Corporate Social Responsibility: Exploring a Framework for the Agribusiness Sector

Abstract

Corporate social responsibility (CSR) has long been an issue for research and practice. More recently, in response to growing public scrutiny, it has also gained importance in the agribusiness sector. Research has highlighted a growing gap between public perceptions of farming and food production processes and the realities of modern agriculture and the food industry. This can threaten the reputation and legitimacy of companies operating in this sector. One proactive means for companies to meet societal expectations is to make an active commitment to society and its needs by implementing a CSR policy. However, there is still no clear definition of CSR, and what important stakeholders actually expect from companies remains largely unknown. This paper focuses on consumers' perception of CSR. Its objective is to explore a CSR policy design for German agribusiness based on Archie B. Carroll's famous pyramid model. A consumer survey was conducted to evaluate the CSR demands society places on agribusiness companies. An explorative factor analysis was employed to discover the outline of the construct in the German agribusiness context. The results reveal that Carroll's model, which was developed from a U.S. point of view, cannot be confirmed for German agribusiness. Instead of Carroll's four responsibility groups, three areas of responsibility were identified: economic, internal and external. These results have manifold implications for CSR strategies in agribusiness firms and represent an important origin for future investigations on CSR in other countries as well as in specific agribusiness subsectors.