From Confrontation to Collaboration: a Case Study on Arla Foods and NGO-MNE Collaboration on CSR

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School of Business | Master's thesis
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Date

2017

Department

Johtamisen laitos

Major/Subject

Mcode

Degree programme

Creative Sustainability

Language

en

Pages

89

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Abstract

This research is centered around the largely debated, evolving phenomenon of NGO-MNE collaboration on CSR. The study further focuses on the European dairy industry through studying NGOs in relation to global dairy cooperative Arla Foods. The study’s key objective is to explore the influencing capacity of NGOs on MNE’s CSR initiatives through collaborative engagement methods. Such influence is studied through focus on three themes formulating the study’s research questions, namely the type, length and value of collaboration affecting influence. Such a focus aims to contribute to the current research gap on influence from the NGO viewpoint, across contexts and cases. The theoretical approach is formulated around the field of CSR, more specifically NGO- MNE collaboration and further influence within collaboration. Moreover the study follows a qualitative approach, where structured phone interviews were conducted with altogether 10 representatives from 9 NGOs as well as 2 representatives from Arla. The sampling method of purposive sampling was used where NGOs were selected from Arla’s main markets: Sweden, Denmark, Germany and the UK. Qualitative content analysis of the interviews is further used in order to uncover the NGO views in-depth. Finally the key findings uncover the effects of type, length and value on influence. Higher involvement types tend to lead to higher influencing capacity due to frequency of contact and relationship length building trust, networks and involving resources. With higher, longer involvement the potential benefits (informational, reputational, financial or network-based) seem to increase competitive advantage and further influencing potential. Hence according to the study NGO influence on MNEs tends to be based on the value obtained from collaboration, which may differ based on type and further change over time. Although such findings are common, there is difference between NGO and MNE viewpoints and the presence of discrepancies. Such cases show how influence and value may be achieved even with shorter, lower involvement types such as dialogue. Overall the findings refute the pessimistic scholarly arguments of NGOs’ inability to function as influencers, while they support the optimistic assertion of potential NGO influence following the stakeholder approach. Here the power and legitimacy of NGOs may be increased through the studied themes. Such findings provide fruitful insights for both scholars, furthering possible theory development around the themes’ connectedness, and practitioners, strengthening collaboration and increasing value in the future.

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Thesis advisor

Korsunova, Angelina

Keywords

CSR, NGO, MNE, NGO-MNE collaboration, NGO influence, dairy industry

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https://urn.fi/URN:NBN:fi:aalto-201711137519

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[gradu] Kauppakorkeakoulu / BIZ