Assessing the CSR information needs of Microfinance institutions’ (MFIs) customers

Pages272-287
Published date08 August 2016
DOIhttps://doi.org/10.1108/JICES-09-2015-0028
Date08 August 2016
AuthorAbednego Feehi Okoe,Henry Boateng
Subject MatterInformation & knowledge management,Information management & governance,Information & communications technology
Assessing the CSR information
needs of Micronance
institutions’ (MFIs) customers
Abednego Feehi Okoe
Department of Marketing, University of Professional Studies,
Accra, Ghana, and
Henry Boateng
School of Communication/Cosmopolitan Civil Societies Research Center,
University of Technology Sydney, Sydney, Australia
Abstract
Purpose – This paper aims to seek to ascertain the corporate social responsibility (CSR) information
needs of customers of micronance institutions (MFIs). It also ascertains their media preferences for
CSR disclosure.
Design/methodology/approach – The study adapted Wilson’s (1981) concept of information needs
as the conceptual basis of this study. Case study research design was used. The respondents consisted
of customers of MFIs in Ghana. Semi-structured interview was used to collect the data. Data were
analysed using thematic analysis technique.
Findings – The study found that the CSR information needs of MFIs’ customers relate to moral
disclosure, business survival disclosure, nancial and business terms and conditions disclosure,
donations disclosure and capacity building and training disclosure. The study also found that family
and friends are the most reliable sources of CSR information for MFIs’ customers.
Originality/value – There is a great deal of literature available on CSR disclosure. However, limited
studies have investigated the information needs of customers regarding CSR disclosure. Again, CSR
disclosure in the Micronance sector has received limited attention in the existing literature. This study
expanded the existing literature by investigating the CSR information needs of MFIs’ customers.
Keywords Information behaviour, Communication, Corporate accountability, Information needs
Paper type Research paper
Introduction
Corporate social responsibility (CSR) disclosures have received much attention from
scholars in recent times. Terms such as CSR reportage and CSR communication have
been used interchangeably with CSR disclosures. Following this trend, this study uses
these terms interchangeably, as they all connote dissemination of CSR information.
Podnar (2008) dened CSR disclosures as the process of identifying the needs and
expectations of the various stakeholders of a company, devising a CSR policy
and managing various company communication channels to disseminate credible and
transparent information about a company, its social and environmental activities. CSR
disclosure involves dissemination of information about an organisation’s legal,
economic and ethical responsibilities. The need to identify and anticipate stakeholders’
needs is very critical to the success of CSR communication (Freeman, 1984). However, it
The current issue and full text archive of this journal is available on Emerald Insight at:
www.emeraldinsight.com/1477-996X.htm
JICES
14,3
272
Received 8 September 2015
Revised 29 October 2015
28 January 2016
22 March 2016
Accepted 22 March 2016
Journalof Information,
Communicationand Ethics in
Society
Vol.14 No. 3, 2016
pp.272-287
©Emerald Group Publishing Limited
1477-996X
DOI 10.1108/JICES-09-2015-0028
appears that existing studies have paid little attention to identifying information needs
of target audiences of CSR disclosures.
According to the stakeholder’s approach to CSR, organisations have the
responsibility towards different stakeholders including customers (Freeman and
Liedtka, 1991).Nielsen and Thomsen (2009) asserted that in designing CSR
communication, rms must take into consideration the context, the rm’s strategy and
the information needs of all the stakeholders of the rms. This current study nds the
information needs of stakeholders in the context of CSR communication very essential.
Thus, we assess the information needs of customers of MFIs. Wilson (1981) argues that
an individual’s information needs is linked to his or her physiological, affective and
cognitive needs. These needs are inuenced by contextual factors. Information needs of
MFIs’ customers therefore can be said to be linked to the operations and circumstances
in the Micronance sector. For example, like most economies, the Micronance sector in
Ghana has experienced over-indebtedness and sometimes some MFIs are not able to
protect their customers’ investment. There are cases where some customers have lost
their investments through mismanagement on the part of some MFIs (Bank of Ghana,
2006). This has arguably created uncertainty and affected the trust customers have in
these MFIs. Moreover, some studies have argued for the need for organisations to align
their CSR activities to their business operations (Maignan et al., 2005). MFIs’ CSR
engagement and disclosure must therefore address the challenges in the Micronance
sector.
CSR disclosure has the potential of building good reputation for organisations and
fostering mutual relationships between an organisation and its customers (Kloppers
and Fourie, 2014). Achieving this objective will require that rms disclose CSR
information that meets the information needs of customers. Pickton and Broderick
(2005) asserted that organisations must ascertain customers’ information needs and
media preferences before implementing any communication strategies. Similarly,
Hinson et al. (2011, p. 103) asserted that “lack of clarity on the audience can pose
additional difculties in selecting the right content for CSR communication”. Kloppers
and Fourie (2014) also advised that in developing and implementing CSR
communication strategies, organisations must decide on target audiences’ information
needs and their media preferences. However, the CSR communication literature appears
to provide limited empirical studies on MFIs’ customers CSR information needs and
their media preferences. Previous studies on CSR disclosures have focused on analysing
the contents of organisations’ CSR reports and the media used for such disclosures
(Hinson et al., 2010;Kloppers and Fourie, 2014). On the other hand, studies conducted
using public relations or marketing approaches have explored the effects of CSR on
customers’ perceptions, attitudes and behaviours (Becker-Olsen et al., 2006;Menon and
Menon, 1997).
Uusi-Rauva and Nurkka (2010) explored the CSR information needs of employees
and noted that employees whose work does not have a direct impact on the environment
tend to pay little or no attention to environmental policies of their organisations. They
also noted that employees have their preferred channels for CSR communication. This
means that the CSR information needs and preferred channels of CSR communication
for MFIs customers are likely to differ. However, it appears that the existing literature
does not provide any empirical evidence on MFIs customers’ CSR information needs.
This shows a gap in the literature that needs to be addressed through extensive
273
Assessing
the CSR
information
needs

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