The impact of corporate social

responsibility on intrinsic and

extrinsic employee motivation
A mixed-method study of Sodexo

Authors: Alexander Forsgren

Lucas Haskell
Supervisor: Galina Biedenbach

Student
Umeå School of Business and Economics
Spring semester 2015
Degree project, 30 hp
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 Abstract
Corporate social responsibility (CSR) is a subject that has gained more attention over the
last two decades, and it is seen today as an integral part of the core strategy of many
companies. The subject often involves a balancing act between many stakeholder
interests, where employees often are mentioned as a main stakeholder group. The primary
purpose of this degree project is to get a deeper understanding of managers’ perceptions
of CSR’s impact on intrinsic and extrinsic employee motivation. Furthermore, this study
fills the purpose of investigating perceptions about the effect of different CSR activities
on intrinsic and extrinsic motivation. The study was conducted with the Swedish branch
of Sodexo. Sodexo is globally considered a world leader in the service industry with over
419 000 employees in 80 countries, known for their well-developed and effective CSR-
work.

Current literature regarding CSR on the micro level (individual level and employee level)
is still in an early stage which helped us to recognize a research gap. Similar studies to
ours have not been concerned with getting a deeper understanding of the manager’s
perceptions of CSR’s impact on employee motivation. This study was conducted using a
mixed-method, which means that it consists of a qualitative part and a quantitative part
where we discover how CSR activities towards employees, suppliers, the community,
shareholders and customers affects employees’ extrinsic and intrinsic motivation. In the
qualitative study, we conducted eight semi-structured interviews with managers from
different departments and different hierarchical levels of Sodexo. These interviews
helped us to gain a better understanding of how managers perceive the impact of CSR on
employee motivation, and how they value the effect of different CSR activities on
employee motivation. We used a thematic network analysis in order to interpret the
results, which generated five themes: communication, strategic planning, diversity,
working environment, and stakeholders. Our results demonstrated that managers
perceived CSR activities towards the employees, the local community, and customers as
intrinsic motivators. Also, Sodexo’s managers considered CSR activities towards
employees and the local community as extrinsic motivators. However, interviewees
disregarded CSR activities towards shareholders as a motivator towards the employees.
Lastly, we received mixed-results regarding their perceptions of how CSR activities
towards suppliers affected their employees’ motivation.

For the quantitative part of our study, we surveyed employees at Sodexo in order to
understand what motivates them. We used a multiple regression analysis which showed
that CSR activities towards employees, shareholders, and customers positively impacts
the intrinsic motivation of employees. Also, we discovered that CSR activities towards
employees positively impacts the extrinsic motivation amongst employees. We argue that
our findings indicate that CSR is a useful tool for increasing employee motivation, and
thereby can lead to long-term competitive advantage.

When comparing the results of our quantitative and qualitative studies through
triangulation, one can see that there is perceptional differences and similarities between
managers and employees. Our findings suggest that managers have the same perceptions
as their employees regarding the effect of CSR activities conducted towards customers
and employees on employee motivation. Also, our findings reveal a perceptual mismatch
between managers and employees regarding the effects of employee motivation in
regards to CSR activities conducted towards the community and shareholders.

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 Acknowledgements
We would like to begin by thanking our supervisor Dr. Galina Biedenbach, for
providing us with help and constructive criticism during the writing process. Her
guidance and commitment during the duration of this degree project has pushed us to go
the extra mile.
We would also like to thank Eva Kristensson, communication director at Sodexo, for
being cooperative and helping us coordinate our study with Sodexo. Also, we would
like to thank all of the interviewees and respondents who participated in our study.
Without them, this degree project would not have been possible. Lastly, we would like
to thank our family and friends for their support and sound advice during this degree
project.

Umeå
May 19, 2015
Alexander Forsgren & Lucas Haskell

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TABLE OF CONTENTS
1.0 INTRODUCTORY CHAPTER ................................................................................................. 1
1.1 SUBJECT CHOICE .................................................................................................................. 1
1.2 PROBLEM BACKGROUND .................................................................................................... 2
1.3 THEORETICAL BACKGROUND AND RESEARCH GAPS .......................................................... 3
1.4 RESEARCH QUESTIONS ........................................................................................................ 5
1.5 PURPOSE ............................................................................................................................. 5
2.0 SCIENTIFIC METHOD................................................................................................................ 7
2.1 ONTOLOGY .......................................................................................................................... 7
2.2 EPISTEMOLOGY ................................................................................................................... 8
2.3 RESEARCH APPROACH ......................................................................................................... 9
2.4 RESEARCH DESIGN............................................................................................................. 10
2.5 PRECONCEPTIONS ............................................................................................................. 11
2.6 LITERATURE SEARCH ......................................................................................................... 11
2.7 CHOICE OF THEORIES AND CONCEPTS .............................................................................. 12
3.0 THEORETICAL FRAMEWORK.................................................................................................. 14
3.1 CORPORATE SOCIAL RESPONSIBILITY (CSR) ...................................................................... 14
3.2 STAKEHOLDER THEORY AND CSR ...................................................................................... 16
3.3 MOTIVATION THEORY ....................................................................................................... 20
3.3.1 EXTRINSIC MOTIVATION AND INTRINSIC MOTIVATION ............................................ 21
3.3.2 MASLOW’S HIEARCHY OF NEEDS ............................................................................... 22
3.3.3 HERZBERG’S DUAL FACTOR THEORY .......................................................................... 23
3.4 RESEARCH CONNECTING CSR, MOTIVATION AND STAKEHOLDER THEORY...................... 23
3.5 THEORETICAL FRAMEWORK FOR OUR MIXED-METHOD STUDY ...................................... 24
4.0 PRACTICAL METHOD ............................................................................................................. 28
4.1 DATA COLLECTION ............................................................................................................ 28
4.2 QUALITATIVE DATA COLLECTION AND INTERVIEW GUIDE ............................................... 29
4.2.1 QUALITATIVE SAMPLING TECHNIQUE AND ACCESS .................................................. 30
4.2.2 CONDUCTING THE INTERVIEWS ................................................................................. 30
4.2.2 TRANSCRIBING ........................................................................................................... 31
4.3 QUALITATIVE ANALYSIS ..................................................................................................... 32
4.4 QUANTITATIVE DATA COLLECTION ................................................................................... 32
4.4.1 SURVEY CONSTRUCTION ............................................................................................ 33
4.4.2 QUANTITATIVE SAMPLING THECHNIQUE .................................................................. 34

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 4.5 QUANTITATIVE DATA ANALYSIS ........................................................................................ 35
4.5.1 CRONBACH’S ALPHA................................................................................................... 35
4.5.2 DESCRIPTIVE STATISTICS ............................................................................................ 35
4.5.3 MULTIPLE REGRESSION ANALYSIS.............................................................................. 36
4.6 ETHICAL CONSIDERATIONS ............................................................................................... 36
5.0 QUALITATIVE EMPIRICAL FINDINGS AND ANALYSIS ............................................................. 38
5.1 CORPORATE SOCIAL RESPONSIBILITY (CSR) ...................................................................... 38
5.2 STAKEHOLDERS ................................................................................................................. 39
5.3 MOTIVATION ..................................................................................................................... 41
5.4 THEMATIC NETWORK ANALYSIS AND DISCUSSION .......................................................... 47
5.4.1 THEME COMMUNICATION ......................................................................................... 47
5.4.2 THEME STRATEGIC PLANNING ................................................................................... 48
5.4.3 THEME DIVERSITY....................................................................................................... 49
5.4.4 THEME WORKING ENVIRONMENT ............................................................................. 51
5.4.5 THEME REWARDS ....................................................................................................... 52
5.4.6 THEME STAKEHOLDERS .............................................................................................. 53
5.4.7 SUMMARY QUALITATIVE FINDINGS ........................................................................... 54
6.0 QUANTITATIVE EMPIRICAL FINDINGS AND ANALYSIS .......................................................... 56
6.1 DEMOGRAPHICS ................................................................................................................ 56
6.2 CRONBACH’S ALPHA.......................................................................................................... 57
6.3 DESCRIPTIVE STATISTICS ................................................................................................... 58
6.4 REGRESSION ANALYSIS 1: EXTRINSIC MOTVATION AND CSR ACTIVITIES ......................... 60
6.5 REGRESSION ANALYSIS 2: INTRINSIC MOTIVATION AND CSR ACTIVITIES......................... 61
6.5 REVISED CONCEPTUAL MODEL ......................................................................................... 62
6.6 QUANTITATIVE DISCUSSION.............................................................................................. 63
7.0 TRIANGULATION.................................................................................................................... 70
7.1 EXTRINSIC MOTIVATION ................................................................................................... 70
7.2 INTRINSIC MOTIVATION .................................................................................................... 71
7.3 CSR ACTIVITIES TOWARDS EMPLOYEES ............................................................................ 72
7.4 CSR ACTIVITIES TOWARDS THE COMMUNITY ................................................................... 73
7.5 CSR ACTIVITIES TOWARDS SHAREHOLDERS ...................................................................... 74
7.6 CSR ACTIVITIES TOWARDS CUSTOMERS ........................................................................... 75
7.7 CSR ACTIVITIES TOWARDS SUPPLIERS............................................................................... 76
7.8 SUMMARY OF TRIANGULATION........................................................................................ 77
8.0 CONCLUSIONS ....................................................................................................................... 79
8.1 GENERAL CONCLUSIONS ................................................................................................... 79

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 8.2 THEORETICAL CONTRIBUTIONS ........................................................................................ 80
8.3 PRACTICAL CONTRIBUTIONS ............................................................................................. 80
8.4 SOCIETAL CONSIDERATIONS ............................................................................................. 81
8.5 LIMITATIONS AND SUGGESTIONS FOR FURTHER RESEARCH ............................................ 81
9.0 QUALITATIVE QUALITY/ TRUTH CRITERIAS ........................................................................... 83
9.1 QUALITATIVE QUALITY/ TRUTH CRITERIAS ....................................................................... 83
9.2 QUANTITATIVE QUALITY/TRUTH CRITERIAS ..................................................................... 84
LIST OF REFERENCES ...................................................................................................................... I
APPENDIX 1, INTERVIEW GUIDE................................................................................................... IX
APPENDIX 2, THEMATIC NETWORK ANALYSIS .............................................................................. X
APPENDIX 3, SURVEY QUESTIONS ................................................................................................ XI
LIST OF TABLES
TABLE 1. HYPOTHESES ................................................................................................................. 26
TABLE 2. INTERVIEWEES .............................................................................................................. 31
TABLE 3. THEMATIC NETWORK SUMMARY ................................................................................ 55
TABLE 4. CRONBACH'S ALPHA ..................................................................................................... 58
TABLE 5. DESCRIPTIVE STATISTICS TABLE: MEAN, STANDARD DEVIATION, MODE, AND MEDIAN
..................................................................................................................................................... 59
TABLE 6. PEARSON CORRELATION .............................................................................................. 60
TABLE 7. REGRESSION ANALYSIS 1 .............................................................................................. 61
TABLE 8. REGRESSION ANALYSIS 2 .............................................................................................. 62
TABLE 9. REVISED HYPOTHESES .................................................................................................. 62
TABLE 10. MIXED-METHOD STUDY ANALYSIS ............................................................................. 78

LIST OF FIGURES
FIGURE 1. CONCEPTUAL MODEL ................................................................................................. 25
FIGURE 2. GENDER ...................................................................................................................... 56
FIGURE 3. AGE DISTRIBUTION ..................................................................................................... 57
FIGURE 4 REVISED CONCEPTUAL MODEL ................................................................................... 63

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 1.0 INTRODUCTORY CHAPTER
The purpose of this chapter is to introduce the reader to our research topic, to give an overview
of our theoretical framework and identify a gap in the current literature. Moreover, we provide
a basis of theories and a concept connected to one another, namely corporate social
responsibility, motivation, and stakeholder theory. Furthermore, we present why we have chosen
to use a mixed-method study, showing how this research methodology can bridge gaps in current
literature. Finally, we will present our research questions and what purpose this degree project
aims to fulfill.

1.1 SUBJECT CHOICE

We are two management students studying Business Administration at Umeå University.
Both of us became interested in corporate social responsibility (CSR) during a course in
our business program which incorporated CSR and sustainability. Motivation was also a
subject that gained our interest and attention during courses in the business program
where motivation was often described as an important but challenging component of an
organization. We decided early on that we wanted to cooperate with a company for our
study which lead us to contact Sodexo where one of us has previously been working
during summers. We thought it would be interesting and challenging to conduct our study
with a company such as Sodexo with a world-known and well-developed CSR program.

It has been discovered in recent research that employees, a main stakeholder group, are
being more motivated by corporate social responsibility (Skudiene & Auruskeviciene,
2012, p. 49). We have chosen to use theories that are connected to the managerial research
area such as the phenomena of corporate social responsibility, motivation theories, and
stakeholder theory. First, we discuss the concept of corporate social responsibility
(henceforth CSR) since it reflects different levels of an organization, both the
organizational level, also referred to as the institutional level and the individual level
(Aguilera et al., 2007, p. 839). The organizational or institutional level will be referred to
further on as the macro level while the individual level will be further referred to as the
micro level. Furthermore, we have chosen study motivation which can be connected to
CSR literature on the micro level. Lastly, we have chosen to use stakeholder theory in
this degree project since CSR according to Freeman et al. (2010. p 237), is mainly about
balancing different stakeholders interests, which implies that stakeholders are affected by
CSR activities.

Our main reason for choosing a company in the service sector derives from the very nature
of such companies. For example, companies in the service sector are experiencing more
positive effects of their CSR work in contrast to companies in other industries, mostly
because companies in this sector are similar to one another (Calabrese & Lancioni, 2008,
p. 108). As a result of this fact, we chose a company in the service sector as opposed to
another sector because we wanted to get more salient results. Our study is relevant
especially for the service sector since it, according to Calabrese & Lancioni (2008, p.
110), appears that the motivation of employees has a significant role in the quality of
services provided, which could mean the difference between an average service and an
outstanding service. Moreover, it appears that companies in the service sector are keen to
communicate their CSR activities (Calabrese & Lancioni, 2008, p. 112). For example,
some companies that are similar to Sodexo send out clear messages about their
involvement in CSR activities through their websites. The service company ISS

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communicates how they operate within all dimensions of the triple bottom line through
their website (ISS, 2015). Another example is Coor Service Management, which proudly
announces on their website how they have appointed a steering committee which only
focuses on structuring and clarifying the company’s work with CSR (Coor, 2010).
1.2 PROBLEM BACKGROUND
Scholars are rather consistent in their view of what drives firms to conduct themselves in
CSR-related activities, namely pressure from internal and external stakeholders (Aguilera
et al., 2007, p. 844). CSR can be defined as “context-specific organizational actions and
policies that take into account stakeholders’ expectations and the triple bottom line of
economic, social, and environmental performance” (Aguinis, 2011, p. 855). The triple
bottom line is the balance of social, environmental, and financial performance which can
lead to sustainability in the long run for a given organization (Joannis et al., 2013, p.
177). Further, the concept of CSR involves balancing different stakeholders’ interests,
thus meaning that different stakeholder’s interests must be taken into account in the
decision-making process of planning and performing CSR activities (Freeman et al.,
2010, p. 237). According to Freeman (1984, p. 46), anyone with interests in the effects of
a firm is considered a stakeholder, and according to Laplume et al. (2008, p. 1157),
stakeholders can be divided into two groups, internal and external stakeholders. In the
vast literature about CSR, a lot of research has been done, but literature regarding CSR
on the micro level regarding the internal stakeholders of a firm is still relatively scarce
(Aguilera et. al, 2007, p. 837; Aguinis & Glavas, 2012, p. 933).

In order to conduct a study in this area, we contacted Sodexo, a company with a well-
established CSR program who agreed to be a part of our study. Sodexo was founded in
1966 by Pierre Bellon in Marseille and they are today considered a world leader in their
industry with over 419 000 employees in 80 countries (Sodexo, 2015). Our study will be
limited to Sodexo Sweden, where we will interview Swedish managers and survey
Swedish employees. Sodexo AB is part of Sodexo in the Nordics, which according to
their website (Sodexo, 2015) develops, manages, and delivers services to institutions,
companies, and the public sector, and with over 11 000 employees they are considered as
the leading service management company in the Nordics. Sodexo has an extensive and
well-developed CSR program, for example Sodexo was appointed by Unionen as the
most LGBT-friendly workplace of 2013 (Sodexo, 2015). Sodexo presents their CSR
program as a keystone and as a mission of their entire business, where they carefully
consider how they affect people, the local community, and the environment in the cities,
regions, and countries where they operate (Sodexo, 2015). The people, the local
community and the environment is representatives of the triple bottom line which is part
of the definition of CSR that we recognize as being most relevant for this degree project.
By doing this degree project with Sodexo, we can contribute with an evaluation of the
effects of their CSR-program’s impact on their employees’ motivation. Further, it will
highlight if their managers share the perceptions of their employees regarding the effects
of CSR-activities on employee motivation. According to their own website (Sodexo,
2015), Sodexo has been recognized as “best-in-class for social, environmental and
economic responsibility by the Dow Jones Sustainability Indexes every year since 2004”,
meaning that they are a worldwide leader in their industry in regards to CSR practices
which makes Sodexo suitable for this study. One of the first links one can see on Sodexo’s
website is a link to “Corporate Responsibility” and under that link they discuss how they
are a responsible employer, how they help local communities, how they have healthy
solutions, and how they help the environment (Sodexo, 2015). We can thereby see that
Sodexo is heavily advertising that they have a well-established CSR program.
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Our study is relevant for companies in the service sector since according to Calabrese &
Lancioni (2008, p. 110), the motivation of employees has a significant role in the quality
of services provided. This implies that companies like Sodexo who are in the service
sector must continually maintain and enhance the motivation of their employees in order
to provide quality services. To our best knowledge, today’s research has not shown
whether or not managers fully understand if their employees perceive the effects of CSR
on employee motivation in the same way that they do. If managers cannot motivate their
employees in the best possible way, then the services they provide will suffer because the
employees are not motivated enough to provide a good service. We proposed to Sodexo
that studying this matter could benefit how they run their CSR programs in order to
motivate their employees. In our initial contact with Sodexo, the head of communication
and corporate social responsibility agreed that this type of study could benefit Sodexo.

It is important to study how well managers understand the impacts of CSR activities on
motivation amongst their employees, especially since motivation, according to Boxall &
Purcell (2008, p. 5), plays such an important part in the output of a firm. We think that
our study serves Sodexo well since we are investigating how their CSR programs are
affecting their employees’ motivation, and it will also show if Sodexo’s managers are
over-or underestimating the impact that their CSR programs has on their employees’
motivation.
1.3 THEORETICAL BACKGROUND AND RESEARCH GAPS
Morgeson et al. (2013, p. 806) recognized that literature concerning CSR is still in an
early stage of research, especially on the micro level in terms of employees and personnel
psychology. Furthermore, Morgeson et al. (2013, p. 806) claim that if researchers want
to study CSR on the micro level, it is likely that one needs to address topics such as
organizational behavior. Another example comes from Rupp et al. (2006, p. 537), who
claims that CSR has gained scant attention in organizational behavior literature, which
has therefore led us to trying to connect CSR to organizational behavior in terms of
motivation theory. Minding the lack of literature connecting these concepts, we assert that
these concepts are highly relevant for our theoretical review.

The concept of CSR was first discussed as early as in the first half of the 1900’s, and in
1979 Archie Carroll (p. 500) recognized the growing importance of CSR. Due to the lack
of consensus of what the concept really meant, he defined CSR as: “The social
responsibility of business encompasses the economic, legal, ethical, and discretionary
expectations that society has of organizations at a given point in time” (Carroll, 1979, p.
500). However, for this study we are using another definition of CSR, as mentioned
before, a more modern and updated definition that has been adopted by many scholars,
which defines CSR as: “context-specific organizational actions and policies that take into
account stakeholders’ expectations and the triple bottom line of economic, social, and
environmental performance” (Aguinis, 2011, p. 855). Although there is a lack of
agreement about the definition of CSR, in a historical context CSR has gained criticism
for being a socialistic agenda which undermines the basis of our free society by
discriminating shareholders’ interests (Friedman, 1970, p. 122). However, this type of
opinion about CSR is rather outdated since it, in today’s environment, plays such an
important role for the firms different stakeholders (Peloza & Shang, 2011, p. 119).
Furthermore, the interest for CSR by different stakeholders, such as investors, employees,
consumers, and suppliers increased over the last several decades (Morgeson et al., 2013,
p. 806). CSR is a broad concept, therefore there have been a lot of different studies

3
conducted about the subject. Studies have been conducted that connect CSR to positive
financial performance (Barnett, 2007, p. 813; Peloza, 2009). Some researchers believe
that having CSR will attribute to having a better financial outcome, however this has yet
to be proven (Barnett., 2007, p. 813; Peloza, 2009). Furthermore, another research area
of CSR was studied by Saiia et al. (2003), who connected CSR to strategic philanthropy.
Another example comes from research about CSR and the connection of improved
employee productivity (Valentine & Fleischman, 2008). Those are several examples of
CSR studies that have been conducted over the last twenty years. Most of the current
research about CSR has been done on the macro level and how it affects organizations as
a whole (Aguinis & Glavas, 2012, p. 933), but literature about CSR on the micro level
and how the individual is affected is scarce.

Despite the scarcity of micro level CSR research there have been several studies
concerning CSR on the micro level. For example, Greening and Turban (2000, p. 276)
conducted a study about attracting employees through CSR. However, there is little
research combining CSR with the organizational behavior fields (Morgeson et al., 2013,
p. 806). Next, the demand for community and organizational research concerning
environmental responsibility, sustainability and stakeholder management is strong
(Morgeson et al., 2013, p. 806).

When planning and implementing CSR activities, it is important to keep in mind the
different stakeholders of the organization and their different expectations. Freeman (1984,
p. 46) defined stakeholders as: “any group or individual who can affect or is affected by
the achievement of the organization’s objectives.” There are two types of stakeholders,
internal stakeholders including shareholders, employees, managers, suppliers and
customers, and external stakeholders which includes governments, competitors,
consumer advocates, environmentalists, and the media (Laplume et al., 2008, p. 1157).
CSR can be better analyzed by studying the relationship between a firm and their
stakeholders (Clarkson, 1995, p. 92). Furthermore, Freeman et al. (2010. p. 237) stated
that “CSR involves some mechanism for balancing stakeholders’ interests.” Thus, it is
important for managers to be concerned with how to manage their CSR programs in order
to keep stakeholders satisfied. An important part of management is motivation which
leads us to the next theory that will be thoroughly discussed in this degree project.

Organizational behavior can be defined as: “a field of study that investigates the impact
that individuals, groups, and structure have on behavior within organizations for the
purpose of applying such knowledge toward improving an organization’s effectiveness”
(Robbins, 2001, p. 6). In other words, organizational behavior is concerned with how
people work and how their performance affects the organization as a whole. A part of the
organizational behavior is motivation (Maslow, 1943, p. 371), which can be described by
a person's direction, intensity, and persistence (Sadri & Bowen, 2011, p. 45). By choosing
the organizational behavior discipline, it enables us to study motivation on the micro level
of the organization (Wagner & Hollenbeck, 2010, p. 97). In this degree project, we focus
on the individual in an organization or the micro level and if he or she can be motivated
to perform successfully in relation to CSR activities. Motivation has a direct correlation
to personal performance which helps an individual to do better work than usual, that in
turn, enhances the overall firm performance (Sekhar et al., 2013, p. 472).

As a topic, motivation is one of the most important management topics (Amabile, 1993,
p. 185). McClelland and Winter (1969, p. 43) defined motivation as “...affectively toned

4
associative networks arranged in a hierarchy of strength or importance within a given
individual.” Some managers perceive motivation as correlating to performance at all
levels, on the other hand, organizational researchers perceive motivation as a starting
point for effective management theories (Steers et al., 2004, p. 379). An early theory was
Maslow’s hierarchy of needs from 1943 and was followed by Herzberg’s dual factor
theory in 1968. From these theories Deci (1975) has helped identify the difference
between two types of motivation: intrinsic motivation and extrinsic motivation. Deci
(1971, p. 105) defined intrinsic motivation as when one completes a task without
receiving any reward for completing the task. On the other hand, one who is motivated
by extrinsic motivation is “doing something because it leads to a separable outcome”
(Ryan & Deci, 2000, p. 55). In other words, one who is intrinsically motivated is
completing a task because it makes them happy or feel good while one who is extrinsically
motivated is completing a task for an external reward.

After reviewing the theories of CSR, stakeholder theory, and organizational behavior (i.e.
motivation), it is clear that today's literature regarding CSR on micro-level is scarce,
especially when it is connected to issues such as motivation. This gap is striking,
especially since the research fields mentioned above are closely related to CSR activities.
By writing this degree project, we are helping in bridging this gap to some extent, in this
case by connecting CSR to motivation whilst focusing on internal stakeholders, i.e.
managers and employees. Two similar studies have been conducted previously by
Skudiene and Auruskeviciene (2012) and Khan et al. (2014). Both Skudiene and
Auruskeviciene (2012) and Khan et al. (2014) explored how CSR affected employee
motivation through a quantitative method. By conducting a mixed-method study we
contribute to Skudiene and Auruskeviciene (2012) and Khan et al. (2014) by examining
how employees are motivated through CSR from the perspectives of managers which will
then be compared to the perceptions of employees, thus enabling us to highlight and stress
differences in the two perspectives. The gaps in current literature has led to our
development of two different research questions that will help give insight to the
manager’s perspective of how CSR affect employee motivation in addition to the opinion
of the employees.
1.4 RESEARCH QUESTIONS
1. How do managers perceive the impact of CSR activities on intrinsic and
extrinsic employee motivation?
2. What it is the impact of CSR activities on intrinsic and extrinsic employee
motivation based on the perceptions of employees?

1.5 PURPOSE
The primary purpose of this degree project is to develop a deeper understanding of the
manager’s perception of CSR’s impact on intrinsic and extrinsic employee motivation.
This will be accomplished by conducting a qualitative study where we interview several
Sodexo managers who can give us insights on their perception of how different CSR
activities impact their employees’ motivation. Furthermore, our degree project fills the
purpose of investigating whether or not employees agree with their manager’s perceptions
about the effect of different CSR on their intrinsic and extrinsic motivation. Also, this
degree project aims to develop a conceptual framework of how different CSR activities
related to employee activities, shareholder activities, supplier activities, customer
activities, and community activities affect intrinsic and extrinsic motivation, respectively.
From a theoretical perspective this study helps to bridge the gap for CSR on the micro

5
level. Furthermore, from a practical perspective this study helps Sodexo’s managers to
evaluate the impact of CSR activities on intrinsic and extrinsic motivation amongst
employees.

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 2.0 SCIENTIFIC METHOD
In this chapter we will discuss our philosophical point of view where we will state our
ontological and epistemological stances. Then, we move on to our research approach and
our research design in order to see how the research was conducted from a philosophical
point of view. Finally, we argue for why we chose our theories and how we found more
information about our theories in the literature search.
2.1 ONTOLOGY
Saunders et al. (2009, p. 510) defines ontology as a “branch of philosophy that studies the
nature of reality or being.” Bryman (2008, p. 35) provides a more distinct definition,
where he describes that ontology refers to the question regarding social entities, art, and
nature, whether social entities should be regarded as objective entities or if they should
be regarded as constructions based on the perceptions and actions of different actors. The
nature of this philosophical branch implies that it generates theories about what can be
known (epistemology), how to produce knowledge (methodology) and what research
practices that one can use (methods) (Raaschelders, 2011, p. 920).

In social science, there are two main ontological positions one can apply: objectivism and
constructionism (Bryman et al., 2011, p. 36). Objectivism suggests that social
phenomenon existence and influence are beyond the influence of social actors, thus
meaning that social entities are independent from social actors (Saunders et al., 209, p.
110). Constructionism on the other hand is an ontological position which implies that
social phenomena not only occurs as a result of social interaction, but they are constantly
being revised (Bryman et al., 2011, p. 37).

We embrace constructionism as our ontological position since we have the interpretation

that it is a necessity to explore the subjective meanings motivating the actions of social
actors (Saunders et al., 2009, p. 111). In this study are we using a mixed-method approach,
but we assess that the main contribution and focus of this study lays on a qualitative
approach, as a consequence of our ontological setting. Our research question is derived
from our ontological perspective, where we want to get a deeper understanding on how
managers and employees perceive the impact of CSR on intrinsic and extrinsic employee
motivation. From our ontological perspective, we view intrinsic and extrinsic motivation
as a continuous change where employees’ motivation can be created, lost, re-created, and
revised, by different social actors, thus meaning that this subject is ruled by a social order
dependent on social actors. However, a firm’s CSR-activities on the other hand are often
based on demands from stakeholders, but even here, we can also see a continuous
development that is controlled and influenced by social actors. Therefore, we view
intrinsic and extrinsic motivation and CSR as phenomena that exist within organizations,
and that are affected by social actors. This is based on a simple reasoning, namely that if
there were no social actors that impacted these topics, there would be no phenomena to
observe. Furthermore, motivation is a phenomenon that social actors, such as managers
can have an impact on, which in our opinion makes the choice of research question
warranted, regarding our ontological perspective. We also think that the quantitative part
of this degree project fits with our ontological perspective since these phenomena are not
independent from social actors, but as with our reasoning above, the social actor is the
one who creates them. Seeing as we are writing about CSR and its’ effect on motivation,
each individual actor can be motivated by different actors, such as themselves (intrinsic
motivation) or others (extrinsic motivation). By doing a quantitative study we could help

7
measure what motivates individuals and this would still hold true to our ontological point
of view.
2.2 EPISTEMOLOGY
Epistemology refers to what can be regarded as knowledge and what can be viewed as
acceptable knowledge in a particular field of study (Bryman, 2008, p. 29; Saunders et al.,
2009, p. 112-113). According to Bryman (2008, p. 29), a particular issue in this context
is the question whether social reality can, or should be based on the same principles and
methods as applied in the context of the natural sciences. Thus one can see that there are
three main philosophies within the branch of epistemology, namely positivism, realism,
and interpretivism (Saunders et al., 2009, p. 113-115). Bryman (2008, p. 30) argues that
the doctrine of positivism is rather hard to define, and explains the concept differs in
literature. However, in general, the term comprises an epistemological position where
methods of natural science are applied when studying the different aspects of social reality
(Bryman, 2008, p. 30). Positivism can be summarized as it merely confirms phenomena
and facts that can be confirmed by the senses (Bryman, 2008, p. 30). Also, it generates
hypotheses that can be tested, which researchers’ approach from a value free basis
(Bryman, 2008, p. 30). Realism is another philosophical position, similar to positivism
since it also suggests methods of natural science, and it advocates that researchers should
focus on external reality (Bryman, 2008, p. 31). Saunders et al. (2009, p. 114) explains
that according to realism, reality is to be defined by our senses, thus meaning that the
objective reality can be interpreted in different ways. Lastly, there is interpretivism, a
doctrine arguing that the social world is too complex to be theorized by laws according
to scientific methods (Bryman, 2011, p. 17). Interpretivism advocates that there are
differences between humans as social actors, which implies that it is up to the social
researcher to capture the subjective meaning of a social act (Bryman, 2008, p. 32).

In addition to the three main positions of epistemology, one can also adopt pragmatism
which adopts multiple epistemological positions (Saunders et al., 2009, p. 109). This is
supported by authors such as Van de Ven and Poole (2005, p. 1393-1394) who argue that
even though different approaches or views regarding epistemological or ontological
standpoints may seem competing or opposing, they should be interpreted rather as being
complementary. Pragmatism is often preferred in mixed-method studies conducted with
both a qualitative and quantitative method (Saunders et al., 2009, p. 109). This is derived
from the epistemological position saying that the most important determinant of the
research philosophy should be the research question (Saunders et al., 2009, p. 598).

We argue that the part of knowledge that is too complex to be theorized according to laws
of scientific methods is captured in our first research question where we are discovering
the perceptions of managers. This implies that this research method should be approached
by a qualitative method, whilst our second research question can be measured by numbers
meaning that it should be approached by methods of natural science, such as statistical
testing which we use to analyze our quantitative data. This calls for a mixed-method
approach, which is derived from our research questions, which implies that we need to
take on a pragmatic position. We see that pragmatism is best used when using a mixed-
method approach, where our results work complementary to one another, based on the
reasoning of Van de Ven and Poole (2005, p. 1393-1394) who argue that the use of two
approaches will work as complementarities. In accordance with our research questions,
we also need to use different perspectives when gathering and analyzing our data, which
according to Saunders et al. (2009, p. 598), can only can be done through pragmatism.

8
Therefore, we argue that pragmatism is the most relevant epistemological position for this
degree project, based on the fact we have two research questions of different nature.
2.3 RESEARCH APPROACH
There are three different approaches one can use when conducting research: deduction,
induction, and abduction (Saunders et al., 2012, p. 143-145). An inductive approach is
defined as “collecting data to explore a phenomenon and you generate or build theory”
(Saunders et al., 2012, p. 145). Adams et al. (2007, p. 29) provides a definition of
inductive reasoning as “to draw general conclusions from a finite number of
observations.” The purpose of using an inductive research approach is to “establish
limited generalizations” about the observations of people and social phenomena (Blaikie,
2009, p. 83). Induction is the opposite of deduction, as it goes from “particulars to
generalizations” (Ketokivi & Mantere, 2010, p. 316). Generalizations are supposed to be
made by discovering patterns and characteristics (Blaikie, 2009, p. 83-84). In this degree
project we will not be using an inductive research approach as we are starting with
existing theories. We will not be able to make generalizations about our research findings
in our qualitative study, however we hope to make generalizations about our quantitative
study.

Next, abductive research can be defined as: “collecting data to explore a phenomenon,
identify themes and explain patterns, to generate a new or modify an existing theory
which you subsequently test through additional data collection” (Saunders et al., 2012, p.
145). When conducting an abductive research approach one is moving back and forth
between induction and deduction (Saunders et al., 2012, p. 147). Abduction helps create
theory based on observing social actors (Blaikie, 2009, p. 89). First, when one uses an
abductive research approach, one starts by observing a “surprising fact” and then one
discovers why this fact exists (Saunders et al., 2012, p. 147).

A deductive research approach is an approach which “proceeds from a set of general

premises to a more specific conclusion” (Ketokivi & Mantere, 2010, p. 316). Similarly,
Adams et al. (2007, p. 29) defines deductive reasoning as being “universal laws are
hypotheses to be “tested” against the predictions implied by these laws.” A deductive
research approach has six sequential steps, starting with setting a hypothesis, use theories
to develop a conclusion, followed by checking to see if the new hypothesis will help add
to our general understanding (Blaikie, 2009, p. 85). Once those steps are fulfilled one can
start collecting data which leads to the hypothesis being true (temporary supported) or
false (rejecting the hypothesis) (Blaikie, 2009, p. 84). In other words, a deductive study
starts with developing a hypothesis on existing theory and tests to see if the hypothesis
holds true. When one conducts a deductive study one is testing ideas in order to find out
if “they can be accepted as an adequate explanation” (Blaikie, 2009, p. 86). In this degree
project we will be using the deductive research approach method. We are starting with
the existing theories of CSR, stakeholder theory, and motivation since we want to see
how they relate to one another, thus we will make a hypothesis based on these existing
theories. Then, we will test the hypothesis through the use of a survey to see if we can
accept or reject our hypothesis. In regards to our qualitative study we are designing
interview questions based off existing theories to see if managers support what the
theories say or not. Lastly, since we have conducted a mixed-method study we will
compare the two studies.

9
 2.4 RESEARCH DESIGN
Research designs are defined as plans and procedures for research that span the decisions
from broad assumptions to detailed planning regarding methods of data collection and
analysis (Creswell 2009, p. 3). In general, there are two main research strategies namely
the quantitative and qualitative research strategies where choices regarding ontology,
epistemology, and research design must be coherent with who we are as researchers
(Bryman & Bell, 2011, p. 27). The quantitative research is for testing objective theories
by examining the relationship between various variables, and these variables are typically
measured in numbers and can be analyzed with statistical measures (Creswell, 2009, p.
4). The qualitative research method is quite different since it often aims to create a deeper
understanding of attitudes and ideas which causes peoples actions and decision making
(Creswell, 2009, p.4). Creswell (2009, p. 3) refers to these strategies as research design
and expands the concept with an additional main strategy, namely mixed-method studies.
Mixed-methods implies that traits for both qualitative and quantitative research are
combined, including philosophical assumptions, methods for analysis, and data collection
(Creswell, 2009, p. 4).

Our study aims to gain a deeper understanding on how employees and managers perceive
the impact of different CSR activities on employee motivation. Furthermore, we argue
that it is important to get a deeper understanding of both perspectives, which might
highlight differences or similarities between managers and employees. This is in
accordance to our epistemological stance of pragmatism where we found that it is more
beneficial to use a mixed-method approach in order to get complementary views on the
subject which is the reason for taking a stance of pragmatism according to Van de Ven
and Poole (2005, p. 1393-1394). In addition to our epistemological stance our ontological
stance is constructionism since we think subjectively about the social actors, especially
the managers in our qualitative study. Therefore, we decided that we should investigate
both managers and employees and their perceptions of CSR for this study. However, our
view is that only one method is not feasible for both stakeholder groups, so in order to
enhance this study, we decided to use a mixed-method study. In fact mixed-method
studies are far more than simply collecting and analyzing both quantitative and qualitative
data, they rather involve philosophical assumptions and positions from both of these
research strategies, thus it increases the overall strength of a study to be greater than just
conducting either a qualitative or quantitative research (Creswell, 2009, p. 4).

Triangulation is a term that describes a research design that uses more than one method
or data source in the study of social phenomena (Bryman, 2008, p. 354). Triangulation is
used extensively to control the results of a study and can be applied in different types of
research designs (Bryman, 2008, p. 354). As we have emphasized throughout this study
are we using a mixed-method study in order to illustrate differences and similarities
between the two different stakeholder groups which this study focuses on. The purpose
of such a design of this study is to exercise triangulation in order to compare the
qualitative and quantitative results (Saunders et al., 2009, p. 146). Our intention is that
such a research design will enhance both the practical and theoretical contributions of our
study and thereby increase its’ value. We believe that this in particular can benefit Sodexo
since it can illuminate a possible difference of opinion between employees and managers
that the company itself are not aware of. Another reason for using triangulation is because
we want to see both what employees perceive and what managers perceive, respectively.
We think that this information can solve the managerial dilemma of what to prioritize in
terms of CSR activities.. This might help to improve the CSR activities and how they are

10
communicated to the employees, which in the long-term might positively impact
employee motivation and managers’ knowledge of their employees.
2.5 PRECONCEPTIONS
A preconception is what we, as researchers, personally think is going on in terms of the
subject we are studying (Bickman & Rog, 1998, p. 77). One must be aware of their
preconceptions or pre-understandings when conducting research (Saunders et al., 2009,
p. 151). Preconceptions are important because they set the direction of what the researcher
will direct his or hers attention to (Gilje & Grimen, 2007, p. 179). Preconceptions also
explain the researcher’s faiths and beliefs, which plays an important role in how the
researcher identifies a problem, how they chose what theories to use, and how they
formulate their hypotheses (Gilje & Grimen, 2007, p. 182). Furthermore, personal
experiences are included in preconceptions, which affects the researcher's actions, and
thus the outcome of the research (Gilje & Grimen, 2007, p. 182). Therefore, it is important
to be aware of one's preconceptions since they will have an impact on our study. As
business students at Umeå University, we had preconceptions about our theories and
concepts used. CSR, stakeholder theory, and motivation were all theories we have learned
about before, thus meanings that we have had previous information in the back of our
heads over the duration of this degree project. Furthermore, our worldly experience, such
as travelling, watching the news, and reading newspaper articles helped us choose the
topics of CSR and motivation. We chose our topic based on these experiences and
previous knowledge from previous courses. However, these previous experiences are not
all positive. Our previous experiences serve as a sort of bias which needs to be eliminated
rather than used when writing (Bickman & Rog, 1998, p. 78). As a result, we have tried
as much as possible to treat the information that we are using as new information. We
have tried to only use preconceptions in helping us choose our subject.

Our reasoning for conducting our research on Sodexo is a result of one of us had worked
there. Therefore, he has a lot of preconceptions about the organization. Knowing an
organization well can prevent one from digging deeper into the organization when asking
questions (Saunders et al., 2009, p. 151). As a result, we have tried to be as objective as
possible. Also, as suggested by Saunders et al. (2009, p. 151), we have tried to ask basic
questions, which Saunders et al. (2009, p. 151) says is regularly ignored when one is
familiar with an organization which could impact the way in which we analyze and
interpret our results for each our quantitative and qualitative studies, respectively.
2.6 LITERATURE SEARCH
The foundation of the literature review for this degree project has been to fulfill and meet
the formal requirements of a degree project. Existing literature helps to identify previous
work that is relevant to our thesis, and it helps to find gaps in existing literature, thus
helping to provide a unique topic (Hart, 2001, p. 3). Furthermore, previous literature helps
to design the methodology by helping to identify key issues or topics such as data
collection (Hart, 2001, p. 3).

In our literature review, we have attempted to not only review the literature that best fits
our preconceptions about the topic. Instead, we have to our best effort tried to review the
subject as a whole, where we highlight different perspectives and opinions. This was done
in order to avoid bias, which might have a negative effect on the quality of our work.
Furthermore, we have tried to use primary sources. Primary sources are sources where
information or data occur for the first time, mostly to make sure that no information gets
lost in doing unnecessary steps of secondary sources, which are defined by that they

11
present subsequent information or data from primary sources (Saunders et al., 2009, p.
69).

Hart (2001, p. 78) suggests that relevant books and articles can be found in either
databases or libraries, either in printed versions or electronic versions. Further, Hart
(2001, p. 93) claims that articles from peer-reviewed journals complies an essential source
of information for students and researches in general. Most of our reference list refers to
scientific articles that we have downloaded from either the database EBSCO, provided
by Umeå University, or Google Scholar. We have to a large extent, tried to only use
articles that have been peer-reviewed. The use of peer-reviewed articles is based on our
intention that this study should maintain the highest possible quality that our skills,
knowledge, resources, and timetable possibly could allow. However, in addition to
scientific articles, we have also used some scientific books which are particularly
prominent in our two methodology chapters, they have all been retrieved from Umeå
University Library.

Initially, we searched for articles by using different keywords such as “CSR”, “CSR’s
impact on motivation,” “intrinsic motivation,” “CSR literature review,” “stakeholder
theory literature review,” “motivation literature review,” and “intrinsic and extrinsic
motivation.” to name a few, in the previously mentioned databases. We experienced the
literature search as a learning process where we improved our skills, which means that
we were inconsistent with the types of keyword we were using as we became better.
However, during this process, we learned to how to screen reference lists in other writers
works, and by doing that, we quickly understood which authors, journals, and works that
were most essential in each research area that we touched upon.
2.7 CHOICE OF THEORIES AND CONCEPTS
The main purpose of conducting a literature review is to get a starting point for our
research where we can introduce the reader to what research has been done on our topic
(Saunders et al., 2012, p. 603). Since we are using a deductive research approach, finding
relevant theories was the first and most important part of our degree project. Useful
theories help organize our research questions and observations (Bickman & Rog, 1998,
p. 78). Both of these reasons for doing a literature review have helped us in choosing
relevant theories and concepts and disregard theories and concepts which have proven to
be irrelevant for our work.

First, we started by describing our most important and most relevant phenomenon, CSR.
CSR was the starting point of our research. It is a topic that is becoming more popular
and more relevant, thus giving us a good reason for choosing it as our main concept.
Previous courses helped us to get interested in the topic of CSR. The triple bottom line of
CSR (social, economic, and environmental performance) presented by Ioannis et al.,
(2013, p. 177) helps to create sustainability for a firm. This definition made us more
curious about the topic to learn more about how to create sustainability for our firms.
Furthermore, the definition of CSR that we have chosen to use for this degree project by
Aguinis (2011, p. 855) includes the triple bottom line unlike the original definition by
Archie Carroll (1979, p. 500). We believe that a definition of CSR that includes the triple
bottom line is most relevant and helps add to the quality of our work best. This is based
on that we think that it fits with the CSR programs of Sodexo which also includes the
three dimensions of the TBL. Further, we find this definition is more extensive since it
includes many dimensions of the CSR spectra.

12
Next, we chose to use stakeholder theory as our second theory. First, we felt it was
difficult to talk about CSR and not discuss stakeholders. Thus, one can see that it was
natural for us to include stakeholder theory in this degree project. Second, in an
organizational context stakeholders are going to be affected by the operations of the firm.
Third, previous literature discusses how CSR is an important part of stakeholder theory
(Attas, 2004, p. 316-317; Carroll, 1991, p. 43; Freeman, 1984, p. 38; Kakabadse et al.,
2005, p. 288).

Finally, our last theory we used for this degree project was motivation. Motivation is a
topic that has always been of great interest for us, especially as management students.
Therefore, we wanted to be able to combine this broad theory of motivation with CSR as
suggested by Morgeson et al. (2013, p. 806). Connecting CSR to employee motivation
has also been researched by previous researchers (Khan et al., 2014; Skudiene &
Auruskeviciene, 2012). Thus, we combined motivation with CSR to see how CSR affects
employee motivation. In the context of working with Sodexo, we wanted to discover how
motivated an organization with a strong and well established CSR program employees
are by different CSR activities related to different stakeholders.

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 3.0 THEORETICAL FRAMEWORK
In this chapter we review previous literature on the topics of CSR, stakeholder theory,
and motivation. As each section progresses we get more in depth about each theory or
concept and get more specific about how each theory and concept relates to this degree
project. We finish the chapter with the presentation of our conceptual model which relates
to our quantitative study, and then we present our hypotheses that are relevant to our
quantitative study.
3.1 CORPORATE SOCIAL RESPONSIBILITY (CSR)
The phenomenon of CSR was coined by Howard Bowen who is considered to be the
“father of CSR,” a title he received after the 1953 release of his groundbreaking book -
The Social Responsibilities of the Businessman which launched the era of CSR (Carroll,
1999, p. 269; Crouch & Maclean, 2011, p. 5). In his book, Bowen (1953) defined CSR as
“the obligations of businessmen to pursue those policies, to make those decisions, or to
follow those lines of actions which are desirable in terms of the objectives and values of
our society” (Carroll, 1999, p. 270). CSR originates as a strategy used by large
corporations who intended to use the concept in order to build up a good reputation and
avoid scandals which might damage their brand (Crouch & Maclean, 2011, p. 1).

As stated above we are using Aguinis’ (2011, p. 855) definition of CSR which defines
the concept as “context-specific organizational actions and policies that take into account
stakeholders’ expectations and the triple bottom line of economic, social, and
environmental performance.” The use of this definition implies that we have to mention
and explain the triple bottom line, henceforth referred as TBL. The term was originally
coined by John Elkington who emphasized a distinction between the three dimensions of
sustainability: social, economic, and environmental performance (Ioannis et al., 2013, p.
177). Furthermore, the term involves both the concepts of CSR and corporate
sustainability (Garriga & Melé, 2004, p. 62). The TBL consists of three different
dimensions; first, the economical dimension which is about financial contributions to
stakeholders, for example shareholders or employees (Garriga & Melé, 2014, p. 177).
Second, the environmental dimension is about taking responsibility for both the firms’
effects on its external environment and nature, and the internal environmental
management aspects (Garriga & Melé, 2014, p. 177). The third and final dimension of
the TBl is the social dimension which categorizes ethical issues such as diversity, working
conditions, safety (Garriga & Melé, 2014, p. 177). This model implies that a firm can
only be sustainable if they incorporate all of the dimensions of TBL, which not only
benefit the environment and society, but it can also give the firm a competitive advantage
and positive long-term economic performance (Carter & Rogers, 2008, p. 365).

Modern research shows that CSR plays an important role for an organization's’
stakeholders since it can be used in order to add value to the internal and external
stakeholders of the organization (Peloza & Shang, 2011, p. 119). As stated above, Carroll
(1999) helped conceptualize CSR decades ago, however, according to Jonkias (2012, p.
693), there is still a lack of a holistic framework that exhibits the process of value creation
by CSR activities. Moreover, literature regarding CSR is fragmented on different levels,
either on the macro level or the micro level (Morgeson et al., 2013, p. 806). These value-
creating activities in the context of CSR, are mostly recognized on a macro level, thus
demonstrating that literature and research regarding CSR on the micro level is scarce
(Aguilera et. al, 2007, p. 837; Aguinis & Glavas, 2012, p. 933). In fact, CSR literature is

14
more or less absent in journals devoted to the areas of micro organizational behavior
(Aguinis & Glavas, 2012, p. 943).

Research about CSR has gained increased amounts of attention, and many scholars have
addressed a wide range of questions related to this research field. According to Aguinis
and Glavas (2012, p. 942), there is a relationship between CSR and non-financial
outcomes such as operational efficiencies, competitive advantage, improved demographic
diversity, and perceived quality of management. Research has been unable to show that
CSR activities can generate financial gain (Barnett, 2007, p. 813), but some researchers
believe there exists both financial and nonfinancial reasons for conducting CSR activities.
The financial gain of CSR activities has in fact been emphasized by many scholars, and
some recent research has recognized a transformation of corporate social responsibility
to strategic corporate responsibility, thus meaning that the social aspect of the concept
has been replaced with a clearer focus on gaining a competitive advantage (Voiculescu &
Yanacopulos, 2011, p. 44). These many reasons and the fragmented nature of CSR
implies that the concept often involves many different stakeholders, and Barnett (2007,
p. 22) argues that a firm's ability to create value is dependent on its’ ability to produce
positive stakeholder relations.

Literature regarding CSR is characterized by its’ heterogeneity since the literature, at least
to some extent, originates from separate fields, such as environmental studies,
organizational behavior, HRM, marketing, organizational theory, and strategy, amongst
others (Aguinis & Glavas, 2012, p. 933). This implies that CSR is fragmented on different
levels, as stated above, which is either on the macro- or micro level.

The macro level is rather comprehensive since it consists of both organizational and
institutional dimensions (Aguilera et al., 2007, p. 839), thus making it hard to present the
term since it comprises so much of the CSR spectra. However, there are traits of this
fragmental level of CSR where scholars are rather consistent about its’ nature, such as
why firms engage in CSR activities. It is typical that firms conduct themselves in CSR
activities due to pressures from both internal and external stakeholders, and these
stakeholders have different motives and ways to influence firms to perform CSR related
activities in order to guard various interests (Aguilera et al., 2007, p. 844). The micro
level is less extensive than the macro level since it only comprises the individual level
and individual perspective, often equalized as the employee level or the employee
perspective (Aguilera et al., 2007, p. 839). Although research on the micro level is
relatively scarce, some empirical research has been done concerning the employee's
perspective on the micro level. For example, Greening & Turban (2000, p. 276) presented
empirical results showing that a firm's CSR activities can affect potential employees
desire to join their workforce, thus meaning that CSR can be used as a competitive
advantage in today's modern business world where the role of a skilled workforce
continues to gain importance. Furthermore, Aguilera et al. (2007, p. 840) summarized
that research has shown that employee’s perceptions of a firm’s CSR activities have
positively affected their willingness to participate and contribute to the firm’s activities.

Some scholars make a distinction between two types of CSR activities, meaning that
activities related to CSR can be exerted on different levels, namely internal and external
(Skudiene & Auruskeviciene, 2012, p. 51). We use the terms internal and external CSR
activities when referring to these activities. However Aguilera et al. (2007) refers to
internal and external CSR as the inside or outside actions of an organization. Internal CSR

15
refers to the activities and operations conducted within the company (Brammer et al.,
2007, p. 1702), thus meaning that it often includes training and procedural justice. An
example of internal CSR could be having different procedural methods in order to lower
the emission of pollution (Aguilera et al., 2007, p. 836). On the other hand, external CSR
involves external operations conducted outside the firm, therefore, CSR involves more
stakeholder groups than the internal stakeholders (Longo et al., 2005, p. 31-32).

Although this degree project is focusing on employee motivation, which is an internal

stakeholder group, we will incorporate activities that focus on both internal and external
stakeholders. Our reasoning for studying both internal and external CSR is because
external CSR can have an effect on the motivation of employees (Skudiene &
Auruskeviciene, 2012, p. 62). For example, employees may be motivated knowing that
their work is helping someone outside the organization. We study how both internal and
external CSR activities can affect the motivation of employees, thus meaning that we
study CSR as a multidimensional concept where we include both the internal and external
aspects of CSR.
3.2 STAKEHOLDER THEORY AND CSR
Stakeholder theory is as relevant as ever because of large firm’s increasing role in today’s
society (Laplume et al., 2008, p. 1153). Large firms have an abundance of finances and
therefore can have a negative or positive impact on society and the environment, which
includes all stakeholders. Clarkson (1995, p. 106) defined stakeholders as “persons or
groups that have, or claim, ownership, rights, or interests in a corporation and its
activities, past present, or future.” Stakeholder theory has been undergoing extensive
research for the past decades, and it is often addressed as the opposite of shareholder
theory (Kakabadse et al., 2005, p. 289). The difference between the two theories is
stakeholder theory takes into account all actors who impact or are impacted by an
organization while shareholder theory is based on those who have a solely financial stake
in an organization (Kakabadse et al., 2005, p. 289).

The purpose of stakeholder theory is to explain and give direction to the structure and
operations of a firm (Donaldson & Preston, 1995, p. 70). Stakeholder theory is about the
interaction between stakeholders (customers, suppliers, employees, financiers,
communities, and managers, to name a few) with the purpose of creating value (Parmar
et al., 2010, p. 406). Some scholars view stakeholder theory as way of social science
based research to grow, while other scholars see stakeholder theory as a sort of narrative
which is based on different moral principles (Jones & Wicks, 1999, p. 206). The most
important parts of stakeholder management are to describe, understand, analyze, and
manage (Carroll, 1991, p. 43).

Based on the research of Donaldson & Preston (1995) one can group stakeholder theory
into two categories: social science based theory, which includes the descriptive/empirical
variant and the instrumental variant while the other category is ethics based, which is
referred to as the normative variant (Jones & Wicks, 1999, p. 206). Stakeholder theory
can be broken down into a few distinct variants: descriptive/empirical reasons,
instrumental reasons, and normative reasons (Donaldson & Preston, 1995, p. 70-71).
Descriptive/empirical variant of stakeholder theory is used to describe or explain certain
behaviors of organizations (Donaldson & Preston, 1995, p. 70). The instrumental variant
of stakeholder theory involves trying to discover if stakeholder management and
organizational objectives match (Donaldson & Preston, 1995, p. 70-71). Jones and Wicks
(1999, p. 208) state that instrumental theory is a contingent theory that is based on the
16
behavior that is described by descriptive/empirical. Instrumental variant is used with
descriptive/empirical when descriptive/empirical information is available (Donaldson &
Preston, 1995, p. 71). Lastly, the normative variant behind stakeholder theory is to
interpret corporate functions and the reasoning for operations being either moral or
philosophical normative (Donaldson & Preston, 1995, p. 70-71). A central theme of the
normative variant is that firms should try to balance the interests of all stakeholder not
only the financial shareholder; the theory is much more than just the financial
performance of firms but overall performance (Jones & Wicks, 1999, p. 208-209).

Jones and Wicks (1999, p. 206) argue that no emergent form of stakeholder theory is
complete, but yet it should combine normative and instrumental elements which would
help create a successful theory. Therefore, they propose a hybrid theory with normative
component in which it must be morally sound and an instrumental component which
should be logically sound, theoretically sound and empirically viable when it can be
(Jones & Wicks, 1999, p. 216). They argue for a hybrid strategy because “...shared values
and shared understandings driving stakeholder research render fundamentally incomplete
any theory that is either exclusively normative or exclusively instrumental” (Jones &
Wicks, 1999, p. 10). For this degree project, we use the hybrid theory because we want
to focus on all stakeholders, not just shareholders, which is the normative part of a hybrid
stakeholder theory. Also, from the instrumental component, we are interested in logic and
want to find out empirical evidence that can help support our findings.

As a result of the emergence of stakeholder theory, a main problem that has risen is how
to create value, connect business operations with ethics, and how to manage these two
problems (Parmar et al., 2010, p. 404). Value can be created through the use of CSR in
all types of organizations (Jonikas, 2012, p. 696). The most difficult problem for
managers in regard to stakeholder theory is balancing business with ethics (Parmar et al.,
2010, p. 405).

The relationship between a firm’s CSR policies and its’ stakeholders is an important
relationship because the CSR activities a firm takes part in directly affects its’
stakeholders (Longo et al., 2005, p. 31). CSR and stakeholder theory are complements
which build upon one another (Kakabadse et al., 2005, p. 288). The word stakeholder
implies that one has social or societal responsibilities thus linking it to CSR (Carroll,
1991, p. 43). The effects of CSR makes it so that firms have an effect on a wider range of
stakeholders than previously thought (Freeman, 1984, p. 38). In other words, once one
takes CSR into account, more groups, such as environmentalists for example are being
affected by business decisions. However, it is interesting to note that some managers may
not care about what stakeholders want from CSR, if a manager is making a decision which
is socially or ethically beneficial (Peloza & Shang, 2010, p. 118). This is a result of some
researchers thinking that CSR activities can help a firm create financial gains, however
research has been inconclusive on whether or not financial gains can be made by
conducting CSR activities (Barnett, 2007, p. 813; McWilliams & Siegel, 2000, p. 607-
608). In other words, some stakeholders may only see CSR as a way to make financial
gain instead of doing social or ethical good. Only the shareholders, or the owners of the
company, are going to benefit from the financial gain of CSR (Barnett, 2007, p. 795), not
the other stakeholders of an organization.

Attas (2004, p. 313) discusses five requirements one must fulfill to apply a genuine
stakeholder theory. To apply stakeholder theory one needs to think ethically, not everyone

17
can be listed as a stakeholder, stakeholders must be chosen morally, stakeholders must
have something that uniquely connects them to the organization, and stakeholders have
to do their part for the organization (Attas, 2004, p. 313-314). This is a contradiction to
what we provided previously as a definition of a stakeholder which was “persons or
groups that have, or claim, ownership, rights, or interests in a corporation and its
activities, past present, or future” (Clarkson, 1995, p. 106) because Attas (2004) suggests
that only certain groups should be considered stakeholders. An implication for managers
when applying stakeholder theory is that they must be able to identify the relevant
stakeholders (Donaldson & Preston, 1995, p. 85). This relates to what Attas (2004, p. 313)
discusses in that not everyone can be a stakeholder but yet only those who are most
relevant to the organization, otherwise almost everyone can be considered a stakeholder.
Different stakeholders have different influences and thus different amounts of power
(Carroll, 1991, p. 43). Furthermore, the relevant stakeholders are stakeholders who help
the organization and give something back as they get something in return from the
organization (Attas, 2004, p. 313).

Aoki (1984, p. 62) believed that there were two important stakeholders: employees and
shareholders. The role of the manager was to act as a “referee” between to the two parties
(Aoki, 1984, p. 62). This becomes more evolved in later research which identifies
managers as stakeholders whose essential role is to identify all of the stakeholders
(Donaldson & Preston, 1984, p. 86). Stakeholders include anyone who has something to
lose, either financially, socially, or psychologically, if the firm fails (Attas, 2004, p. 314).
To apply stakeholder theory correctly one must first identify the most relevant
stakeholders which can be done by assessing stakeholders’ relevance to the firm (Attas,
2004, p. 316). An organization must always be concerned with the stakeholder’s interests
when making decisions; thus the priority of the different stakeholder interests must be
evaluated (Attas, 2004, p. 316-317). One of the biggest challenges for managers is
figuring out who deserves the most attention as a stakeholder (Carroll, 1991, p. 43). For
this degree project we focus on five particular groups of stakeholders. Four of the
stakeholder groups are derived from Longo et al. (2005, p. 32), who are employees,
customers, suppliers, and the community. The fifth stakeholder group we will discuss in
this degree project are shareholders because as Aoki (1984, p. 62) stated, shareholders are
an important stakeholder group.

According to Skudiene and Auruskeviciene (2012, p. 52), employees are an important

internal stakeholder group, and they further claim that there is a vast amount of academic
literature providing a range of practices for “meeting employees’ expectations and
needs.” This implies that internal CSR activities mostly focus on internal stakeholders,
particularly employees. This can be done in many ways, and Longo et al. (2005, p. 31)
points out four different areas which CSR activities can relate to in order to enhance or
create value to employees. The basis for these value creating activities is the reasoning
that it takes more than financial compensation to create value for employees, instead the
value generating activities should be based on motivation theories such as Maslow’s
(1943) hierarchy of needs (Longo et al. 2005, p. 31), which will be described further
down. Longo et al. (2005, p. 31) refers to Maslow (1943) by stating that employee
satisfaction can be derived from the “development of competence and professionalism,
climatic conditions of the working environment, consideration given to ideas and their
proactivity” which according to the authors copes with the Maslow’s hierarchy of needs
(1943). This helps Longo et al. (2005, p. 31) to conclude four value classes which are
directed to increase employee motivation; health and safety at work, development of

18
workers’ skills, well-being and satisfaction of the worker, the quality of work, and social
equity. Skudiene and Auruskeviciene (2012, p. 53) argue that the correct management of
these four value classes can help to enhance intrinsic employee motivation in an
organization.

The second internal group of stakeholders we are going to discuss in this degree project
are shareholders. Shareholders are an internal stakeholder group who own the company
(Aguilera et al., 2007, p. 844). Kakabadse et al. (2004, p. 289), refer to the theory of
shareholders to be the opposite of stakeholder theory. Shareholder theory is based on the
idea that the goal of a firm is to maximize profits for its’ shareholders (Mansell, 2013, p.
583). Thus, shareholders are interested in maximizing profits for themselves. There is a
debate on whether or not this is an unethical theory because shareholder theory does not
align with stakeholder theory where one wants to maximize the happiness of all
stakeholders (Mansell, 2013, p. 584). The shareholder’s purpose in this degree project is
to see how it is related to employees. Longo et al. (2005) does not discuss shareholders
but we have added them because we think they are relevant stakeholders in this degree
project. For example, Aoki (1984, p. 62) believed shareholders were one of two important
stakeholders, with employees being the other one. To homogenize shareholders into
Longo et al. (2005) the value classes for shareholders are maximizing profits and ensuring
full returns would be under shareholders. As a stakeholder group, shareholders are the
main owners, which is why we decided to include them in this degree project.

Furthermore, Longo et al. (2005, p. 31) identifies three external stakeholder groups with
different expectations on value creation: suppliers, customers, and the community. The
first external stakeholder group are suppliers, which like all stakeholder groups have
different expectations and needs from their companies and organizations. Suppliers have
two main concerns regarding their buyers CSR work; first they need a steady order flow
that consistently increases over time, and second, they wish for incentives such as quality
goals for improving the products and services that they provide (Longo et al., 2005, p.
31). Another example of such incentives could be CSR activities culminating in control
of how the suppliers are running their business, for example by controlling labor standards
or implementing complaints standards (Graafland & Van de Ven, 2006, p. 3). However,
as in the case of employees, we tend to focus on the value classes as described by Longo
et al. (2005, p. 31), and in the case of the stakeholder group of suppliers are there two
value classes; partnership between ordering company and company, and selection and
analysis systems of suppliers. As one can see these value classes are derived from the
main concerns of suppliers, and as a socially responsible company, it is naturally
important to be considered as a good business partner, which according to Longo et al.
(2005, p. 31), can be achieved by meeting these needs and expectations of suppliers.

The second external stakeholder group are the customers of the firm. The main concern
of customers are issues regarding the quality of the product or service provided by the
firm (Longo et al., 2005, p. 32). However, the quality does not only concern the actual
product or service that the customer buys, but they also want to be able to forward
complaints, proposals and suggestions to the firm (Longo et al., 2005, p. 32).
Furthermore, customers are often concerned about the entire process of producing or
manufacturing the products and services, which must be conducted in a socially
responsible way, which sometimes can be verified by different sorts of certificates
(Christmann & Taylor, 2006, p. 873). This demonstrates that there are four value classes
of customers: product quality, safety of the customer while using the product, consumer

19
protection, and transparency of consumer information on product (Longo et al., 2005, p.
32).

The third and last external stakeholder is the community (often referred as the local
community) which refers to both the people and the environment (Longo et al., 2005, p.
32), thus it covers two dimensions of the triple bottom line. Marquis et al. (2007. p. 927)
mentions two reasons why the local community impacts the CSR work of firms. The first
reason is the understandings, rules, and norms of the community put institutional
pressures on the firms while the second reason is that chief executives of firms are more
likely to conduct CSR activities in the local community where they reside (Marquis et al.,
2007, p. 927). There are two value classes of the community: creation of added value to
the community, and environmental safety and protection of the community.
3.3 MOTIVATION THEORY
Longo et al. (2005, p. 31) argued that value generating CSR activities towards the
employees of a firm should be based on accepted motivation theories. Previous studies
have demonstrated that CSR has an impact on the motivation of employees (Khan et al,
2014, p. 82; Skudiene & Auruskeviciene, 2012, p. 62-63). The term motivation stems
from a Latin word that means to move (Steers et al., 2004, p. 379), while the concept of
motivation started in ancient Greece with philosophers who focused on hedonism as a
driving force behind human behavior (Steers et al., 2004, p. 380). Hedonism’s central
theme is that behavior is a result of pleasure or pain (Vroom, 1964, p. 9). In other words,
one is motivated by avoiding pain or having pleasure. The hedonistic approach, which
was also supported by Freud in his early writings could not be predicted in advance but
only analyzed after the fact (Vroom, 1964, p. 10). Despite that fact, hedonism was the
main theory within motivation until the 1900’s. Philosophers such as Locke, Bentham,
and Mill worked on the term motivation in the seventeenth and eighteenth centuries
(Steers et al., 2004, p. 380). Furthermore, in the nineteenth century human behavioral
scientists started studying motivation, drifting away from the philosophy discipline
(Steers et al., 2004, p. 380). Psychologists wanted to fill the void that the hedonistic
approach left (Vroom, 1964, p. 10), thus, leading to the development of more modern,
psychology/behavioral science theories of motivation (Steers et al., 2004, p. 380). In the
1930’s social influences were being studied as being motivators (Steers et al., 2004, p.
380). Then, researchers such as Maslow and Herzberg started trying to identify factors
that cause motivation within the organizational behavior domain (Steers et al., 2004, p.
381) and why we conduct ourselves in certain behavior (Pate, 1987, p. 64). Steers et al.
(2004, p. 381), refer to the 1960’s and early 1970’s as the “golden age” of motivation
theories. In this era, cognitive theories such as expectancy theory were developed as well
as goal setting theories of motivation (Steers et al., 2004, p. 382), “...goal setting theory
is consistent with, although its beginnings somewhat antedated, the cognitive revolution”
(Locke, 1996, p. 118). Expectancy theory is a cognitive theory that is related to that
workers choose various tasks based on what they think will produce the best outcome
(Steers et al., 2004, p. 382). The cognitive theories helped discover that one cannot only
study man from this inside or the outside but altogether (Locke, 1996, p. 117). After these
theories came Deci (1975) who distinguished the difference between intrinsic and
extrinsic motivation, which will be presented later on in this chapter.

Vroom defined motivation in 1964 (p. 6) as “...to refer to a process governing choices
made by persons or lower organisms among alternative forms of voluntary activity.”
Later on, another definition was developed: “...affectively toned associative networks
arranged in a hierarchy of strength or importance within a given individual” (McClelland
20
& Winter, 1969, p. 43). Employee motivation is one of the most important parts of
management (Steers et al., 2004, p. 379). Employees who are highly motivated are likely
to work hard, while those who are not very motivated tend to not work very hard
(Amabile, 1993, p. 185). Not only are motivated employees likely to work harder, but yet
they are more likely to produce high quality work, higher volumes of work, and be more
loyal (Sadri & Bowen, 2011, p. 45). Current trends in organizations have a direct effect
on the level of employee motivation (Amabile, 1993, p. 185).

3.3.1 EXTRINSIC MOTIVATION AND INTRINSIC MOTIVATION

Extrinsic motivation is an activity that someone partakes in a task in order to receive some
kind of separable outcome or complete a goal separable to the outcome of the task
(Amabile, 1993, p. 188; Ryan & Deci, 2000, p. 60). Extrinsic motivators do not
necessarily relate to the work, but yet they are external sources for doing the work
(Amabile, 1993, p. 189). External regulation is a type of extrinsic motivation which means
one completes a task in order to receive an external reward of some sort (Ryan & Deci,
2000, p. 61). A common example of external regulation is monetary rewards. Monetary
rewards can help motivate employees to be more committed and be more satisfied (Sekhar
et al., 2013, p. 476). Monetary rewards can satisfy employees and can motivate them for
three different reasons: instrumental value (money has value), symbolic value
(recognition of contribution), and informational value (money is feedback for doing a
good job) (Long & Shields, 2010, p. 1148). Several studies have proven however, that
this is not the best way to motivate employees in comparison with intrinsic rewards
(Aguinis et al., 2013, p. 247; Long & Shields, 2010, p. 1164). Monetary rewards cannot
improve employee knowledge, skills, or ability (Aguinis et al., 2013, p. 243). Also,
monetary rewards can encourage employees to act as individuals when working in a group
context and has not proven to help individual performance when being in a group context
or which has not helped organizational performance (Long & Shields, 2010, p. 1148-
1149). Another type of extrinsic motivation is introjection that occurs because of external
pressures such as guilt, anxiety, or as an ego-enhancement (Ryan & Deci, 2000, p. 62).
Another form of extrinsic motivation is appreciation which was studied by Mahazril et
al. (2012). Appreciation is referred to as being a benefit that an employee can receive for
doing a job well (Mahazril et al., 2012, p. 238). Lastly, social recognition is a term that
refers to when an employer uses several types of non-monetary rewards in order to
“recognize and reinforce desired employee behaviours” (Long & Shields, 2010, p.
1146).

Ryan and Deci (2000, p. 56) have acknowledged the definition of intrinsic motivation as
being in terms of both a task being interesting to a person and/or the task giving a person
satisfaction for completing a task. Amabile (1993, p. 188) attempted to combine previous
definitions of intrinsic motivation to develop this definition that says one is intrinsically
motivated “when they seek enjoyment, satisfaction of curiosity, self-expression, or
personal challenge in the work.” Intrinsic motivation is based on human behavior in the
sense that one’s motivation to complete a task is based on their feelings about that task
(Amabile, 1993, p. 189). One needs to be competent and self-determined in relation to
the environment (Deci, 1975, p. 65). However, intrinsic motivation is different from
individual to individual, not everyone is intrinsically motivated by the same activities
(Ryan & Deci, 2000, p. 56) because we all value different things. Someone who is
intrinsically motivated is motivated by their need for feeling competent and self-
determined in relation to his environment (Deci, 1975, p. 100). This helps in setting goals
based on potential satisfaction which is in turn based on competence and feeling of self-

21
determination. Intrinsic motivation exists both within individuals and within the relation
between individual and an activity (Ryan & Deci, 2000, p. 56). Furthermore, motivation
can correlate to a type of product focus (Amabile, 1993, p. 189). In other words, one is
intrinsically motivated if they know what they are working on, for example a product, can
help the consumer who buy it. This product focus of intrinsic motivation is not recognized
by Deci and Ryan (1985) who focus on the process of doing a task and not the end result
(Amabile, 1993, p. 189). A study conducted by Dysvik and Kuvaas (2010) demonstrated
that intrinsic motivation was the most important factor in employee turnover. A type of
intrinsic motivation is achievement motivation where the “reward is in the achievement,”
as a result of achievement motivation, the basic need for feeling competent and self-
determined is fulfilled (Deci, 1975, p. 77).

Another concept is the difference between extrinsic drives or primary drives, which are
drives that replace the “non-nervous system tissue” (food and water, for example) and
intrinsic drives, where “the reward is the feeling of competence and self-determination
which has its primary effect in the nervous system tissues” (Deci, 1975, p. 101). The
relation to the need is also different between the primary drives and intrinsic needs. The
need of a primary drive can be reduced by attaining the goal. On the other hand, the need
caused by intrinsically motivated behavior will not be reduced, but yet once the goal is
attained, a new goal will be set (Deci, 1975, p. 101). If one is so determined to complete
a task, which is rewarding for them, they will not stop and do something else unless the
primary drive is much more salient in that context (Deci, 1975, p. 100). An example of
this is when one does not drink water even though they are thirsty, instead one is
concerned with finishing a puzzle because of its’ rewarding value at that given time.
Positive reinforcement or feedback increases intrinsic motivation while negative
feedback decreases intrinsic motivation (Deci, 1971, p. 108).

After discussing both extrinsic and intrinsic motivation, one can see that they are related.
Amabile (1993, p. 189) suggests that both intrinsic and extrinsic motivation play a big
role in motivating employees to complete most tasks. It has been found that external
rewards can decrease intrinsic motivation (Deci, 1971, p. 105), but more intrinsic rewards
does not decrease motivation (Deci, 1971, p. 114). Once a monetary reward is given to a
person, he will rethink about doing the activity for its’ intrinsic value (Deci, 1971, p. 114).
However, a later study conducted by Amabile (1993, p. 193) proved that intrinsic
motivation can coexist with extrinsic motivation. Also, a few decades of research has
proven that “the quality of experience and performance” can be very different when one
is behaving for intrinsic versus extrinsic reasons” (Ryan & Deci, 2000, p. 55).
3.3.2 MASLOW’S HIEARCHY OF NEEDS
Another motivation theory is Maslow’s hierarchy of needs (1943). Maslow developed
one of the first theories that integrates human needs into one model (Oleson, 2004, p. 83).
The hierarchy starts with the needs that we are motivated by from the most basic need up
to the most complex need, where one can only worry about the next set of needs when
one has satisfied the previous level of needs to come extent (Maslow, 1943). The most
basic needs are physiological needs, which are needs that are basic such as food, water,
rest, shelter, and other needs which one needs to fulfill in order to live (Oleson, 2004, p.
84). The physiological needs are followed by the safety needs which are fulfilled when a
person feels that they are safe from physical and psychological danger (Maslow, 1944, p.
376). Next, once the safety needs are somewhat satisfied then one can concentrate on the
love needs which includes longing for someone to show affection for whether it be a
family member, a friend, a wife, a sweetheart, or children (Maslow, 1943, p.
22
381). Physiological needs, safety needs, and love needs represent needs that one “must
master” before one can develop a healthy personality (Steers et al., 2004, p. 381). Next,
the esteem needs involve that one has a purpose and relevance in the world (Maslow,
1943, p. 382). Furthermore, Maslow (1943, p. 382) states that how the esteem need can
lead to wanting to have prestige or a good reputation. The final need is self-actualization
which is referred to by Maslow (1943, p. 383) as “what a man can be, he must be.” In
other words, one needs to become fully self-realized in order to reach one’s full potential
(Oleson, 2004, p. 85). Esteem needs and self-actualization needs suggest “individual
achievement and the development of human potential” (Steers et al., 2004, p. 381).
Oleson (2004, p. 91) concluded from his study, which linked money to Maslow’s
hierarchy of needs, that the higher one is on the hierarchy of needs, the less important
money becomes.
3.3.3 HERZBERG’S DUAL FACTOR THEORY
One motivation theory developed by Herzberg (1968) is the dual factor theory which is
also referred to as the motivation/hygiene theory. In short, the dual-factor theory has, as
the name suggests, two factors, the hygiene factor which consists of things such as
interpersonal relationships, working conditions, salary, status, and supervision (Herzberg,
1968, p. 92). The motivation factor consists of achievement, recognition for achievement,
job design, responsibility, and growth within the company (Herzberg, 1968, p. 92).
Hygiene factors are extrinsic factors of motivation while motivation factors are intrinsic
(Herzberg, 1968, p. 91-92). Hygiene factors can work a demotivators if they prove to be
insufficient (Amabile, 1993, p. 187). Herzberg’s (1968, p. 93) theory suggests that work
should be enriched in order to effectively use personnel. Individuals derive satisfaction
from work that allows them to use their own skills and abilities (Vroom, 1964, p. 141).
This idea is supported by Aguinis et al. (2013, p. 243) who agrees by stating that
“individuals derive personal meaning from enriched jobs.” Furthermore, psychological
growth is actualized as a result of job enrichment (Herzberg, 1968, p. 93).

Herzberg and Maslow’s respective hierarchies demonstrate that once an individual has
been extrinsically motivated to a certain extent, then one can be intrinsically motivated
(Amabile, 1993, p. 188). Or as Herzberg (1968) and Maslow (1943) discussed, once the
need is filled of, for example, having good finances (extrinsic motivation), then one can
start appreciating things such as having challenging tasks (intrinsic motivation). In
addition to Amabile (1993), many motivation researchers refer to Maslow (1943) and
Herzberg (1968) and commend them on their contribution to the motivation research field
(Long & Shields, 2010; Pate, 1987; Steers et al., 2004). This attributes to the fact that
these theories have been important for today’s research in motivation. The theories by
Herzberg (1968) and Maslow (1943) have helped provide the basis for other theories
(Pate, 1987, p. 59).
3.4 RESEARCH CONNECTING CSR, MOTIVATION AND STAKEHOLDER THEORY
CSR is a trending topic in today’s organizations and current trends have a direct impact
on the motivation of employees (Amabile, 1993, p. 185). Morgeson et al. (2013, p. 283)
discussed that there is a lack of literature that combined CSR, stakeholder theory, and
motivation. To the best of our knowledge, the first study conducted in this area was a
quantitative study made by Skudiene and Auruskeviciene (2012), who studied CSR on
the micro level within a company in Lithuania, trying to test how different activities
conducted towards separate stakeholder groups impacted internal (as we refer as intrinsic)
employee motivation. Skudiene and Auruskeviciene (2012, p. 51-52) defined stakeholder
groups and CSR activities conducted by firms by a stakeholder model constructed by

23
Longo et al. (2005, p. 31), called “The Grid of Values”, the same model that we have
applied for our study. Their findings suggest that both internal and external CSR activities
positively impacts intrinsic employee motivation, although some activities indicated a
stronger correlation with internal employee motivation than others (Skudiene &
Auruskeviciene, 2012, p. 62-63).

In addition to the work of Skudiene & Auruskeviciene (2012), we have found one similar
study conducted in this area, a quantitative study conducted by Khan et al. (2014) on
employees in Pakistan. As in the case of Skudiene and Auruskeviciene (2012), Khan et
al. (2014, p. 71) used a quantitative method by sending a survey to employees to get a
deeper understanding of the relationship between employee motivation and different CSR
activities conducted towards different stakeholder groups by using “The Grid of Values”
by Longo et al. (2005, p.31). However, in addition to what was presented in the study of
Skudiene and Auruskeviciene (2012), where they studied CSR’s impact on intrinsic
employee motivation, Khan et al. (2014, p. 70-71) conducted a quantitative study in order
to see how CSR activities affect both intrinsic and extrinsic employee motivation.
Moreover, Khan et al. (2014, p. 70-71) examined the relationship between employee
motivation and organizational commitment. Their findings were to some extent
contradictory to the findings of Skudiene & Auruskeviciene (2012, p. 62). First, Khan et
al. (2014, p. 82) could not support their hypotheses where they tested if internal CSR
positively correlates with employee motivation (Khan et al., 2014, p. 82). Another
difference in their study is that they could not see that all types of external CSR positively
correlates with employee motivation. The last difference in their findings, as compared
to Skudiene and Auruskeviciene (2012) was that they could not see a positive relationship
between intrinsic rewards and employee motivation.

We see these contradictory results as demonstrating the fact that there is still a gap in the
micro level research area between CSR and motivation. Therefore, our study aims to get
a deeper understanding in the subject of how CSR activities towards different stakeholder
groups affect employee motivation. In order to contribute to current research, as stated
before, we have decided to change the research design compared to previous research by
using a mixed-method study where we get both the perceptions from employees and
managers. Moreover, we are expanding the “Grid of Values” presented by Longo et al.
(2005, p. 31) by adding another important stakeholder group into the internal CSR
spectrum, namely the shareholders, with their value class of maximizing profits which is
derived from Mansell (2013, p. 583) who stated that that the ultimate goal for
shareholders is to gain maximized profits. In addition, our study focuses on a Swedish
company, with Swedish managers and employees within a company in the service sector.
This is beneficial for the research subject since a study in this context never has been
conducted before, which means that our study fills a gap in the current research.

3.5 THEORETICAL FRAMEWORK FOR OUR MIXED-METHOD STUDY

The first part of this study is a qualitative study where we attempt to get a deeper
knowledge of the perceptions of managers on the effects of different CSR activities on
employees. In order to gain a deeper understanding of the manager’s perceptions we
decided to use a qualitative method for this part of our study. To do this, we have
connected the concept of CSR with the theories of stakeholder theory and motivation.
Freeman (2010, p. 237) explained that CSR is about balancing stakeholders interests, and
those interests and stakeholder groups were defined in a contribution to stakeholder
theory by Longo et al. (2005, p. 31) who divided these interests or demands into different

24
value classes for the most important stakeholder groups . Previous studies by Skudiene
and Auruskeviciene (2012) and Khan et al. (2014) have shown this relationship through
quantitative methods that CSR activities towards these stakeholder groups positively
affects the motivation amongst employees of an organization. To get an even deeper
understanding of this phenomena, we argue that it is important to understand the
perceptions of managers regarding this issue. This was accomplished by interviewing
managers in order to capture their perceptions of how CSR activities towards different
stakeholder groups affects employee motivation. In order to analyze these results, we used
a thematic network analysis which according to Braun and Clarke (2006, p. 86) is about
dividing the material from the interviews into themes, which helps to reduce the amount
of material which was gathered from the interviews. Thereby, the thematic network
analysis helps to draw conclusions from the results of our interviews.

For the quantitative part of this study, we also investigated the effects of CSR on
employees' intrinsic and extrinsic motivation. To accomplish this, we have linked three
different concepts in order to bridge the gap that we previously identified as the gap
between CSR, stakeholder theory, and motivation. Also, we have identified the most
important stakeholders and through previous studies specified the CSR activities that
these stakeholder groups value the most. We have separately test how these CSR activities
towards different stakeholders’ influences the intrinsic and extrinsic motivation of
employees, and then compare these result with managers’ perception of CSR’s effects on
the motivation of their employees. Thus, we have produced a conceptual model for our
quantitative study:

FIGURE 1. CONCEPTUAL MODEL

Our conceptual model, figure 1, includes the three concepts, which are our three concepts
from our theoretical framework; CSR, stakeholder theory, and motivation. Our
conceptual model intends to solve the question of how CSR activities towards different
stakeholder groups impacts intrinsic and extrinsic employee motivation. Thus one can see
that the different CSR activities are presented. We present firm’s CSR activities towards
25
employees, shareholders, suppliers, the community, and towards customers. Each of
those activities is seen as having a positive effect on both an employee’s intrinsic and
extrinsic motivation, respectively. This effect is demonstrated by the arrows which
connects the different CSR activities to either employee intrinsic motivation or employee
extrinsic motivation.

To test our conceptual model, we have hypothesized 10 different hypotheses for each
stakeholder group, five for intrinsic motivation (H1a, H2a, H3a, H4a, H5a), and five for
extrinsic motivation (H1b, H2b, H3b, H4b, H5b). These hypotheses are derived from our
theory chapter, where we defined stakeholder groups according to the stakeholder model
provided by Longo et al. (2005, p. 31), which incorporates employees, suppliers,
customers, and the community. We have also extended this model by adding another
stakeholder group which is shareholders, which according to Aoki (1984, p. 62) is one of
the most important stakeholder groups. Below one can see our hypotheses in table 1. The
reasoning behind us predicting the positive impact of CSR in our hypotheses results from
a previous study conducted by Skudiene and Auruskeviciene (2012, p. 61-62) who found
a relationship between CSR activities conducted towards employees, suppliers, the
community, and customers as having a positive impact on employee intrinsic motivation.
In addition Khan et al. (2014, p. 81), discovered that CSR activities conducted towards
employees, suppliers, the community, and customers have a positive impact on employee
extrinsic motivation.

TABLE 1. HYPOTHESES

Abbreviation Hypotheses

H1a. Firm’s CSR activities towards employees have a positive effect on

intrinsic employee motivation

H1b. Firm’s CSR activities towards employees have a positive effect on

extrinsic employee motivation

H2a. Firm’s CSR activities towards shareholders have a positive effect on

intrinsic employee motivation

H2b. Firm’s CSR activities towards shareholders have a positive effect on

extrinsic employee motivation

H3a. Firm’s CSR activities towards suppliers have a positive effect on

intrinsic employee motivation

H3b. Firm’s CSR activities towards suppliers have a positive effect on

extrinsic employee motivation

H4a. Firm’s CSR activities towards the community have a positive effect on
intrinsic employee motivation

H4b. Firm’s CSR activities towards the community have a positive effect on
extrinsic employee motivation

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 H5a. Firm’s CSR activities towards customers have a positive effect on
intrinsic employee motivation

H5b. Firm’s CSR activities towards customers have a positive effect on

extrinsic employee motivation

Hypotheses H1a, H2a, H3a, H4a, and H5a were derived from how CSR activities towards
these stakeholder groups would affect intrinsic motivation, which was defined by Ryan
& Deci (2000, p. 56) as being in terms being interesting to a person and/or as the task
giving the person satisfaction to complete the task. Hypotheses H1b, H2b, H3b, H4b, and
H5b were based on how CSR activities of these stakeholder groups would affect extrinsic
motivation. Extrinsic motivation is defined as an activity that someone partakes in a task
in order to receive some kind of separable outcome or complete a goal separable to the
outcome of the task (Amabile, 1993, p. 188; Ryan & Deci, 2000, p. 60). From this, we
have formed our hypotheses; H1a regards how intrinsic motivation amongst employees
are affected by CSR activities towards employees whilst H2a regards CSR activities
towards shareholders affects intrinsic employee motivation. H3a regards CSR activities
towards suppliers’ affects intrinsic employee motivation, H4a regards CSR activities
towards the community affects intrinsic employee motivation, and H5a regards CSR
activities towards the customers and its effect on intrinsic motivation. Similarly, H1b is
testing how extrinsic motivation amongst employees are affected by CSR activities
towards employees. H2b regards CSR activities towards shareholders affects extrinsic
employee motivation, and H3b regards how CSR activities towards suppliers affects
extrinsic employee motivation. H4b regards how CSR activities towards the community
affects extrinsic employee motivation, and H5b regards how CSR activities towards the
customers affects the extrinsic employee motivation.

We will test these hypotheses with a regression analysis to see the relationship between
CSR activities towards certain stakeholder groups and intrinsic/extrinsic motivation. This
choice of method is conducted in order to examine CSR’s impact on the employee's’
intrinsic and extrinsic motivation, and then compare the results with the data we have
collected through our qualitative study in order to show if managers’ perceptions of
CSR’s impact on employee intrinsic motivation copes with the results of our quantitative
study.

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 4.0 PRACTICAL METHOD
In this chapter we will describe how we collected data for both our qualitative and
quantitative studies. Next, we give an explanation of how data for both the qualitative
and quantitative studies are analyzed. The chapter ends with a detailed description of our
ethical considerations.
4.1 DATA COLLECTION
Bickman and Rog (1998, p. 23) make a distinction between two types of data which they
call primary data and secondary data. The term “primary data” refers to the data that is
new and collected for the specific purpose, such as a specific study (Blaikie, 2009, p.
161). In contrary, one could use and reanalyze secondary data that already has been
gathered for another purpose (Blaikie, 2009, p. 161). There are many types of secondary
data, including both raw data and compiled data (i.e. payroll details, copies of letters etc.)
(Saunders et al., 2009, p. 256). Furthermore, secondary data can also include both
quantitative and qualitative types of data, thus meaning it can be used for both descriptive
and explanatory research (Saunders et al., 2009, p. 258). The most obvious main
advantage may be that secondary data saves spending of resources such as time and
money, as compared to primary data (Shiu et al., 2009, p. 141). As a consequence,
secondary data often allows the researcher to analyze far larger data sets since it tends to
be cheaper and less time-consuming (Saunders et al, 2009, p. 268). However, there are
some disadvantages with the use of secondary data. A common problem is that the data
has been collected for another purpose than our specific research objectives, thus meaning
that it might not correlate with one’s research question (Saunders et al., 2009, p. 269-
270). Moreover, in a traditional context, secondary data has even been viewed as a filler,
attachment, or appendix to the formal primary research report (Shiu et al., 2009, p. 141).
Furthermore, the access of secondary data might be limited or even costly, and one could
argue that researchers lacks control over the quality of secondary data (Saunders et al,
2009, p. 269-271).

Before we started this study, we carefully evaluated the two options regarding our data
collection. In this process, we considered the advantages and disadvantages of the
methods of data collection. However, the decision was based on our problem
background, our research question and the current availability and status of current data.
Our reasoning is based on the nature of our study, where we want to present the results
of our data collection and draw a comparison between managers’ and employees’
perceptions on CSR’s impact on employee motivation. There is, to the best of our
knowledge, no previous study that collected this type of data with a focus on the
managerial perspective. Thereby, our study will be conducted by gathering primary data.

We have decided to use interviews for the qualitative part where we investigate the
manager's’ perspective, and a questionnaire for the quantitative part where we examine
the employees’ perceptions of how different CSR activities affects their intrinsic and
extrinsic motivation. There exists various styles of interviews that differ (Bryman, 2008,
p. 414-415), for example in-depth interviews, structured interviews, semi-structured
interviews, and group interviews (Saunders, 2009, p. 318). For our qualitative study, we
used a semi-structured interview form. This form of interviews starts from great themes,
but the interviewee may be free to structure their answers in their own way (Bryman,
2008, p. 415). The choice of this interview form is based on what we think is important

28
that the interviewee may explain how they perceive and interpret certain events within
the greater themes that we bring up during the interview. Moreover for our qualitative
study we have used a survey, to help provide specific facts and estimates and therefore
help to draw conclusions for the population as a whole (Shiu et al., 2009, p. 226). This
means that a survey is more suitable in order to answer our second research question:
“what is the impact of CSR activities on intrinsic and extrinsic employee motivation based
on the perceptions of employees.” Finally, we believe that the employees of Sodexo are
more easily accessible to our study if they participate through a questionnaire instead of
other data collection methods, and therefore, we have decided to approach the employee
perspective with a questionnaire.
4.2 QUALITATIVE DATA COLLECTION AND INTERVIEW GUIDE
As mentioned previously, we have chosen to use a qualitative research approach by
interviewing managers at Sodexo. Interviews aid in data collection (Saunders et al., 2012,
p. 372) which in our case can be relevant to our research questions and purpose.
According to Patton (1980, p. 197), there are three different types of open-ended
interviews one can conduct: the informational conversational interview, the general
interview guide approach, and the standardized open-ended interview. We have used the
general interview guide approach as we wanted to bring up general themes and specific
questions but yet allow our interviewees to feel free to discuss what they wanted to discuss
within our themes. Saunders et al. (2012, p. 347), refers to the different types of interviews
as structured interviews, semi-structured interviews, and unstructured interviews. A semi-
structured interview was most beneficial for our study as it helped us get the perspective
of the different managers we interviewed. In the context of contemporary social science,
a semi-structured interview is a more common type of data collection rather than
participant observation which was more common in the past (Blaikie, 2009, p. 207).
Further, a semi-structured interview helps to understand a specific organizational context
which is related to the research topic (Saunders et al., 2009, p. 320). We think it is
important to capture this context without limiting the interviewees to a set of question
since our first research question is about the perceptions of the managers. Instead, we
argue that it is preferable in our case to rather bring up themes and questions in order to
make sure that the interviews capture the perceptions of Sodexo’s managers. Thus, we
have chosen to use a semi-structured interview.

Furthermore, we used an interview guide to follow during the interview process which is
helpful when conducting a semi-structured interview. An interview guide provides the
interviewer with a list of predetermined questions to ask during the interview (Patton,
1980, p. 200). Our questions were based on our different concepts: CSR, stakeholder
theory, and motivation. We started with asking background questions about the managers,
and then we went into asking questions about our different theories and concepts,
respectively, and finished by asking questions in which we combined the concepts into
one question. By using an interview guide, we could go into more depth on certain topics
depending on what answers the interviewees gave us, which according to Patton (1980,
p. 200), is an advantage of using an interview guide. Under the confines of a semi-
structured interview, one can ask some questions to all interviewees in order to get an
answer from each interviewee (Saunders et al., 2012, p. 374). We have chosen to use
certain questions for everyone and then depending on the how the interviewees answered
our questions, we asked follow-up questions to get further in depth information about the
subject. At the start of the process we came up with a list of around thirty questions.
However, after careful consideration and a number of long discussions, we narrowed
down our interview to having twenty-two questions. For our interview process, we flew
29
down to Stockholm and conducted five interviews at Sodexo’s head Sweden office. In
addition to doing those five in person interviews, we conducted three telephone
interviews with interviewees who could not be in Stockholm at the same time that we
were there.
4.2.1 QUALITATIVE SAMPLING TECHNIQUE AND ACCESS
Based on our first research question: “how do managers perceive the impact of CSR
activities on intrinsic and extrinsic employee motivation?” we were able to choose what
kind of sample would be most appropriate for our study. A researcher's research question
should determine what kind of sample is most appropriate (Patton, 1980, p. 100). In
choosing a sample to interview, it is not always appropriate to use a random sample, thus
a non-random sampling technique can be used (Saunders et al., 2012, p. 281). Sometimes
it is necessary to interview specific people who can help answer a research question
(Saunders et al., 2012, p. 281-283). Our contact at Sodexo helped us to find 8 managers
who we could interview. We are not interested in making statistical generalizations for
the qualitative part of our study, therefore according to Guest et al. (2006, p. 61) a non-
random sample is appropriate. A critical sampling design is used when a sample is
essential for the assessment of our research question (Bickman & Rog, 1998, p. 105). A
further explanation of why we chose to use critical sampling is that we needed to
interview managers at Sodexo in order to answer our research question. By interviewing
managers at Sodexo we could gain insights into how they perceive the effect CSR has on
their employees’ motivation. A random sample with random managers would not have
been useful for this degree project. We needed managers who worked at a company where
CSR is important. Lastly, we used managers from the same company as the respondents
we used in our survey in order to fulfill the purpose of our mixed-method study.

One needs an appropriate strategy in order to gain access to the information needed in
order to collect data (Bryman & Bell, 2001, p. 277). We were able to gain access to
Sodexo because one of us has had previous work experience at the company. This
familiarity with the organization helped us gain entry into the organization. Familiarity is
a way one can gain access to an organization (Saunders et al., 2012, p. 219). However,
both of us needed to be familiar with the organization so we had to acquaint ourselves
with Sodexo to prove to Sodexo we were knowledgeable and that our study could help
them as well. We presented our original research proposal to see if Sodexo would be
willing to help us. After they agreed to help us we started working on our degree project
and then we contacted them again to ask when it would be best for them to conduct
interviews with us. It was important that we gave ourselves sufficient time to make
contact with the organization because as Saunders et al. (2012, p. 218) states, it is
important to give oneself sufficient time when contacting an organization.
4.2.2 CONDUCTING THE INTERVIEWS
As one can see, in table 2, we made a table of our different interviews, including how
long the interview was, and where the interview took place. We carefully chose and made
certain that all interviewees were managers at Sodexo, making them suitable for helping
us answer our research question. Thus, all interviewees fulfilled our criteria of being
managers. The second way in which we chose who to interview was to ensure that we
interviewed a variety of different managers within Sodexo. Our interviewees were from
HR, communications, the restaurant segment, the sports and leisure segment branch, and
sales managers. Some managers worked at the headquarters while some worked on site.
Also, we had managers who managed site managers and managers who managed lower
level employees. We wanted a variety of different managers to interview in order to

30
understand more about the company as a whole. To begin the interview process, we gave
them background information about the purpose of our study and let them know that we
would not seek any confidential information and that they would remain anonymous if
they would like. Letting the interviewees know that we would not seek confidential
information is in line with what Saunders et al. (2012, p. 389), who states that if
interviewees can remain anonymous they will be more relaxed. As several of the
interviewees wanted to remain anonymous and the use of anyone’s name would not add
value, we refer to the interviewees as interviewee and then a given number for that
interviewee.

TABLE 2. INTERVIEWEES

Name/number of interviewee Length of interview Place of interview

respondent 1 45 minutes 12 seconds telephone interview

respondent 2 48 minutes 15 seconds Stockholm

respondent 3 36 minutes 59 seconds Stockholm

respondent 4 64 minutes 56 seconds Stockholm

respondent 5 42 minutes 51 seconds Stockholm

respondent 6 34 minutes 27 seconds telephone interview

respondent 7 33 minutes 42 seconds telephone interview

respondent 8 54 minutes 47 seconds Stockholm

Data saturation is something that occurs when one gets to a point where no new
information is being obtained (Saunders et al., 2012, p. 283). Saturation has become a
sort of gold standard in evaluating appropriate sample sizes (Guest et al., 2006, p. 60). It
is difficult to know whether or not six or thirteen interviews are the right amount (Guest
et al., 2006, p. 65). We discovered for the purpose of our degree project that it was enough
with our eight interviews. After those eight interviews, data saturation occurred, thus we
would not get any new information from additional interviews.

4.2.2 TRANSCRIBING
Collecting data is a core activity of any research project (Blaikie, 2009, p. 24), thus
meaning that the data we receive from conducting our interviews is useful and important
information. As a result, it is very useful for us to transcribe the interviews. Transcribing
is another way of saying that one writes down everything that was said in the interviews
(Saunders et al., 2012, p. 550). The transcriptions are the written words from the
interviews which we recorded with a recording device. We only listened and asked
questions during the interview, meaning that we transcribed everything after the interview
so that we could pay more attention to what the interviewees were saying during the
interview. This is in alignment with what Bryman and Bell (2011, p. 482) when they
discuss that transcribing after the interview helps one pay attention more during the
interview process. As a process, transcribing is very time consuming (Saunders et al.,
2012, p. 550), however it was necessary and helped to give us a wealth of information.
Lastly, the transcriptions helped make the analyzing of the data we found easier.
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 4.3 QUALITATIVE ANALYSIS
A qualitative data analysis can be conducted in different ways depending on whether one
uses a deductive or inductive research approach (Saunders et al., 2012, p. 556). As
discussed in the scientific methodology chapter of this study, we have used a deductive
research approach in this degree project where we had a clear theoretical position
developed prior to the collection of data. Thus, before starting our qualitative analysis we
studied findings from prior research. The first thing one should do when analyzing
information is to put the information into different categories (Blaikie, 2009, p. 211). By
putting information into different categories, we conducted a thematic analysis. There is
still no clear way of how to conduct a thematic analysis (Attride-Stirling, 2001, p. 386).
However, there is a consensus that conducting a thematic analysis should be done in six
steps or phases (Attride-Stirling, 2001, p. 391; Braun & Clarke, 2006, p. 86).

Phase one of a thematic analysis involves familiarizing oneself with the data, while the
second phase involves coding the data (Braun & Clarke, 2006, p. 87-86). This was done
by reading through transcripts and grouping responses into fewer words which accurately
described what each statement represented. Next, one looks through the coded material
in order to discover themes (Braun & Clarke, 2006, p. 89). By coding the data we were
able to identify different possible themes. Phase four involves organizing the themes
created in phase three; this involves refining the themes and discarding some themes
which prove to be irrelevant (Braun & Clarke, 2006, p. 91). After this step we could see
what themes we were going to use which best represented our data. Phase five requires
the researcher to define and name the different themes, while the sixth and final phase
involves the researcher comparing the results to what previous literature has said about
the topic (Braun & Clarke, 2006, p. 92-93). During phase five, we were able to create our
final themes. Our comparison of our results to the previous literature, phase six, comes
from our deductive approach to see if our results do in fact match the theory we started
with. In appendix 2 we have provided a summary of our themes. In the section entitled
qualitative analysis and discussion we will go into more depth about our themes.
4.4 QUANTITATIVE DATA COLLECTION
For the quantitative part of this study, we distributed a questionnaire among the
employees of Sodexo. Questionnaires help gain information about the opinion of a large
group of people (Fowler, 2009, p. 2). The term questionnaire refers to those situations
where the respondent commits themselves to answer a set of closed questions in a specific
pre-arranged order (Bryman, 2008, p. 227; Saunders et al., 2009, p. 360). Bryman (2008,
229-230), emphasizes both pros and cons of conducting the data collection of a study
through surveys. As pros, Bryman (2008, p. 228-229) highlights that surveys normally
are easy and cheap to distribute to a large sample, and that an interviewer cannot influence
the respondents. However, the nature of surveys implies that the possibilities of helping
the respondents or asking follow-up questions are eliminated (Bryman, 2008, p. 229). A
survey can be distributed in many ways, but probably the most common way is that the
survey is distributed by mail (Bryman, 2008, p. 227-228).

According to the definition of questionnaires above, the term questionnaire also includes
techniques of data collection such as structured interviews or telephone questionnaires
(Saunders et al., 2009, p. 360). There are many advantages to this form of data collection.
For example, the interviewer may encourage and assist the respondent and reply to the
respondent’s questions. Also, there is no interviewer variable, the survey will be the same
for all people taking it and we as researchers cannot influence them in any way (Bryman

32
& Bell, 2011, p. 233). Another implication of this data collection method is that the
response rates tend to be high, as compared to surveys for example (Saunders et al., p.
365). A standardized measurement is a result of sending out a survey, where it is easy to
compare and analyze responses (Fowler, 2009, p 3). However, while using this method,
the data collection tends to consume more resources, which is mainly manifested by that
the data collection takes considerably longer time compared to some other methods
(Saunders et al., 2009, p. 365). Surveys are much cheaper than conducting interviews
because one does not need to travel and one can administer the survey over a wide
geographic area (Bryman & Bell, 2011, p. 232).

Apart from structured interviews and postal questionnaires, there is some other forms of
quantitative data collection that exists. Saunders et al. (2009, p. 364) provides some
forms, such as internet- and intranet-mediated, delivery and collection, telephone. For our
study, a survey will be distributed electronically via email among Sodexo-employees.
This is primarily based on convenience since it facilitates the handling of the
questionnaires, saves costs and is more time efficient. Sodexo has agreed to help us
distribute the survey among their employees. Also, online survey helps researchers avoid
time and delivery problems if one was to distribute the survey by mail (Saunders et al.,
2009, p. 365)
4.4.1 SURVEY CONSTRUCTION
Saunders et al. (2009, p. 371) explains that the validity and reliability of the data collected
depends on the design of the question of our questionnaire. This puts pressure on the
design of the questionnaire since a valid questionnaire enables the collection of accurate
data.

An important part of our analysis is the development of constructs. Our survey is based
on seven different constructs that will be tested. Developing constructs helps in
identifying the subjective property in which sets of data should be collected (Shiu et al.,
2009, p. 380). Our constructs are extrinsic motivation, intrinsic motivation, CSR activities
related to employees, CSR activities related towards suppliers, CSR activities related
towards the community, CSR activities related towards customers, and CSR activities
related towards shareholders. We were able to group our questions into these different
constructs to make it so that all questions within a construct represent the same thing.

Our questionnaire began with some demographic questions, such as gender, age, how
long they have been in the company, and what department they worked in. The rest of the
items were measured by rating questions since we wanted to understand the opinions of
the employees. Rating questions are useful and often used when collecting opinion data
(Saunders et al., 2009, p. 378). The most common way to use rating question is by using
the Likert scale rating method, where respondents are asked how strongly they agree or
disagree with a number of statements (Saunders et al., 2009, p. 378). For our study, we
used a Likert scale ranging from 1-6, where 1 = strongly disagree, 2=disagree,
3=somewhat disagree, 4=somewhat agree, 5=agree, and 6 = strongly agree. Our decision
to use a scale with an even number was to encourage the respondents to take a stand.

Two keys in writing good questions for a questionnaire are to think about the point of
view of the respondent and avoid being unclear (Neuman, 1997, p. 233). Saunders et al.
(2009, p. 374) present three ways of how one could design individual questions for a
questionnaire, namely by either adopting questions used in other questionnaires, adapting
questions used in other questionnaires, or developing our own questions for our survey.
33
In the case of our study, we have used all three ways of designing questions. Adopting or
adapting questions is often necessary if one wants to compare their findings with another
study, which often allows reliability to be assessed (Saunders et al., 2009, p. 374).
Therefore, we used the same questions that were used by Skudiene and Auruskeviciene
(2012) and Khan et al. (2014). Moreover, the questionnaire must be understandable for
the respondents (Saunders et al., 2009, p. 371). In this degree project, we used all three
ways to design questions. For the most part, we tried to adopt questions from previous
research for our questionnaire. However, sometimes, they were not logical or
understandable in the context of Sodexo, thus meaning that we had to adapt the questions
in order to fit our study.

A total of seven constructs were used in the questionnaire, most of them derived from
previous research. The first construct extrinsic motivation was derived from Güngör
(2011, p. 1519). Our questions for intrinsic motivation were derived from two articles,
namely Güngör (2011, p. 1519) and Skudiene and Auruskeviciene (2012, p. 58). Items
regarding internal CSR and activities towards employees were taken from Khan et al.,
(2014, p. 77-79). All items regarding external CSR, for example activities towards
suppliers, activities towards customers, and activities towards the community were
gathered from both Skudiene and Auruskeviciene (2012, p. 58) and from Khan et al.,
(2014, p. 77-79). The last construct was CSR activities towards shareholders, which to
the best of our knowledge has never been investigated from how it affects employee
motivation, which made it impossible to find previous studies providing individual
questions for our questionnaire. Thus, we developed our own questions for this particular
construct. Our development of the questions was done by looking at the studies by
Skudiene and Auruskeviciene (2012) and Khan et al. (2014) for inspiration, but in terms
of shareholders.
4.4.2 QUANTITATIVE SAMPLING THECHNIQUE
According to Saunders et al. (2009, p. 213), there are two main techniques available when
sampling, namely probability sampling and nonprobability sampling. Probability
sampling implies that each case in the population has the same chance to being selected
for the sample, whilst non-probability sampling means the opposite (Saunders et al., 2009,
p. 213). Sampling techniques are useful for many reasons, for example it is more
manageable, less costly, and less time consuming to survey a part of a population instead
of the entire population (Neuman, 1997, p. 201). In the case of our study, we expressed
our research question and purpose to the communication director of Sodexo whilst asking
for their help to electronically distribute a survey. We followed the communication
directors’ advice regarding the sampling by distributing our survey to the three biggest
Sodexo offices in Sweden, which are located in Västberga (Stockholm), Hallonbergen
(Stockholm), and Göteborg (Gothenburg), and thus, we used a convenience sampling
technique. The convenience sampling technique is a non-probability sampling technique
which is used for the convenience of the researcher (Farrokhi, 2012, p. 784). This implies
that the researcher uses a convenience sample in order to obtain relevant information from
a sample that is easily available, it is selected because of the availability to the researcher
(Bryman & Bell, 2011, p. 190-191). This was a necessity in our case since the whole
population were not available for us, which means that a convenience sampling technique
was a necessity even though it negatively impacts the generalization of the study.

All the respondents were employees of Sodexo Sweden, which means that they should be
aware of the themes we brought up in our survey. The survey was distributed to all the
employees of these three offices, which means that it was distributed to approximately
34
450 employees. Before launching the questionnaire, it was pre-tested on three different
persons, two students, and one employee of Sodexo.

A total of ca 450 people received the questionnaire on March 27, 2015. The questionnaire
was open till April, 11 2015. During this time, the communication manager of Sodexo
helped us to send out two reminders in order to increase the number of respondents on
our survey. According to Bryman & Bell (2011, p. 189), it is necessary to calculate
response rates since some people of the sample will refuse to take the survey. The
response rate should be calculated by: (the number of usable questionnaires / (total sample
– unsuitable or uncontactable members of the sample)). This gives us a response rate of
118/ 450 = 26 %. However, Saunders et al. (2012, p. 268) argues that one can exclude
individuals that did not open the email containing the questionnaire. Since our survey was
distributed by the communication director of Sodexo, we cannot know how many of the
respondents that actually opened this email, but it is likely that this way of calculating the
response rate would yield a higher response rate.
4.5 QUANTITATIVE DATA ANALYSIS
In order to analyze our data, we needed to put the results of our Google Forum survey
into an excel file. Google allows users to export the survey data directly into a Google
Excel Sheet. Therefore, the next step was to simply transfer the Google Excel Sheet into
a Microsoft Office Excel Sheet so that we could then import the data into SPSS. SPSS is
a Windows statistical software which helps in making quantitative data analysis simple
(Saunders et al., 2009, p. 415).
4.5.1 CRONBACH’S ALPHA
Researchers have to account for a number of threats to the validity of a study (Blaikie,
2010, p. 168). Validity is a term that is used “to describe the relationship between an
answer and some measure of the true score” (Fowler, 2009, p. 15). In this degree
project we use Cronbach’s alpha in order to assess the validity of our quantitative data.
In social sciences, Cronbach’s alpha is one of the most used reliability measures used by
researchers (Bonnet & Wright, 2015, p. 3). The measure can be defined as “the
reliability of a sum (or average) of q measurements where the q measurements may
represent q raters, occasions, alternative forms, or questionnaire/test items” (Bonnet &
Wright, 2015, p. 3). According to many, an alpha coefficient needs greater than 0.7 in
order to be valid, however this is not actually the case (Bonnet & Wright, 2015, p. 4).
According to Moss et al. (1998, p. 178), in general Cronbach’s alpha at the 0.6 level and
in some cases even lower can be considered acceptable. Bonnet and Wright (2015, p. 4)
conclude that the minimum Cronbach’s alpha depends on the use of the statistic,
therefore the reliability of the population is what needs to be measured. To find out the
reliability of our population is not possible for us so we will consider values that are
greater than .6 to be reliable.
4.5.2 DESCRIPTIVE STATISTICS
Another analysis we are using in our quantitative data analysis is descriptive statistics.
The use of descriptive statistics allow us to compare and describe different variables
numerically (Saunders et al., 2009, p. 444). In order to display our descriptive statistics
we have used various tabular and graphical diagrams in order to present our results.
According to Adams et al. (2007, p. 171), tabular and graphical diagrams are two ways
in which one can present data. Saunders et al. (2009, p. 444) describes statistical measures
such as mode, median, and mean as helping determine the central tendency. The use of
the mean is the most common descriptive statistic that we use in this degree project. A

35
mean or average is discovered when one adds up all numbers and then divide by the total
number of numbers used (Adams et al., 2007, p. 174). The mode is the choice that occurs
most and median is the middle value (Saunders et al., 2009, p. 444). In the case of missing
data, we have substituted the missing value with the mean for the particular question that
was unanswered. Another important descriptive statistic that we used in this degree
project is standard deviation. Standard deviation is referred to as dispersion measures
which means that it is used in order to describe how data is dispersed or spread out
(Saunders et al., 2009, p. 447).

Moreover, we also used the Pearson correlation analysis which is another descriptive
statistic. The Pearson correlation coefficient is a statistical measure which shows the
strength of a linear relationship between two variables (Shiu et al., 2009, p. 554). The
Pearson correlation coefficient varies between -1 and 1, meaning that a higher correlation
coefficient represents a strong association between two variables (Shiu et al., 2009, p.
554). Whether the correlation coefficient is positive or negative depends on the
relationship between the two variables tested. This is derived from if there is a negative
correlation between Y and X, that means that an increase in value of Y are associated
with decreases in the value of X, and the opposite also hold true (Shiu et al., 2009, p.
554).
4.5.3 MULTIPLE REGRESSION ANALYSIS
In order to analyze the relationship between our independent variables (CSR activities
towards shareholder, CSR activities towards customers, CSR activities towards
employees, CSR activities towards the community, and CSR activities towards
consumers), and our dependent variables (intrinsic employee motivation and extrinsic
employee motivation), we used multiple regression analysis. The statistical tool of
regression analysis assumes a straight line predictive relationship between the dependent
and independent variables of a study (Shiu et al., 2009, p. 565). The model for multiple
regression analysis is Y = βᴏ + β₁ X₁ + … + βm Xm + ƹ (Adams et. al., 2007, p. 171),
where the y is the dependent variable, β0 is the intercept, βn is the slope, Xn is the
independent variable and ƹ represent the error for the prediction (Shiu et al., 2009, p. 565).
The coefficient of determination, R-square is usable as a measure of how good predictor
the regression equation is likely to be (Saunders et al., 2009, p. 463). The R-square can
have a value between 0-1, meaning that if the equation is a perfect predictor, it gets the
value of 1, but if the equation predicts none of the variation, the coefficient will be 0
(Saunders et al., 2009, p. 463). This implies that the coefficient of determination should
be as high as possible, preferably equal to 1. In the case of our study, the use of multiple
regression analysis functioned as a tool to help us see if the relationships studied in our
study are significant or not.
4.6 ETHICAL CONSIDERATIONS
Our study contains many important issues that are relevant in today’s society, such as
inclusion and diversity, sustainability, and CSR, which makes it highly relevant for us to
discuss the societal and ethical considerations of our study. When conducting research,
different situations can lead to both ethical and unethical dilemmas to occur when
carrying through the process of conducting the study (Saunders et al., 2009, p. 27).
Generally, ethical issues in research are no different from ethical issues in other
interactions of human beings, they are based on respect, that no one will get hurt, and a
transparent information flow (Oliver, 2003, p. 22). More specific ethical issues in research
are normally occurring during the interaction of three key groups of a study, namely the
research provider, the research user, interviewees and the respondents (Saunders et al.,

36
2009, p. 27). We argue that the very nature of this interaction implies that we can only
control what we do as research providers. It is important to produce a study in an ethical
way due to pressures, norms, and ethical standards that forms principles of how research
should be conducted (Neuman, 1997, p. 444). According to Neuman (1997, p. 444),
researchers that are doing unethical research are risking to face humiliation and even legal
actions, which makes it important to adopt an ethical code of conduct during the research
process. This makes it important for us to produce a study in an ethical way, partly
because we do not want to face humiliation or legal actions, but also because we care
about the key groups of our study, namely the respondents, the interviewees, the potential
users of our research, and other potential stakeholders.

Saunders et al. (2009, p. 28) describes that there are some unethical activities that are
sometimes carried out by the research provider. For example, Saunders et al. (2009, p.
29) mentions that research providers sometimes create respondent or interviewee abuse,
for example by forwarding their names or demographics. In our case, we have been
careful to not present any sensitive information about the respondents or interviewees of
our questionnaire or interviews. Bryman and Bell (2011, p. 128-129) refer to this as harm
to participants which includes physical harm, harm to a participant's development of self-
esteem, stress, and harm to future employment opportunities. Moreover, the collection
of data was only used in order to fulfil the purpose of the study. All respondents and
interviewees were given the information that they would be anonymous, and that it would
be impossible to track their identity from the answers they gave since we were using a
confidential procedure when presenting the data. During the interviews, we also asked
the interviewees if they approved if we recorded the interview sessions, and they all had
the option to maintain anonymous throughout our study. We also gave the respondents
and interviewees sufficient information regarding the study so that they would get a fair
chance to, on good premises, make the decision of whether they consented or not to
participate in our study. We ensured that we provided all of this information because as
Bryman and Bell (2011, p. 132-133) discuss, a huge ethical issue is not informing the
respondents or interviewees of everything they need to know. One of the most difficult
tasks in informing participants of all the information they need to know is that there is a
lot of information to know (Bryman and Bell, 2011, p. 133). We tried to combat this
problem by writing down the information we were going to say to ensure each participant
of our interviews would hear the exact same information.

Another unethical activity that sometimes is conducted by researchers is data

falsification, for example by asking friends or relatives to fill in the survey, or
manipulating the interviewees, falsifying data, duplicating response data, or manipulating
the data structures inappropriately (Saunders et al., 2009, p. 29). In the case of our study,
we tried to avoid such unethical actions, meaning that we only asked people from the
sample to fill in our survey and we were not pressuring people of the sample to participate.
Moreover, we consider that the data that we present has not been manipulated or falsified
in any inappropriate way or manner. We would rather say that we tried to be as honest,
transparent, and as objective as possible in the way we conducted our study.

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 5.0 QUALITATIVE EMPIRICAL FINDINGS AND ANALYSIS
In this chapter the empirical findings from the qualitative study are presented. We start
with stating what different interviewees said within the different themes. We start with
CSR, then move on to stakeholder theory, and finally we finish with motivation. After we
present what the interviewees have said we will analyze the data with the theories that
were described in the theoretical framework chapter.
5.1 CORPORATE SOCIAL RESPONSIBILITY (CSR)
When asking what CSR means to the different managers of Sodexo, many interviewees
brought up the environment and the employees. One interviewee, interviewee (3)
summarized by stating “I would say that there is one part that is more HR related, regards
to employees having, like in Sweden, having collective agreements, or in other countries
following the labor laws. And the other part is more about environmental issues.”
Interviewee (8) was not familiar to CSR as a concept, and would rather refer to it as
sustainability, and defined it as “lot of focus in environment and development of business
and of the people that are working.” Another manager, interviewee (1) specified CSR
clearly from a Sodexo perspective by referring to Sodexo’s CSR program, the better
tomorrow plan, by defining it as “this plan is actually a big plan comprising of four
different elements. It is diversity and inclusion. Meaning that how Sodexo is taking the
responsibility of being a good employer. So that is the first. Second is environment, so the
footprint in the field, depending on services we are providing. The third part is health and
wellness. The meals and the food that we are providing to the society. And of course is
our local commitment to the market we are placed.” Others took a stakeholder focus when
they described what CSR means to them. Interviewee (4) explained; “for me it covers
everything from how we act against employees, how we do in different social
communities, it’s about clients, it’s about suppliers, and it’s about the environment.”
Another interviewee, interviewee (7) lifted employees as the most important focus of
CSR, by stating “First of all to make to take care of and be responsible for our employees
to be sure that our employees have the right situation within the company. All from how
they are working, how they are employed, how we work with pieces from different
backgrounds, both ethical and it can be geographical, sex and so on…on the other
hand…CSR is how we act on the market with our clients to be sure that they take our
responsibility for the environment and for the working environment for our employees
and also environmental for our clients.”

Others lifted the commercial perspective of CSR, for example interviewee (2) lifted
examples of how CSR might help employer branding and emphasized the importance of
communicating the CSR activities of the firm. Interviewee (5) was more critical to the
concept and described CSR as “in the market it’s quite worn out, it’s an expression that
many companies use just to hide their brand.”

When asking managers how they incorporate CSR in the day-to-day work, answers were
more diverse. However, almost every manager lifted inclusion and diversity as a way of
how they incorporate CSR to their daily work. Interviewee (1) explained: “we have today
the diversity and inclusion which stands on five pillars which are gender equality,
ethnicity, its generation, people with disabilities and sexual HBTQ.” Many managers also
talked about their contribution to the local society, for example by helping
Stadsmissionen. Interviewee (6) explained: “we are working with Stadsmissionen here in
[City], and I think we are the only ones here in [this city] that do things with
Stadsmissionen.” The same interviewee also lifted examples of how they recruit people

38
who are outside the labor market. Others talked about waste reduction, where an
interviewee specified the waste management systems for his business segment by
mentioning avoidance of bad chemicals, using vehicles with a low environmental impact,
as examples. The same interviewee also mentioned how they try to develop their staff.
Another interviewee, interviewee (7) brought the issue of putting pressures on suppliers
as a CSR activity in the daily work by stating “We don’t try to get the lowest price at all
times. We are trying to talk about another dimension called the best price because we
know in this organization we have a lot of demands that we put up and, I mean it goes
from, for example, every supplier needs to sign our code of conduct. So that it is the
bottom line, if they don’t agree on that, they cannot be a supplier to Sodexo.” Interviewee
(2) brought up the importance of communicating the CSR activities conducted by Sodexo
by saying “We try to make [CSR] visible for our employees, and also our customers. And
that’s moral things that we are doing all the time. But, in my, what I’m doing in my daily
work, that’s more like talking about what we are doing.”

Interviewees had a hard time to answer how they incorporated CSR in the strategic work.
On the question “do you incorporate CSR in your strategic work?” Interviewee (2)
explained that the strategic work sets the agenda for the day-day work by saying “in the
strategic work, we have decided what to do.” Interviewee (1) mentioned that the strategic
work is based on following the ethical principles of the company, which are expressed
from the better tomorrow plan. Another explained branding as a way to incorporate CSR
in the strategic work. The last manager, interviewee (5) answered that they incorporate
CSR in the strategic work emphasized the diversity in recruitment of new personnel by
saying “In a strategic view, in my job that’s with the employees. I really think about
diversity. That’s strategic I think, looking forward, what do I want in 5 years or 3 years.”
5.2 STAKEHOLDERS
When asked about the most important stakeholder groups for Sodexo in general,
interviewees were rather consistent for some stakeholder groups, while other groups were
only mentioned by a few interviewees. In general, we could see that consumers, clients
and employees are regarded as the most important stakeholder groups. However, some of
the interviewees lifted other stakeholder groups than their colleagues. Interviewee (2) said
“of course we have other stakeholders like newspapers, journalists and so on. Because
we are a big company, we are running governmentally funded business, like seniors
business, school business and healthcare business. So that real important that we try to
being bang for the buck.” Another manager, interviewee (4) mentioned suppliers as being
an important stakeholder group for Sodexo. Others lifted the owners and unions as an
important stakeholder group, for example interviewee (8) answered “of course it’s the
owners, and of course the employees are a huge part of it. And then the customers of
course. But also quite strong involvement from the unions, there a lot of unions
represented in Sodexo.”

In response to the question regarding what activities the interviewees saw as the most
important CSR activities to their stakeholders, managers of Sodexo gave us similar
answers. In general, almost all managers mentioned communication as one of the most
important CSR activities, where they emphasized the importance of communicating the
activities conducted by Sodexo. These activities that Sodexo communicates varies, but
there were a few activities that many interviewees mentioned. One of these is the stop
hunger program which were heavily emphasized as an important activity, which is a part
of the CSR program the better tomorrow plan. In the case of Sodexo Sweden, this has
been expressed through their work of helping Stadsmissionen, and many interviewees
39
mentioned this. Interviewee (7) explained: “we are working with the stop hunger in and
within our case Stadsmissionen in south of Sweden. We have activities throughout the
year where we act as provider of food staff to their restaurant how we help homeless
people to get a decent meal.” Others gave different perceptions of what were the most
important CSR activities directed to Sodexo’s key stakeholders. Interviewee (1)
mentioned understanding customers by saying: “we have to understand both customers
and their behavior and what they think and what they like, and what they don’t like. We
also understand that the clients really listens more and more to the consumers because
they have to, because they have an enormous impact on and importance because, for
example with social media.” Another interviewee, interviewee (4) mentioned supply
chain management as an important CSR activity towards stakeholders by saying “you can
also from a supply management point of view the better tomorrow plan is very clear and
understandable.”

On the question on which stakeholders the CSR programs of Sodexo focus on, we
received different answers from the different interviewees. Many interviewees mentioned
employees. One interviewee explained why their CSR program focused on employees
according to interviewee (4): “First of all our employees are our biggest asset in the
company and we are a multicultural organization and we live in all continents in and
around the world and it’s very interesting to see how we incorporate different types of
social levels also different types of cultures we are really a multi-cultural organization
also in daily life.” Others took customer and client perspective, for example interviewee
(2) said: “the better tomorrow plan is also very good example to existing and new
customers, of why they should chose us, among other facility services companies. Because
we make a difference, because we are doing this, and this, and that. But I think that the
most important thing is to make, trying to make our people proud of what they do every
day. So they can make a better work and get good results for our customers.” Another
interviewee, interviewee (1) replied “It is really the consumers. So that we can provide a
good product to the end consumer. And the clients, of course the clients have to
understand that really we stand for good solutions, and that we are in the front of the
business and of what they can find in the marketplace.”

On the question regarding how managers thought that CSR activities affected employees,
we received a variety of answers. Interviewee (1) discussed about giving managers some
responsibility in the process of communicating CSR to consumers; “we have started a
diversity and inclusion network for Sweden. And that creates of course ambassadors more
than the steering committee and the directors so to say. It start with the managers. So this
really creates a grass root network that is really powerful. We see also that we create
activity plans that are convey to all our cities. Meaning that, on the sites communicating
to consumers, they get the tools to be able to talk about this.” Others talked about diversity
and how it affected the employees. One interviewee explained “I think not only to perform
better I also think that they are more …what do you say it’s easy for them to get a job
outside Sodexo since they have this experience. So if from that perspective I think it’s
good if we have employees from Sodexo leaving the company and spreading the word so
but I definitely think that it’s if you have an internship coming into the company it is
usually a different person with a different angle and for us of those who have been
working in the company for a couple of years and even if you are a cleaner or working in
the restaurant or where it is an injection of positive energy.” Another interviewee,
interviewee (5) talked about how CSR increases the engagement amongst employees, and
it makes them more proud. Another interviewee, interviewee (6) saw CSR activities as a

40
big motivator for employees, who expressed this by saying “In a way I was thinking that
the environmental issues that could be helpful of course affects all of the staff and that is
a big motivator because they get education that not everyone gets and also when we are
talking about the employees, there are so many different kinds of employees, now I am
talking about the people actually doing the job on the floor and I think that is a great way
to get education, but education is a great way to help you in everyday life. And for me as
a manager I think it’s also a motivator with both the environment and for me as a women
of course it is a big issue to be working at Sodexo and I think I have many times being
shown that it actually matters and that I get extra stimulation for being a woman.”

On the questions where we asked about how activities towards different stakeholder
groups affects employee motivation, answers where rather diverse. Most of the
interviewees thought that CSR activities directed to shareholders were uninteresting for
the employees. However, one interviewee's opinion was different from the others, by
claiming that CSR activities towards shareholders did affect employee motivation. In
general, most interviewees agreed that activities towards community positively affected
employee motivation. However, interviewee (2) differed by saying that “I would be glad
to say yes, but I don’t think so. I think you have to go a district manager or someone like
me to be proud of being a good partner in the society. Because that is something that you
say or something that you may feel, but it is hard to make an implication in your daily
work when you are cleaning beds.” Answers regarding activities towards suppliers also
differed, where some thought it mattered, while some said it did not. Furthermore, most
managers were rather consistent that activities towards customers affected employee
motivation.
5.3 MOTIVATION
When asking the different managers how they motivate their employees we received
different responses but most noted that they were empowering their employees.
Interviewee (4) said: “I motivate by having an open minded relationship. If and when I
delegate, I do it 100%. So, it’s about trust and belief actual. [The employees] should
always be able to come back and discuss. Mostly it’s about discussing when we have
something we need to work on or workshop around and then of course it is integration.”
Similarly, interviewee (7) said “I’m trying to be quite clear about our missions, what we
are trying to do and I try to involve them in decision making so it’s it not decision taking
by me but I try to involve them, I try to. I think that can motivate them.” Another answer
that we received from several different interviewees was showing appreciation.
Interviewee (6) stated “they that are directly beneath me are restaurant managers and
for me it seeing them talking to them appreciating what they do, just being there. Never
forget a birthday or things like this that actually care about them, listen and help them
when they need help, I think I also try to get them to take their own decisions, push them
forward. Then often I say or I say how would you like to deal with it and then when they
answer me I say okay do it like that, try and then we see what happens. And instead of
delivering the answer and I think that is a way of motivating people, that they can actually
have those things for themselves and have the freedom to do.” Also, interviewee (2)
included empowering and appreciation in their answer by saying: “I’m trying to make it
possible for my district managers to do a good work. Helping them out in the ways I can
do. That is the most important things. On the other hand, the district managers, their most
important work is to [motivate] their site managers, and all the employees make a good
work. So it’s very much about knowing what the people are doing. My people, what all
my people are doing. And trying to support in a way where you highlight when people
are doing things. Make people visible.”
41
Our second motivation question in relation to employees was what kind of working
environment Sodexo provides for their employees. There were two different ways in
which this question was interpreted. The first, was in the sense of safe working conditions
while the second was of an open working environment. First, in relation to how Sodexo
provides employees with a safe working environment, interviewees discussed reducing
risks and reporting accidents. Interviewee (2) said: “They have to make reports about
something, if things are wrong, accidents that happen. That we can make difference so
that accidents don’t happen again. But we have to rely on all our personnel.” While
interviewee (1) added: “that’s part of the also being a good employer. We [are] really
work hard with reducing risks, reducing incidents and so we are doing that with we work
in the Nordics in the same way so we have created themes and presentations to all our
managers so they can work with this in to all fields and sites and we have done it in
different languages.” Lastly interviewee (8) stated: “Well of course, all leaders, all
supervisors goes through this work environment training, so you know what the rules are,
and how to think regarding that. We are also having those working environment
committee at each site where we have members from the staff and from the management
that are looking at it. And the union. Looking at those issues that can be, dangerous at
work of course, and how to change them in some way.”

Other interviewees heard working environment and thought about not safe working
conditions but allowing their employees to work how they please. For example,
interviewee (4) said: “We are able to work from home and we have a great acceptance
for if you have a sick child for example, you have the ability to be home and do your job
from home we accept to do that. So, I mean we thinking about not the time when you sit
on a chair at your office, we [are] thinking about what we produce and that is I think in
how company is lived today and in which environment we are and how complex living
can be today.” Similarly interviewee (5) stated: “yeah, we talk about it both the working
environment and I do not expect the people to be on their table all the time, they are
working very free, they can be wherever they want and for them it is very positive from a
working environment view. I don’t really care if I see them or know where they are, as
long as they do their work. They can choose their environment that suits them best.”
Another answer that was given about the working environment was from interviewee (8)
who said: “it’s a place where a lot of things happen, of course (talking about where they
work) they are working 2, 3 or 4 people in the same team. Also they are part of a shift,
that’s about 20 people. So every day you come, those 20 people will be there, and then
you have your own team. So that that’s one the things, also.” This last response is in
response to more blue collar workers who have to work on site. Providing a good working
environment for them at work helps motivate them.

We asked if they are encouraging a healthy working environment. Most interviewees tried
to encourage a healthy environment, interviewee (1) responded with “oh yes, we are doing
more like a race for some here at the office at Västberga and a health race so it’s not only
to run a lot or to do a lot of sports but it is actually to eat and sleep your 7 hours a night,
take the stairs instead of the elevator and eat healthy. We are providing as well for the
children we have healthy solutions we also have that for our people and our staff.”

Another question we asked was how Sodexo provides employees with the opportunity to
grow within Sodexo. The most common answers involved discussing development plans
with each individual employees as well as advertising new positions within Sodexo

42
Sweden or even abroad. Interviewee (4) stated: “advertising on our intranet for job
positions both in Sweden and around the world. So that’s one opportunity you have and
then we have development plans for which we have continuously every year we do a plan
for each employee. So discussing for example training sessions also of course from an
employee point of view where you want to go, so we are asked questions around can we
think about going abroad working in the company for example in another department or
in operations or wherever, so I would say that we ask ourselves these questions every
year to get hold on what the employee has on his or hers agenda actually and try to plan
activities that support that.” Similarly, interviewee (3) added: “a lot of opportunities for
the one who shows, that they want to and that they have the ability. A lot of managers
have been recruited from within, by working their way up from scratch. Like all big
companies, we have the talent and succession planning. We have mentor programs and
leadership training.” Interviewee (2) added more about training programs within
Sodexo: “What I can do as a certain leader for my staff is to make suitable trainings or
courses and so on. To make them be able to grow. That is what, and recognize for future
jobs. And talk about what is happening in the company, what is coming up and so on. It
is very, the most of the worked on themselves of course. But we have this, every year I’m
sitting together with HR looking into my staff “who is the future leaders. Who is the one
who is taking over from me?”

Our next motivation question proved to be difficult for the different managers to answer.
We asked the Sodexo managers how they provide job tasks that can help give satisfaction
to their employees. Interviewee (2) said: “...I have quite engagement rates in this segment
I’m working. Because the sports and leisure segments is quite, what should you say, a
high class segment. We are running like spa facilities, hotels and so on. Some people are
quite happy to work in that type of business. And it is quite variation in what you are
doing. That is one of the keys to make people like what they are doing. That there is a
broad spectrum of things to do. So if you go down to Nynäs havsbad for example, we have
everything from breakfast, nice dinners, receptions, and bars, yeah everything. So it’s
quite easy to rotate what you are doing.” Another manager, interviewee (4) discussed
strategic plans: “what we do is that we are working with a strategic plan which we do
every year and where we put activities that should generate savings or it should generate
coverage which and when I say coverage I mean we might have new types of clients that
asks for different types of services and from a supply management point of view we might
not have contracts in place to support those services so …when we make our plans we
look at how large coverage we have of the existing business and also interact with other
both departments and operations and listen to what they have in their plans. Maybe they
are developing new services and we need to be in line with that in order to support that
from a supply management point of view.”

Furthermore, we wanted to discover if managers thought that the quality of Sodexo’s

services impacted their employees’ motivation. Everyone was quite clear that this was a
motivating factor, for example, interviewee (4) said “since we can take care of more
services at the client I think that it’s also easier to see that we and now I’m thinking about
the employees that are really out in operations and work on sight that they can see that
we can deliver almost all types of services if the client wants to buy those from us and
which on the other hand can make the employees more active in terms of seeing that they
can actually if they see something on sight that we could help the client with.” Similarly
interviewee (8) said “If you look at night time cleaning, that another service because then
you are preparing the airplane totally for the next day. Then it’s a motivating to keep the

43
quality high of course. Other times, during daytime, it’s more the key, there is time to be
on time. Every airplane has to depart on time, so it’s more like, okay we have a challenge
here of a late airplane which is big, and how do we solve that?” However, interviewee
(3) gave a different viewpoint by stating: “I think it is the other way around, if you have
motivation, you provide a good service, and if you lack motivation as an employee, then
you provide crap services. So I think the question is like, the other way around.”

We had difficulty finding out how managers challenge their employees from a
motivational standpoint. What we discovered was that some of the managers try to
challenge their employees. Interviewee (4) gave an example by saying: “different types
of actions from the management teams and also from Paris about different actions and
savings and so forth so we need to generate actions that meet those demands.” Also,
interviewee number (6) simply said “yeah I do that almost every week [laughter] also I
have employees who need to be challenged so that is a big challenge for me.” Besides
those two answers, we did not receive any additional information about how the Sodexo
managers motivate their employees through giving their employees challenges.

Moving forward, we wanted to ask the managers opinion on how they felt extrinsic
rewards impacted their employees’ motivation. To begin with, we asked what, if any,
kinds of monetary incentives they offer employees. The consensus was that this is not a
selling point in working for Sodexo meaning they do not offer much if any monetary
rewards. Interviewee (2) said “We are not a high salary company. And rewards, if we are
talking about money, is a big problem and very hard to do. The margins we have don’t
really allow us to do it.” One interviewee said that the incentive system was a bit flawed.
Interviewee (6) said: “so if you are really good at making your budget for a year and let’s
say you convince that controller and everyone knows that I will not sell that much and we
cannot have this result next year because of blah blah blah then you get a low bonus and
a low budget with a bigger chance to get bonus. But if you are like competing with yourself
and raising your budget every year and I think I can do this then you’re likely to get
bonus.” Also, interviewee (1) said: “we don’t really do that, we have more flowers and
sometimes we can give them maybe like a service, we are providing services to you know
in different restaurants for example they can go there either our own places but we are
also for example something we are really proud of around Christmas time we don’t give
any Christmas presents to any employees any clients or partners, we provide that money
should instead be spent on stop hunger meaning we work with the city missions because
is around 10 countries, I mean cities in Sweden here we are providing lunches for people
in need of meals and is something that is another way of showing gratitude.”

Our next question involved asking about how managers provide rewards when an
employee performs well. Most interviewees responded with some kind of recognition or
appreciation. For example, interviewee (2) stated: “last year, every month I’m writing a
monthly letter about our business, about what has happened. And then, I asked our district
managers to send a letter or send me just a note about someone doing something special,
something extra. Then I write that in my monthly letter. And also, I took one or two
persons, or for the people I mention they were invited for a dinner we have annually, with
all these people that has been recognized or something” interviewee (6) said: “of course
a tap on the shoulder is sometimes good enough but also to see and complement and
actually comment on and see what they are doing you know I would like my manager [to
say] that was really a good job, that would make my day and also be I have really
restaurant managers and then I could send them to help another restaurant manager then

44
the one who is helping if feeling like they are doing a really good job…like a small
mentorship program inside the big one.” Interviewee (5) added: “in the best way, in
public, actually...yeah sometimes I order big present, a basket full of you now fruit, wine,
and stuff like that just after a very hard time for one in the team.”

Most of the interviewees added with that they are not doing enough in terms of providing
rewards for their employees. Interviewee (7) said: “we’re doing some things but it’s not
enough. I think one of the most important thing is to see the employees when they are
doing something good and just tell them this is really good or here you have done a very
good thing, just give them advice to employees from management team, from supervisors,
I think that is quite important. It’s not just to give them gifts or money or something like
that, just to see them is very important I think. And on that spot I think we can be much
better.” Also, interviewee (8) stated: “we are actually working on that now, to change,
because we don’t have much, we haven’t been doing quite that much. It’s been a union
issue that we shouldn’t reward specific things so we motivate with a cake or something,
but that’s for all. But now we are looking into a way to at least encourage a team of three
or four people in some way.”

We then asked the interviewees if their employees thought the rewards Sodexo provides
them are sufficient, there was a general consensus that they are not. Interviewee (4)
simply said: “no I don’t think they would say that.” Interviewee (3) said: “No matter what
company I work for, if you look at employee services, they always say that they are not.
It will have like 23 % saying that it’s okay. So you have people want higher salary. And
they want cash.” Also, interviewee (2) thought: “that is one of the biggest problems we
had in the engagement surveys. Everybody wants a higher salary if possible.” Interviewee
(8) added: “No, they are not. I’m quite sure of that, of course. They are not are totally
unhappy about it, but it could be better of course. It’s hard to find the perfect way of
course. Our coordinators and group leaders are very good at complement every day, be
thankful for the work that you do. But then you reach a certain level where that is common
thing every day for the work you done, so it’s hard to find the balance, of course. Yeah.
But we are trying to find some ways to, on each, we have monthly meetings with the staff,
in the different teams, and that, uhm, to then let them know how well that we have been
performing in this shifts.”

The only interviewee who thought rewards were somewhat sufficient disagreeing with
the other seven interviewees was interviewee (1) who said: “I think rewards can of
course...we can always do more, I think I have seen and heard since I started here that
people are really feeling proud how we do the Christmas solution, without any gifts that
of course we communicate that this Christmas gift that you were intended to have we gave
that to the city mission and people and have given up so much positive expression about
that but of course rewards can always be even more, but I think that we can be better, but
I think we are doing pretty well.”

Another question we asked was if managers were able to put pressure on their employees
in order to enhance their performance, interviewee (8) said: “It depends on the person,
it’s personal. It depends on how, what kind of pressure or motivation the person can
handle or need. It can be both positive and negative. So it depends on which one yeah.
Someone needs lot of pressure because they are comfortable with that, or wants that to
be motivated. Some people need just some guidance, I think.” Interviewee (7) added with:
“Just to be clear what we, to tell them and to be clear or what is the demand or demands

45
on the job, to be clear that we think you must do this and this and this and we check maybe
you here but if you do that then you will do a good.”

Sodexo’s strong values led us to our next to last question which was how or can they
ensure their employees accept the Sodexo values as their own. Some interviewees said
they simply cannot ensure it. Other interviewees said it is important to hire people with
the right values and one interviewee responded with: (4) “I cannot ensure that but I think
as we said before, since the CSR environment within Sodexo is so clear to everybody that
I think that it’s actually a little bit hard to not live our values even though you at home
and then you can say that the whole if you talk about Sweden or the Nordics or the western
world. It’s so on the agenda these things so how can you forget.” Interviewee (3) said:
“it’s crucial that when we hire people that, it’s all managers do their own recruiting, so
from HR we are only, in, at the top level managerial recruitment in certain, more difficult
recruitments. But it’s essential that we always recruit according to our values. And we
can also teach someone, send them to a course or get them to learn a system or a way of
working. Most people can handle, you know, honestly, most things that are being done,
especially in an office, it’s not that complicated. You don’t have to have a high IQ or
anything. It’s more like most people can manage to learn stuff. But if you have the wrong
attitude, that is a major problem, you can’t make someone get a good attitude, or change
their values, their core values, either they have the same values as the company, or they
don’t. So it’s, if you have to choose between, if I would choose between personality values
and knowledge, we are always going for values and personality, because knowledge is
something that you can attain, and it’s very easy. If you want to. Just listen.” Similarly
interviewee (2) said: “I think, as I said in the beginning, what Azita is doing at the moment,
she is being seen in the media, in TV, newspapers, magazines, videos that are sent to our
staff of what we are doing. That is making the biggest difference for the personnel. That
is something that can make our personnel proud. That she can send out to the community
that Sodexo is a good company. Because then they know that they are working in a good
company. And I think that is making a difference.” Interviewee (5) also stated the
significance of hiring right minded people: “yeah in that area for our work and I think I
should, I choose people actually with the same view, that are open and have an inclusive
mind.”

In not being able to assure employees can accept values, one of the interviewees said that
this is something they can do better. Interviewee (7) stated: “we can be much better on
this, one of our disadvantage here to be very clear for example, we are working very
broad with CSR we are taking in people from different cultures and different geographies
and so on, that means the people we are having in our organization maybe is not very
skilled in speaking and understanding Swedish language or English language or else, so
we have a communication problem with lots of our people I would say. Due to different
language, but we can be much much better. It is also important for us to give people who
are coming very new to Sweden a new job that’s a part of our CSR working also and that
means that when they are arriving to Sweden they don’t understand or speak Swedish
very good or not at all, but we can give them a job and that also means we have a problem
to give them the right information.”

Our final question was what each manager saw as being the best motivator, intrinsic or
extrinsic rewards. All eight managers said intrinsic rewards were the best motivator.
Interviewee (4) said: “actually money doesn’t talk [laughter] in this case. So I think it is
about other values actually that.” Interviewee (2) contributed: “it depends on the

46
engagement quite much. If you have a high engagement in what you are doing, the salary
is not that important. But if you are just coming to do your 8 hours, you are not, maybe
you are not even interested in who is paying the salary, as long as you get the
salary...Then, maybe you go there because you have to pay your bills every month. So,
the further up in the hierarchy you are, what you do is more important.” Similarly to
interviewee (2), interviewee (8) said “The first. Well of course, money is the key issue
here (laughter), that you get paid of course. But no. You always think that money is the
most important thing, but, when you enjoy your work, and your co-workers and then the
task you perform, of course it’s, and that’s the highest motivation. Probably. That’s why
people stay, because they are working in those teams of course, I think.” In response to if
extrinsic rewards were best, interviewee (7) answered: “I don’t think money is…money is
a part of course but if you are doubling the salaries they are not getting 100% more
motivated in doing a job, no way. I don’t believe it at all.” The last interviewee said that
once one can enjoy work and be motivated to work that way, then they can focus on
money, but intrinsic motivation has to be first.

5.4 THEMATIC NETWORK ANALYSIS AND DISCUSSION

5.4.1 THEME COMMUNICATION
The first theme that we identified from looking through the transcripts was
communication. Communication was a salient theme in most of the questions that we
asked interviewees which led us to believe that it is of great importance. Providing
feedback, an important part of communication, is linked to intrinsic motivation.
According to Deci (1971, p. 108), positive feedback has a direct link to intrinsic
motivation, thus if one is told they are doing a good job or how they could improve, then
they will be more motivated to work. Amabile (1993, p. 186), mentioned the fact that
feedback systems in organizations are evolving to include a comprehensive feedback
system where one can receive feedback from peers, subordinates, and supervisors.
Sodexo’s managers mentioned feedback in terms of meeting with their employees to
discuss their work. This is a form of communication but will also be discussed in the
theme considering strategic work. When we asked the different managers how they
motivate their employees, they answered with clear instructions, which is the first
subtheme that we have identified for communication. Being clear is an important part of
communication. If employees know exactly what is expected of them, they will be more
motivated. Job satisfaction comes from employees expectations of what is expected of
them, if their expectations are fulfilled they will be more motivated in the future (Sekhar
et al., 2013, p. 476).

Our second subtheme under communication which was mentioned by the interviewees is
that understanding and listening to customers is important. This subtheme is interesting
and relevant in terms of Sodexo’s position in the service industry. As a result of Sodexo
being a company in the service industry, they should care about the quality of services
that they provide for their customers which is supported by Skudiene and Auruskeviciene
(2012, p. 52) who state that customers are concerned with the quality of services from a
CSR point of view as well as a quality point of view. We discovered that their managers
think the quality of services provided by them motivates their employees to work harder
and to provide a good quality service. According to Longo et al. (2005, p. 32), the most
important thing for customers is the quality of the service that they are buying. Feedback
is also a part of this, it is important for customers that they can provide feedback about
the service that they have received (Longo et al., 2005, p. 32). This is directly related to
communication. We believe that an organization, Sodexo in this case, needs to always

47
have a dialogue with their customers in order to know what services they want and do not
want and also how the services they are providing can be improved.

The third subtheme under communication is the putting of pressure by Sodexo managers
on employees in order to enhance motivation. Pressure as a motivating factor for
employees is not a form of intrinsic motivation but yet it is a type of extrinsic motivation
which can possibly decrease intrinsic motivation (Ryan & Deci, 2000, p. 56). Pressure
falls under introjection as a form of extrinsic motivation (Ryan & Deci, 2000, p. 62). This
is a subtheme under the theme of communication because of the way in which pressure
is put on employees through the process of communication. One manager stated that “Just
to be clear what we, to tell them and to be clear or what is the demand or demands on the
job” when responding to in which way one can put pressure on employees. In general, it
is easier to be clear by communicating what one is supposed to do. Furthermore, one
interviewee claimed that as a manager one needs to know each employee on an individual
basis in order to know how much pressure they can put on a particular employee in order
to succeed. The only way in which one could identify what kind of person one is or how
they are motivated is through communication.

The final subtheme that falls under communication is the improving of Sodexo as a brand
and Sodexo as an employer brand through CSR activities. The reason that this falls under
communication is because the only way a customer or potential employee can find out
about Sodexo’s extensive CSR program is through communication. CSR was mentioned
as being a way of marketing one’s brand. For example, by advertising that CSR is a part
of a company’s strategic planning, they may attract more customers because they like
what the company stands for. Some companies simply use CSR as a way to avoid scandal
and display a good reputation (Crouch & Maclean, 2011, p. 1), or in other words, to
advertise a brand. This was supported by what several interviewees stated about what
they thought CSR was. They felt that CSR was simply a way to advertise one’s brand. In
terms of employee branding, CSR has been proven to affect the desire of applicants to
apply and want to work at a given organization (Greening & Turban, 2000, p. 276).
Communicating that CSR is a big part of a company can help be used as a competitive
advantage in attracting future employees (Aguilera et al., 2007, p. 840; Greening &
Turban, 2000, p. 276). Several managers discussed that when they are hiring new
employees, they want to bring in like-minded people in terms of how they feel about
diversity and CSR. Therefore, we can see that Sodexo is looking for employees who are
very open minded in terms of diversity.
5.4.2 THEME STRATEGIC PLANNING
The theme of strategic planning regards how Sodexo incorporates CSR in their strategic
work. Some of the interviewees had a hard time to explain how they incorporated CSR in
the strategic work, it was easier for them to talk about their day-to-day activities.
However, it was clear that the strategic work sets the agenda for the day-to-day work,
meaning that this is where the planning of the future happens, and the managers were
pretty consistent regarding that they involve CSR to the strategic planning in order to
contribute to different stakeholders of the firm and different dimensions of the triple
bottom line. Joannis et al. (2013, p. 177), defined the triple bottom line as a balance of
social, environmental, and financial performance which leads to long-term sustainability
for the organization. In the context of CSR, it is also important to balance the interest of
different stakeholders when planning and performing CSR activities (Freeman et al.,
2010, p. 237). This implies that the strategic work of Sodexo regarding CSR is in line
with how theory sees the strategic planning of CSR activities.
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Managers of Sodexo mentioned the first dimension, the social dimension of the triple
bottom line by talking about the employees of the company. According to Longo et al.
(2005, p. 31), the stakeholder group of employees involves the value class of development
of workers’ skills. This was something that our interviewees emphasized, for example
how they, through strategic planning, tried to help their employees to develop their skills
and grow within the company. In a practical execution, managers mentioned many ways
of doing this, but mostly it involved planning the future together with the employees
through action plans, development plans, succession plans, and training sessions which
are intended to help their employees to grow. Furthermore, it seems that internal
recruitment occurs quite frequently within Sodexo. According to the managers of Sodexo,
this procedure of internal recruitment seems to help the employees to grow within the
company in order to obtain new and challenging tasks, which according to Herzberg
(1968, p. 92) works as an important intrinsic motivator. This implies that the strategic
CSR activities towards the stakeholder group employees represent the social dimension
of the triple bottom line, and it also concerns an important value class for employees.

Many managers were consistent regarding that it was important to take responsibility
regarding the community. The community comprises both of the social and
environmental dimensions of the triple bottom line since it both concerns the people living
the community, but also the environmental concerns that the community is facing. This
reasoning is supported by stakeholder theory and more specifically the value classes of
Longo et al. (2005, p. 31), where the community has two demands on the firm, creation
of added value for the community, and environmental safety and protection. In the case
of Sodexo, these types of CSR activities were well-defined according to the managers,
for example by their global CSR program: the better tomorrow plan. For example,
managers presented the codes of conduct that all their suppliers need to agree on, which
puts pressure on suppliers to operate in a sustainable way. This is actually heavily
connected to the value classes presented by Longo et al. (2005, p. 31) where they
expressed that suppliers wants selection and analysis systems of suppliers as a CSR
activity of the firm. Interviewees also discussed their stop hunger program, in which they
cooperate with Stadsmissionen in order to provide food for the homeless people in the
local communities where Sodexo operates. Moreover, the managers also mentioned the
services they provide, for example the food, which they try to make as healthy as possible
in order to guarantee that their end-users stay healthy. Furthermore, interviewees talked
about how Sodexo tries to limit their impact on the environment where they operate, for
example by using environmental friendly vehicles, reducing waste, saving energy costs
just to name a few. We argue that this shows that Sodexo in a tries to cope with the
environmental dimension of the triple bottom line, and that they are trying to conduct
CSR activities targeting the value classes of the community in strategic setting.
5.4.3 THEME DIVERSITY
Our third theme that was discovered from our qualitative data collection is diversity.
Diversity emerged as an important theme when we asked interviewees about CSR
practices at Sodexo. A large part of CSR is diversity, for example Aguinis and Glavas
(2012, p. 942) discovered that CSR activities can lead to positive non-financial results
such as improved demographic diversity. According to the theory of CSR, employee
diversity falls under the micro-level research area (Aguilera et al., 2007, p. 839). There is
less micro level CSR research available in comparison to the macro level but Aguilera et
al. (2007, p. 839), state that the micro level or individual level and perspective can also
be referred to as the employee level or perspective. Furthermore, the social part of the
49
TBL includes diversity as a social issue (Garriga & Melé, 2014, p. 177). Thus, it is no
surprise that almost every manager brought up the importance of diversity when CSR was
mentioned.

The first subtheme that we identified under diversity is the importance of hiring
likeminded people in order to ensure employees accept Sodexo’s CSR values. It was
determined from our interviews that managers cannot make employees accept the
company’s values such as diversity. However, they felt the only way they could somewhat
ensure that their employees had these values is by hiring people who feel this way.
Previous research has demonstrated that employee’s will be more likely to contribute to
a firm and participate in the firm’s values if they have a positive perception of CSR
activities that are being conducted by the firm (Aguilera et al., 2007, p. 840). According
to the answers we got during the interviews, it seemed like the only way to ensure that
employees will accept diversity is to ensure that the question is addressed during the
hiring process. If Sodexo asks employees about their perception of diversity too late and
they do not think positively about diversity, then it will be very difficult to push the value
of diversity on to them. Therefore, the only way to ensure all employees accept diversity
is to ensure that they value diversity during the hiring process.

The second subtheme under the theme diversity is that encouraging the acceptance of
diversity is important for an employee’s motivation. Many Sodexo managers felt that the
more acceptance of diversity is encouraged, the more motivated employees will be. After
reading through the transcripts of our interviews it was obvious that the Sodexo managers
felt that diversity and inclusion strongly contributed to their employee’s motivation. A
possible explanation for why managers thought this comes from Skudiene and
Auruskeviciene (2012, p. 52) who discuss that from a stakeholder perspective, employees
are a very important stakeholder group whose expectations and needs should be met. Thus
it is important that their values are taken into consideration. According to Longo et al.
(2005, p. 31), one of the most important values of employees at work is social equity. As
a stakeholder, employees want four things and one of them is that their employer will not
discriminate against age, race, or gender (Longo et al., 2005, p. 31). This can be linked to
motivation through the fact that if the value classes are fulfilled, as in if what the employee
wants is realized, than the employee will be more motivated. Skudiene and
Auruskeviciene (2012, p. 53) had a similar argument by concluding that intrinsic
motivation amongst employees can result from the correct management of these value
classes, social equity included.

The last subtheme of diversity is that every employee is different and therefore needs to
be managed in a different way. This theme is based off of the fact that Sodexo has a
diverse workforce, not only in terms of race, gender, and age, but also in terms of
personality and working style. No two people are the same and therefore they should not
be managed in the same way. One of the bases of Maslow’s hierarchy of needs (1943)
and Herzberg’s dual factor theory (1968) is that what motivates one person might not be
the same thing that motivates another. Similarly, not everyone is motivated intrinsically
by the same activity that someone else is intrinsically motivated by (Ryan & Deci, 2000,
p. 56). Therefore, we conclude that for not only Sodexo’s managers, but all managers that
it is important to keep in mind that their workforce is diverse and must be managed
accordingly.

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 5.4.4 THEME WORKING ENVIRONMENT
Our next theme that we derived from our interviews was the importance of the working
environment. The interviewees were rather consistent in that the working environment
was important for their employees, and that it was a good way in order to enhance and
secure their motivation at the workplace.

Our first subtheme is derived from that many interviewees talked about how they use job
rotation in the workplace in order to enrich the jobs of their employees, meaning that the
same employee can obtain different tasks which is intended to increase the motivation of
employees. Herzberg’s (1968, p. 92) dual factor theory consists of both motivation factors
and hygiene factors, where job design is categorized as a motivation factor, meaning that
job design intrinsically motivates employees. We argue that the job rotation is part of the
job design, meaning that this can be regarded as a way to intrinsically motivate
employees, which implies that this strategy of Sodexo is in alignment with Herzberg’s
(1968) dual factor theory. This is also in alignment with Aguinis et al. (2013, p. 243)
who was rather consistent with Herzberg (1968) by stating that individuals derive
personal meaning from enriched jobs. Similarly, many interviewees mentioned the
importance of providing their employees with a wide job scope. As in the case with job
rotation, this is wide job scopes a typical action in order to enrich the job design, thus
meaning that it is intended to enhance the motivation amongst employees. A job task
design that is more diverse, and also much more challenging will normally help to
intrinsically motivate the employees of a firm (Amabile, 2001, p. 188).

Interviewees also discussed the importance of having a free and open working
environment since it can help motivation. When asked more specifically what this means,
some explained that it is about giving the employees a greater responsibility of how they
should dispose of their time and effort. Herzberg (1968, p. 92) mentioned job design and
responsibility as motivation factors, which we think that the free and open working
environment relates to. This implies that some of the interviewees thought that integrating
responsibility in the job design will positively affect the motivation of their employees,
which is coherent to the theory of Herzberg.

Interviewees discussed what we categorized as a subtheme of the working environment,

namely safety and reducing risks. It was clear through the answers of the interviewees
that accidents do happen in such a big company as Sodexo, and the interviewees regarded
the issue of safety as an important part of the working conditions. After physiological
needs such as food, safety and security needs are safety regarded as the second level in
Maslow’s hierarchy of needs (Steers et al., 2004, p. 381). Safety and reducing risks are
normally not considered as motivation factors, they should rather be seen as hygiene
factors (Herzberg, 1968, p. 91-92), meaning that should be eliminated. According to
Herzberg’s (1968, p. 91-92) dual factor theory, these hygiene factors do not lead to higher
motivation, but they help as an extrinsic force to remove dissatisfaction amongst the
employees.

According to Herzberg (1968, p. 91-92), another hygiene factor is interpersonal

relationships. Many interviewees talked about the importance of interpersonal
relationships, for example the interaction between colleagues, and they emphasized that
this is an important motivator amongst employees. This is somewhat contradictory to the
work of Herzberg (1968, p. 91-92) who argues that interpersonal relationships are not
actual motivators, but rather a hygiene factor.

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 5.4.5 THEME REWARDS
Another theme that was identified after we conducted our interviews with Sodexo
managers was rewards. Rewards are a big part of both intrinsic and extrinsic motivation.
In terms of intrinsic motivation, a reward is something that one gets from doing the work;
the reward comes from within (Amabile, 1993, p. 188). On the other hand, a reward in
terms of extrinsic motivation is when one receives some sort of external reward for
completing a task (Ryan & Deci, 2000, p. 60). When we discussed these concepts with
Sodexo’s managers they brought up how they reward their employees and they think their
employees are motivated. Interviewees also mentioned that rewards follows a hierarchy
where the rewards follow certain steps in employee needs. Managers explained that the
basic steps are extrinsic rewards, such as a paycheck, which is the foundation in the
reward system since it helps the employees to achieve certain living conditions and only
afterwards can employees be rewarded on a higher level. This is in alignment with the
steps of Maslow’s hierarchy of needs, where Maslow (1943) explained that the lower
steps in the hierarchy of needs must be fulfilled before the higher steps can be reached.

The first subtheme under rewards is that employees receive recognition for doing a job
well done. Many of the managers discussed that their employee’s recognition from their
peers was a good motivating factor. In addition, many of the managers we interviewed
talked about public recognition as well as being a motivating factor. Recognition falls
under the theory of extrinsic motivation. According to Herzberg’s dual factor theory,
recognition for achievement is a motivation factor which is a kind of extrinsic motivation
(Herzberg, 1968, p. 92). When employees have contributed with something positive, they
want their peers to know that it was them who completed the task. This can be linked to
Maslow’s hierarchy of needs (1943, p. 382) and the self-actualization need in the
hierarchy. Self-actualization involves the idea that one wants to achieve self-fulfillment
(Maslow, 1943, p. 382). Not only does one want to complete a goal for their own
satisfaction but also so that they can receive some type of recognition for it whether it is
for themselves or the recognition of others.

Another subtheme which is part of the theme rewards is appreciation. Many interviewees
stated that appreciation is a good way of motivating their employees. Similar to
recognition, appreciation was described as how each manager tried to reward their
employees and is a form of extrinsic motivation. When Sodexo’s managers are showing
appreciation for an employee’s good work, it is implied that the employee completed the
task in order to receive appreciation. This is in line with Amabile’s (1993, p. 188)
definition of extrinsic motivation which is: “[employees] engage in the work in order to
obtain some goal that is apart from the work itself.” Furthermore, appreciation is referred
to as being a benefit an employee receives for completing work (Mahazril, 2012, p. 238).
Receiving appreciation would be the goal that they are trying to obtain which is not a part
of the work itself. This proves that Sodexo’s managers feel that their employees are
motivated by extrinsic forms of motivation.

When talking to the interviewees about extrinsic rewards, many of them mentioned
monetary rewards. In general, interviewees seemed to be skeptical towards monetary
rewards, both because in the context of Sodexo, for example that the industry where they
operate provide rather small margins, meaning that there is less room for monetary
rewards or high wages. However, managers seemed to be skeptical to potential positive
effects of the monetary rewards in general. Monetary rewards can motivate and satisfy
employees (Long & Shields, 2010, p. 1148), but many studies have shown that this is not

52
the best motivator (Aguinis et al., 2013, p. 247; Long & Shields, 2010, p. 1164). Studies
have also shown that monetary rewards cannot be used in order improve employee
knowledge, skills, or abilities (Aguinis et al., 2013, p. 243). The interviewees also
explained a perceived constraint about monetary rewards, namely that according to their
experience monetary rewards will never satisfy employees 100 %, they always want
more.

5.4.6 THEME STAKEHOLDERS

The last theme we derived from our interviews was the stakeholder theme, where we
asked the interviewees if they were under the impression that CSR activities towards
different stakeholder groups would affect employee motivation. Almost all our
interviewees had the same perception regarding how CSR activities towards shareholders
would affect employee motivation, namely that it has no positive impact on employee
motivation. To the best of our knowledge there is no previous literature or research that
examines the managers’ perceptions of how CSR activities towards shareholders impact
motivation amongst employees. This is interesting since Aoki (1984, p. 62) believed that
shareholders together with employees were the two most important stakeholder groups,
and it was the manager's task to be a referee between those two parties. We believe that
the answers of the interviewees might be based on that they are under the impression that
there is too much space between the employees and the owners of Sodexo. For example,
one interviewee explained that he/she was under the impression that this can only increase
motivation amongst managers, but not blue collar workers. This relates to Maslow’s
(1943, p. 372) most basic need, the psychological need. One needs to have a salary in
order to put food on the table and to be able to take care of one’s most basic needs and
once, those basic needs are taken care of then one can think about other needs such as the
esteem needs and self-actualization (Maslow, 1943, p. 381-382). Blue collar workers
make less money and need to try and put food on the table before they can start thinking
about having a job that satisfies their intrinsic needs. We are under the impression that
this is related to that there is too much of an stretch between the employees and
shareholders, but not the managers, maybe because of the reasoning of Aoki (1984, p. 62)
where managers acts as a referee between those two stakeholder groups, meaning that it
ties them closer to the shareholders than the employees. It is possible that this stretch
affects the answers of the interviewees, and therefore it leads them to the conclusion that
CSR activities towards shareholders do not affect employee motivation.

Another subtheme was how CSR activities towards the community affects employee
motivation. The answers we got from managers were rather diverse, but a majority of the
interviewees thought that CSR activities towards the community would help to increase
employee motivation. Previous literature has supported that CSR activities towards the
community positively impacts employee motivation (Khan et al., 2014, p. 82; Skudiene
& Auruskeviciene, 2010, p. 62). It is therefore not shocking that a majority of
interviewees thought that it would positively impact intrinsic motivation. However, there
were some managers who simply said that CSR activities towards the community will not
affect the motivation amongst employees. As in the case of shareholders, we think that
this is derived from that the stretch between the actual job tasks and societal contribution
is considered as too stretch amongst the interviewees.

Another subtheme was how CSR activities towards suppliers affected employee
motivation. The answers on this question were rather diverse, and the perceptions of the
managers were different. Some interviewees answered that CSR activities towards

53
suppliers had an important impact employee motivation, whilst others said it had no
impact. Previous research has demonstrated that CSR activities towards the suppliers will
help to improve the motivation amongst employees (Khan et al., 2014, p. 82; Skudiene &
Auruskeviciene, 2010, p. 62).

Another stakeholder group that was discussed by the Sodexo managers was an external
stakeholder group: customers. The overall perception from Sodexo’s managers is that
they believe their employees are motivated by CSR activities related to customers. Longo
et al. (2005, p. 32) referred to customer value classes as being product/service quality,
safety of the customer when using the product/service, consumer protection, and to ensure
that the customer is fully aware of the product/service that they are using. A majority of
the Sodexo managers felt that their employees were more motivated knowing that they
were providing a quality service for the customer. This relates to the first customer value
class which regards product quality (Longo et al., 2005, p. 32), for example from
interviewing one Sodexo manager, he felt that the staff was motivated by cleaning at night
because they were providing this service for all of the customers for the following day.
The other customer value classes were not discussed by the managers of Sodexo, but yet
they focused on the quality of the services they provide. One of the interviewees
mentioned that if the employee is motivated in the first place, then they will be willing to
provide a better service on behalf of the customer. This statement by one of Sodexo’s
managers can be explained by Amabile (1993, p. 185), who stated that a motivated
employee is likely to work harder.

The most important internal stakeholder group as identified by Sodexo’s managers is the
employees. When we asked Sodexo’s managers who they thought of when they thought
of stakeholders and who Sodexo focuses their CSR activities on most, employees was the
answer given which is in line with Skudiene and Auruskeviciene (2012, p. 52), who
consider employees the most important internal stakeholder group. Health and safety at
work, one of Longo et al.’s (2005, p. 31) value classes concerning employee related CSR
activities, was only mentioned by one interviewee. The health and safety of workers at
work falls under Herzberg’s hygiene factors (1968, p. 92). Next, the second employee
related CSR value class is the development of workers’ skills (Longo et al., 2005, p. 31),
which seemed to be very important to Sodexo’s managers. Many of the managers whom
we interviewed mentioned Sodexo’s training programs and advancement opportunities
within Sodexo. According to Herzberg (1968, p. 92), the opportunity to grow within a
company is a motivation factor within his dual factor theory. The other value classes
regarding employees, worker satisfaction and social equity (Longo et al., 2005, p. 31)
were discussed earlier in the analysis when they related to the themes of working
conditions and diversity, respectively. This helps further demonstrate the fact that
Sodexo’s managers felt that their employees were most motivated by CSR activities
which related to the employees themselves.
5.4.7 SUMMARY QUALITATIVE FINDINGS
Below in table 3, one can find a summary of our qualitative findings from the thematic
analysis. The descriptions of the themes summarizes how we interpreted these themes
based on the findings of our interviews of Sodexo managers. The last row in the table
explains how motivation is created at Sodexo based on these five themes.

54
 TABLE 3. THEMATIC NETWORK SUMMARY

Communication Strategic Diversity Working Stakeholders Rewards

Planning environment
Description Conveying Planning the Including Providing a People with a Extrinsic
of theme meanings to direction of genders, safe, healthy stake in the motivators
achieve specific the different and enjoyable firm. Such as used to give
goals organization cultures and place to work customers, employees
in the future origins, suppliers, incentives to
generations, employees, perform a task
people with the
disabilities, community,
and and the
respecting owners
different
sexual
orientations
Motivation …communicating …first setting …hiring …a safe and …CSR …employee
is created demands, giving the agenda for people that multilateral activities recognition
by… clear instructions, the day to day accept working towards and
listening to work. values of environment, employees, appreciation.
customers and Planning the Sodexo, provides a the
hiring a diverse future together such as wide job scope community,
and accepting with the diversity. and customers
workforce which employees and Understandi
is attained by minding all ng that every
employer dimensions of employee is
branding the triple different
bottom line

55
 6.0 QUANTITATIVE EMPIRICAL FINDINGS AND ANALYSIS
In this chapter we present the empirical findings of our quantitative study. We begin by
providing the demographic findings of our respondents. Next, we present our Cronbach’s
alpha reliability statistic followed by the descriptive statistics. After we present the
descriptive statistics we present the findings of our regression analysis. Finally the
chapter will conclude with a discussion of the findings, relating our findings to previous
literature and research.
6.1 DEMOGRAPHICS
Our survey started by asking several background questions concerning gender, age, and
work experience. We received 118 total responses from Sodexo employees. Every
respondent answered most questions, meaning that no one left all answers blank. Any
answers that were left blank were filled in with the mean of responses for that given
question. For our first question of gender, two respondents did not answer. 66 females
participated in our survey along with 51 males. Thus, 56.4 percent of the respondents
were women which gives a good representation of the population of employees at Sodexo
which is made up of 54 percent women (Sodexo, 2015). See figure 2 to see a summary of
the genders of the participants.

FIGURE 2. GENDER

Next, we asked about the age of the employees. The majority of the employees were
between the ages of 40-49 and 50-59. Respondents who were between these ages
accounted for 76.1 percent of all respondents, with 40-49 being 38.5 percent and 50-59
being 37.6 percent. To see a full summary of the ages of the respondents see figure 3.
According to information from the HR department of Sodexo 25% of the employees are
younger than 30 years old, 22% are between the ages of 30-39, 25% are between the
ages of 40-49, while 20% are between the ages of 50-59, and 8% are older than 60 years
old (I. Adenborg, personal communication, 11th may, 2015). Our sample was not an
exact representation of Sodexo’s employees’ age which is a result of our convenience
sampling technique where we only surveyed white collar workers at three different
offices.

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 FIGURE 3. AGE DISTRIBUTION

The final demographic question that held significance to our study asked how long the
employee have been working at Sodexo. 44.4 percent of the respondents had been
working at Sodexo for more than 10 years, while 26.5 percent of the respondents have
worked their between 1-3 years and 19.7 percent have worked between 4-6 years. Only
7.7 percent of respondents have worked at Sodexo for less than a year and only 1.7 percent
has worked at Sodexo for 7-9 years.

6.2 CRONBACH’S ALPHA

Cronbach’s alpha is one of the most used reliability tests in statistics (Bonett & Wright,
2015, p. 3), which is why we chose to use this reliability test in our study. A rule of thumb
amongst many researchers is that reports with a sample value of Cronbach’s alpha below
0.7 should be rejected (Bonett & Wright, 2015, p. 3). However, there is no universal rule
of acceptance regarding the reliability value (Bonett & Wright, 2015, p. 3), and other
scholars argue that Cronbach’s alphas in general can be accepted at levels of 0.6, and
sometimes are even lower scores regarded as acceptable (Moss et al., 1998, p. 178). In
accordance with using the 0.6 level of reliability, two constructs had reliabilities that were
too low. Both extrinsic and intrinsic motivation had too low of Cronbach alphas, thus we
had to narrow the constructs down to one question for each. For extrinsic motivation we
used the survey question: being appreciated and being praised by my manager increases
my success and performance at work. Similarly, for intrinsic motivation we used the
survey question: authority\responsibility and dependence requests in the workplace
affects my motivation. We felt that these two questions, respectively, gave a good
representation of the definition of these constructs, where extrinsic motivation is an
activity someone partakes to receive some separable outcome of the task (Amabile, 1993,
p. 188; Ryan & Deci, 2000, p. 60), and intrinsic motivation is a task being interesting to
a person and/or as the ask giving a person satisfaction for completing a task (Ryan &
Deci, 2000, p. 56). Moreover, we could see that our constructs of CSR activities towards
suppliers, customers, employees, the community, and shareholders are reliable for our
regression analysis, which one can see in table 4.

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 TABLE 4. CRONBACH'S ALPHA

Construct Cronbach’s alpha

Extrinsic motivation One item

Intrinsic motivation One item

Employee related CSR activities .63

Supplier related CSR activities .83

Community related CSR activities .66

Customer related CSR activities .75

Shareholder related CSR activities .89

6.3 DESCRIPTIVE STATISTICS

Based on our constructs (extrinsic motivation, intrinsic motivation, employee activities,
supplier activities, community activities, customer activities, and shareholder activities)
we were able to determine different descriptive statistics about each construct. The
descriptive statistics that we determined for each construct were the mean, standard
deviation, mode, median, and Pearson correlation. One can see a full summary of our
descriptive statistic in table five and for the Pearson correlation in table six. The means
are based off of our 6 point Likert scale, where 1 was strongly disagree and 6 meant
strongly agree. All values in table four are rounded to nearest hundredth. As one can see,
shareholder activities yielded the lowest mean of 3.59 while intrinsic motivation and
customer activities had the highest mean of 4.93. Thus, one can see that the overall
perception of the different constructs were regarded as being motivators. Since all but one
mean is above 4, one can see that respondents leaned more towards strongly agree than
strongly disagree.

The standard deviations ranged from 0.62 for intrinsic motivation to 1.28 for shareholder
activities. This demonstrates the distribution of values from the mean, on average (Shiu
et al., 2009, p. 533). In other words, we can see that many answers were quite similar
because of the rather low standard deviations. Shareholder activities had the highest
standard deviation which demonstrates that respondents had the most variety of different
answers on how motivated they are by shareholder activities. One can also see that most
respondents are motivated quite similarly in terms of intrinsic and extrinsic motivation.

The mode demonstrates the values that occurs most (Saunders et al., 2009, p. 444), so one
can see that intrinsic motivation had the highest mode of 5.5 which was closely followed
by customer activities had a mode of 5.25. Shareholder activities yielded the lowest mode
of 4.0 and community activities were just above that with 4.25. In between the highest
and lowest modes, were extrinsic motivation, employee activities, and supplier activities
with modes of 4.40, 4.80, and 4.75, respectively. The medians, or the midpoint of the data
(Saunders et al., 2009, p. 444) were quite similar to the means, with all constructs having
the same median as mean except for community activities which had a median of 4.63.

58
 TABLE 5. DESCRIPTIVE STATISTICS TABLE: MEAN, STANDARD DEVIATION, MODE, AND MEDIAN

Construct Mean Standard Deviation Mode Median

extrinsic motivation 4.35 0.68 4.40 4.35

intrinsic motivation 4.93 0.62 5.50 4.93

employee activities 4.38 0.77 4.80 4.38

supplier activities 4.57 0.85 4.75 4.57

community activities 4.56 0.77 4.25 4.63

customer activities 4.93 0.80 5.25 4.93

shareholder activities 3.59 1.28 4.00 3.59

The third descriptive statistic we assessed was the Pearson correlation. For this degree
project the most interesting correlation is between the different CSR activities and
intrinsic and extrinsic motivation, respectively. Thus we have provided a summary of the
results in table 6. The Pearson correlation is a number between -1 and 1 where 1 and -1
note a very strong correlation while 0 means there is no correlation at all (Shiu et al.,
2009, p. 554). The results of the data analysis show that intrinsic and extrinsic motivation
were the two variables with the strongest correlation. We wanted to identify the
correlation between extrinsic motivation and the different CSR activities as well as the
correlation between intrinsic motivation and the different CSR activities. Extrinsic
motivation was found to be strongly correlated with employee activities. Also, extrinsic
motivation had a strong correlation, but yet had a less significant correlation with supplier
and community activities. Thus, one can conclude that employees are extrinsically
motivated by employees CSR activities, supplier CSR activities, and community related
CSR activities after analyzing the results of the Pearson correlation test. Four different
CSR activities have proven to be highly significant and correlate to intrinsic motivation.
Employee CSR activities, supplier CSR activities, customer CSR activities, and
shareholder CSR activities all strongly correlate to intrinsic motivation. Less significant,
but still significant was community CSR activities that posted a correlation of .206 with
intrinsic motivation. From this information, one can see that all CSR activities
intrinsically motivate employees.

Next, we assessed the correlation between the different CSR activities. As a result we
could see that many of the activities had a strong correlation with one another. Employee
activities had a strong significance and positively correlated with supplier activities,
community activities, and customer activities and had a slightly less significant but still
significant relationship with shareholder activities. Supplier activities had a high
significance level and positively correlated with all of the other CSR activities except for
shareholder activities which proved to be insignificant. Similarly, CSR activities related
to the community and CSR activities related to customers also had a high significance
level and positively correlated with all other CSR activities, except for shareholder
activities, respectively. Lastly, CSR activities related to shareholders had the most
scattered results. Shareholder activities had a high significance and positively correlated
with community activities and slightly lower but yet significant correlation with

59
employee activities. However, shareholder activities had an insignificant correlation with
supplier activities and customer activities.

TABLE 6. PEARSON CORRELATION

Extrinsic Intrinsic employee supplier community customer shareholder

motivation motivation activities activities activities activities activities

Extrinsic
motivation 1 .35** .25** .2* .21* .18 .16

Intrinsic
motivation .35** 1 .29** .31** .21* .30** .25**

Employee
activities .27** .29** 1 .43** .61** .49** .22*

Supplier
activities .2* .31** .43** 1 .66** .64** .15
.
Community
activities .21* .21* .61** .66** 1 .72** .32**

Customer
activities .18 .30** .49** .64** .72** 1 .16

Shareholder
activities .16 .25** .22* .15 .32** .16 1

*denotes significance level at 90% while **denotes a significance level of 95%

6.4 REGRESSION ANALYSIS 1: EXTRINSIC MOTVATION AND CSR ACTIVITIES

We performed two multiple regression analyses in order to measure the effect of CSR
activities towards employees, shareholders, suppliers, customers, and the community on
intrinsic and extrinsic motivation. In this first section, we will present our regression
analysis between the independent variables of CSR activities towards employees,
shareholders, suppliers, customers, and the community and the dependent variable
extrinsic motivation. The adjusted R-square of the regression analysis was .072 which
indicated that the independent variables determines 7, 2% of the variance in extrinsic
motivation. The low R-squared indicates that a rather low percentage of the deviation in
the dependent variable can be statistically justified by the independent variables
(Saunders et al., 2012, p. 523). We chose a confidence interval of 90 %, meaning that the
minimum criterion for significance is 0.1. Table seven shows that none of the independent
variables had a positive significance on extrinsic motivation except for CSR activities

60
towards employees which showed a positive significant effect on extrinsic employee
motivation with (β = 0,246 p < 0, 1). However, most of the B-coefficients took a positive
value, which shows tendencies of increased extrinsic motivation as a cause of those CSR
activities taken towards particular stakeholder groups. The exception was CSR activities
towards the community, where the B-coefficient took a negative value.

TABLE 7. REGRESSION ANALYSIS 1

Coefficients

Unstandardized Standardized
Coefficients Coefficients

Model B Std. Error Beta t Sig.

1 (Constant) 3,555 ,612 5,806 ,000

employee ,246 ,140 ,202 1,750 ,083

supplier -,044 ,142 -,040 -,313 ,755

community ,047 ,194 ,038 ,240 ,810

customer ,086 ,163 ,074 ,529 ,598

shareholder ,034 ,071 ,046 ,477 ,634

6.5 REGRESSION ANALYSIS 2: INTRINSIC MOTIVATION AND CSR ACTIVITIES

In our second regression analysis, we used the same independent variables but changed
the dependent variable to intrinsic motivation. The adjusted R-square was 0.152, meaning
that the independent variables determines 15, 2% of the variance in intrinsic motivation.
The this rather low R-squared indicates that a 15,2 % of the deviation in the dependent
variable can be statistically justified by the independent variables (Saunders et al, 2012,
p. 523). Our regression analysis showed that our model was significant (F = 6,155, p <
.01). Table eight shows that three independent variables had a significant positive effect
on the dependent variable intrinsic employee motivation: CSR activities towards
employees (β = 0,068 p < 0, 1), CSR activities towards customers (β = 0,018, p < 0, 1),
and CSR activities towards shareholders (β = 0,128, p < 0, 1). The B-coefficient of CSR
activities towards the community, (β = 0,-497, p < 0, 1) showed a negative value which
was significant, which indicates that an increase of CSR activities towards the community
will negatively impact the intrinsic motivation of employees.

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 TABLE 8. REGRESSION ANALYSIS 2

Coefficients

Unstandardized Standardized
Coefficients Coefficients

Model B Std. Error Beta t Sig.

1 (Constant) 2,283 ,674 3,387 ,001

employee ,285 ,155 ,203 1,843 ,068

supplier ,151 ,156 ,119 ,966 ,336

community -,491 ,214 -,350 - ,024

2,296

customer ,430 ,179 ,320 2,402 ,018

shareholder ,167 ,078 ,200 2,152 ,034

6.5 REVISED CONCEPTUAL MODEL

The two regression analyses above were conducted in order to see if the independent
variables, CSR activities towards employees, CSR activities towards suppliers, CSR
activities towards the community, CSR activities towards customers, and CSR activities
towards shareholders had a significant effect on intrinsic motivation and extrinsic
motivation, respectively. The conceptual model presented earlier in this work was created
in order to present the hypothesized effect of the independent variables on the dependent
variables. Now, after the statistical analysis, we can present a revised model based on our
results.

With the confidence interval of 90%, we could not see any significant results when testing
the independent variables on extrinsic motivation, except for CSR activities towards the
employees themselves. When testing the independent variables on intrinsic motivation,
we could see that CSR activities towards employees, customers, and shareholders were
positively significant. Our results regarding CSR activities towards the community where
indeed significant, but it did not positively impact the intrinsic motivation of employees.
The statistical analysis provides us empirical results regarding our hypothesis, which is
presented in table 9.
TABLE 9. REVISED HYPOTHESES

Abbreviation Hypothesis Conclusion

H1a. Firm’s CSR activities towards employees have a Supported

positive effect on intrinsic employee motivation

H1b. Firm’s CSR activities towards employees have a Supported

positive effect on extrinsic employee motivation

H2a. Firm’s CSR activities towards shareholders have a Supported

positive effect on intrinsic employee motivation

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 H2b. Firm’s CSR activities towards shareholders have a Not
positive effect on extrinsic employee motivation supported

H3a. Firm’s CSR activities towards suppliers have a Not

positive effect on intrinsic employee motivation supported

H3b. Firm’s CSR activities towards suppliers have a Not

positive effect on extrinsic employee motivation supported

H4a. Firm’s CSR activities towards the community have a Not

positive effect on intrinsic employee motivation supported

H4b. Firm’s CSR activities towards the community have a Not

positive effect on extrinsic employee motivation supported

H5a. Firm’s CSR activities towards customers have a Supported

positive effect on intrinsic employee motivation

H5b. Firm’s CSR activities towards customers have a Not

positive effect on extrinsic employee motivation supported

FIGURE 4 REVISED CONCEPTUAL MODEL

6.6 QUANTITATIVE DISCUSSION

To begin the discussion of the quantitative data, we will discuss the findings of the
descriptive statistics. First, the means demonstrate the average response when taking into
account all 118 respondents. Every construct except for shareholder related CSR activities
had a mean greater than 4 on a 1-6 scale. This demonstrates that the other six constructs
were considered as being good motivators for employees. Previous research has shown
that CSR activities towards different stakeholder groups has an effect on employee
motivation (Khan et al., 2014, p. 82; Skudiene & Auruskeviciene, 2012, p. 62-63). These

63
rather high means were expected since previous research has shown that employees are
affected by these different CSR activities. According to Peloza and Shang (2011, p. 119),
CSR activities provide added value to internal stakeholders and external stakeholders,
which is why we believe we have received high means. We believe that adding value aids
in motivating employees. The difference between the highest mean and lowest mean was
just 1.34 which demonstrates that the employees of Sodexo did not vary much on their
answers between the different CSR activities. From analyzing the means, one can see that
Sodexo's employees did agree with the different statements about their shareholders, as
the mean for the shareholder construct was 3.59 on a 6-point scale. The means
demonstrate that Sodexo employees do agree with the statements which suggests that they
are satisfied by providing returns to shareholders, motivated by providing returns, or
being interested because they can potentially help shareholders. The means also
demonstrate that customers appear to be the most important stakeholder group because it
had the highest mean of 4.93, which we think this results stems from the fact that Sodexo
is a service company which infers that they care about their customers. According to
Longo et al. (2005, p. 32), customer related CSR value classes include the quality of the
service, safety of customer when using the product/service, customer complaints, and
providing truthful information to customers. Therefore, Sodexo’s employees, as a result
of the high means, agree and value these different value classes. On the other hand, CSR
activities related to employees had the second lowest mean of 4.38. The fact the mean is
lower than the other means demonstrates that Sodexo’s employees only somewhat agree
that Sodexo helps fulfill the employee value classes according to Longo et al. (2005, p.
31) which include health and safety at work, development of skills, wellbeing and
satisfaction of the worker, and social equity. Employees still agreed with the statements
but since they only somewhat agreed with the statements we can see that this is a place
where Sodexo can improve. We can infer that Sodexo is fulfilling these value classes
somewhat but yet there is still room for improvement. Also, if one compares the means
of intrinsic and extrinsic motivation with one another one can argue that Sodexo’s
employees are more intrinsically motivated than extrinsically motivated. Intrinsic
motivation had a mean of 4.93 which is close to five which would correlate to most
Sodexo employees agreeing with the statements that would mean that they are
intrinsically motivated. Furthermore, it is interesting to note that the standard deviation
for both intrinsic and extrinsic motivation were 6.23 and 6.79, respectively,
demonstrating that Sodexo’s employees are motivated in similar ways. A possible
explanation for why Sodexo’s employees we surveyed were more intrinsically motivated
than extrinsically motivated can account to the fact the respondents were mainly white
collar, office workers. For example, the higher up one is on Maslow’s hierarchy of needs
(1943), the less important money becomes inferring that the more important intrinsic
motivation becomes (Oleson, 2004, p. 91). Several studies have also proven that intrinsic
rewards are a better way to motivate employees in comparison with extrinsic rewards
(Aguinis et al., 2013, p. 247; Long & Shields, 2010, p. 1164), which supports why
Sodexo's employees agreed more with questions regarding intrinsic motivation rather
than extrinsic motivation.

When it came to the employees perceptions of the community related CSR activities, the
mean was 4.56, which is relatively high. This demonstrates that the majority of Sodexo
employees wanted to respond to the value classes of the community, which Longo et al.
(2005, p. 32) described as creating added value for the local community and
environmental concerns and safety in the local community. Previous research has shown
that CSR activities towards the community positively impacts motivation amongst the

64
employees (Khan et al., 2014, p. 82; Skudiene & Auruskeviciene, 2012, p. 62-63). We
believe that the high means are not surprising since previous research has shown that CSR
activities towards the community positively affects motivation. Moreover, the employees
are often part of the local community, meaning that they are likely to be affected by issues
such as environmental concerns and safety. One could argue that this makes it important
for the employees that their company are conducting relevant CSR activities towards the
community since it is likely to directly or indirectly affect their employees. However, our
regression analysis proved that Sodexo employees are not motivated intrinsically or
extrinsically by helping the environment which will be discussed further down in this
chapter.

In our first regression analysis, we tested the construct of CSR activities towards
employees and its’ impact on extrinsic employee motivation. We could see that this
construct had a significant effect on extrinsic employee motivation. This is contradictory
to the results presented by Khan et al. (2014, p. 82) since their results indicated that there
is an insignificant relationship between this construct and the dependent variable,
extrinsic motivation. In the case of Sodexo, this implies that their employees do consider
CSR activities towards employees as an extrinsic motivator. Longo et al. (2005, p. 31)
divided the expectations of employees to health and safety at work, development of their
skills, wellbeing and satisfaction and quality of work, and their social equity. Our study
suggests that a firm will enhance the employee’s extrinsic motivation by providing the
employees what they demand according to the value class. Extrinsic motivation is an
activity that someone partakes in order to receive a separable outcome from performing
the task (Amabile, 1993, p. 188; Ryan & Deci, 2000, p. 60). We argue that our results can
be explained by the possibility that employees might consider that CSR activities
concerning the value classes of Longo et al. (2005, p. 31), which are health and safety at
work, development of workers skills, wellbeing and satisfaction and quality of work, and
their social equity, might help them to attain a separable outcome by performing these
tasks. For example, the value class of developing workers skills leads to strengthening
competences amongst the employees, where the separable outcome would be in this case
improved career opportunities.

The second construct we tested in our regression analysis was the firm's CSR activities
towards shareholders and how it impacts extrinsic motivation. Our results suggest that
this relationship is insignificant. Shareholder theory suggests that shareholders are mainly
interested in maximizing profits for themselves (Mansell, 2013, p. 583). Since we could
not find any previous research that investigated how fulfilling shareholder interests in
regards to CSR impacts extrinsic employee motivation, we could not compare our results
to previous research. Since there were no previous studies who took shareholders into
account, we expanded the grid of values presented by Longo et al. (2005, p. 31) by adding
shareholders with the value classes of maximizing profits for themselves and providing
full returns. However, through our empirical findings, we can see that the relationship
between CSR activities towards shareholders and extrinsic employee motivation was
insignificant. An explanation of these results stems from that the employees of Sodexo
do not recognize that they are getting a separable outcome from maximizing profits or
providing full returns to their owners. Thus according to the definition of extrinsic
motivation, which states that one performs a task in order to attain a separable outcome
(Amabile, 1993, p. 188; Ryan & Deci, 2000, p. 60), the employees are not being
extrinsically motivated. It might be that Sodexo’s managers do not reward their
employees enough when the organization is doing well according to the owner’s interests

65
of maximizing profits and providing full returns, which hinders the employee's ability to
feel extrinsically motivated by these performances.

The third construct we tested in our first regression analysis was the firm's CSR activities
towards suppliers and its’ impact on extrinsic motivation. We could not see any
significant results supporting this relationship. This is contradictory to the findings of
Khan et al. (2014, p. 82) who found a significant relationship between CSR activities
directed towards suppliers or business partners as they referred to it and extrinsic
motivation amongst employees. We think that our results suggest that the effects on
employees’ extrinsic motivation from CSR activities towards suppliers depends on the
context of an organization. It is hard to present what factors determine the impact of such
activities on extrinsic motivation, but possible factors could be organizational relations to
the suppliers, personal relations to the suppliers and/or the frequency of personal
interaction with the suppliers. We interpret that our results show that there must be a
difference in the context of Sodexo compared to the companies studied by Khan et al.
(2014, p. 82) who presented a significant relationship between extrinsic motivation and
CSR activities towards suppliers. However, the empirical material we have gathered has
not given any suggestions of what key-factors determines whether or not CSR activities
towards suppliers affects extrinsic motivation. It is possible that Sodexo’s employees are
not motivated by supplier related CSR activities because they take for granted the
relationship that they have with suppliers. Their partners have to be up to standard with
Sodexo’s CSR practices so many employees would never have experienced a partner that
was worked unethically.

Another contradictory result in comparison to Khan et al. (2014) was our fourth construct,
CSR activities towards the community. Whilst the results of Khan et al. (2014, p. 81)
indicated a significant positive relationship, our results indicated an insignificant
relationship between this construct and extrinsic motivation amongst employees.
Moreover, our results showed that the B-coefficient was negative, which although the
relationship was insignificant, indicates that CSR activities towards the community even
negatively impacts the extrinsic motivation of employees. Although the relationship was
insignificant, there is an indication that the more CSR activities Sodexo’s employees
partake in which are directed towards the community the less they will be extrinsically
motivated. The idea of a separable outcome, part of the extrinsic motivation definition by
Amabile (1993, p. 188) and Ryan and Deci (2000, p. 60), does not motivate the employees
to partake in an activity. This implies one of two things: that Sodexo’s employees only
receive intrinsic motivation by partaking in CSR activities related to the community or
they are not motivated at all by partaking in CSR activities related to the community. As
one will see later on, Sodexo’s employees were not intrinsically motivated by
participating in CSR activities related to the community which infers they do not receive
motivation from helping the community. Sodexo has been in the media a lot lately
concerning their CSR programs with the local community. It is possible Sodexo’s
employees are tired of the media coverage which could lead to the lack of motivation in
helping the community.

The last construct tested in our first regression analysis was the relationship between CSR
activities conducted by the firm towards customers and extrinsic motivation. CSR
activities conducted towards customers had an insignificant relationship with extrinsic
motivation. Khan et al. (2014, p. 81) discovered similar findings where they rejected their
hypothesis that extrinsic motivation was impacted by CSR activities conducted towards

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customers. We can explain the insignificant relationship between the two factors by
inferring that Sodexo’s employees are intrinsically motivated by helping customers
instead of being extrinsically motivated. Helping customers does not provide the
employees with any kind of separable outcome. On the contrary, employees are motivated
by doing the work itself which in this case would be providing a good quality service for
customers. Being motivated by doing the work itself comes from the definition of intrinsic
motivation by Amabile (1993, p. 188) and Ryan and Deci (2000, p. 56).

In general for our regression analysis of constructs in relation to extrinsic motivation, it

seems that except for CSR activities towards the employees, none of our constructs have
a significant relationship with extrinsic motivation. According to the definition of
extrinsic motivation above, extrinsic motivation is about getting a separable outcome or
complete a goal separable to the outcome of the task (Amabile, 1993, p. 188; Ryan &
Deci, 2000, p. 60). It seems that when Sodexo’s employees are conducting these
activities, employees are having a hard time to be motivated by a separable outcome or
an external goal. We think this indicates that Sodexo has a flawed incentive system in
regards to extrinsic motivation.

In our second regression analysis, we tested the same constructs regarding CSR activities
and their relationship with intrinsic motivation. The first construct we tested in this
regression analysis was CSR activities towards employees, which showed a significant
relationship with intrinsic motivation. These results were in alignment with the results
from Skudiene and Auruskeviciene (2012, p. 62) whose study also showed a positive
relationship between CSR activities towards employees and intrinsic motivation. This
implies that CSR initiatives undertaken by the employees themselves will strengthen the
intrinsic motivation of the employees. When looking into stakeholder theory, Longo et
al. (2005, p. 31) summarizes the expectations of the stakeholder group employees by
stating that they demand health and safety at work, development of their skill, wellbeing
and satisfaction, and social equity. Our findings suggest that when the company fulfills
the demands of these value classes, workers will become more intrinsically motivated.
Sodexo’s employees are intrinsically motivated by CSR tasks that are in place for
themselves because it helps keep them interested and satisfied in their work. This is
according to the definition of intrinsic motivation which says that one is intrinsically
motivated if they are in fact interested and satisfied by completing a task for the sake of
the task (Ryan & Deci, 2000, p. 56).

The second construct we tested in our second regression analysis was the relationship
between CSR activities directed towards shareholders and intrinsic motivation. Our
regression analysis showed a positive B-coefficient with a significant relationship
between the independent and the dependent variable. Previous research on the
relationship between shareholder related CSR activities and intrinsic motivation has not
been studied, so we cannot compare our results to previous studies. However, our findings
indicate that CSR activities towards the shareholder, in this case maximizing their profits,
will increase the intrinsic motivation of the employees. Ryan and Deci (2000, p. 56)
defined intrinsic motivation as being interested in the task itself or getting satisfaction
from completing the task. Our results can be interpreted by the fact that Sodexo’s
employees are actually receiving satisfaction from providing returns to Sodexo’s owners
which in turn increases intrinsic motivation. Deci (1975, p. 100) stated that one can be
extrinsically motivated by having a need to feel competent and self-determined in relation
to the environment that they are in. It might be that when the organization is providing

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owners with full returns or maximized profits, the employees feel competent and self-
determined by being a part of such achievements. In the business environment, the overall
goal is to make as high profits as possible, thus the employees would be determined to
achieve this accomplishment of making the highest possible profit which ultimately
motivates them intrinsically.

The third construct we tested was the relationship between CSR activities directed
towards suppliers and intrinsic motivation. In this case, we could not identify a significant
relationship with intrinsic motivation. This does not support the findings of Skudiene and
Auruskeviciene (2012, p. 62) who concluded in their study that CSR activities conducted
towards suppliers enhances intrinsic motivation amongst the employees. It might be that
the context of Sodexo differs from the organizations studied by Skudiene and
Auruskeviciene (2012). As we discussed earlier in this analysis, it might be that factors
such as organizational relations to the suppliers, personal relations to the suppliers and/or
the frequency of personal interaction with the suppliers affects how CSR activities
towards the suppliers will affect the motivation amongst employees. We think that
relations and the context of the organization are to be considered as determinants of
whether CSR activities towards suppliers affects intrinsic motivation amongst employees
or not.

The fourth construct in the second regression analysis was the relationship between
intrinsic motivation and CSR activities towards the community. Community related CSR
activities had a significant relationship with intrinsic motivation. However, this
relationship is negative as a result of the negative B-coefficient. This means that the more
community related CSR activities Sodexo participates in, the less intrinsically motivated
Sodexo’s employees will be, hence the negative relationship between the two. This
contradicts the results of Skudiene and Auruskeviciene (2012, p. 62) who found a positive
relationship between CSR activities related to the community and intrinsic motivation.
Khan et al. (2014, p. 82) were also able to find a positive correlation between the two
constructs. Our results appear to be unique when compared to previous studies and we
believe this may be a consequence of Sodexo Sweden’s recent media attention for their
CSR work. It may be that the issue is not perceived by the employees as an issue for the
company or the employees themselves. This could possibly mean that the lack of
participation backfires negatively on intrinsic motivation when connecting it to the
construct of helping the community. Another possible explanation of our results could be
that employees feel conducting CSR activities towards the community is a part of their
job which does not motivate them one way or another but it simply a task that they have
to complete.

Finally, we analyzed the relationship between customer related CSR activities and
intrinsic motivation. Our results proved to be significant with a positive B-coefficient. In
other words, customer related CSR activities which according to Longo et al. (2005, p.
31) is providing quality, truthful information, answering customer complaints, and having
services that meet legal standards, do have a positive effect on intrinsic motivation.
Skudiene and Auruskeviciene (2012, p. 61) found a positive relationship between the two
factors, however Khan et al. (2008, p. 82) could not accept that these two factors had a
positive correlation which led them to reject their hypothesis. We can explain our results
being in line with Skudiene and Auruskeviciene (2012, p. 61) due to the work itself being
motivation as stated by Amabile (1993, p. 189) and due to the industry in which Sodexo
operates. Intrinsic motivation can come from a product or service focus which means that

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when an employee knows their service will help a consumer in some way they will be
motivated to work harder (Amabile, 1993, p. 189). Thus it is not the work itself that is
motivating but yet the user being satisfied is motivating (Amabile, 1993, p. 189). Also,
Sodexo is in the service sector so therefore providing a good service is their ultimate goal
as far as the customer is concerned. An employee who provides a good service is not
necessarily intrinsically motivated by providing a good service for the customer.
Employees can be intrinsically motivated by the process of doing a task which is how
Deci and Ryan (1985) view intrinsic motivation (Amabile, 1993, p. 189).

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 7.0 TRIANGULATION
In this chapter we will present our triangulation which will be a discussion combining the results
of our quantitative and qualitative studies. The triangulation is organized by comparing and
discussing the results of our qualitative and quantitative studies regarding extrinsic and intrinsic
motivation and the effects of CSR activities focusing on different stakeholder groups.

7.1 EXTRINSIC MOTIVATION

Our results demonstrate that Sodexo does not give any kind of monetary rewards when
an employee performs well. The results instead showed that monetary rewards are only
given to managers in cases of good achievement. Instead Sodexo’s employees are
rewarded by receiving appreciation from their managers when they perform well.
Appreciation is a form of extrinsic motivation (Mahazril et al., 2012, p. 238). It is possible
that managers do not see appreciation as being a form of an external reward. It seemed
that the majority of the managers thought of monetary rewards such as salary and bonuses
as being extrinsic rewards and did not think of things such as recognition and appreciation
which most of the managers used in order to motivate their employees.

The results of our quantitative study demonstrated that extrinsic motivation had a mean
of 4.35 on a 6-point Likert scale. Thus one can see that Sodexo’s employees leaned
towards strongly agreeing with the statements about how motivated they are by extrinsic
motivation. This means that they agreed with statements that say that they are motivated
by how much money they make, that their current wage is satisfactory, that promotion
opportunities affects their motivation, and that being appreciated by their managers
increases their motivation. Previous research such as Amabile (1993, p. 189) has shown
that extrinsic motivation plays a big role in motivating employees to perform a task. These
results were expected since it is well known that extrinsic motivators such as monetary
rewards (Sekhar et al., 2013, p. 476), recognition (Long & Shields, 2010, p. 1148, and
introjection (Ryan & Deci, 2000, p. 62) helps to increase extrinsic motivation. Our
Pearson correlation demonstrated that there was a positive correlation between extrinsic
motivation and CSR activities related to employees, suppliers, and the community. The
positive correlation between extrinsic motivation and CSR activities related to employees
is supported by what one manager said that seeing the recognition that Sodexo’s CEO is
receiving in the media helps motivate employees. The employees themselves may want
that same kind of recognition which could explain why employee activities relate to
extrinsic motivation. The relationship between these factors will be discussed further
when we discuss the different CSR activities.

The findings show that Sodexo’s managers feel that their employees are motivated by
appreciation and recognition. Sodexo’s employees supported what their managers said
about the fact that they are motivated by appreciation and recognition. However,
employees responded that they are motivated by wage and promotion opportunities which
were types of extrinsic motivation not mentioned by the managers. This refers to that
employees are motivated by social recognition, a non-monetary form of extrinsic
motivation (Long & Shields, 2010, p. 1146). An explanation of why employees are
extrinsically motivated stems from Ryan and Deci (2000, p. 60), where the authors
discuss that employees complete a task to attain a separable outcome. This is a logical
explanation of why Sodexo’s employees would be extrinsically motivated. They have a
job, and part of the job is to help society. However, it is likely that they have a job in order
to attain a separable outcome other than completing the work. As supported by the
managers, recognition and appreciation are two reasons why employees work. Moreover,

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the employees made it clear that pay and promotion opportunities are also reasons for
why they are motivated.
7.2 INTRINSIC MOTIVATION
Several of Sodexo’s managers discussed that as long as their employees get paid first,
then they want to be intrinsically motivated and feel good about the work they are doing.
These finding scan be explained by Maslow’s (1943) hierarchy of needs where one cannot
move up the hierarchy until a lower order need is met. Just like one manager saying that
he believed his employees were more intrinsically motivated but not if they are only
coming to work to put in their eight hours and receive a paycheck. Since the majority of
the respondents of our survey were office workers it is possible that they are not just
coming to work to get a paycheck but yet that they are intrinsically motivated. This is
supported by Ryan and Deci (2000, p. 56) definition of intrinsic motivation which states
that a person is intrinsically motivated if they enjoy the task or get satisfaction from
completing a task.

Intrinsic motivation yielded a mean of 4.93 on a 6-point Likert scale in our quantitative
study. This is rather high which demonstrates that most of the respondents said that they
agree with statements about how intrinsically motivated they are. When we asked the
managers if they think their employees are more intrinsically or extrinsically motivated,
they said that they are more intrinsically motivated. This is supported by the results of
our quantitative study, where more of Sodexo’s employees said that they are more
intrinsically motivated than extrinsically motivated. Several studies have also proven that
intrinsic rewards are a better way to motivate employees in comparison with extrinsic
rewards (Aguinis et al., 2013, p. 247; Long & Shields, 2010, p. 1164). Also, after
conducting our regression analysis we could see that there were more sets of CSR
activities directed towards different stakeholder groups that positively correlated with
intrinsic motivation than extrinsic motivation. Our Pearson’s correlation test
demonstrated that all CSR activities had a positive correlation with intrinsic motivation
at a significant level. In our quantitative analysis we conducted a regression analysis to
see how intrinsic motivation was related to the different CSR activities. The regression
analysis demonstrated that employee, shareholder, and customer related CSR activities
positively correlated with intrinsic motivation. This is further proof of what managers
said about their employees being most motivated by intrinsic rewards. One result that
does not hold true is that managers thought that CSR activities related to the community
were important but this had a negative correlation according to the regression analysis.
This surprising finding will be discussed in more depth further down in the triangulation.

These results are similar to findings of previous studies, for example the results of
Skudiene and Auruskeviciene (2012, p. 62-63) which showed that intrinsic motivation is
important for employee motivation, and that it can be increased by CSR. We think this
might explain our results from both the quantitative and qualitative study which displayed
intrinsic motivation as the most important motivator, since intrinsic rewards work better
as a motivator, especially since intrinsic motivation according to Ryan and Deci (2000,
p. 56) regards the completion of a task itself, not the rewards one could get from
completing the task. Our results are in alignment with previous research which according
to Aguinis et al. (2013, p. 247) and Long and Shields (2010, p. 1164) deems intrinsic
motivation as a better motivator compared to extrinsic motivation, which we think
explains why Sodexo’s managers and employees also regards it as a better way to
motivate employees. We think that this could be an effect of the reward systems of
Sodexo, where no monetary rewards are provided, with the exception of salary. We argue

71
that this fact helps to understand why employees of Sodexo perceive intrinsic motivation
as a better motivator.
7.3 CSR ACTIVITIES TOWARDS EMPLOYEES
In our interviews we asked the interviewees about their thoughts of CSR activities
towards employees and their view of how this impacted motivation amongst the
employees of Sodexo. Almost all of the interviewees brought up employees as one of the
most important stakeholder groups of Sodexo, and they were consistent in that it was
important to guard the interests of this particular stakeholder group. The reason managers
may fulfill the interests of their employees so well is because employees are an important
stakeholder group (Aoki, 1982, p. 62; Skudiene & Auruskeviciene, 2012, p. 52). The
interviewees’ perception was that that their employees were important and knew their
business would not survive without them. The interviewees brought up issues such as
health and safety at work, and the importance providing the employees good working
conditions. Moreover, many of Sodexo’s managers raised issues such as development of
worker skills, diversity, and inclusion in the workforce, which can be seen as social
equity, and it was a well-integrated part of their strategic planning. The activities that
managers discussed are closely related to the study conducted by Longo et al. (2005, p.
31), who brought up important value classes for employees, such as health and safety at
work, development of workers’ skills, wellbeing and satisfaction of the quality of work,
and social equity. Interviewees explained that they tried to incorporate job rotation in the
job design of their employees, and that they tried to give their employees responsibility
in order to motivate them to work. Ryan and Deci (2000, p. 56) have acknowledged the
definition of intrinsic motivation as being in terms of both a task being interesting to a
person and/or the task giving a person satisfaction for completing a task. These findings
suggests that managers of Sodexo think that CSR activities towards employees does have
a positive effect on intrinsic motivation by empowering employees through job design.

Survey answers concerning how much Sodexo encourages a healthy lifestyle at work
yielded quite mixed results. This is a contradiction to what one manager stated saying that
Sodexo encourages everyone to be healthy in terms of eating and working out. In our
opinion, managers are likely and expected to give the perception that they are acting in
the best interest of their employees. They may even feel that they are acting in the best
interest of their employees. However, this is not always the case and that could explain
why employees do not agree. Employees may not disagree because their managers do not
care but because they do not realize that they are not doing enough.

Next, managers were adamant in saying that Sodexo helps in the development of workers
skills. Almost every manager mentioned things such as training programs, yearly
meetings to discuss development, and feel good stories about employees who started at
the bottom and made it to management. This fell under our network analysis theme of
communication which was discussed thoroughly by many of the managers. Providing
training programs for employees is one of the value classes in Longo et al.’s (2005, p. 31)
study of what employees should expect from their employer. This helps to explain why
managers at Sodexo said that they have these kinds of programs. On the other hand,
survey respondents leaned towards agreeing with that Sodexo helps their development.
This demonstrates that the employees are not as convinced as their managers about the
fact that Sodexo helps employees grow within the company but still the majority of
respondents, about two thirds, agreed with their managers. One possible reason for why
there was one third of the respondents who did not seem to agree with their managers
could be a result of them not being aware of the programs that are available. If managers
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say programs are available and give stories about employees who have grown in the
company then they must be actual. Although, it is possible that not all employees are
aware of these programs.

One of our themes of our qualitative analysis was diversity. When asked about CSR,
many of Sodexo’s managers discussed the importance of diversity in the workforce. This
is related to the social equity value class established by Longo et al. (2005, p. 31). From
our regression analysis we can see that CSR activities related to employees have a positive
correlation with both intrinsic and extrinsic motivation. In other words, CSR activities
related to employees will make an employee more motivated to work. Sodexo’s managers
thought this would be the case because things such as diversity, ability to grow within the
company, safe working conditions, and enjoyable work would all impact motivation in a
positive way. This was supported by the results of the quantitative study. Sodexo
encourages CSR, and diversity is an important part of CSR as discussed by Skudiene and
Auruskeviciene (2012, p. 52). Thus one can see Sodexo encourages diversity and
employees who want to work for an employer who encourages diversity would be happy
with the way the issue is dealt with at Sodexo which would lead to them wanting to work
at Sodexo.

These findings demonstrate that the managers of Sodexo talked about similar issues as
the ones that were tested in the statistical analysis based on the results of our survey which
were gathered from Longo et al.’s (2005, p. 31) value classes. The results of our
regression analysis showed that managers shared the perceptions with their employees
regarding CSR activities towards employees and its impact on motivation. The regression
analysis showed that employees were both intrinsically and extrinsically motivated when
CSR activities are conducted towards them in order to help with their demands according
to their value classes. These findings imply that the results of the quantitative and
qualitative studies regarding CSR activities towards employees were similar, and that
managers had understood what the employees want in this particular case. We think that
this might be based on the fact that the managers have understood the value classes of
employees, and therefore, it might be that they are planning and implementing activities
according these value classes, which brings value to this particular stakeholder group.
Also, previous studies conducted by Skudiene and Auruskeviciene (2012) and Khan et
al. (2014) demonstrated that CSR activities related to employees had a positive effect on
intrinsic motivation in the case of Skudiene and Auruskeviciene (2012) and on both
intrinsic and extrinsic motivation in the case of Khan et al. (2014).

7.4 CSR ACTIVITIES TOWARDS THE COMMUNITY

Interviewees discussed that they tried to deal with issues such as diversity and inclusion,
helping the community through their stop hunger program, waste reduction, and overall
to lower their impact on the environment. Longo et al. (2005, p. 31), explained the value
classes of the stakeholder community as: creation of value for the community, and
environmental safety and protection. Since Longo et al. (2005, p. 31) presented these
value classes as the main CSR interests of this particular stakeholder group, we think it is
expected that a company such as Sodexo with a well-developed CSR program, which
partly focuses on the community, should try to meet these demands or interests. We think
that the value classes towards the community explains the results we got from the
interviewees since it according to Jones & Wicks, (1999, p. 208-209) should be the
objective of a firm's CSR program to balance the interests of different stakeholder groups
interests. Further, a majority of the interviewees thought that the CSR activities conducted

73
by Sodexo, for example the cooperation with Stadsmissionen and the stop hunger
program, would positively impact the motivation amongst the employees, and some even
mentioned it as an important motivator. Some interviewees were more skeptical towards
how CSR activities towards the community would affect the motivation amongst the
employees of Sodexo and some even claimed that these types of activities would not
affect the motivation amongst the employees. Previous research has shown that CSR
activities towards the community helps to increase the motivation of employees (Khan et
al., 2008, p. 82; Skudiene & Auruskeviciene, 2012, p. 62), which explains why a majority
of interviewees thought that CSR activities towards the community are important for
employee motivation. One could also assume that employees should show interest in the
community, for example regarding environmental concerns since it has effects on
themselves as a part of the community, and these matters are getting a lot of attention in
today’s society, for example in the media.

The construct regarding CSR activities towards the community was separately connected
to both extrinsic and intrinsic motivation in the regression analysis. The regression
analysis demonstrated some contradictory results since it not only differed from the
perceptions of the managers, but it also differed from previous research (Khan et al., 2008,
p. 82; Skudiene & Auruskeviciene, 2012, p. 62) which demonstrated a positive significant
relationship between CSR activities towards the community and employee motivation. In
fact, our regression analysis showed that there is a significant relationship between CSR
activities conducted by Sodexo towards the community and intrinsic motivation, but the
relationship was negative. This implies that an increased amount of CSR activities
towards the community will actually reduce the intrinsic motivation amongst the
employees of Sodexo. A possible explanation could be that the negative impact of CSR
activities towards the community on employee motivation is based on the context of
Sodexo, where the company and its’ representatives have been visible a lot in the media
recently. It might be that Sodexo’s employees do not perceive the issues of the community
as an issue for themselves or Sodexo, meaning that a possible lack of participation
backfires negatively on how in intrinsically and extrinsically motivates the employees of
Sodexo.

We can conclude that for the CSR activities towards the community and their impact on
employee motivation, the results from the quantitative and the qualitative part of our study
are different. No interviewee predicted that CSR activities towards the community
negatively impacts the motivation amongst employees. This is important in the case of
Sodexo because the CSR activities towards the community are such an important part of
their strategic work and their CSR program.

7.5 CSR ACTIVITIES TOWARDS SHAREHOLDERS

The results we obtained from our interviews regarding how managers perceive the impact
of shareholder activities on their employees’ motivation were rather consistent, where
most of the respondents thought that these types of activities (providing full returns and
maximizing profits) which was based off of Mansell (2013, p. 583) would not positively
affect the motivation of the employees. This result implies that the interviewees did not
think that their employees were motivated by meeting these value classes of the owners
of Sodexo. Sodexo’s managers simply did not think their employees would be motivated
by only knowing they were maximizing profit and providing returns to shareholders.

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From our survey results one can see that the construct of shareholders yielded the lowest
mean of 3,59 on a 6-point Likert scale. The mean of this descriptive demonstrates that
this is the construct that employees agreed the least with the value classes of providing
full returns and maximizing profits for shareholders. We tested this construct separately
with extrinsic and intrinsic motivation in the regression analysis. From our regression
analysis we could see that the relationship between CSR activities towards shareholders
and intrinsic motivation differed from the relationship between CSR activities towards
shareholders and extrinsic motivation. According to our regression analysis, the Sodexo
employees were not extrinsically motivated by providing full returns or maximizing
profits to the owners of Sodexo. However, we could see that the employees were
intrinsically motivated by providing full returns or maximizing profits to the owners of
Sodexo. We think that these results have to do with the reward system of Sodexo where
employees do not get extrinsically rewarded enough, for example through monetary
rewards, when conducting CSR activities towards owners of Sodexo. This could be an
effect of the perception of the managers, which perceived that employees did not care for
shareholder interests. It might be that managers have disregarded relationships between
employees and owners, which means that they do not help to extrinsically motivate their
employees when conducting these activities. We argue that there is a relationship between
the employees and the owners that affect employee motivation, which is illustrated by our
regression analysis which proved that employees are intrinsically motivated by providing
returns to shareholders. Our results from the interviews demonstrates that this relationship
is not recognized by most interviewees, which might help to explain why their employees
are not extrinsically motivated by this performance.

The difference between the responses of the managers and the responses of the employees
demonstrates that most of the managers thought that CSR activities towards shareholders
would not affect the motivation amongst employees while employees proved that they
would be intrinsically motivated by it. Kakabadse et al. (2005, p. 291) suggested that
stakeholder theory is an extension of the shareholder model meaning that a firm has a
responsibility to its’ stakeholders in addition to making profit. In other words, it is still
important for firms to concentrate on making profit but also to keep all stakeholders in
mind. Our results imply that CSR activities towards shareholders is something that firms
can keep in mind when evaluating what kind of information they want to provide to their
employees since it can help them by increasing their intrinsic motivation.

7.6 CSR ACTIVITIES TOWARDS CUSTOMERS

A majority of the managers stated that CSR activities conducted towards customers were
definitely motivating factors for employees in regards to providing quality services.
Managers said that employees are motivated by providing good services to customers.
Amabile (1993, p. 189), explained that an employee is intrinsically motivated if they
know that what they are working on, for example a product or a service, can help the
customer who buys it. Due to the fact that research of Amabile (1993, p. 189) has shown
that a product or service focus can correlate to intrinsic motivation, we think this helps to
explain why interviewees perceived CSR activities towards customers as a motivator of
their employees. One could argue that this gives the work of the employees a higher
purpose since they know that they are filling one of the value classes of customers
according to Longo et al (2005, p. 32) which is providing quality of services to customers.

The mean of customer activities was 4.93 on a 6-point Likert scale. These results
demonstrates that Sodexo’s employees agreed with most of the questions about

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customers. When one looks at Longo et al.’s (2005, p. 32) value classes for customer
related CSR activities one can see the quality of services as being one of the value classes.
70 percent of Sodexo’s employees answered a 5 or 6 on the Likert scale for the question
of whether or not the quality of services Sodexo provides gives satisfaction to employees.
Another one of Longo et al.’s (2005, p. 32) value classes for customers involved receiving
feedback and answering customer complaints. 71.4 percent of the survey respondents
were above a 4 on the 6 point Likert scale for this question.

The Pearson correlation showed no significant relationship between CSR activities

related to customers and extrinsic motivation; however there was a significant
relationship between CSR activities related to customers and intrinsic motivation.
Furthermore, the regression analysis we conducted between CSR activities and intrinsic
motivation proved to be significant and had a positive correlation. On the other hand, the
correlation between extrinsic motivation and CSR activities related to customers was not
significant, meaning there was not a strong correlation between the two constructs. This
might mean that employees provide quality services not for some kind of external reward
but because they genuinely care about the customer. They are not providing good quality
in order to receive some kind of external reward like money, recognition, or appreciation.
This is in line with the definition of intrinsic motivation by Amabile (1993, p. 188) which
states that an employee is intrinsically motivated if they seek enjoyment, satisfaction,
self-expression, or if they take the task as being a personal challenge. Another possible
explanation could be that Sodexo’s employees care about the way in which they complete
a job or task. Amabile (1993, p. 189) proved that providing good services or products
helps to increase intrinsic motivation. This fact was also shown in the study conducted by
Skudiene and Auruskeviciene (2012, p. 62-63) who showed that intrinsic motivation
increases by CSR activities towards the customers. We think that employees are
motivated by the task itself, by solving a challenging problem which will add value to the
customers, and in terms of intrinsic motivation, the employees themselves. We argue that
this is supported by our own study where our results demonstrated that employees are
more intrinsically motivated than extrinsically, which helps to explain our results.

The results regarding the impact of CSR activities towards the customers’ impact on
employee motivation demonstrated that both managers and employees perceived it as a
motivator. However, the regression analysis showed that employees were not
extrinsically motivated by CSR activities towards customers. Extrinsic motivation is
often connected to the opportunity of achieving an external reward or a separable outcome
from performing a task (Amabile, 1993, p. 188; Ryan & Deci, 2000, p. 60). Our results
can be explained by that the employees of Sodexo do not regard CSR activities towards
customers as an opportunity to achieve a separable outcome from CSR activities of
Sodexo towards customers. Our results from the interviews demonstrated that they would
be motivated by this set of CSR activities, whilst the results from the regression analysis
showed they were intrinsically motivated. CSR activities towards the customers will help
to increase intrinsic motivation amongst employees (Amabile, 1993, p. 189; Skudiene
and Auruskeviciene 2012, p. 62-63). Therefore the results from our regression analysis
support previous research.

7.7 CSR ACTIVITIES TOWARDS SUPPLIERS

In our interviews the subject of CSR activities towards the suppliers of Sodexo were often
discussed. The managers mentioned the codes of conduct which suppliers of Sodexo must
agree on in order to ensure that they are operating in a sustainable way. When discussing

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with the managers how these codes of conducts, which works as a selection and analysis
system of suppliers, impacted motivation, the answers we received were quite diverse.
Some of our interviewees thought that it had some impact on the motivation of employees,
whilst some thought that it did not. This made it hard for us to draw any conclusions about
the perceptions of managers on how CSR activities towards the suppliers would affect
the employee motivation. Instead, we must note that opinions differed amongst the
interviewees. The managers who thought that employees would be motivated by CSR
activities related to suppliers are supported by Skudiene and Auruskeviciene (2012, p. 62)
and Khan et al. (2014, p. 82) in relation to the value classes by Long et al. (2005, p. 31)
which showed that these activities positively affected motivation amongst employees.
However, the results demonstrate that the managers who predicted that employees would
not be motivated are not supported by literature. An explanation to why some managers
did not think their employees would be motivated by CSR activities related to suppliers
could be that some employees do not work closely with suppliers. Thus, they would not
see the effects or the importance of their partnerships. Some managers dealt directly with
suppliers and saw the importance of their relationship with Sodexo and thought that their
employees would feel the same way. On the other hand, the managers who did not work
directly with suppliers may have not been able to see the importance themselves and
understood that their employees would not see the importance either.

We tested the relationship between CSR activities towards suppliers and motivation in a
regression analysis where we separately tested its’ effects on intrinsic and extrinsic
motivation. The regression analysis demonstrated that CSR activities had no significant
relationship with intrinsic motivation, meaning that this set of activities will not help to
increase the intrinsic motivation amongst the employees. We received similar results
when we tested the relationship between these activities and extrinsic motivation,
meaning that neither types of employees’ motivation was positively impacted by this set
of activities towards the suppliers. This result implies that we cannot prove that CSR
activities towards suppliers will affect the motivation amongst the employees.

The CSR activities towards suppliers are based on Longo et al.’s (2005, p. 31) value
classes which are having good partnerships between the ordering company and the
supplier, and creation of selection and analysis systems of suppliers. The employees were
not intrinsically motivated which does not match the previous research of Skudiene and
Auruskeviciene (2012, p. 62) and Khan et al. (2014, p. 82) who discovered employees
were intrinsically motivated by CSR activities related to suppliers. A possible explanation
for why Sodexo’s employees are not motivated by CSR activities related to suppliers and
why some managers did not think their employees would be motivated could be because
they have taken for granted these relationships. Sodexo is a strong advocate for CSR and
has had ethical partner relationships for a long time. Employees and managers alike
expect to have good partner relationships which could be a possible explanation for why
employees are not motivated by these partnerships.

7.8 SUMMARY OF TRIANGULATION

In table ten below, we have provided a summary of the results of our triangulation. The
first column refers to the different CSR activities for each stakeholder group. The second
column gives the perceptions of managers regard the effects of different CSR activities
on employee motivation, whilst the third column gives the perceptions of employees on
the effects of different CSR activities effect on extrinsic and intrinsic employee
motivation.

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 TABLE 10. MIXED-METHOD STUDY ANALYSIS

CSR activities Managers’ perceptions Employees’ perceptions

CSR activities … have a positive effect on …have a positive effect on intrinsic
towards intrinsic motivation by motivation
employees empowering employees through … have a positive effect on extrinsic
job design, diversity, and motivation
inclusion.

…have a positive effect

extrinsic motivation through
appreciation, recognition, and
strategic planning

CSR activities …have a positive effect on …do not positively affect intrinsic
towards the intrinsic and extrinsic motivation
community motivation through firms …does not positively affect extrinsic
conducting environmental motivation
and/or social activities
CSR activities …do not positively affect … have a positive effect on intrinsic
towards motivation motivation
shareholders …do not positively affect extrinsic
motivation
CSR activities …have a positive effect on … have a positive effect on intrinsic
towards intrinsic motivation by motivation
customers providing quality services to end …do not positively affect extrinsic
users or customers motivation
CSR activities …showed mixed results on …do not positively affect intrinsic
towards motivation. Some interviewees motivation
suppliers… thought sustainable codes of …do not positively affect extrinsic
conduct would have a positive motivation
effect on motivation.

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 8.0 CONCLUSIONS
In this chapter we will start by stating our general conclusions which are directly related
to our research questions and purpose. We aim to answer our research questions in this
chapter. Next, we state our practical contributions for Sodexo and in general as well with
our theoretical contributions. Lastly, we give our limitations and suggestions for future
research in this area.
8.1 GENERAL CONCLUSIONS
The main purpose of this degree project is to gain a deeper understanding of manager’s
perceptions of how intrinsic and extrinsic employee motivation is impacted by CSR.
Furthermore, our degree project fulfills the purpose of investigating whether or not
employees agree with their manager’s perceptions about the effects of different CSR
activities on their intrinsic and extrinsic motivation. This led us to two different research
questions: 1) “How do managers perceive the impact of CSR activities on intrinsic and
extrinsic employee motivation?” and 2) “What it is the impact of CSR activities on
intrinsic and extrinsic employee motivation based on the perceptions of employees?” The
findings of our qualitative study showed that the managers of Sodexo thought that both
CSR activities towards internal stakeholders and external stakeholder could affect the
motivation of their employees. We found that managers had different opinions about the
impact of how CSR activities towards different stakeholder groups would affect the
motivation amongst their employees. We could see that most of Sodexo’s managers
thought that CSR activities towards their employees would positively affect the intrinsic
and extrinsic motivation amongst them. It was also concluded that most managers thought
that CSR activities towards shareholders, which in the case of Sodexo are the owners,
would not positively impact the motivation of their employees. A majority of managers
also thought that CSR activities towards the community would affect the intrinsic and
extrinsic motivation of their employees. The opinion amongst Sodexo’s managers of
whether or not CSR activities towards their suppliers would affect the motivation amongst
employees were diverse, which means that we can conclude that managers were not
consistent in their views of this matter. Moreover, a majority of the managers mentioned
CSR activities towards customers as being a powerful motivator which positively
impacted the intrinsic motivation amongst the employees. Lastly, it was discovered
through the qualitative part of our study that managers valued intrinsic motivation more
than extrinsic motivation. Results of our interview showed that managers thought that
intrinsic rewards were more important in regards to employee motivation than extrinsic
rewards.

In our quantitative study, we could see that CSR activities towards certain stakeholders
affected both the extrinsic and intrinsic motivation of the employees. Through our
conceptual model, we have been able to draw the conclusion that CSR activities towards
employees, CSR activities towards shareholders, and CSR activities towards customers
positively impacts the intrinsic motivation of employees. Also, we can see that CSR
activities towards employees positively impacts the extrinsic motivation amongst
employees. Furthermore, our results demonstrate that intrinsic motivation is affected by
more sets of CSR activities towards certain stakeholder groups than extrinsic motivation.

Through our mixed-method study, we can conclude that the manager's perception
regarding what set of CSR activities towards certain stakeholder groups positively affects
motivation amongst employees differs from the perceptions of Sodexo’s employees. We
can conclude that managers had the same view as employees on the impact of CSR

79
activities towards customers and employees. We also discovered a mismatch between
managers and their employees in regards to how employees’ motivation was affected by
CSR activities towards the community and shareholders. However, it was hard to prove
a match or mismatch between managers and employees regarding the impact on
motivation from CSR activities towards suppliers since the answers we got from
managers regarding these activities were so different.
8.2 THEORETICAL CONTRIBUTIONS
Through our mixed-method study, we have contributed with two separate theoretical
contributions. First, this study is to our best knowledge the first study ever conducted in
this particular area that uses a mixed-method study, and the first to use a qualitative
approach where we asked the managers their perceptions. We have also tried to gain a
deeper understanding of the managers perceptions of how CSR activities towards
different stakeholder groups. This study also contributes to existing literature by
comparing the perceptions of managers and employees regarding the impact of different
CSR activities towards different stakeholder groups impact employee motivation.
Second, we contributed to theory by adding shareholders and their corresponding value
class to the grid of values presented by Longo et al. (2005, p. 31), which previously only
included employees, suppliers, customers, and the community. The addition of a new
stakeholder group contributes to Skudiene and Auruskeviciene (2012) and Khan et al.
(2014) who conducted quantitative studies with the stakeholder groups: employees,
customers, suppliers, and the community. Our study contributes by testing how CSR
activities towards shareholders influence employee motivation and by conducting a
qualitative study and a mixed-method study where we could compare the results of the
qualitative and quantitative studies.

Our contributions to present on CSR and motivation helps to bridge the current gap in
literature regarding the micro level of CSR. The current gap which we have helped fill
was identified by Morgeson et al. (2013, p. 283). The gap regarding CSR on the micro
level and the internal stakeholders of the firm was also emphasized by Aguilera et al.
(2007, p. 837) and Aguinis and Glavas (2012, p. 933). This reasoning is derived from that
our study involves a mixed-method approach, that we have extended the number of
stakeholder groups, and that we have tested this in a new context with a Swedish company
in the service industry.
8.3 PRACTICAL CONTRIBUTIONS
Our study provides several practical contributions in general, for the service industry, and
for Sodexo. In general, we think our research findings indicate that CSR is an useful tool
for increasing employee motivation, which one could argue that provides a firm with a
long-term competitive advantage in accordance to the reasoning of Glavas (2012, p. 942)
who claimed that CSR activities conducted by the firm will lead to competitive advantage.
The results proved that employees in the service industry can be both intrinsically and
extrinsically motivated by CSR activities. We have also demonstrated that CSR activities
towards some stakeholder groups have an impact on employee motivation, whilst some
do not. Thus, this information can help managers and executives in the service sector to
solve dilemmas regarding prioritization of CSR and what activities that should be
communicated to the employees.

In the particular case of Sodexo, we would like to give some advice based on our
conclusions. Since this study identified some gaps and mismatches between Sodexo
managers’ views of CSR and the respondents’ views of CSR, we hope that this study will

80
help Sodexo’s managers to better understand their employees and thereby help them to
motivate employees even better. Our study demonstrated that intrinsic rewards seem to
be of greater importance than extrinsic ones, which also is information that we think will
contribute to Sodexo’s managers since it might help them to plan reward systems, and
how to prioritize these two strategies. Previous research conducted by Skudiene and
Auruskeviciene (2012) and Khan et al. (2014) demonstrated that CSR activities towards
the community will help to increase the motivation amongst the employees. Since the
results of our study showed that these activities actually reduces the intrinsic motivation
amongst employees, we argue that it might be necessary for Sodexo to try to better
understand why these contradictory results to previous research occurred in our
quantitative study that was based on Sodexo employees. It is also interesting in the case
of Sodexo that our results showed that employees are being intrinsically motivated by
providing returns or maximizing profits to shareholders, which in the case of Sodexo is
the owners. This is something that most interviewees neglected, which displays a
mismatch in the perceptions of managers and employees regarding this issue. We argue
that Sodexo could benefit by communicating these issues to their employees since it has
been shown that these issues will enhance employee motivation.

8.4 SOCIETAL CONSIDERATIONS

A vast number of stakeholders are affected by CSR issues. We believe that we have not
produced any recommendations or other material in our thesis that negatively impacts
any of those potential stakeholders of our thesis in an unfair way. A study like ours might
have a large effect on the local community since CSR practices are directly related to the
community and society so it is important to keep the local community in mind when
producing a study like this. We also believe that our recommendations might be helpful
for other companies in the service industry other than Sodexo since CSR is incorporated
in many firms today. Also, similar stakeholders as the ones of Sodexo who were involved
in this study can be affected. It might be that many different stakeholders are facing a
problem regarding the lack of literature about the micro level of CSR. Also, a study like
ours can contribute to more stakeholders of our degree project than only Sodexo. This
implies that our conclusions theoretically could have a positive societal impact, meaning
that it will contribute to society by bringing more information to this research area.

8.5 LIMITATIONS AND SUGGESTIONS FOR FURTHER RESEARCH

This study was limited to Sweden, with only one company with employees and managers
located in Stockholm and Gothenburg. Further research needs to be conducted in other
regions and in other countries. Our study was to the best of our knowledge the first one
to test the impact on employee motivation of CSR activities towards shareholders. In
order to assess generality, we suggest that this should be repeated in other regions, and
other companies. In general, another mixed-method study should be conducted in order
to see how the perceptions of managers and employees match or mismatch in another
setting.

Further, for the qualitative part of our study, we only interviewed managers at Sodexo
Sweden and we could have interviewed managers from other companies in the same
industry. Another limitation of the qualitative part of our study is that all interviews were
conducted in English with Swedish managers. This could have affected the responses of
the managers who may not have been able to express themselves as much as they would
have liked to if the interviews would have been in Swedish. Also, three of the interviews
we conducted were done by telephone; if the interviews were in person the interviewees

81
may have felt more comfortable which could have led to them giving us more
information. Therefore, our suggestion for further research is to conduct a qualitative
study throughout the service sector, by interviewing managers of several companies in
order to compare results. To take it one step further, the same study could be conducted
in another industry in order to see how managers perceive the impact of different CSR
activities on their employees’ motivation.

In regards to the quantitative part of our study a limitation is that the survey was only
taken by white collar workers which might have affected the results of our study. All
these employees worked in offices of either Stockholm or Gothenburg in Sweden. Our
sample was based on the employees of three offices, thus meaning that our ability to use
a rather large sample was limited which led to that our survey only yielded 118
responses. Since employees from these offices were the only ones that were available for
our study, it forced us to use a convenience sampling method, which negatively impacts
the generalization of our study. Moreover, the timing for this study may not have been
the best since Sodexo’s CEO was elected to the most powerful business woman in
Sweden not too long before we started with our study which has implied that Sodexo’s
CSR activities have been given lots of attention in the media. This might have influenced
the answers we had from our respondents. In order to assess the generality of the findings
we suggest that the study should be repeated in a different context during more normal
circumstances. We also suggest that further research should involve both blue-collar
workers and white-collar workers, in different regions, or even different countries, with
a random sample.

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 9.0 QUALITATIVE QUALITY/ TRUTH CRITERIAS
In this final chapter of our thesis we provide our quality/truth criteria. Evaluating the
reliability, validity, generalizability, and replication of our study will help determine how
credible our research has been. We have broken up our quality/truth criteria into two
parts, first for our qualitative study and second for our quantitative study.
9.1 QUALITATIVE QUALITY/ TRUTH CRITERIAS
Credibility is a large part of social research which one needs to depend on when
conducting scientific research (LeCompte & Goetz, 1982, p. 31). Credibility is a parallel
to internal validity which refers to how believable the findings are (Bryman & Bell, 2011,
p. 43). In an attempt to increase our credibility we have conducted triangulation which
according to Bryman and Bell (2011, p. 396) helps in increasing credibility. It is
impossible to eliminate all uncertainty; however one can try to reduce uncertainty in how
credible a study is by focusing on reliability and validity (Saunders et al., 2009, p. 156).

Reliability and validity are an important part of determining the quality criteria in not
only quantitative research but also in qualitative research (Bryman & Bell, 2011, p. 394).
Reliability is defined by Saunders et al. (2009, p. 156) as “the extent to which data
collection techniques or analysis procedures will yield consistent findings.” There are two
types of reliability: internal and external reliability (Bryman & Bell, 2011, p. 395).
Internal reliability is the “degree to which other researchers, given a set of previously
generated constructs, would match them with data in the same was as did the original
researcher” (LeCompte & Goetz, 1982, p. 32), while external reliability is how easily a
study can be copied (Bryman & Bell, 2011, p. 395).

Qualitative researchers face five major problems when trying to enhance the external
reliability of data (LeCompte & Goetz, 1982, p. 37). The five major problems are the
researcher’s status, choices of the informant, social conditions and situation, analytic
constructs and premises, and the method used to collect and analyze data. Concerning the
first problem which is our status as researchers (LeCompte & Goetz, 1982, p. 37), one of
us had previous ties to the organization as he had worked there in the summer. Therefore,
we had prior contact with the organization which may make it more difficult to duplicate
our researcher status. However, when we held our interviews we tried to ensure that
previous relationships had no effect on the interviews, thus making it that anyone could
have asked the same questions and gotten the same answers. Next, the second problem
that we had to deal with concerning external reliability is the choice of interviewees
(LeCompte & Goetz, 1982, p. 38). We only interviewed managers, which was necessary
in order to answer our research question. Thus, if someone wanted to replicate the study
they could interview managers to try and keep their study as close as possible to ours.
Also, we interviewed managers from different departments to get different opinions from
different departments. Third, the social condition and situation is difficult to replicate
(LeCompte & Goetz, 1982, p. 38-39), or in other words, the interview setting is difficult
to replicate. We held some telephone interviews which could be easily replicated. In a
telephone interview one is not sitting face-to-face but yet only talking so the social setting
in a telephone interview can be easily replicated. The in person interviews were all held
in a conference room which is a neutral setting and could be easily replicated by another
researcher. Therefore, the social setting, which was in a conference room would be easy
to replicate. The fourth problem involves analytic constructs and premises, or how we
view the subject and what assumptions we have about the subject (LeCompte & Goetz,
1982, p. 39). If one reads our study one can see our epistemological and ontological

83
stances and our preconceptions about the subject. Our epistemological stance is a
pragmatic stance while our ontological stance in this degree project is from a
constructionist point of view. The fifth and final problem we faced as identified by
LeCompte and Goetz (1982, p. 40) was trying to present exactly how we collected and
analyzed our data. We tried to combat this problem by providing a detailed practical
method of how we collected and analyzed data so that it could be easily copied.

Similarly to reliability, validity can be broken into two types: internal and external.
Validity is concerned with if the results are representing what they are really about
(Saunders et al., 2009, p. 157). Internal validity is concerned with whether or not the
results match theory while external validity is concerned with the degree to which results
can be generalized (Bryman & Bell, 2011, p. 395). We feel that our internal validity is
relatively high because we based our interview questions on theory in accordance with
our deductive research approach. We have checked prior research to ensure that our
qualitative study would support or reject what theory says. Our external validity, or
generalizability as it is referred to by Saunders et al. (2009, p. 158), is very difficult to
produce when conducting a qualitative study. We have made it clear what we have
discovered in our particular research study and since we are not trying to generalize our
results, we have no problem according to Saunders et al. (2009, p. 158).

9.2 QUANTITATIVE QUALITY/TRUTH CRITERIAS

Our quantitative study also needs to be credible and abide by certain quality/truth
criterion. Reliability, validity, generalizability, and replication are all ways to identify
how credible a quantitative study is (Bryman & Bell, 2011, p. 157-165). To increase the
reliability of our quantitative study we ensured to use questions on our survey from
previous studies. We based our survey questions on Khan et al. (2014), Skudiene and
Auruskeviciene (2012), and Longo et al. (2005). The reliability construct that we used
when conducting our quantitative analysis was Cronbach’s alpha, which is, according to
Saunders et al. (2009, p. 374), is one of the most common reliability constructs. Bryman
and Bell (2011, p. 157) state that the use of one reliability construct in order to test
reliability is quite adequate for many purposes. We used .60 as the level of which we
accepted whether or not a construct was reliable or not. We had two constructs, extrinsic
motivation and intrinsic motivation which had Cronbach’s alpha that were too low.
Therefore, we chose the question that best represented the definition of these constructs
when doing our regression analysis. We tested our questionnaire on several different
people in order to see that the questions were understandable and relevant to further
increase the reliability.

By assessing the validity of our quantitative study we are measuring what we actually
want to measure (Bryman & Bell, 2011, p. 159) which is referred to as internal validity
by Saunders et al. (2009, p. 372). To ensure the reliability of our survey questions, we
took questions from previous studies to ensure that they were valid and would indeed
measure what we wanted to measure. We also used construct validity, where we deduced
our hypothesis from theory, which is according to Bryman and Bell (2011, p. 160) another
way in order to ensure validity.

The purpose of quantitative research is often to generalize one’s findings so that other
researchers can base their results on one’s own work (Bryman & Bell, 2011, p. 163). For
our study we want to be able to generalize our findings for the entire population of Sodexo
Sweden. It is difficult to send out a questionnaire and get a response from the entire

84
population (Bryman & Bell, 2011, p. 164), so therefore we only sent it to a number of
employees, which constituted our sample. However, based off of Bryman and Bell (2011,
p. 165) one need to be careful when trying to generalize results for the entire population
by only looking at the sample. This is important since we used a convenience sample,
meaning that we sent our survey to employees that were more acceptable. It might be that
this has affected the generalization in a negative way since our sample are not mirroring
the entire population of Sodexo employees in Sweden. Convenience sampling gives some
problems with the generalization of a study, which means that a study that has used
convenience sampling should be regarded as a springboard for further research (Bryman
& Bell, 2011, p. 190).

Lastly, replication is the degree to which one’s work can be copied in other studies
(Bryman & Bell, 2011, p. 165). We believe our quantitative study can be quite easily
replicated. First, in order to develop questions for our survey we adopted and adapted
questions from Khan et al. (2014), Skudiene and Auruskeviciene (2012) which is
according to Saunders et al. (2009, p. 374), is a big help if one wants their study to be
replicated. In our chapter entitled “scientific methodology” we stated our epistemological
and ontological viewpoints, namely, constructionism and pragmatism, so that the reader
could see how we were approaching our research questions. Also, we listed our
preconceptions so that one could see what previous knowledge we had on the subject.
Finally, we provided a detailed chapter entitled “practical method” in order to tell the
reader exactly how we went about our quantitative study, from data collection to data
analysis.

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 APPENDIX 1, INTERVIEW GUIDE
General Questions
1. How long have you been working at Sodexo?
2. What department do you work in at Sodexo?
3. What is your position?
a. What kind of day-to-day activities do you do?
Theme: CSR
1. What does CSR mean to you?
2. How do you incorporate CSR in the day-to-day activities?
3. How do you incorporate CSR in strategic work?

Theme: Stakeholder
1. Who are the stakeholders for Sodexo?
2. What do you perceive as the most important CSR activities of Sodexo directed
to your key stakeholders?
3. Which are the main stakeholders that your CSR programs focus on?
4. In what ways do you think that CSR activities conducted by Sodexo affects your
employees?
a. What types of CSR activities do you think have an impact on employee
motivation?
5. What CSR activities do you think affect employees motivation most?
a. How do CSR activities towards shareholders, the community, suppliers,
customers, and employees affect the motivation of employees?
b. How do shareholder activities affect employee motivation?

Theme: Motivation
1. How do you motivate your employees?
2. How do you provide safe working conditions and a safe working Environment?
a. Does Sodexo encourage their employees to be healthy? Eating
right…gym?
3. How do you think Sodexo provides employees opportunities to grow within
Sodexo?
4. How do you provide job tasks that can give satisfaction to your employees?
5. How do you think the quality of services that Sodexo provides impacts
motivation amongst employees?
6. How do you create challenges for you employees?
7. What kind of monetary incentives do you give employees?
8. How do you provide rewards when an employee performs well?
9. How do you put pressure on your employees in order to enhance their
performance?
10. How do ensure Sodexo employees accept the “Sodexo CSR values” as their
own?
11. What do you view as being the best motivator? Intrinsic rewards (willingness to
do the task) or extrinsic rewards (getting an external reward for complementing the
task)?

IX
 APPENDIX 2, THEMATIC NETWORK ANALYSIS
Communication
 Clear instructions motivates employees
 Understanding and listening to customers is important
 Putting pressure on employees enhances motivation
 Improving branding and employer branding through CSR activities
Strategic Planning
 Strategic works set the agenda for the day-to-day work
 Planning the future together with the employees through action plans,
development plans, training sessions, succession plans gives them opportunities
to grow
 Recruiting from inside the company gives employees opportunities to grow
 Helping the community is important
 The triple bottom line is important
Theme: Diversity
 Hiring likeminded people is important in order to ensure that they accept
Sodexo’s values
 Diversity and inclusion is important for employee motivation
 Every employee is different and needs to be managed differently
Theme: Working environment
 Job rotation in the workplace increases motivation
 A wide job scope increases motivation and an open and free working
environment increases motivation
 Working with lots of people increases motivation
 Motivated employees provide better services
 The quality of services increases motivation
 Reducing risks at work increases motivation
Theme: Rewards
 Employees receive recognition for a job well done.
 Appreciation is a good way to motivate employees
 Monetary rewards are not feasible in this industry
Theme: Stakeholders
 CSR activities towards shareholders will not affect employee motivation
 CSR activities towards the community will be a motivating factor amongst
employees
 CSR activities towards the customers will help to motivate the employees
 Employees are the most important stakeholder group

X
 APPENDIX 3, SURVEY QUESTIONS
Hello,
We are two students studying business administration at Umeå University. We are
writing our degree project and would be happy if you could take a few minutes to
answer our survey. Therefore, we have created a survey that will help measure how
CSR impacts employee motivation. We have chosen to conduct our study on Sodexo
because of your well established CSR program.

The goal of this degree project is to see how different CSR activities directed to
different stakeholder groups affects your motivation. Also, our survey results will be
compared with the results of different interviews that we conducted with 8 different
managers at Sodexo. The survey is divided into 8 different sections: background
information, extrinsic motivation, intrinsic motivation, employee related CSR activities,
supplier related CSR activities, community related CSR activities, customer related
CSR activities, and shareholder related CSR activities.

This survey will be sent to current employees at Sodexo. All responses will be kept
anonymous. If you have any questions regarding the survey or our work please do not
hesitate to contact us. We would like to thank you in advance for answering or survey
and helping us with our degree project!
Thank you and kind regards,
Lucas Haskell & Alexander Forsgren
[email protected]
[email protected]
Background information:
1. Gender:
Male
Female
2. Age:
< 18
18-29
30-39
40-49
50-59
60 +
3. How long have you been working at Sodexo?
< 1 year
1-3 years
4-6 years

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7-9 years
10 + years
4. What department do you work in?
[Open question]
Extrinsic motivation
For the following questions please indicate how much you agree or disagree with
the following statements on a scale from 1-6, where 1=strongly disagree and
6=strongly agree.
1. The level of my wage affects my performance.
2. The level of my wage is fair and satisfactory.
3. My promotion opportunities affects my performance.
4. Financial rewards (salary, bonus and perquisite) increase my motivation.
5. Being appreciated and being praised by my manager increases my success and
performance at work.
Intrinsic motivation
For the following questions please indicate how much you agree or disagree with
the following statements on a scale from 1-6, where 1=strongly disagree and
6=strongly agree.
1. Authority/responsibility and dependence requests in the workplace affects my
motivation.
2. Participation in decision-making process affects my motivation.
3. A good working environment effects my motivation to perform.
4. The more difficult the problem, the more I enjoy trying to solve it
Sodexo’s CSR activities towards employees
For the following questions please indicate how much you agree or disagree with
the following statements on a scale from 1-6, where 1=strongly disagree and
6=strongly agree.
1. A confidential procedure is in place for employees to report any misconduct
at work (such as stealing or sexual harassment).
2. Organization has an active program to promote employee physical fitness.
3. Company seeks to comply with all laws regarding hiring and employee
benefits
4. Sodexo helps my personal and career development
5. Sodexo provides a safe working environment for me to work in.
Sodexo’s CSR activities towards suppliers
For the following questions please indicate how much you agree or disagree with
the following statements on a scale from 1-6, where 1=strongly disagree and
6=strongly agree.
1. The contractual obligations between Sodexo and suppliers are always honored.
2. Fairness toward suppliers is an integral part of our employee evaluation process.
3. Relationships with suppliers are good.

XII
 4. Sodexo has a system to encourage business partners to include social
responsibility criteria in business decisions.

Sodexo’s CSR activities towards the community

For the following questions please indicate how much you agree or disagree with
the following statements on a scale from 1-6, where 1=strongly disagree and
6=strongly agree.
1. Top managers monitor the potential negative impacts of our activities on our
local community
2. The managers of this organization try to comply with the law.
3. I receive satisfaction knowing that Sodexo invests in the local community.
4. My organization has a really efficient environmental control and protection
system

Sodexo’s CSR activities towards customers

For the following questions please indicate how much you agree or disagree with
the following statements on a scale from 1-6, where 1=strongly disagree and
6=strongly agree.
1. Our business has a procedure in place to respond to every customer complaint.
2. All our products/services meet legal standards.
3. Providing truthful and honest information to customers and clients positively
affects my motivation.
4. The quality of our services gives me satisfaction.

Sodexo’s CSR activities towards shareholders

For the following questions please indicate how much you agree or disagree with
the following statements on a scale from 1-6, where 1=strongly disagree and
6=strongly agree.
1. I get satisfaction from providing returns to shareholders
2. Shareholder interest affect the way I am motivated to perform at work.
3. Shareholder interests create challenges which make my work more interesting.

XIII
Umeå School of Business and Economics
Umeå University
SE-901 87 Umeå, Sweden
www.usbe.umu.se