINDINGS....................................................................................................................... .......35 General Corporate Social Responsibility................................................................................35 Environmental Stewardship....................................................................................................39 Ethical and Legal.............................................................................................................. ......41 Financial Implications......................................................................................................... ...42 Stakeholder Relationships......................................................................................................42 5 DISCUSSION AND CONCLUSIONS..................................................................................44 Discussion..................................................................................................................... ..........44 Interview Response Themes............................................................................................44 Impact of identity.....................................................................................................44 Narrow perspective of corpor ate social responsibility.............................................45 Cultural influence on support...................................................................................46 Perceptions of the orga nization as a community......................................................47 Recognized social responsibility..............................................................................47 Connection between stakeholders and corporate social responsibility....................47 Responses to Research Questions...................................................................................49 Limitations and Future Research.....................................................................................50 Conclusions.................................................................................................................... .........50 Hispanic Business in a Social Context............................................................................50 Implications for Practice and E ducation in Public Relations..........................................51 APPENDIX A INTERVIEW QUESTIONS...................................................................................................52 B MATRIX OF INTERVIEWEES............................................................................................54 LIST OF REFERENCES............................................................................................................. ..55 BIOGRAPHICAL SKETCH.........................................................................................................64

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6 LIST OF TABLES Table page B-1 Industry representation, lo cations, and nationalities..........................................................54

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1 Abstract of Thesis Presen ted to the Graduate School of the University of Florida in Partial Fulfillment of the Requirements for the Degree of Mast er of Arts in Mass Communication CORPORATE SOCIAL RESPONSIBILITY IN U.S. HISPANIC BUSINESSES: AN ANALYSIS OF LEVELS OF PARTICIPATION AND SUPPORT By Leticia M. Solaun August 2007 Chair: Juan-Carlos Molleda Major: Mass Communication The Hispanic-owned business demographic is a burgeoning component of the business sector. As the business class cont inues to increase likewise does the relevance and importance of conducting research to better unders tand their characteristics and be havior. This study explores one undocumented area of this demographic, sp ecifically its percep tions, attitudes, and participation in corporate social responsibility (CSR). Within this analysis, several factors are evaluated including: the extent to which thes e businesses incorporate a framework for CSR, whether the organizations communi cate the core values of social responsibility with key publics using a U.S. model of giving as a basis; the notion of CSR from a cu ltural perspective, and whether these organizations build relationships w ith stakeholders through socially responsible initiatives. Fifteen in-depth interviews were cond ucted with Hispanic business owners in Florida, Texas, and California. The results of these in terviews indicate that, among other factors, Hispanic business owners generally unders tand the term CSR, support philanthropy and employee volunteerism, and estab lish a link between their support and relationship building with stakeholders.

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8 CHAPTER 1 PURPOSE OF THE STUDY The Latino/Hispanic community is composed of persons from more than 20 countries in Latin America and the Caribbean. This community comprises the largest minority in the United States and approximately 14.9% of the total population, or 44.7 million people. (From 200, 2006). In accordance with the burgeoning Hisp anic population, the emergence of Hispanicowned businesses is also notable. In 2004, 2 milli on Hispanic-owned businesses were reported in the United States, and that number is expected to increase to more than 3.2 million by 2010 (HispanTelligence, 2004). Given th is rate of growth, the busine ss and social impact of this demographic will be formidable. While it is essential to understand business m odels and drivers for Hispanic businesses, recognizing the social dimension in business and th e existence or failure of Hispanic businesses to build relationships with stakeholders through Corporate Social Responsibility (CSR) is also critical. Specifically, it will be important to kno w the social behavior of these organizations and how they integrate within the established syst ems or contribute a new dimension to current interpretations of CSR. As the Hispanic population continue s to grow, likewise does the relevance and importance of addressing Hispanic i ssues at every level. This study explores one aspect of the Hispanic community, specifically the business interest and part icipation in socially responsible initiatives. Gaps in Research Although there is a well formulat ed organizational and market understanding of Hispanic businesses in the United States (Medina, 2006; Palmaffy, 1998) and likewise thoroughly researched recognition of the occurrence of CSR in U.S. corporate culture and its relationship building function between an organization and its publics (David, Klin e, & Dai, 2005; Hall,

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9 2006;Yoon, Gurhan-Canli, & Schwarz, 2006), there is a dearth of research addressing the incidence of intersection between them. There are, however, no definitive studies describing Hispanic business owner and management beliefs and participation in CSR. Relevance to Practitioners The growth of this sector will undoubtedly promote interest in serving these potential clients among public relations a nd communication practit ioners in the pr ivate and nonprofit sectors. For this reason, within a communication context, it will be essential for public relations practitioners to understand Hi spanic businesses beyond the cu rrently understood notions of culture in order to serve and reach this public. Given the continued growth of the sector, this analysis is well timed to provide necessary insi ghts into one dimension of corporate behavior. With this understanding, practitioners will be poised to counsel clients effectively while recognizing motivations and underlying (cultu rally induced) desires and objectives. Study Objective This study explores one undocumented area of this burgeoning business demographic, specifically its percep tions, attitudes, and partic ipation in corpor ate social respons ibility (CSR). It describes one element of the Hispanic business perspective, assesses the extent to which these businesses incorporate a framework for CSR, and evaluates whether they communicate core values of social responsibility with key publics using a U.S. model of giving as a basis. This study will also explore the notion of CSR fr om a cultural pe rspective and whether these organizations build relationships with stakeholde rs through socially respon sible initiatives. In particular, the social behavior of these organi zations has and will either integrate within the established systems or contribute a new dimensi on to current interpretations of CSR. For the purpose of this study, philanthropy is the orga nization, methods, and principles of voluntary actions for public purposes. (Payton, 1988, p. 260).

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10 In addition to serving as a foundation for furt her research involving U.S. based Hispanic businesses, this study will contribute to ongoing research that explore the Latin American business within cultural, and economic constructs These results will also confirm or reject specific nationalistic character istics involving social res ponsibility in the region.

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11 CHAPTER 2 LITERATURE REVIEW This study of levels of participation in CSR initiatives among U.S. Hispanic-owned businesses demands a comprehensive understanding of specific social, cultural, business, and public relations research conducted to date. While the implications of research in each of these areas are individually significant, insight into the landscape derived from the combination of factors is central to this study. To this end, this literature review provides A comprehensive understanding of the current Hispanic demographic A broad understanding of elements of Hispanic social identity and i ndividual and corporate beliefs and practices co ncerning philanthropy An explanation of the component s and criteria used to gauge responsible corporate social responsibility A theoretical framework under which to conduct this study An overview of these issues follo ws. Further, the term client is used throughout this document to indicate business to business and consumer pub lics served by the businesses interviewed. The U.S. Latino/Hispanic Community The U.S. Latino/Hispanic community is composed of persons from more than 20 countries in Latin America and the Caribbean, each with dis tinct cultural, social, and political traditions. These variations contribute to a demographic that is complicated to define beyond the common understanding that has evolved. The community is a group that is e ffectively bicultu ral, in other words aligned to elements of the U.S. cultural na rrative and their original cultural identity. While the Hispanic identity includes several common social and cultural li nks, including a tendency towards vertical collectivism (i.e., high power dist ance or deference to/for authority [Trinadis, 2002]) and shared geographic asso ciation. Snchez and Zamora (1999) believe that the diverse realities, specifically circu mstances and experiences represented by individual nationalities

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12 present a leading obstacle to social advancem ent (p. 211). Recognizing th e factors of likeness and dissimilarity among Hispanics is integral to this study, given its po tential implication in business and philanthropy. Current Status Hispanics comprised the largest minority in the United States and approximately 14.9% of the total population, or 44.7 million people in 20 05 (From 200, 2006). A majority of Hispanics (60%) were born in the United Stat es with the remaining 40% forei gn born (Statistical portrait, 2005). This statistic implies that, as natives of countries in Latin America, the Caribbean, or Spain, 40% of Hispanics living in the Unite d States bring cultural understandings and perceptions external to traditional U.S. norms. According to the Pew Hispanic Centers Stat istical Portrait of Hispanics at Mid-decade (2005), the greatest numbers of Hi spanics are Mexican or of Me xican descent (63.9%) followed by Puerto Ricans (9.1%), Cubans (3.5%), Salvad orans (3%), and Dominicans (2.7%). The largest populations of Hispanics live in California, Texa s, Florida, New York, Illinois, Arizona, and New Jersey (Statistical portrait, 2005). These states have Hispanic populations in excess of one million. Language, specifically English-speaking abil ity, continues to be a barrier with 46% of Hispanics over 18 reporting that they speak Eng lish less than well (Stat istical port rait, 2005). Hispanic youth have the highest rates of high school dropouts in the country (Ramos & Kasper, 1999). The reported earnings of Hispanics show that 49.5% receive less than $20,000 per year and 39.2% make from $20,000 to $49,999 per year, with median earnings reported at $25,100 (Statistical portrait, 2005). The reality for the Hispanic demogr aphic involves struggle in that poverty rates hover at more than 29%, a figure that is approximately 20% higher than for nonHispanic white families (Ramos & Kaspar, 1999). These data indicate that while vast in

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13 numbers, the Hispanic community continues to struggle in mast ering the dominant language and achieving higher education. Identity and Beliefs Although the Hispanic condition is characteri zed by numerous nationalities, there are common elements that link this demographic. Th ese shared beliefs center on the importance of family, religion, collectivism, warm sense of one-to-one interaction (or personalismo ), pleasant interactions (or simpata ), and honor for hierarchical positions (Chong & Baez, 2005). Family, immediate and extended, is at th e core of the Hispanic social system, representing the most valued social system for Hispanics. Howeve r religion and religious practices also hold prominence in the lives of Hispanics (Clutter & Nieto, 2004). There is a strong shared sense of identity among Hispanics, regard less of nationality, that forms the basis for the sense of community. The dominant identity and connection, how ever, is linked to the native country. The issue of multiculturalism and assi milation has been extensively studi ed, in particular with respect to Spanish language ability and cultural ad aptation (Chong & Baez, 2005; Gutirrez, 2005; Hernndez-Truyol, 1998). Studies indicate that a degree of cultu ral adaptation occurs with immigrants, creating varying levels of cultural and linguistic vari ances and beliefs from either one culture or the other or a hybrid of the two. Perspectives of Philanthropy Hispanics at the individual level give gener ously to philanthropic concerns. This giving is characterized as informal and o ccurring between networks of fam ily and friends to satisfy an immediate need (Abbe, 2000; Daz, Jaladoni, Hammill, & Koob, 2001; Rivas-Vzquez, 1999; Wagner & Deck, 1999). This type of informal giving has occupied a role in Hispanic culture for more than 500 years (Ramos, 1999). This giving es tablishes the community as a primary social and economic support structure fo r assistance. Trust and pers onal connection are essential

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14 elements in Hispanic giving (Abbe 2000). Distrusting of organizat ions, Hispanics participate in informal philanthropy based on personal relationships instead of participat ing in the U.S. model of organized philanthropy (Rivas-V zquez, 1999). For this reason, th e level of informal giving is expected to be significant. In fact, many Hispanics ar e still closely connect ed to family and friends from their native countries, and remittances to these persons is ofte n the principal area for giving (Anft, 2002; Pardoe, 2006). The National Counc il of La Raza estimated that remittances in 2004 totaled $45.8 billion (Reforming the, 2005) Formal giving is also common to Hispanics with nearly 63% of Hispanic househol ds contributed formally to charities in 1998 (Daz et al., 2001). In terms of the culturally attributable prefer ences for giving, Hispanic s tend to focus on the group or community and not discuss negative aspect s of life. However, U.S. citizens prefer to emphasize the individual and discuss both positive a nd negative issues. Further, benefits such as tax deduction are generally not perceived as bene fits of giving for this demographic (Abbe, 2000; Rivas-Vzquez, 1999) and support for so cial betterment is a motivating factor. Giving practices Philanthropy is well integrated into the Hi spanic culture (Arrom, 2005; Peinado-Vara, 2006; Sanborn, 2005), dating back more than 500 year s. The tradition of giving is implicit in Hispanic culture, with customs varying by c ountry. A common cultura l theme is that of reciprocity and communities caring for themselv es (Sanborn, 2005). Religion has served an important role in promoting philanthropy, given the dominance of the Roman Catholic Church since colonization (Arrom, 2005; Logsdon, Thomas, & van Buren, 2006; Sanborn, 2005). Key attributes and motivators Critical elements of this study involve the cultu ral, historical, and religious implications affecting Hispanic social responsibility. Cultural attributes stored in th e communitys collective

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15 unconscious drive Hispanic giving in ways that differentiate the giving preferences of this demographic from other racial groups. To this end, if a U.S. Hispanic model for giving and volunteering were to be develope d, it would be characterized by integrating elements discussed in research and include th e following attributes. Informal. It is recognized that support for fam ily, friends, and community generally forms a basis for giving. Hispanic giving is primar ily informal and nonins titutional, occurring principally through social networks (Abbe, 2000; Daz et al., 2001; Ri vas-Vzquez, 1999; Wagner & Deck, 1999). Hispanics pr efer giving informally as opposed to supporting organized philanthropy. Given this pattern of informal participation, Hi spanic philanthropy is largely unmeasured (Rivas-Vzquez, 1999) and occurrs extraneously to the nonprofit sector. A 2003 study of communication outreach by community foundations to Hispanic publics in Florida found that each of the organizati ons surveyed did not segment th is demographic to solicit funds (Hall & Solaun, 2003). While grants and programs ma y assist Hispanics, organizations are not seeking to communicate with them, likely in part given the predispos ition of this sector to exist in an informal philanthropic setting. At the individual level this disconnect be tween organized philanthropy and Hispanic giving is known, but the prevalence to give info rmally in the business sector has not been studied. Recognizing the intrinsic nature of this variable, this study w ill explicitly consider cultural normative philanthropic be havior and its implication on Hispanic business owners in terms of level of adapta tion of CSR initiatives. Selective. Hispanics give primarily to churches, e ducation, and personal contacts (friends and family and typically for children and th e elderly) (Abbe, 2000; Diaz et al., 2001; RivasVazquez, 1999; Wagner & Deck, 1999). A sense of connectedness to the gift is important to

PAGE 16

16 Hispanics, such as support to organizations that serve their community (Rivas-Vazquez, 1999). This sense of connection is directly linked to the social characteristic of collectivism shared by Hispanics. Further, social scientists note that Hispanics tend to mainta in their ethnic identity which results in ethnic loyalty (Padilla, 2006). This loyalty explains inte rest in Hispanic causes. Interestingly, Hispanics do not consider informal giving to family or friends as philanthropy (Wagner & Deck, 1999). As a core belief, this tradition of giving is understood as innate, widely accepted, and culturally and socially expected. Personal and trust based. While Hispanics are distrusting of organizations, in general, and organized philanthropy, specifically, a sense of connection to the person requesting the assistance or funding and trust is essential to Hispanic giving. The importance of the personal contact cannot be overstated. The petitioner is more important to the potential Hispanic donor than the institution to which the funds will be appropriated (Abbe, 2000; Ramos, 2000; RivasVzquez, 1999). Specifically, the sincerity of the person asking directly influences giving. Further, there must be trust for the person asking and this trust is based on an immediate personal connection (Wagner & Deck, 1999). Corporate Social Responsibility The U.S. corporate social responsibility la ndscape and its relations hip building function has been well documented (David, Kline, & Dai, 2005; Hall, 2006; Yoon, Gurhan-Canli, & Schwarz, 2006). An overview of CSR, its elem ents, and the Latin American and minority perspectives on the subject follows. Overview CSR, defined by Carroll (1979), is the total economic and social responsibility (including regulatory and legal, moral, and philanthropic) of an organization, has become widely known and accepted as an integral component of the corporate landscape. Since the 1950s, corporate

PAGE 17

17 philanthropy or corporate giving has become a de facto element of U.S. business operations. In fact, a study by KPMG Internationa l found that 52% of the world's 250 largest corporations filed separate reports on corporate re sponsibility in 2005 (Byrnes, 2005). Companies are now often evaluated in terms of their commitment to philanthropy (CRM, 2006) specifically local organizations (Wilson, 2005). Consumers expect it. There are social demands on companies to return their profits and invest in society (Daugherty, 2001). Fo r this reason, organizations strategically align phila nthropic programs with their busine ss objectives (Epstein, 2005; Saiia, Carroll, & Buchholtz, 2003; Kelly, 1991), often creating alliances with nonprofits (Austin, 2003). The most successful programs align these objectives to community needs (Bianchi, 2006). Supporting charitable causes has become an in tegral component of doing business (Himmelstein, 1997). In integrating CSR into business systems and staying true to its fr amework, organizations fulfill an implicit cultural and social imperative of giving back while capitalizing on a variety of complementary benefits. These may incl ude enhanced busine ss performance through increased sales, improved employee retention, and stronger customer allegiance along with enhanced corporate image a nd reputation (Verschoor, 2006a; Wilson, 2005). Studies confirm that these and other tangible organizational benefits are derived from implementing CSR programs (Cone, 2002; Dowling, 2006). Burlingame and Young (1996) believe, in fact, that the social and economic elements are inextricably linked (p. xiii). Certai nly, an organizations support and commitment to social programs resonates favorably with consumers and becomes a missionand value-driven strategic component in corporate planning. Moreover, given an increasingly visible social mandate, the busin ess and consumer envir onments are asserting pressure on organizations to behave as positiv e corporate role models. The call is to support

PAGE 18

18 efforts that promote diversity, sustain social and community values, and encourage social progress. Early CSR and public relations studies showed that experiment pa rticipants responded most positively when exposed to socially re sponsible messages about a company (Reeves & Ferguson, 1980). More recent studies indicate that 75% of study respondents consider a corporations social record when deciding whethe r or not to purchase its product or service and that more than three in four noted that they had selected companies based on corporate social performance (Saiia et al., 2003). A 2005 study of 350 chief executive officers co ncluded that business motivators are perceived as the leading benefits to or ganizational philanthropy (Preston, 2005). These motivators include attracting employees, estab lishing contacts with business colleagues, contributing to new contracts, and positive percep tion from clients. Epstein (2005) believes that showing support builds brand loyalty and that corporate philanthropy is equal parts business strategy and giving. In an increasingly competitiv e market, the ability of philanthropic programs to differentiate companies from competitors is another critical factor (Epstein, 2005). U.S. citizens are most influenced by the cause the company promotes (42%) and employee volunteer time (31%) (Hamby, 1999). U.S. citizens al so prioritize a wide disbursal of charitable dollars to have the most effect on a wide range of issues and develop a more positive opinion on companies who give to charities to help impr ove education (30%), programs supporting health and wellbeing (21%), and environmental cau ses (10%) (Hamby, 1999). A 2002 Cone Corporate Citizenship Study noted that 91% of 1,040 consumers surveyed would contemplate changing brands if they became aware of an organizatio ns corporate misdeeds. There are, therefore, financial motivators for contributing to social issues. van Buren (1995) believes that an

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19 organizations profitability is reli ant on CSR and that organizations are financially responsible when engaging in programs that benefit comm unities (pp. 5152). Beyond the social imperative, then, corporate responsibility has bottom-line implications. Elements of Corporate Social Responsibility CSR encompasses a comprehensive set of po licies or initiatives, including corporate philanthropy, environmental sustainability, and or ganizational policies bene fiting internal (i.e., employees) and external (i.e., social and econom ic factors) stakeholders, among others. There has been significant academic research in the area of corporate philant hropy, including businessrelated studies conducted by Carroll (1979; 1991; 1999); Buchholtz, Amason, and Rutherford (1999); Burke, Logsdon, Michtell, Reiner, and V ogel (1986); and Saiia, Carroll, and Buchholtz (2003). Public relations studies addressed CSR have been conducted by Daugherty (2001); Esrock and Leighty (1998; 1999; 2000); Fergus on, Popescu, and Collins (2006); Grunig (1979); and Lerbinger (1965; 1975), among others. Carroll (1979) attempted to provide a comprehensive model of social responsibility, s uggesting that there ar e four groupings, specifi cally those that are economic, involve legal and/or regulatory issues, ethical elements, and discretionary responsibilities involved in the model. Later Carroll (1991) w ould clarify that the discretionary element of the model referred to philanthropy. His m odel links shareholders to the four areas. A corporations CSR program may be comprised of several essential elements tailored to satisfying internal and external stakeholders. A discussion of several primary elements of CSR assessed as part of this thesis follow. Corporate volunteer programs Corporate volunteer programs are creating a new synergy between business and social systems. Corporations who have heavily e ngaged in CSR programs have been able to considerably re-strengthen a weakened corporatio ns reputation (Byrnes, 2005). In addition, free

PAGE 20

20 labor is replacing dollars as companies are now allowing employees to use paid work time to volunteer. Research is also demonstrating the effectiveness of expandi ng corporate volunteer programs, even showing increased rates of productivity (Korngold & Hosler-Voudouris, 1996) and a relationship between employee retention and recruiting and eff ective volunteer programs (Byrnes, 2005). Companies with successful vol unteer programs seem to share several common elements; these programs specifically allow employ ees to select the orga nizations they support, they direct the programs, and the company vi sibly promotes the volunteerism (Yankey, 1996). Research in the area of co rporate volunteer programs also continues to evolve. New research has shown that cor porate volunteer programs must be measured based on the effectiveness of the program, not simply th e number of participants (The marriage, 2006). These programs will likely continue to be seen as an indicator of CSR, given the increased attention and now meas urable outcomes. Employee programs A corporations fair and positive treatment of employees comprises a critical element of CSR. The component includes specific policies a nd procedures that support employee wellbeing. For instance, an organization may establish and routinely evaluate on-site health policies to protect workers from injury or perhaps lend fi nancial support for employ ee physical fitness or weight loss programs. Demonstrating commit ment to employees reflects favorably on organizations from a CSR perspective and corpor ations in other ways. For instance, employee satisfaction with an employer will increase retent ion rates. This will also result in increased pride, improved employee commitment to the office environment, and improved environmental and social stewardship (Maignan, Ferrell, & Hult, 1999). The return on investment is demonstrable and may lead to more stable, c onsistent management buy-in given the financial benefits.

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21 A recent survey of U.S. business executiv es conducted by the Center for Corporate Citizenship, the U.S. Chamber of Commerce Cent er for Corporate Citizenship, and the Hitachi Foundation confirmed that corporate leaders rec ognize the importance of connecting with this key organizational stakeholder. The survey f ound that executives are strongly motivated to support and promote CSR efforts mostly by thei r employees and, likewise, responded that 98% of their employees value these activities (The state of, 2005). Environmental programs Environmental protection and sustainability comprise integral elements of CSR. Demonstrating organizational res ponsibility in terms of protec ting natural resources and the environment is an essential element in a CSR portfolio. Beyond regulatory compliance, corporations foster sustainabil ity initiatives in a variety of ways including supporting internal programs involving recycling, carpooling, reduced pa per use, and energy efficiency activities that promote sustainability. There is a notable disparity in regula tions outside of the U.S. Given the often inexistent or meager natural resource and environmental legisla tion and regulations at an international level, the In ternational Finance Corporation (IFC) of the World Bank Group developed mandatory (environmental and soci al sustainability) requirements for funding recipients (Environmental and social, 2006) Many multinational organizations through the global adoption of CSR values and regardless of funding have adopted World Bank protocol as a measure of social responsibility. Further, specific sect ors, such as the oil and gas and financial sectors (i.e., The Equator Principl es) have developed protocols th at mirror the IFC guidelines and specifically provide for resource protection. Ethical codes CSR and ethics are closely linked. The ethical va lues and policies of an organization are a direct reflection of its commitment to appropria te social norms and expected behavior for

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22 institutions within our society. Fu rther, demonstrating ethical behavi or is increasingly considered an internal corporate requirement. A recent st udy showed that 94% of employees consider it essential that their companies behave ethically (Verschoor, 2006a). Six m onths prior to this study, a similar study found that 76% of employees felt this strongly about their employers actions (Verschoor, 2006a). This employee empha sis on ethics underscores the importance of having sound corporate values. Public relations scholars including Ferguson et al. (2006), Edgett (2002), Esrock and Leichty (1998), Leeper ( 1996), Bivins (1992), Pe arson (1989), Wright (1985), and Reeves and Ferguson (1 980) have explored the relations hip between ethics and CSR, and its intersection with public relations. Corporate Social Responsibility in Latin America While research focusing on CSR within the U.S. Hispanic business context is nonexistent, a spate of recently published research and case studies involving CSR in Latin America provide a basis for its current understanding and applicat ion in the region (Paul et al., 2006; Araya, 2006; Sanborn, 2005; Portocarrerro, 2005; Peinado-Vara 2005; Agero, 2005; La ndim, 2005; Durand, 2005; Roitter & Camerlo, 2005; de la Maza, 2005; Letts, 2005; Puppim & Gardetti, 2006; Logdson, Thomas, & van Buren, 2006; Prieto-C arrn, 2006; Schmidheiny, 2006). While these studies form a basis for understanding CSR in the region, it is difficult if not impossible and inappropriate to generalize results for the region and, in some cases to build consensus of broad indicators of the influences and trends involvi ng CSR. Schmidheiny (200 6) believes that the issue of defining CSR in the region is complicated not only by different cultures but by the lack of agreement on what defines CSR. An overview of CSR in Latin America as derived from these studies follows. Past studies have shown that CSR is not highly develope d in Latin America (PeinadoVara, 2006; Paul et al., 2006). However, the rate of CSR is incr easing in the region

PAGE 23

23 (Schmidheiny, 2006), in part due to political a nd economic changes and th e shifting nature of relationships between (weaker) governments and the (stronger) private sector (Agero, 2005; Sanborn, 2005). The private sector fills the soci al needs that government cannot adequately address (Puppim, 2006). For instance, a study of orga nizations in Argentina, Brazil, Chile, Peru, and Colombia indicated that between 80 and 95% of organization support some type of philanthropy (Sanborn, 2005). A study conducte d in Mexico showed that 10 of 75, or approximately 13%, of organizations surveyed sh owed some form of support for CSR, a figure far less than the aforementi oned study (Paul et al., 2006). Support and coordination for philanthropy continues to be w eak and insufficiently impacting society (Sanborn, 2005). Further, the most traditional form of philanthropy involves distributing food but this action does little to promote sustainability (Sanborn, 2005). There is some disagreement about the role of multinationals and U.S. companies in the development of CSR in Latin America. Schm idheiny (2006) and Sanbor n (2005) believe that these organizations were instrumental. Peinado-Va ra (2006) furthers this notion and believes that most of the CSR initiatives occurring in the re gion today are supported by multinational firms. However, Logsdon et al. (2006) beli eve that this is a myth and th at these organizations have done little to influence the sector, at tributing credit instead to th e nations history and culture. Furthering the concept that local issues and cultural values are driving CSR, researchers have noted with some consistency that the U.S. and international models of CSR are not entirely applicable to the Latin American context given that they fail to address prominent social issues in the region (Schmidheiny, 2006; Logsdon et al., 2006). Issues are perceived as entirely local and unrecognized by traditional CSR initiatives. For this reason, Schmidheiny (2006) and Logsdon et al. (2006) believe that there should be multiple models of CSR that are culture and

PAGE 24

24 country specific. For instance, there are nuances specific to the Mexican CSR environment. Paul et al.s (2006) study indicated that the persona l preferences of founding families of businesses for philanthropy are directly linked to an organizations CSR participation. Further, engaging in activities deemed important by organizational fou nders may not be activities that are recognized by international standards for CSR (Paul et al., 2006). Continuing w ithin this specific context, Paul et al.s (2006) study f ound that there was little emphasis on CSR within the business community in Mexico while Logdson et al. (2006) found that there is a cultural expectation for Mexican businesses to focus on employees and th e community, given deficiencies in government and the public sector. The social and political co ntext and history is the driver for CSR efforts (Logdson et al., 2006). These studies suggest the importance of considering social, economic, and political paradigms when defining the CSR landscape in Latin America. Public relations research has demonstrated the importance of recognizing cultural differences and adopting measures appropriate to cultures (Botan, 1992; Gabriel & Taylor, 1999; Ih atar, 2000; Molleda &, Surez, 2005). Further, organiza tions are known to coordinate di rectly with stakeholder groups and not through government or the nonprof it sector (Logsdon et al., 2006). A recent survey of 1,300 smalland medium-sized firms based throughout Latin America noted that the primary organi zational motivators are religion, employee morale, relationship building, and increase in profits (Vives, 2006). Religion is also noted by individual Hispanics in the United States as a key motivator for participating in philanthropy. CSR is currently in a nascent but growing st age in Latin America. As with individual Hispanic philanthropy, corporate philanthropy is rooted in the Latin America tradition, particularly the Roman Catholic Church (A rrom, 2005; Puppim, 2006). An Inter-American Development Bank (IDB) report, Corporate Social Responsib ility in Latin America cites weak

PAGE 25

25 institutional (governmental) capacity and cor porate infrastructure and an adverse business environment as factors that impede the adva ncement of CSR (Peinado-Vara, 2006). However, studies by Sanborn (2005), Aguero (2005), Puppi m (2006), and Logsdon et al. (2006) indicate that weak governments are the impetus for incr eased CSR. Peinado-Vara (2006) believes that formidable support by companies based in Latin Am erica is essential to effectively contributing to the socioeconomic condition in those count ries. Although the findings in the IDB report present an evolving and somewhat weak syst em of CSR, Sonia Av elars (2001) study of corporate giving in Brazil found that corpor ations reported contri buting $1.5 billion to improvements in the social sector. This study c onfirms that there has been an increase in corporate giving, with 87% of 1,715 companies surv eyed responding that they had contributed to social projects. Of these companies, 67% i ndicated employee volunteer participation, and 83% have collaborated with other organizations includ ing nonprofits. These partne rships appear to be facilitating the growth of CSR in the region. Brazilian consumers expect soci al responsibility from corpora tions. According to a public opinion survey conducted in 2000, approximately 51% of respondents penalized companies perceived to behave irresponsibly by verbally discussing their beha vior with friends, family, and associates (Avelar, 2001). A nother 30% showed their displ easure by refusing to purchase products produced by these companies (Avelar, 2 001). This social expect ation is increasing in the region. US Minority Business Corporate Social Responsibility Research Minority business support for philanthropy a nd other CSR elements is a relatively unstudied area. The following subsections capture research conducted to date.

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26 Black-owned business studies Edmondson and Carroll (1999) condu cted the first and, to date, only study of CSR in large, Black-owned businesses as ranked by Black Enterprise magazine. Their survey findings indicate that Black-owned business owners commonly hire minorities as their way of contributing to their communities. A Wall Street Journal sponsored survey of Black entrepreneurs showed similar results with nearly 86% of Black business owners citing a strong responsibility to give back to their community (Carlson, 1992). Support for youth programs, charities directly supporting the Black community, and business advice to other minority businesses top the support offered by the organizations. The primary motivation for su pporting social programs was cited as improving the immediate community in which they live and work, followed by good corporate responsibility. Support to churches was also cited among individual pr eferences of business owners. These studies indicate that religion and community support is a priority for Black-owned businesses, factors also prioriti zed among Hispanic individuals. Hispanic business research Research has been conducted on the organizatio nal characteristics of Hispanic businesses (Medina, 2006; Palmaffy, 1998). There are, however, no definitive studies showing Hispanic business support of CSR initiatives. Himmelstei n (1997) believes that the relationship of the organization to other organizations, and in a broa der context its relationships with society, forms the basis for allocations to corporate giving programs. With this unde rstanding, it would follow that Hispanic-owned businesses share a sense of corporate commitment to social causes given their relationship to other CSR supporting non-Hispanic organizati ons in the business environment. This research study seeks to address this issue.

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27 Theoretical Framework While there is no singular overa rching CSR theory, scholars have applied existing public relations and social science theory to a variety studies. The organizations studied in this thesis occupy a potent social role and responsibility in our culture. Given a corporations prominence, Starck and Kruckberg (2001) suggest that soci ety itself is the most essential public for organizations. Organizations are bound by the exp ectations of the stake holder public. Theories and constructs involving stakeholders have been selected as the th eoretical basis for this thesis. Young and Burlingame (1996) believe that stak eholder theory provides the most complete model under which to evaluate corporate philanthropy because it considers several multidirectional pressures and influences, such as financial and social. It also incorporates several components of theories that could be applied to corporate philanthropy, including the bottom line orientation of the neoclassical model, the social considerations of the ethical model, and the potential for strategic giving to increase or ganizational power of the political model. For the purpose of this thesis, this model is applied to interviewee responses. Pratt (2006) suggests that CSR ha s evolved to consist of four principal constructs: returns on investment, trustee management, self-interes t, and corporate social performance (p. 254). The latter two constructs are pa rticularly relevant to this st udy, as they directly address the organizations relationship with stakeholders. Self -interest suggests that companies should align their practices with that of stakeholders to continue to bene fit from their support and to avoid the potential for increased regulation (Pratt, 2006). An organizations social performance, described as encompassing CSR, receptiveness, and the result of organization actions also relates to the organizations responsibility to keep stakeholders sufficiently satisfied with an organization that they continue to promote it.

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28 A corporations ability to succeed involves ma intaining publics satisfie d with the services or products. Implicitly, stakeholders whether em ployees, customers, investors, or activists hold power over organizati ons and can impact an organization s policies and behavior. To this end, stakeholders interests and values impact organizational activities, and in this study, involvement in CSR initiatives. Maignan et al. (1 999) note that there are fi rst order stakeholders that are directly involved with a corporations activities and also secondary stakeholders that do not interact directly with the organizati on. Maignan, Hildebrand, a nd McAlister (2002) categorize an organizations stakeholders into four categories based on an earlier model, specifically legal, media, community, and organi zational stakeholders. Corporations respond to stakeholders (and their expectations for social behavior) through CSR pr ograms. For instance, philanthropy can facilitate an organizations re lationship with its public s and helps to build positive long-term relationships. (Kelly, 1991). A recent study sponsored by the National Consumers League highlights the stakeholder-to-CSR connection a nd showed that consumers are more likely to support organizations that treat their employees well and that share common beliefs (Verschoor, 2006b). For this reason, Paul Argenti of the Tuck School of Business believes that corporations must engage in a new level of dialogue that resonates with stakeholders personal valu es (Verschoor, 2006b, p. 22). Scholars have applied stakeholder models to advance the understanding of CSR (Maignan et al., 1999; Maignan & Ferrel, 2004; Maignan, Ferrell, & Ferre ll, 2005; Paul et al., 2006). Corporations operating under this th eory are responsible to stake holders instead of society at large, so that organizational ac tions are conducted in ways that provide the greatest maximum benefits (Maignan & Ralston, 2002) Further, recent studies in volving CSR in Latin America have used this theory. Specifically, in a recent study gauging levels of social reporting conducted

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29 by Mexican corporations, Paul et al. (2006) used stakeholder theory as a backdrop to the analysis. This research will also apply stakeholde r theory and will also consider Galaskiewiczs (1979) conclusive research that certain stakeholders have more influence over others based on resources and political influence. It will also be useful in this study to consider Carrolls (1979; 1991) construct which proposed four principal groupings involved in CSR activities, specifically those that are economic, ethical (including appropria te moral behavior), philanthro pic, and involve legal and/or regulatory issues. This model links shareholders to each of the four areas and established stakeholder prominence early on in CSR scholarship.

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30 CHAPTER 3 METHODOLOGY Basis for Research Method Selection The purpose of this research is to determin e whether minority, here Hispanic, businesses promote and share a commitment to CSR as generally understood and accepted in the United States. Implicit also in this evaluation is to determine how these organi zations conceptualize and interpret traditional concepts of CSR. Given the e xploratory nature of this study and the need to derive data prior to undertaking a quantitative assessment, the qua litative research technique of conducting in-depth interviews was selected. Th is qualitative research technique provides extensive detail about a particul ar subject and allows the interv iewee to further explore issues suggested by the respondent (Wimmer & Dominick, 2006; Lindlof & Taylor, 2002). Public relations, business, and social science scholars have used in-depth interviews to research CSR. For instance, Besser (1998) conducte d in-depth interviews of business owners to gauge levels of support for CSR in local co mmunities; Khoury (1995) interviewed senior managers of large corporations to discuss i nvestor influence on CS R; and Mohr, Webb, and Harris (2001) and Shamir (2005) con ducted in-depth interviews to determine and evaluate levels of CSR in organizations. These st udies, the information obtained, and the unexplored nature of this topic form the basis for selection of the interview technique for this thesis. Interview Research Methodology Research will follow the process define d by Kvale (1996) in conducting in-depth interviews. This process invol ves developing themes (or cate gories), designing the questions, conducting the interviews, transcri bing the interview itself, analyz ing the transcripts, verifying the data, and integrating the results into a report. Descriptions of these research steps follow.

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31 Formulating the Research Question The purpose of this study is to identify whether U.S.-based Hispanic-owned businesses share a corporate commitment to CSR. Given Hi spanic individuals cult ural predisposition to informal giving instead of supporti ng organized programs, is this cu ltural attribute incorporated as a business practice in Hispanic-owned organi zations? To address this issue, the following research questions are proposed. RQ1: What CSR elements do U.S.-based Hispanic-owned businesses support? RQ2: What are the perceptions of U.S. Hispanic business owners vis--vis the application and implications of CSR in their businesses, and how do these perceptions impact corporate policy? RQ3: To what extent does the U.S. Hispanic business model promote building relationships with st akeholders and adop ting CSR measures? Categories of Questions Based on the research questions, content catego ries were developed. In order to analyze and code for demonstrations of a commitment to CSR, interview categories that include the four components designated by Carroll (1979; 1991) as defining CSR activities and questions to test stakeholder theory were develope d. A total of 17 questions were developed and organized in the following categories General CSR (five questions) Corporate philanthropy and vol unteering (three questions) Environmental stewardship (two questions) Ethical and legal (three questions) Financial (one question) Stakeholder theory (two questions) One additional closing question was also included that asked interviewees if there was any additional information related to CSR that they would like to discuss. In terviewees were also asked their countries of origin (or cultural background), the si ze of their organizations (by

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32 revenue and employees), and the type of busines ses that they operate (industry and ownership type). An opening question about their personal histories and a closing question were included. The interview questions are presented in Appendix A. Selected Sample, Locations, and Procedure The sample frame for this thesis is based on a nonprobability sample of Hispanic businesses based on one of the following criteria: listing on the Hispanic Business magazine 2006 listing of the top 500 Hispanic business lis t, companies meeting the revenue threshold required for listing in the magazine, or companie s considered industry and community leaders. The companies selected for study are based in Flor ida, Texas, or Californi a. Fifteen interviews were conducted with owners or senior managers of the Hispanic busines ses (five per state). A sample of interviewees diverse in their nationali ties was selected, including owners from Mexico (N = 8), Cuba (N = 3), Ecuador (N = 1), Colomb ia (N = 1), Venezuela (N = 1), and Spain (N = 1). All five Texas-based CEOs were of Mexican descent a nd the majority (i.e., three interviewees) in Florida was Cuban. Hispanic bu siness owners/CEOs were selected to not only ensures a diverse country of origi n, but also representation of the sectors used to rank businesses by Hispanic Business magazine. A matrix listing the type s of organizations by sector, location, and nationality of owners is presented in Appe ndix B. Industry and nationality were the primary drivers in interviewee selection. Five of the eight sectors were selected based on their size and growth, specifically automotive, construction, service, wholesal e, and financial sectors were selected. The breakdown for interviews by sector follows: one from the automotive sector; six from the service sector; four from the construc tion sector; two from fina ncial services; and two from wholesale industries. All organizations are pr ivately held, a characteri stic representative of most of the organizations listed in the Hispanic Business magazine list of top 500 companies. The sample includes three female and 12 male in terviewees. Education levels of interviewees

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33 varied from high school education through professional business and graduate school completion. It should be noted that there were no discernable patterns in responses based on education. These informant interviews provide deta iled information concerning the cultural implications and an understanding of the co rporate behavior (Lindlof & Taylor, 2002). Interviews were conducted either by telephone (N = 5) or in person (N = 10) with business owners according to the preferen ce or availability of the part icipants. The distribution of telephone interviews were two in each California and Florida and one in Texas. Twelve of the interviewees were men and three we re women (one from each state). Interview questioning protocol was followe d. This standardized protocol involves arranging questions from general to specific, with personal or difficult ques tions included at the end of the interview (Bernar d, 1988; Lindlof & Taylor, 2002). Interviews were developed according to the guidelines established by Lindlof & Taylor (2002) where the order and wording of questions is predetermined. In this way, while follow up questions based on the responses may occur, interviewees respond to nearly the same questions and reliabi lity and credibility are maximized. Method of Analysis and Verification The recorded interviews were transcribed a nd appropriately filed or coded within the categories established after the interviews. Transc ription occurred as interviews were completed, as suggested by Lindlof and Taylor (2002), to e ffectively manage the material (reducing the potential for overload), to maintain fresh memory, and to alert to the conceptual trajectory of the study during the study (pp. 219, 214). These categories repres ented themes or distinct information provided. The author also expected that some responses will include the CSR variables discussed in the literature review and subsets thereof. While some basic variables exist

PAGE 34

34 within the context of the questions and within th e categories established in the list of questions, other variables became evident once the tran scribing was completed. In this way, common themes were identified among interviewee responses. Total numbers were used to indicate number of respondents mentioning the same theme. Indicators of consensus among participants were noted. Where diverse views were present, a breakdown of the different responses was noted Verbatim quotes were used to highlight particular points and areas of c onsensus or lack thereof. The data was interpreted with respect to stakeholder theory and the implications of research applied to the CSR landscape.

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35 CHAPTER 4 FINDINGS Interviewee responses form the basis for this studys findings. As such, types of responses provided and numbers attributed to each quest ion are provided in this section. Section subheadings correspond to the catego ries of interview questions. Re fer to the interview questions provided in Appendix A for a lis ting of the specific questions. General Corporate Social Responsibility There is a general understanding of the term CSR among interviewees. Twelve of the 15 interviewees indicated familiarity with the te rm and each described it as involving support for philanthropy. Three interviewees included non-philanthropy aspects of CSR in their descriptions. Of these, one specifically talked about environm ental responsibility and two mentioned corporate governance One California interviewee defined CSR as follows It is a corporations role in our societ y beyond doing business without compromising the bottom line. I am not saying that we need to give it all away but it is taking a place in a community to do better. It may be educating a child or contributing to the environment or what have you. It is some sort of acknowledge ment or acceptance of responsibility within our global organization to make this better. One Florida interviewee referred to CSR as an inte gral part of his organization. This owner said, It is essential to have [a] social mission for a company in addition to a business mission. It is essential within a corporate structure to generate positive spirit for giving. It promotes corporate spirit. Interestingly, one business owner who wa s unfamiliar with the term CSR offered descriptions of employee programs and environm ental management systems that his firm has integrated into its policies. The implication is that knowledge of th e formal term does not translate into participation per se, just as lack of understanding does not e quate to an absence of such initiatives.

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36 In terms of Hispanic business owners perceptions of their responsibility to society, the notion of the need to give back is a personal one for most of these individuals. They cited personal stories of how they were helped along the way by those known and unknown to them. One interviewee noted how his family supported him as follows Most of the help that I got came from people who scratched their livi ng out of the dirt. You know I remember when I went off to Yale and I was at the airport about to take off and my grandmother and mother were there. My grandmother gave me this box and it had a blanket in it. My grandmother picked walnuts for a living. Sh e didnt even pick walnuts. She would go follow and pick up left over walnut s to get extra money for their eight kids. So she had this blanket and she said I know it gets cold on the east coast so heres a blanket its my way of helping out....I thi nk people should be res ponsible for their own success but I realize that even those who are successful got a lot of help along the way...Now I am going to help as many people as I can so that I can do my part. Interestingly, this interviewee said that there was a second motiv ation for helping and it involves the tremendous amount of goodwill with clients that it creates. Interviewees recognized that their organizations have a responsibility beyond their business to give back because th e community is, in large part, a factor in their success. One Florida owner said You know I think were a su ccessful company and we owe that success in part for where we are whether it is supporting the university here or different projects within the community. In a sense, then, th e community represents an importa nt stakeholder group for these business owners. Many cited support from family as being integral to their success. The repayment for them is to help support Lati no and sometimes non-Latino community causes. Further, the decision to participate as a busine ss has emerged from an individual value to do so. Interviewees responses varied when asked about their organizations responsibility to society and their community. The majority ( 13 interviewees) said that they do have a responsibility in one form or another, whether it is to employees, clients, or human service organizations. The two dissenting interviewees fe lt very strongly about their responses, although one said that his organization is a si gnificant contributor. One owner said

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37 Its sad that it almost seems that society s trying to put some guilt trip on different organizations, business people and the rest, to say, hey, this is your obligation. Wrong. Its not an obligation. Its somethi ng that I think you have to feel If youre doing it for other reasons, then youre doing it for the wrong reaso n. If youre not doing it because you feel like you need to help people, that you need to give back to your community, then youre not doing it for the right reason. Youre not going to generate enthusiasm and that kind of program I dont think really works. Positive responses centered along three them es: Hispanic owned businesses have a responsibility to give back to improve living co nditions and future opportunity; support involves more than giving capital and includes giving ti me through volunteering; a nd these interviewees believe that their responsibility to serving clients is an integral part of their social responsibility. Religion was cited by two interviewees as th e motivation for giving. Three interviewees suggested that there are some causes that are more important than other causes (i.e., those based on meeting essential living needs ar e more important than the arts) and that there is a right and wrong way to give (i.e., provide support because you believe you s hould or want to, not because there is societal pressure to do so). The questions addressing Hispanic influences and perceptions of specific responsibility generated strong interest from interviewees. Th ere was nearly unanimous agreement on the issue of levels of social responsibility among Hispanic versus non-Hispanic busi nesses. A majority (13 interviewees) said that all businesses share equal responsibil ity. One California owner said he believes, They share an equal responsibility bu t there is a greater nee d. Another California interviewee said, If I were to generalize, and th is is a broad generalization, I would say that for Hispanic businesses there is a stronger consci ence and a commitment to making a contribution than there is for non-Hispanic. One dissenting in terviewee said that Hispanic businesses have a lesser responsibility until their level of capita l and growth increases and the other dissenting interviewee believes that Hispanic busi nesses do bear a greater responsibility.

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38 The question of cultural impact on giving drew some interesting and diverse responses. Two thirds of interviewees believe that th eir Hispanic culture a ffects their support for community programs. Four others, three of whom said that they prefer not to be affiliated with their nationality, said that it has no impact. Those that perceive a connection cited Latino custom of family relationship as an influence. This notion of family seems to translate into the workplace, as many interviewees said that they feel like their employees are part of their family. Interestingly, one interviewee said that the Hisp anic culture has a negative impact on their ability to generate enthusiasm in some programs am ong Hispanic employees. For instance, it is challenging to inspire employees to support envi ronmental or conservation programs because the cultural has historically not valued these types of initiatives. Therefore, the Hispanic culture affects giving and also lack of participation. Informal giving resonated with the majority of interviewees, with 12 of them stating that they do give informally. Eight of those 12 said th at they also give formally through established 501(c)(3)s. A Texas business owner says that he gives informally to employees every day, an action that has been part of the firm since th e first day of operation. One California interviewee suggested that there is such a strong connecti on between Hispanics and informal giving because Hispanics are likely in closer contact with need so it is logical to give informally. Another Californian owner who gives informally believes th at formal giving is essential for the image of the Hispanic community. The interviewee said I think it is incumbent upon us to give form ally and for people to know that we have money and that we are contribu ting to things that are important to us. Because when you and others do the research, you dont want to see that Hispanics arent giving. The connection between giving and positive image a nd giving to increase social value, pride, inclusion, and power of the Hisp anic community was reflected in several of the interviews.

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39 These business owners overwhelmingly suppor t community activitie s (12 of 15 responded that they do provide financial b acking to organizations) and appr oximately 50% of interviewees also give pro bono goods or services. Many of those that do not offer pro bono assistance mentioned that their industry (e.g., wholesale te lecommunication equipment sales) does not lend itself towards this type of suppor t. Business owners consistently stated that there are often personal reasons for giving to the organizations th at they support but that there are others for which there are no personal motivations. Most give to programs that support children or education. One business owner in Texas mentione d that the company supports causes to help find cures and treatments for multiple sclerosis becau se of a family member with it. Others admit that their causes are somewhat self-serving, such as the engin eering business owner who strongly supports math and science programs for kids. She is hoping to promote engineering as a profession to help alleviate the di re need for more engineers. Finally, a majority of interviewees (N = 11) again encourage employees to volunteer. They do not steer employees towards sp ecific charities and one owner said that he does not keep score of his employees efforts. Interestingly, one California owner said that if they are interested in something, then the place for them is the board room. He believes that they can best effect change there and he provides capit al to support their part icipation. Five business owners allow employees to volunteer on compan y time, while one splits the time with the employees. In other words, more than half of those that encourage employees to volunteer pay for the employees time to do so. Environmental Stewardship Each of the business owners interviewed discus sed the integral of employees to the success of their organizations. The majority of respons es involved measures taken to promote employee health and safety, whether through reimbursement of deductible for health spending accounts,

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40 gym membership reimbursements, or tuition re imbursement. Diversity and good pay were also cited by interviewees. Interestingly, larger comp any owners tended not to cite basic employer provided benefits (e.g., medical a nd dental insurance), while sma ller organizations noted these, when available, as programs that promote empl oyee well being. This implies that as companies grow, their attention to em ployee issues evolves. The CEO of one large business in Texas explained We have taken that beyond work but being safe for each other. As a Hispanic-owned company we have a diversity program as well. We really preach that safety awareness in the minority owned businesses that we use and weve gotten awards in that area. From the health area, we are always r unning some sort of program eith er on diet, nutri tion, or taking care of yourself. Safety programs and/or initiatives were menti oned by four interviewees of small and large organizations. One interviewee in Texas said Safety on the job is a big deal for us. If you go to one of our job sites, youll see that for our industry we are well ahead of the curve. We require hard hats and safety vests at all times; safety cones at the front and back of our truck at all times. We have monthly safety meetings. The whole job stops if I go to a si te and someone isnt wearing a vest or hard hat. We have safety kits in trucks and fire ex tinguishers. We give cash awards for safety. Interviewees were honest in th eir self assessments of measures to promote environmental sustainability. One-third of respondents said th at they do not have programs that promote sustainability. One California inte rviewee said, Your carbon footpr int you mean. No it isnt part of our program unless if you sit still long enough in this office the lights will go off. The remaining two thirds cite some initiatives, incl uding recycling, implementing efficient irrigation, automating processes to reduce paper waste, a nd using above ground storage tanks instead of underground storage tanks. Waste handling wa s cited by several owners. A Florida owner proposed a unique perspective on waste manageme nt. He said, From the very beginning, I put fish in a pond because if I see the fish are d ead then I will know that something is wrong. We

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41 have worked very hard to keep the company clea n. There does appear to be a concern for the environment and measures at some level are being taken. Ethical and Legal The question of whether owners believe their organizations have a moral responsibility to society once again drew clear respon ses. Twelve of the interviewees unequivocally said that they believe their organizations have a responsibility to society. The perception that a large measure of this responsibility involves ethically managing their business also emerged. The three dissenting responses were from three individuals with differing countries of origin, each in different states. Of these three respondents, one Florida owner said that his responsibility is only to his employees, while a Texas owner said that he does not believe th at his organization is morally bound but that he, personally, does have a moral responsibility. Religion was repeatedly cited in response to thes e questions. One California owner said It goes back to my roots and in a belief in God and in my community. And whenever I see something that seems questionable to me I bring it up at the office and Ill say `thats no t cool man. I think we have a responsibility to uphold standards and have ethics. While the questions about corporate accountabi lity and reporting were designed to be two distinct questions, respondents seem to understa nd and answer them better when asked as one thought. Responses to the question about accountabi lity was nearly equally divided, with nearly half, or seven, respondents saying that they mana ge their organizations with transparency and have open accounting systems, while six owners believe that there is little need for accountability given that they are the owners. Each of the organizations in terviewed is privately held. Kelly (1998) said in those cases of private ownership, corpor ate giving emulates individual giving. The balance of responses ti lted slightly in terms of corpor ate reporting, with the majority, or eight interviewees) stating th at they do not report. Certain business sectors, including the

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42 financial sector and those busines ses adhering to ISO standards, said that they conduct regular industry mandated reporting. In fact, three of the four businesses ci ting specific reporting referenced regulatory compliance as a motivatin g factor. They report because they must. Financial Implications Personal satisfaction and positive organizational image were most often cited as the key benefits to promoting CSR. Owners believe that the sense of giving back, helping the community, and effecting positive change results from giving. Parallel to that belief is one that a great deal of goodwill with the community and cl ients is generated by giving and participating. Several owners mentioned potential reciprocity. One Texas owner said I cant say that in the privat e sector it brings you business because it does not. In the end you can give as much as you want and it really doesnt. In the public sector it may. The city and county are pretty fond of us. I cant sa y that it factors in th e selection process but it might. Another Texas business owner said that th ey had been awarded work after providing pro bono services but that it was not the initia l motivator for offering the services. Three individuals believe that the name recogn ition created is an inva luable benefit. Most of the respondents did not name a negative at tribute to participating, other than three interviewees who said that havi ng too many requests and limited funds to distribute is a negative. Only one owner expressed distrust of organizations ability to mana ge money; he also said that he did not financially support organizations. Stakeholder Relationships The questions concerning stakeholders were the most difficult for interviewees to answer. Many said that they had never thought about that question. Rela tionships with consumers or clients and employees were cited by all interviewees as the most important relationships to their companies. Eight owners believe that employees are the most important stakeholders while

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43 seven believe that it is their clients. Those mentioning stakeholders often referred to their organizations as having a family atmosphere. Inte restingly, each of the eight that most value employees indicated at some point in the inte rview that they give in some way to their employees, including the Florida respondent w ho generally prefers not to give. Three interviewees also mentioned employees families as important stakeholders, behind employees and clients.

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44 CHAPTER 5 DISCUSSION AND CONCLUSIONS Research findings form a basis for discussi on and conclusions. Interv iews were coded for the themes discussed in this section. Additiona l comments and findings were also noted. Discussion Interview Response Themes A sense of CSR has reached Hispanic business owners. Regardless of whether owners bring an understanding of CSR, in some way all of the interviewees support at least one of its elements. Beyond serving clients, owners recogni ze their role in helping improve communities in which they live and work. While perspectives varied among owners, several salient themes emerged from their comments. These overa rching concepts involve the following Impact of identity individual first, corpor ate philanthropist second; identification with Hispanic shared beliefs third Tendency to operate within a narrow definition of CSR Impact of cultural values Organizational notion of community Recognized social responsibility Connection between stakeholders and CSR Impact of identity Business owners represented themselves as indi viduals first, whose pe rsonal values drive them to help others. This confirms that, as no ted in Kelly (1998), in those cases of private ownership, corporate giving emulat es individual giving. While these owners believe that their organizations have a social responsibility, they believe that these stem from their individual beliefs not from social pressures to give. Further, the responsibility of their organizations is very closely linked to them as indivi duals. One Florida owner said My husband and I are at an age where we feel like we need to give back. We keep getting and getting and feel like we need to give back. It is important for me personally.

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45 There appears to be little separation between th e two or a distinction on some level of the corporate aspect of responsibility. These busines s owners also showed that they exert command and control over all such activities. Even those with marketing and public relations staff mentioned that they receive calls for support a nd are ultimately responsible for deciding which programs or organizations to support. There appear ed to be little delega tion of decision making in this area. Further, their personal interest (sometimes family related) influence the human service organizations selected. Interestingly, none of those interviewed cited their own families as important stakeholders but as factors th at influence their corporate philanthropy. This contradicts Stakeholder Theory. Hispanics strong shared sense of identity fo rms the basis for the sense of community. The shared beliefs identified by Chong and Baez (2005) were often noted by interviewees, including reference to family, religion, collectivism, a nd importance of personal connection and trust. Family, the core of the Hispanic social system, was mentioned by all 15 intervie wees during the interviews. Many interviewees describe the suppor t of their families as primary reasons for their success and desire to participate in philanthropy and note that their sibling or children work with them in their businesses. The lines between fa mily and community become blurred in many of these businesses. Family is integrated into the work community and also the work community becomes part of an extended family. In this environment, running the business takes on an additional dynamic. Narrow perspective of corpor ate social responsibility While most interviewees provided a basic desc ription of corporate re sponsibility, each one described it as providing s upport for human services. When specifically asked about other elements of CSR, several of the interviewees explained policies and/or programs but generally the understanding that social re sponsibility extends beyond phila nthropy was initially absent.

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46 There is a strong connection, howev er, between the sense of commitment to the community and actual support for causes. Further, the owners of larger busine sses had more formal philanthropy programs. Two interviewees, in fact, had establ ished and fund foundations. While the size of the organization related to whether there were formal programs in place, even smaller corporations seemed to support community causes, with 13 of 15 interviewees confirming financial support. The two non-giving interviewees said that they financ ially support employees. Cultural influence on support While responses to the question about the Hispanic cultural influence on giving were divided, those that said that it did not affect giving often la ter mentioned that they support elements traditionally valued in Hispanic culture, such as family and religion. In hindsight, this question should have provided more of an e xplanation or examples of potential cultural influence. In instances where I followed up those responses by asking if they considered those to be more important within a Hispanic context, interviewees unanimously said yes. Therefore, while it may not be a conscious influence, Hisp anic tradition does factor into CSR activities, particularly giving. We know from research on i ndividual Hispanic giving that philanthropy has been a cultural phenomenon for more than 500 years, and this research conf irms that individual cultural aspects influenc e corporate behavior. There was a connection between actual organi zational giving and cau ses of known cultural relatedness. This confirms that much of the research conducted on individual Hispanic philanthropy transfers within a corporate setting among Hispanic business owners. For instance, there was a strong occurrence of informal (noni nstitutional) giving even among those who do not support any other form of philanthropy. Owners were distinctly selective, another descriptor for individual Hispanic giving according to Abbe (2000), and give primarily to religious organizations, education and family causes incl uding the elderly, and personal contacts. The

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47 sense of connection that RivasVzquez (1999) mention was importa nt to interviewees, many of whom recalled how their own histories impact their giving motivation. Perceptions of the organization as a community Hispanic business owners perc eive their employees and their work environment as a community an immediate, interd ependent, closed social system. Some used the term family to describe an atmosphere where employees, ow ners, and management care about one another. Others described their working environments as collaborative and interconnected and implied that there is a strong sense of community in their companies. In a sense, then, their companies are communities within communities. The traditional association, then, that Hispanics have with their community is transferre d into a business setting. Recognized social responsibility Hispanic business owners overwhelmingly rec ognized their role in terms of community development. Three primary themes describe their beliefs: the notion that Hispanic owned businesses have a responsibility to give back to improve livi ng conditions and create future opportunity; the idea that support involves more than giving capital and includes giving time through volunteering; and concept that serving clients is an integral part of their social mandate. Connection between stakeholders and corporate social responsibility The context of CSR in this study emerge d as mostly involving philanthropy. The connection between the primary pub lics and corporate giving was in consistently present. More often, unmentioned stakeholders, such as family, were cited as influences, instead of those publics mentioned in the stakeholder questions. Interestingly, the families of business owners were never mentioned as stakeholders by the inte rviewees. It should be noted that the question that asked about the organizations most important relationships elicited what Maignan et al. (1999) would likely order as first order stakehol ders that are directly involved with the

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48 companys activities. Further que stioning would have been nece ssary to enumerate secondary stakeholders, so that a disconnect between may emerge depending on how the interviewees interpret the questions. This st udy is meant to be a benchmark. Further study in this area would clarify this issue. Certainly, the notion that organizations are bound by the expectations of the stakeholder public emerged during the interviews as did the self-interest aspect of stakeholder theory. A Californian business owner said that his clie nts have come to expect his support for the community and that it is a big re ason why they do it. One Texan ow ner also said that much of their support is self-motivated, as they are tryi ng to increase available skilled labor for their industry. Clients were often mentioned as primar y stakeholders and dire ct mention of their influence on corporate philanthr opy was also often noted. In this context, stakeholder theory applies to this business demographic. Among ot her interviewees, howev er, the connection was tenuous, if existing. Employees were also cited as primary stakeh olders and many owners emphasized support for their staff. One owner in Florida and another in Texas said that their businesses success is limited only by their ability to hire more staff, noti ng that they could bring in more work if they had more staff. Employees are their most valu able commodities. Likewise, much of the support that they mentioned related to support for employ ees. One Floridian owner pays for the cost of gym membership while a Californi an owner allows employees to set their own work schedule. Stakeholder theory contends th at corporations are responsible to stakeholders instead of society at large (Maignan & Ralston, 2002). Many of the inte rviewees believe that their organizations have a broad responsibility to their community. Owners of specialized service companies (i.e., wholesalers) have little bus iness connection with the local economy but

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49 mentioned the importance of supporting programs for women and children in their communities. The link between corporate philanthr opy and community is very strong. Responses to Research Questions Three research questions framed this st udy. Responses to each of these follow. RQ1: What CSR elements do U.S.-based Hisp anic-owned businesses support? Hispanicowned businesses support corporate philanthropy and participation in volunteer activities. Philanthropy was most widely asso ciated with CSR. Most owners (14 of 15) provide financial and in-kind support to organiza tions. Support for environmental stewardship and ethical and legal elements were also noted but with a lesser degree of frequency. RQ2: What are the perceptions of U.S. Hispan ic business owners vis--vis the application and implications of CSR in their businesses, and how do these perceptions impact corporate policy? The perception among business owners in terviewed is that CSR nearly exclusively involves corporate giving. When asked questions about the other elements, however, certainly many interviewees mentioned supporting other el ements. Most companies do not have formal policies established, other than those industries that are le gally required to disclose environmental or financial compliance. All givi ng is authorized by the owners, with some delegation to public relations and marketing pe rsonnel. Certain policies, for instance involving paid volunteer time, have been developed. While several elemen ts of CSR may be implemented by companies, owners do not necessarily relate this to the commonly understood notion of CSR. They may be doing it but they ar e not calling it so. Further, compa ny size is not an indicator of support for CSR initiatives. Smaller companies ofte n showed greater support than larger ones. RQ3: To what extent does the U.S. Hi spanic business model promote building relationships with st akeholders and adop ting CSR measures?

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50 The U.S. Hispanic businesses interviewed are committed to giving back to their communities. The cultural value of community tr anslates to a corporat e setting. Relationships with the community, an implicit stakeholder, ar e important to business owners. There seems to be a dual commitment to the community at large and to clients and employees. Whether there is an awareness of CSR, Hispan ic businesses are adopting socially responsible measures. Limitations and Future Research An implicit limitation is the process of using in terviews as a research method, in particular because of the influence of the interviewer and possible variance in interview style and manner of asking questions. The location of the samples selected is a limitation to this study. While CEOs based in the three states with the highe st number of Hispanics were selected, adding owners based in other states w ould have resulted in a richer pr ofile. For instance, New Mexico has the greatest overall proportion of Hispanics to the total population. Further, the states selected have high percentages of Hispanics fr om Mexico and Cuba. Adding other states with other Hispanic populations (e.g., Puerto Ricans in New York) would increase the diversity of the sample. Given the dearth of specialized research involving Hispanic businesses and their growth, many opportunities exist in this ar ea. All of the CEOs interviewed expressed great interest in the research results and interest in providing more assistance. Longitudinal studies of these businesses from a communications, CSR, or pub lic relations perspective may highlight the transition and integration of US cultural and business norms with their own Hispanic ones (noting the degree of business acculturation). Conclusions Hispanic Business in a Social Context This initial qualitative study provides a basi s for understanding Hispanic business owners perspectives on CSR and offers answers to fundame ntal research questions. It also provides a

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51 foundation for future Hispanic business resear ch involving CSR and m odels for giving and volunteering. There appears to be a clear link between Hispanic cult ural values and the direction and support for human services. CSR is perceived within a limited construct as giving back, whether financially or in-kind th rough time or services. Clearly both the US business constructs, such as formal giving, and cultu ral identifiers, role of family and community, are present in corporate policies. There is a connection betw een actual organizationa l giving and causes of known cultural relatedness. This c onfirms that much of the re search conducted on individual Hispanic philanthropy transfers within a corporate setting among Hispanic business owners. Implications for Practice and Education in Public Relations Public relations practitioners should understand that Hispanics as business owners tend to show the same cultural characteristics and phila nthropic behavior as Hispanic individuals. For this reason, campaigns with Hisp anics as target public s should consider cultural values and incorporate tactics that rec ognize their implications. Furthe r, methods of outreach and communication should recognize traditional issues of hierarchy and trust. Charitable organizations should know that Hispanic-owned businesses are committed to supporting human services and are known contri butors. They sponsor volunteerism and actively promote and financially support community devel opment. Their beliefs in giving are firmly grounded in their culture and their support for commun ities is at the core of these beliefs. Efforts should be made to communicate directly with this sector, recognizing, of course, that informal giving is universally accepted by Hispanics and issues of transparency and impact will be important to highlight given issues of personal trust and connection in giving.

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52 APPENDIX A INTERVIEW QUESTIONS Company Name________________________________ Location Industry_______________________________________________________________________ Years in business______________________________________________________________ Number of employees 2005 (or 2006) Revenue Nationality of owner___________________________ Public/Privately Held Before talking about Corporate Social Responsib ility in your company, could you tell me briefly about your role and responsibilities, a nd how you came to be in this position? General Corporate Social Responsibility Q1: Are you familiar with the term cor porate social responsibility (CSR)? Q1.1 If yes, what does it mean to you? Q1.2 If not provided in the answer, ask what does CSR encompass for your company? Q1.3 If respondent asks for examples or for clarification, mention the areas of community relations, environment, employee relations, governance and accountability, reporting, supplier relations. Q.1.4 If no, explain that CSR encompasses se veral key areas including those mentioned in Q.1.3. Reask interviewee if the company supports any of these areas. Q2: What do you perceive as your organiza tions responsibility to society and community? Q3: Do you believe Hispanic businesses shar e equal, lesser, or greater social responsibility as non-Hispanic businesses? Please explain. Q4: Do you believe your Hispanic culture a ffects your companys support for social programs? If so, explain the aspects of th e Hispanic culture and their effects. Q5: What are your beliefs about informal gi ving? Do you give informally? If needed, provide the following definition of infor mal giving. Now Im going to ask about Corporate Philanthropy. Q6: Does your company financiall y support community activities? Q6.1 If yes, explain how corporate giving works?

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53 Q6.2 How much did your organization give and to whom? Q7: Does your company give products (or do pro bono work)? Q8 : Do you encourage employees to volunteer? Q8.1 If yes, explain what type s of volunteerism and why? Q8.2 If yes, is the volunteering cond ucted on company or personal time? Environmental Stewardship Q9: What policies or programs does your company support that promote employee wellbeing (safety, diversity, trai ning, etc.)? Please explain. Q10: How does your company promote sustainability (i.e., do you encourage environmental responsibility in the workplace, etc.)? Ethical and Legal Q11: Do you believe your organization has a moral responsibility to your community?. Q12: What measures for corporate accountab ility have been integrated into your organization? Q13: What type(s) of corporate repor ting are regularly conducted? Financial Q14: From a financial perspective, what ar e the key benefits and negative aspects involved in supporting commun ity social programs, promoting environmentally conscious initiatives, and di splaying ethical behavior? Q14.1 Which of these factors is most important to you? Please explain. Stakeholder Theory Questions Q15: Who are your most important stakeholders (the most important relationships for your company)? Q16: How would you rank them in order of importance and why? Closing Q17: Is there anything else about the compa ny and CSR that you would like to include and that my questions did not address?

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54 APPENDIX B MATRIX OF INTERVIEWEES Table B-1. Industry representati on, locations, and nationalities Interviewee Industry State Hispanic Link TX1 Automotive Texas Mexico TX2 Services (Computer/Networking) Texas Mexico TX3 Construction Texas Mexico TX4 Services (Engineering) Texas Mexico TX5 Services (Landscaping) Texas Mexico CA1 Financial Services California Mexico CA2 Financial Services California Mexico CA3 Construction California Colombia CA4 Wholesale (Telecom distributor) California Mexico CA5 Services (Public Relations/Communications) California Spain FL1 Construction Florida Venezuela FL2 Construction Florida Ecuador FL3 Services (Computer/Software) Florida Cuba FL4 Wholesale (Electrical Equipment) Florida Cuba FL5 Services (Laboratory) Florida Cuba

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64 BIOGRAPHICAL SKETCH Leticia Solaun has worked in consulting fo r the past 15 years. From 1992 to 1997, she was a contractor with the U.S. Agency for Intern ational Development of the Department of State working internationally and managing Indefinite Quantity Contracts involving environmental and natural resource management projects throug hout Latin America, the Caribbean, the Middle East, and Africa. Since 1997, she has worked with CH2MHILL, Inc., an engineering and planning firm, based in Denver, Colorado. Her work includes proposal management, development of stakeholder engagement and pub lic relations programs, evaluating social and economic impacts of develpoment, technical wri ting and editing, and tran slation. She has been involved in a number of internat ional environmental, social, a nd health impact assessments, serving as the lead social impact assesso r and stakeholder engagement consultant. She has worked extensively in north Africa and the Middle East. In 2005, she completed a large social impact assessment for Royal Dutch Shell in Qatar in anticipation of the construction of the largest onshore and offshore liquefied natural gas facility in the world. She designed and implemented the first social survey conducted in the country and developed a series of innovative impact mitigation measures for th e program. This social impact assessment was regarded as the most comprehensive in the countrys history and easily passed through the legislature despite several controversial issues Recently, she developed five social impacts assessments and stakeholder consultation programs in Algeria for various multinational oil and gas producers. These assessments complied with IFC standards and Equator Principle protocols for impact assessment and meaningful consultation. Leticia holds a bachelors degree in Spanish, with an area concentration in Arabic, and a masters degree in mass communication, specializing in public relations.