Understanding strategic corporate social responsibility (CSR) in Finnish consumer goods industry

Abstract

Objectives:

The main objective of the study is to understand how the various elements of strategic Corporate Social Responsibility (CSR) are utilized as a source of differentiation, and even as a competitive advantage for a company. The study explores the different company approaches to CSR, and widens the understanding of strategic CSR through a Finnish case company that aims to utilize CSR as a competitive advantage. The theoretical background of this study lies in academic literature about viewing CSR as a competitive advantage.

Methodology:

The research is qualitative in nature, and follows ontology and critical realism as philosophical viewpoints for a qualitative research. The study represents an intensive case study research. Six well-experienced managers were interviewed at the case company with a semi-structured data collection method. The interview transcriptions form the empirical data of the study.

Findings:

The study contributes to the existing research by clarifying the various company approaches to CSR and their differences. Previous research suggests that company approach to CSR can be categorized as project-oriented, quality-oriented, or strategic. The case study showed that the lines between these categories are rather wavering. The case company utilizes numerous elements of strategic CSR, but evidence to some of the elements remained weak. For example, innovativeness related to responsibility issues and outstandingly effective CSR communication both on company level and on product level were aspects that still need attention, when the purpose is to clearly differentiate with CSR. Finally, the study showed that the strategic CSR approach has a lot to offer for consumer goods companies aiming at utilizing CSR as a competitive advantage.