The corporate contribution to social inclusion in Australia: risk, opportunity, responsibility Roksolana Suchowerska ORCID ID: 0000-0002-7261-8438 Submitted in total fulfilment of the requirements of the degree of Doctor of Philosophy December 2016 School of Social and Political Sciences The University of Melbourne Abstract Governments in liberal welfare states are dealing with the rising cost and complexity of social disadvantage by shifting risks of social exclusion onto individuals. In areas such as health and superannuation for example, social policy steers individuals to manage their own social inclusion through the consumption of market-based products. Such policies not only change relationships between governments and citizens but also the relationships between providers and consumers—they position private enterprise at the forefront of the provision of products and services that support individuals’ participation in key activities of our society. In this context, the contemporary phenomenon of strategic corporate social responsibility (CSR) emerges as an interesting mechanism of social inclusion. Through strategic CSR, corporations aim to create tangible changes in their operating contexts, which they perceive to be of benefit to both business and society. Many scholars argue that corporate involvement in CSR is a response to increased public scrutiny and pressure to engage in ethical conduct. Although scholars often interpret CSR as a strategy through which firms strengthen their competitive advantage, this thesis poses the pertinent question: what is the nature of social inclusion that strategic, customer-focused CSR programs facilitate? This thesis draws on two empirical case studies of strategic, customer- focused CSR programs. The first case study is of a ‘skills-based’ program in which Australia’s largest telecommunications corporation partnered with state government to support seniors to develop their digital skills. The second case study is of a ‘deliberative’ program in which a large property developer hosted social events and decision-making forums in its new property developments. The thesis explores the experiences and perceptions of program participants to better understand how companies help individuals develop particular resources and relationships that strengthen their involvement in society. The thesis argues that strategic, customer-focused CSR programs help address assumptions in social policy that presuppose individuals in mainstream society to be equally able to draw on non-economic resources to utilise market- based products to mitigate personal risks. And yet, corporate sensitivity to — i — corporate reputation and government regulation, alongside dynamics of voluntary exclusion, impose subtle but significant limitations on who participates and what barriers to social participation the programs address. These limitations may trigger new divisions between social groups in mainstream society. The thesis argues that the competitive, individualistic and voluntary terms of provider-consumer exchange enable corporations to support inclusion of particular individuals, yet prevent corporations from supporting processes of inclusion that strengthen the moral foundations that underpin social solidarity. The case studies provide NGOs, governments and industry with insight into the opportunities that strategic, customer-focused CSR presents for social inclusion in Australia. The findings show that the contribution of strategic CSR is enriched by pressure that governments, interest groups and third sector organisations place on corporations to be sensitive to socio-political goals. Public and third sector organisations also play an important role in nurturing the inclusivity of social norms and values that establish the moral basis of social interaction and cohesion. The moral basis of society supports citizens/consumers in appropriating the competitive, individualistic and voluntary paths of social inclusion that characterise strategic, customer-focused CSR. — ii — Declaration This is to certify that: (i) The thesis comprises only my original work towards the PhD except where indicated in the Preface (ii) Due acknowledgment has been made in the text to all other material used (iii) The thesis is fewer than 100,000 words in length, exclusive of tables, maps, bibliographies and appendices. Signed____________________________________________Date_____________10 July 2017 Roksolana Suchowerska — iii — Acknowledgements To the many individuals who gave freely of their time, knowledge and opinions to participate in this study—you have made this research possible. While you cannot be named, your contribution is appreciated. I also acknowledge the two corporations that opened their doors to me and took an interest in this study. I am deeply grateful for my top notch supervisory team—Dr Jens Zinn and Dr Sara Bice. Dr Zinn granted me the opportunity to embark on this project and has supported me by sharing his vision, his intellect and his finesse. Dr Bice has mentored me with clarity of thought and calm level-headedness, to navigate the procedures and politics of the corporate and academic worlds. I have drawn much inspiration from the integrity and astuteness with which both academics pursue their own research and scholarship. I also thank the scholars who engaged with my work at various international conferences. In particular, I acknowledge Ed Freeman, Harry van Buren, John Holcomb, Bryan Husted, Virginia Gerde and Frank den Hond who have each inspired and challenged me in their own ways. I look back at my participation in IABS conferences as particularly productive times of intellectual engagement and development. During my PhD, I was lucky to have been part of a comradery among budding scholars. In particular, I thank Bibiana for her friendship, from induction to completion and beyond. I thank Natalya and Katrusha for every recalibratory coffee. And I thank my writing circle—Vicki, Gillian, Billy, Sunni, Alice, Fiona and everyone who has joined in along the way—for our perfect intensity of thinking, writing and conversing. Finally, I acknowledge and thank my family. Your love, support, encouragement and belief in me are humbling to the core. To my parents—Мама і Тато—thank you for raising me to question, to commit, to learn, to nurture, to remember, to contribute, to create and to let go. To my two sisters and my dear friends—Настуся, Алекса, Liz and Cigdem—thank you for giving me courage as we move through life together. To my husband—Павло—thank you for making me laugh. Thank you for every time you encouraged me to keep going. Thank you for understanding me as I seek to understand the world around me. — iv — Table of contents Abstract ..................................................................................................................... i Table of figures ...................................................................................................... vii Abbreviations .......................................................................................................... ix Introduction: The market for inclusion ............................................................. 1 PART I: Social inclusion in the midst of systemic change Chapter 1: Social inclusion in scholarly research and public policy ............... 13 Chapter 2: Morals and markets, politics and profits, responsibility and risk .. 41 Chapter 3: Social inclusion and strategic, customer-focused CSR ................. 67 PART II: Designing and positioning the empirical study Chapter 4: Research design ............................................................................. 89 Chapter 5: Positioning strategic voluntarism in regulatory context ............. 121 PART III: A skills-based and deliberative case of strategic CSR Chapter 6: Same landmarks, different destinations ....................................... 143 Chapter 7: Agency and connection through skills for participation: Tech Savvy Seniors ...................................................................... 171 Chapter 8: Agency and connection through deliberation: local decision-making at Oasis and Glitz Apartments ................ 191 PART IV: The corporate contribution to social inclusion Chapter 9: Shaping competitive and voluntary dynamics of inclusion ......... 213 Conclusion: Navigating risk, opportunity and responsibility ........................ 237 Reference list ........................................................................................................ 245 Appendices ........................................................................................................... 274 — v — — vi — Table of figures Figure 1. Integrative and political approaches to strategic CSR (Source: author) 55 Figure 2. Social inclusion through a sense of agency and connection (Source: author) .................................................................................... 70 Figure 3. Strategic, customer-focused CSR programs as mechanisms for generating individually-held and shared resources, with implications for one’s sense of agency and connection (Source: author) ...................... 77 Figure 4. Arnstein’s eight rungs on a ladder of citizen participation (Source: Arnstein 1969: 217) .............................................................................. 81 Figure 5. Internet users* in Australia in 2012-13, by age group (Source: ABS 2014) .............................................................................. 95 Figure 6. Research