Save the world! - Or the turnover?

You as a facility manager get the task from the management to outsource the cleaning service and you need to call for possible contractors. A challenging assignment with quite a responsibility, right?! You are the manager and free to make it a big success! With this you receive criteria from the management which you need to take into account. One of these is to make sure that the cleaning company works sustainable, this in line with the policy of the company.

But why does your company wants sustainable cleaning? And how do you know if the contractors are sustainable for the right reasons? Is Corporate Social Responsibility (CSR) right because of saving energy costs? Or is it a new strategic direction?

This article focuses on the theoretical motivations of cleaning companies in the Netherlands, based on desk research.

First some information about the cleaning industry in the Netherlands. The last years it is professionalized; little companies were taking over by big corporations and the cleaning industry is taken a much more commercial approach. On this moment the cleaning industry consists of approximately 200.000 employees, which create a turnover of € 3,4 billion a year. Just like other commercial sectors, cleaning companies are active in trends and marketing developments. CSR is one of these developments, they promote that they are sustainable. Companies do this on their website, in quotations and presentations. But what is their reason to do so?

A lot of theories are written about motivations of CSR; according to Graafland and van de Ven (2006) one can divide the motivations for corporate social responsibility into two categories, which are moral motivations and financial motivations.

Moral motivations for CSR

There are companies which confirm themselves to CSR, because of the moral duty they feel to have. They feel responsible for the effects of their core business (people and planet) and invest on CSR because they see their responsibility to set good examples for others to follow. They do this because of the intrinsic motivation. ‘To behave in a responsible way is a moral duty of businesses towards society.’(Graafland & van de Ven, 2006).

Financial motivations for CSR

Next to handle as a ‘good corporate citizen’ approach, companies can also engage with CSR because of strategic financial motivations. This motivation gains on economic advantages, it derives from an enlightened self- interest.

An investment into strategic CSR brings advantages over short and long term.

A CSR activity out of financial motivation on short term is for instance, to reduce operational costs on short term; eco- efficiencies such as energy and water savings.

Next to short term financial benefits, CSR can also be a strategy to create benefits on the long term.

CSR activities could give companies an additional competitive advantage. This will of course also be an advantage for a business due to making more profit when advertising to the consumer.

Additionally, says Graafland and van de Ven (2006), this might enhance the reputation and image of the company which can be supported by the consumer to buy or refrain from buying goods.

Moreover, CSR can help companies to be rewarded by both potential employees and the current workforce with more trust in the company, possible stronger commitment from employees, possible lower absenteeism, turnover rates, higher profitability and productivity, a more positive attitude to work and good conduct (Graafland and van de Ven, 2006). Also the reputation towards suppliers, regulatory bodies and the media, could gain a competitive advantage (Graafland and van de Ven, 2006). These positive effects take care of an extrinsic motivation.

Looking at the above mentioned theories (two CSR motives), a research is done at five cleaning companies in the Netherlands. The theories are linked to the CSR activities of all the companies, derived from annual reports and websites. The research investigates if it is possible to state that the cleaning industry is taken CSR actions out of moral motivations, financial motivations or a mix of both.

Based on the research could be said that the motivations of cleaning companies in the Netherlands are a mix of moral and financial motivations. This means that people, planet and profit are in balance.

It is not possible to state that cleaning companies are sustainable only because of moral motivations or only because of the financial reason.

The CSR activities of the cleaning companies, created a balance between planet, people, profit (moral motivation and financial motivation). Although in average, the financial motivation was applied most; The CSR activities are used to gain a positive image and reputation towards stakeholders; customers, suppliers, NGO’s, employees, government and shareholders. The image and reputation of a cleaning company are important because the cleaning industry is situated in the profit sector. Image and reputation are used to survive and to obtain their rights to exist- making profit.

These findings are also confirmed out of other researches:

Research of European Business Monitor, states that image is the main motivation for CSR in Europe.

Another research also confirms, the Nationaal Initiatief Duurzame Ontwikkelingen (NIDO). NIDO started a project where 19 different companies (of different branches) where asked to fill in a questionnaire. Remarkable is that the interviewees saw CSR as a potential market chance. The excess value was lying in the reinforcement of their reputation.

Conclusion and discussion

What is driving cleaning companies to strive for enhanced CSR in the Netherlands is a combination of a better image and reputation (dominating) as well as caring about people and nature.

So facility manager, when you are going to asses the quotations look critical at the sustainability of your tenders. With this it is important that the mission and vision of the cleaning company agrees with the policy of your business and strategy.

Try to make transparent, which activities are moral accountable and which actions are based on financial advantages. Does your cleaning company want to help and contribute to the world or their own turnover?