Open Research Online The Open University’s repository of research publications and other research outputs The Management of Corporate Social Responsibility in the UK Rail Sector Thesis How to cite: Johnson, Barry (2014). The Management of Corporate Social Responsibility in the UK Rail Sector. MPhil thesis The Open University. For guidance on citations see FAQs. c 2013 The Author https://creativecommons.org/licenses/by-nc-nd/4.0/ Version: Version of Record Link(s) to article on publisher’s website: http://dx.doi.org/doi:10.21954/ou.ro.0000f01c Copyright and Moral Rights for the articles on this site are retained by the individual authors and/or other copyright owners. For more information on Open Research Online’s data policy on reuse of materials please consult the policies page. oro.open.ac.uk \ J \ \ J { r v \ w I Vs***!# Department of Design, Development, Environment, and Materials Faculty of Maths, Computing and Technology The Management of Corporate Social Responsibility in the UK rail sector A thesis submitted to The Open University for the degree of Master of Philosophy By Barry Johnson BSc (Hons) MSc CEnv MIEMA CMIOSH CMILT April 2014 DATs o f so& m issioA 2 T-4 e ProQuest Number: 13835594 All rights reserved INFORMATION TO ALL USERS The quality of this reproduction is dependent upon the quality of the copy submitted. In the unlikely event that the author did not send a com plete manuscript and there are missing pages, these will be noted. Also, if material had to be removed, a note will indicate the deletion. uest ProQuest 13835594 Published by ProQuest LLC(2019). Copyright of the Dissertation is held by the Author. All rights reserved. This work is protected against unauthorized copying under Title 17, United States Code Microform Edition © ProQuest LLC. ProQuest LLC. 789 East Eisenhower Parkway P.O. Box 1346 Ann Arbor, Ml 48106- 1346 Abstract Abstract There is increasing interest from the public and private sector in not only how companies do business in financial and commercial terms, but also in the way they take into account the impacts they have on the communities, stakeholders, and environments in which they operate. There is increasing evidence from these sectors that companies that actively manage social, environmental, health and safety issues, demonstrating Corporate Social Responsibility (CSR), will do better financially and in share price valuation. Companies that take this CSR initiative are also rated in surveys as companies where people want to work and do business. To date there has been little previous research carried out on CSR in the UK rail sector. This thesis therefore examines the evolution of the relationship between CSR and the UK rail sector, assesses the significance of the relationship between CSR and the corporate success of UK rail sector organisations and appraises the efficacy of the implementation and use of CSR management in UK rail organisations. Using results and findings taken from a questionnaire-based survey, supported by personal interviews, of the experience of a sample of UK rail sector managers with responsibility for CSR, and an analysis of documentation from a literature review, a case is presented for the proposal that effective CSR management can improve stakeholder perception. Specifically, the research reported in this thesis addresses the proposition that the management of CSR is essential in successful UK rail organisations and that the implementation of CSR could help reduce the impact from catastrophic incidents such as rail fatalities at pedestrian level crossings and derailments. Contents Contents Page List of Figures v List of Tables vi Statement of original authorship vii Acknowledgements viii Publications ix Introduction 1 Chapter 1.0 Management of CSR in the UK rail sector - a 8 Literature Review 1.1 Introduction 8 1.2 Recent developments of CSR in UK the rail sector 17 1.3 Comparison of CSR literature from UK rail and selected 18 transport sectors 1.4 Current definitions of CSR 29 1.5 A Review of current CSR strategies and practices 33 1.6 For and against - the CSR debate 37 1.7 The development of CSR in the UK rail sector 43 1.7.1 CSR in British Rail 43 1.7.2 CSR post-privatisation and Railtrack 45 1.7.3 Current CSR and Network Rail 47 1.8 A Review of CSR principles, standards and legislation 49 1.9 CSR policies and corporate codes of conduct 51 1.10 CSR Reports in other sectors 52 1.11 Summary 59 Chapter 2.0 Research Strategy and Methods 61 2.1 Introduction 61 2.2 Research questions 61 2.3 Research Methods 62 2.4 Developing the research approach 66 2.5 The research questionnaire-based survey 68 2.6 The research interview-based survey 77 2.7 Ethical considerations 77 2.8 Summary 78 Chapter 3.0 The Management of CSR in the UK rail sector: 80 Research Results, Analysis and Discussion 3.1 Introduction 80 3.2 Results from the questionnaire-based survey 81 3.3 Results from the interviews 89 3.4 Discussion of the results of the literature review 96 3.4.1 Positive comments for the management of CSR 96 in the UK rail sector 3.4.2 Negative comments 98 3.4.3 Positive versus negative comments 100 3.5 Discussion of the results from the questionnaire-based survey 100 3.6 Interpretation of the results 106 3.7 Comparison with other research 108 3.8 Contribution to existing research 109 3.9 UK rail sector corporate reputation and public image 113 3.10 Change Management: Success factors and challenges 118 3.11 Vision and senior management commitment to CSR 120 3.12 Summary 123 Chapter 4.0 Conclusions 124 4.1 Introduction 124 4.2 The Five Research Questions: Key Findings 124 4.3 The case for CSR in the UK rail sector 126 4.4 Current CSR Models and Standards 129 4.5 Concluding summary 130 4.6 Contribution to knowledge 131 4.7 Further research opportunities 133 References 135 Appendices 148 Appendix 1 UK Railway Nomenclature and Definitions 148 Appendix 2 Summary of answers to questionnaire and interviews 152 Appendix 3 Interview and questionnaire-based survey response 158 Appendix 4 Questionnaire and interview, company contacts 165 Figures Figures Page 1.4.1 Carroll’s pyramid o f corporate social responsibility 33 3.2.1 Results showing definitions that best describe CSR 85 3.2.2 Results showing the actual benefits o f CSR reporting 85 3.2.3 Results showing the importance o f CSR reporting to business opportunities 86 3.2.4 Results showing the level o f integration 86 3.2.5 Results showing the main driving forces behind CSR 87 3.2.6 Results showing what instruments are implemented to facilitate CSR 87 3.2.7 Results showing the most important business responsibilities o f CSR 88 3.2.8 Results showing level o f agreement for CSR reporting 88 3.9.1 The social amplification from a catastrophic event 117 3.9.2 The Potters Bar incident and resulting ripple effect 117 3.10.1 Conceptual model proposing five key ingredients to effect complex 119 change, such as the implementation o f CSR systems Tables Tables Page 1.1 Appropriateness of the research 5 1.3.1 Example of company CSR statements and assurance 19 1.3.2 Selected UK rail sector companies that suffered financial loss from 27 unexpected catastrophes 1.3.3 Number of fatalities at UK rail crossings 2002 to 2010 27 1.4.1 Definitions of CSR 29 1.4.2 The five dimensions, how the coding scheme was applied and example 32 phrases 1.10.1 Trends in reporting showing the numbers reporting for the first time 56 2.3.1 Relevant Situations for Different Research Methods 63 2.5.1 General information and personal details of the respondents 76 3.2.1 Results from the questionnaire-based survey 81 3.5.1 Analysis of the results of the questionnaire-based survey 101 3.7.1 Selected questions comparing the factors for implementing CSR 108 3.9.1 Media coverage of rail industry incidents resulting in loss of lives 116 Appendix 2.1 Summary of answers to questionnaire and interviews 152 Appendix 3.1 Interview and questionnaire-based survey response 158 Appendix 4.1 Interviewees and Company Contacts 165 vi Statement of original authorship Statement of original authorship I, Barry Johnson, confirm that: I am the original author of this thesis and that the research needed to produce this work was undertaken solely by me. I have read the University policy on plagiarism and the work presented in this dissertation is my own writing. This work has not been published previously nor has it been used towards the award of any degree or any qualification of the Open University or any other degree-awarding body. Signed: Date: 30th April 2014 Acknowledgements Acknowledgements I have been fortunate to have a supervisory team recently appointed and expertly lead by Dr. David Gillingwater and assisted by Dr. Toni Gladding. The road to completion has been long and testing but with David’s enthusiastic support together with Toni’s positive reinforcement and will to succeed made the final stages enjoyable. Grateful acknowledgements are also made to the members of the UK rail industry for the data they provided in both the personal interviews and the questionnaire-based survey. Special thanks to my family, particularly my wife Jayne, friends and colleagues from Jarvis pic and Fastline without their help and support this work would not have been completed. This project is dedicated to them. Grateful thanks also go to my original internal supervisor, Dr.