Submitted by Juliane Gasser Submitted at Institut für betriebliche Finanzwirtschaft Abteilung für Corporate CORPORATE SOCIAL Finance RESPONSIBILITY (CSR) Supervisor Univ.Prof.in Dr.in Eva Wagner AND SHAREHOLDER May, 2018 STRUCTURE THE INFLUENCE OF SHAREHOLDERS ON CSR AND THE INFLUENCE OF CSR ON SHAREHOLDER STRUCTURE Master Thesis To obtain the academic degree of Master of Science Global Business In the Master Program Global Business Russia/Italy – Joint Master Program JOHANNES KEPLER UNIVERSITÄT LINZ Altenberger Straße 69 4040 Linz, Österreich www.jku.at DVR 0093696 STATUTORY DECLARATION I hereby declare that the thesis submitted is my own unaided work, that I have not used other than the sources indicated, and that all direct and indirect sources are acknowledged as references. This printed thesis is identical with the electronic version submitted. Linz, 25.05.2018 ______________________________ Location, Date Signature of the student ACKNOWLEDGEMENTS I would like to thank Univ.Prof.in Dr.in Eva Wagner for her expertise as well as her continuous help and support in the writing of this thesis. I am grateful to all the participants of the survey, as they provided valuable insights and helped me to get results of better quality. I would also like to thank Barbara and Richard for their tireless support, as well as Oliver and Markus for preparing me. Finally, I would like to express my deepest gratitude to Michael for everything. 3 TABLE OF CONTENT I. Table of Tables ................................................................................................................... V II. Table of Figures ............................................................................................................... VI II. List of Abbreviations ........................................................................................................ VII III. Abstract ......................................................................................................................... VIII 1. Introduction .................................................................................................................... 1 1.1 Problem Definition ................................................................................................... 1 1.2 Research Objective ................................................................................................. 2 1.3 Methodology ............................................................................................................ 3 2. Theoretical Framework .................................................................................................. 5 2.1 Definition and differentiation of CSR ........................................................................ 5 2.2 Two schools of thought on CSR ............................................................................... 7 2.3 A Changing Framework of CSR ............................................................................... 9 2.4 Drivers and Barriers of CSR ....................................................................................10 2.5 Further development in the area of CSR .................................................................13 3. Shareholders’ influence on CSR ...................................................................................16 3.1 Development of status quo .....................................................................................16 3.2 Social Shareholder Activism (SSA) .........................................................................18 3.2.1 Social shareholder activism (SSA) as a a tool for change ................................19 3.2.2 Activist tactics ..................................................................................................22 3.2.3 The shareholder activist ...................................................................................26 3.3 Socially responsible investments (SRI) – entry and exit instead of negotiations ......28 I 3.3.1 Definitions ........................................................................................................28 3.3.2 A change in the understanding of a ‘good investment’ .....................................29 3.3.3 Screening Methods ..........................................................................................30 3.3.4 SRI influencing business practices ...................................................................31 3.3.5 Limitations of SRI .............................................................................................32 4. Empirical Research ......................................................................................................34 4.1 Research Design ....................................................................................................34 4.2 Research Methodology ...........................................................................................37 4.2.1 Participants: sample description .......................................................................38 4.2.2 Development of the interview guidelines ..........................................................39 4.2.3 Interview setting and situation description ........................................................41 4.2.4 Material description ..........................................................................................41 4.2.5 Qualitative Content Analysis (QCA) .................................................................42 5. Research Results in Detail............................................................................................45 5.1 Motivators for CSR .................................................................................................46 5.1.1 Internal Motivators ...........................................................................................47 5.1.2 External Motivators ..........................................................................................50 5.1.3 Drivers and Barriers of CSR .............................................................................52 5.2 Shareholders influencing CSR ................................................................................53 5.2.1 Topics of Interest .............................................................................................53 5.2.2 Reasons for influencing ....................................................................................54 5.2.3 Interaction and Communication with the firm ....................................................54 II 5.2.4 Reactions to CSR implementation ....................................................................56 5.3 Shareholder Structure .............................................................................................57 5.3.1 Change in Shareholder Structure .....................................................................57 5.3.2 Background of New Shareholders ....................................................................58 5.3.3 Interests of New Shareholders .........................................................................60 5.3.4 Interaction and Communication with New Shareholders ..................................62 5.3.5 Screening Methods ..........................................................................................65 6. Discussion of the Findings ............................................................................................69 6.1 Motivators for CSR .................................................................................................69 6.2 Shareholders influencing CSR ................................................................................71 6.3 Shareholder Structure .............................................................................................72 7. Limitations of the Study ................................................................................................75 8. Further possible Research and recommended course of action ...................................76 9. Conclusion ....................................................................................................................79 IV. List of References .......................................................................................................82 V. Appendix ......................................................................................................................95 Appendix I - Interview Guidelines ..................................................................................95 Interview Outline - Business Side..............................................................................95 Interview Outline - ethical/social fund manager .........................................................97 Appendix II - Category Systems ....................................................................................98 Category system - Business side ..............................................................................98 Category System - SRI ........................................................................................... 120 III Appendix III - Interview Transcripts ............................................................................. 129 Transcript Interview 1 .............................................................................................. 129 Transcript Interview 2 .............................................................................................. 137 Transcript Interview 3 .............................................................................................