The purpose of this paper is to evaluate corporate social responsibility (CSR) in the context of real estate management. Different operation cost indicators are identified and…
Abstract
Purpose
The purpose of this paper is to evaluate corporate social responsibility (CSR) in the context of real estate management. Different operation cost indicators are identified and related to the estates’ social condition.
Design/methodology/approach
The empirical material was collected from the company's accounts and by interviews with the staff and is based on a comparison between two similar areas that mainly differed in how much resources the company invested in social projects and maintenance.
Findings
The results indicate that CSR leads to approximately 4.5 percent lower annual operating and maintenance costs, which improved the company's profitability, especially if higher maintenance standards made higher rents possible. Other advantages were improved goodwill, which led to new business opportunities.
Research limitation/implications
The primary issue of the study is to identify consequences of CSR. However, more research is needed about landlord incentives and economic effects of initiated landlord investments. The evaluation method also needs to be further developed and refined.
Originality/value
From a practical perspective, the paper gives a deeper insight into the possible economic advantages of CSR. From the perspective of the scientific community, the paper shows the possibilities in using a comparative evaluation model together with detailed company data in order to identify important indicators and effects.
Details
Keywords
The purpose of this paper is to try to explain how long‐term mismanagement of a housing estate could arise in a country with a strong legal framework aimed at preventing such…
Abstract
Purpose
The purpose of this paper is to try to explain how long‐term mismanagement of a housing estate could arise in a country with a strong legal framework aimed at preventing such situations.
Design/methodology/approach
Assuming that both tenants and landlords are rational, the paper presents a set of hypotheses that is consistent with the information available.
Findings
It is argued that the tenants stayed even though the rent was higher and the quality was lower than in neighboring areas because of a combination of three factors: rents were paid by different forms of welfare payments; lack of alternatives because of queues to other areas; and because some tenants saw an advantage in the “no‐question” asked policy that the slumlord followed. It is further argued that the property owner found this slum‐strategy profitable either because he hoped to find a “bigger fool” to sell to and/or because the decision makers in the company had not invested their own money. Both tenants and investors were, in the end, losers, but not the company managers.
Social implications
The Swedish legal framework is, to a large extent, based on the idea that tenants should take action when there are problems. For several reasons the tenants in the area did not do that and it indicates that a more active role for the local authorities is necessary.
Originality/value
The paper focuses on an interesting case that most people thought could not occur and tries to explain this within a framework of rational actors.
Details
Keywords
The purpose of this paper is to describe and evaluate three different models of how to organise services to tenants in municipal housing companies.
Abstract
Purpose
The purpose of this paper is to describe and evaluate three different models of how to organise services to tenants in municipal housing companies.
Design/methodology/approach
The empirical data used in this study are gathered from a detailed two‐year case study.
Findings
Three different functions are identified: customer service (e.g. reporting of faults); the letting process; and caretaking (day‐to‐day activities and control over in‐ and outdoor areas). The three models for local administration differ as to which functions are decentralised to a local group and which are centralised, and are evaluated from several different perspectives. The models where more decisions are decentralised leads to better information about the local conditions, makes it easier to coordinate work in an area, creates more motivation for the staff and makes it easier to involve the tenants. The main problem with the decentralised models is moral hazard problems, e.g. that the local team create their own agenda, are pressured by certain tenants to give them advantages and that the result is lack of control and an inconsistent policy in the company.
Research limitation/implications
The primary issue of the study is how housing companies can organise their resources in order to create an efficient local administration in large housing estates. Further research is needed to decide if the economic profitability differs between different organizational models in relation to tenants' perceived service quality.
Originality/value
The research identifies and analyses different organisation models for local administration in large housing estates more thoroughly than earlier research.