“Exploring Corporate Social Responsibility (CSR) within the International Spirits Industry, its environmental and social impacts, how it creates value, and the perceived benefits to consumers and the industry at large.”

Abstract

Purpose: The International Spirits Industry is vital in Scotland, spirits account for over 10% of turnover / 16% of gross value added (GVA) in Scottish manufacturing as a whole. (Scottish Government 2017) .The industry has truly global reach serving over 200 international markets where the Scottish spirits sector accounts for around 86% for turnover and 91% of GVA proportion of total UK output of the industry. It has a very significant impact on the local communities within Scotland; the top 6 are Fife, Moray, West Dunbartonshire, Glasgow, North Lanarkshire and Renfrewshire, together accounting for 41% of the business sites, 68% of employment, 71% of turnover and 77% of GVA in the spirits sector (Scottish Government 2017). The Industry is growing in the UK with a predicted growth of 6.3% by 2020 (Scottish Government 2017). The International Spirits Industry is vital in Scotland, spirits account for over 10% of turnover / 16% of gross value added (GVA) in Scottish manufacturing as a whole. (Scottish Government 2017) .The industry has truly global reach serving over 200 international markets where the Scottish spirits sector accounts for around 86% for turnover and 91% of GVA proportion of total UK output of the industry. It has a very significant impact on the local communities within Scotland; the top 6 are Fife, Moray, West Dunbartonshire, Glasgow, North Lanarkshire and Renfrewshire, together accounting for 41% of the business sites, 68% of employment, 71% of turnover and 77% of GVA in the spirits sector. The Industry is growing in the UK with a predicted growth of 6.3% by 2020 (Scottish Government 2017). Organisations within the International Spirits Industry invest millions on their corporate social responsibility (CSR) or social responsibility initiatives. The aim of the dissertation was to investigate and analyse if the International Spirits Industry’s investment in corporate social responsibility initiatives justified the value it creates for all key stakeholders. Corporate social responsibility (CSR) is the obligation of companies to carry out their business in a responsible way which benefits society as well as profits, it can be found in the following forms:  Community support (e.g. support more to art, health, educational and housing initiatives for the economically disadvantage, generous giving)  Diversity (e.g. sex-, race-, family-, sexual disorientation, disability-based diversity record and initiatives, or lack thereof)  Employee support (concern for safety, profit sharing, union relations, employee involvement, and job security)  Environment (e.g. environment friendly product and, hazardous waste management)  Overseas operations (e.g. overseas labour practices and operations in countries with human rights violations)  Product (e.g. safety, research and development, contracting controversies) (KLD Research and Analytics Inc. 2006). Methodology: A mixed method approach was adopted as using both qualitative and quantitative allowed meanings and findings to be elaborated, enhanced, clarified, confirmed, illustrated and linked. This provided diversity in the results, with a wide range of views from both the public and those within the industry, compared with that of the literature created an accurate view on CSR Findings: An extensive literature review produced key themes around CSR: 1. Investment in CSR 2. Communication Supporting CSR 3. Value of CSR 4. Brand Promotion and Protection 5. Future of CSR: Raising awareness The findings of the research illustrated that consumer’s value CSR but do not fully engage with it at the present moment. It is of value to organisations as it can protect and promote their brand all whilst saving money on costs – providing organisations with a competitive advantage. Industry experts were conscious of their impact on the environment and how much they can save by behaving ethically, whilst consumers were aware of CSR but believe more still needed to be done. Originality/Value: This dissertation explored a topic with extensive literature in CSR and applied this to an industry with very little research.