Leadership & Social Skills for Impact entrepreneurs

Escalation of Conflict Over CSR Initiatives in a Textile Company

Context
EcoTextile is a well-established textile production company seeking to enhance its Corporate Social Responsibility (CSR) policy by reducing its ecological footprint. In response to increasing environmental concerns and consumer demand for sustainable products, the company’s leadership decides to implement new eco-friendly practices. These changes require substantial financial investment and modifications in production processes. However, the initiative quickly becomes a source of internal tension, leading to a major conflict that follows the escalation model described by Grésy.
 

Phase 1: Tension
The initial disagreements emerge during internal discussions on CSR priorities. Management presents the long-term benefits of sustainability efforts, emphasizing cost savings, brand reputation, and compliance with new regulations. However, employees express concerns about potential job losses, increased workload, and the feasibility of the proposed changes.
Meetings become increasingly animated, with heated debates over resource allocation and misunderstandings about the environmental and social objectives of the initiative. While the discussions remain professional, tensions rise as employees worry about job security, and management struggles to gain full buy-in.
 

Phase 2: Polarization
As the disagreements persist, a clear division emerges between two opposing groups : one supporting the CSR reforms and the other resisting them.
Distrust spreads within the company, and informal communications fuel misunderstandings. Rumors circulate about potential layoffs and hidden management agendas. Employees start forming alliances, and some actively oppose the initiative by voicing their concerns to unions and external stakeholders.
Meetings become more confrontational, with participants avoiding direct engagement. Some employees organize protests, while others push for negotiations with management to reconsider or slow down the implementation of the CSR plan.
 

Phase 3: Confrontation
The conflict escalates into an open battle, significantly impacting workplace relations. CSR initiatives are systematically opposed, delaying implementation. Employees formally organize through union actions and public demonstrations, while management struggles to maintain order and progress.
Antagonistic coalitions form, each accusing the other of bad faith. Trust deteriorates further as communication shifts from constructive dialogue to ultimatums and veiled threats. External stakeholders, such as suppliers and investors, begin expressing concerns about the company’s internal discord.
 

Phase 4: Violence
At its peak, the conflict leads to destructive actions that severely harm the company. Instances of sabotage occur, with deliberate delays in CSR project execution and intentional errors in production. Confidential company information is leaked, damaging the company’s reputation. Personal attacks, both verbal and online, target key decision-makers within the organization.
The once-productive work environment becomes hostile, significantly impacting team morale and performance. Business operations are disrupted, affecting customer orders and supplier relations. The company faces a serious crisis, struggling to restore internal stability and external credibility.

To effectively resolve CSR conflicts, a progressive and structured approach is necessary. Here are the key steps:

1.    Identify Emotions: Recognize the fear, anger, and frustration of each party. It is essential to use emotional intelligence tools to map out the feelings of the different stakeholders. This understanding helps to better tailor responses and create a climate of trust.
2.    Communicate Transparently: Clearly explain the changes and listen to employees' concerns. Establish regular communication channels such as CSR newsletters, monthly informational meetings, and discussion forums. Transparency should cover objectives, challenges encountered, and successes achieved.
3.    Establish Dialogue: Create spaces for exchange to find common solutions. Organize participatory workshops, mixed working groups, and collective brainstorming sessions. These spaces should be structured with clear rules for mutual respect and active listening.
4.    Engage a Mediator: In case of a deadlock, involve a neutral third party to help defuse the conflict. The mediator should have expertise in CSR and organizational conflict management. Their intervention can take various forms, such as individual mediation, group mediation, or facilitating working groups.