The relationship between a firm’s core business and CSR: A study of the Baltic sea commitments

Abstract

Objectives of the thesis The singular objective of this thesis has been to explore the nature of relationship between a firm’s core business and corporate social responsibility (CSR). Commonly under the concept of CSR one subsumes a firm’s sense of responsibility towards the community and environment The interplay between a firm’s core business and corporate social responsibility has been observed in the context of the Baltic Sea commitments, chief focus of which, to a large extent, has been fixated upon the most singular environmental initiative – amelioration of the state of the Baltic Sea. The societal and business outcomes as well as other associated idiosyncrasies of the interplay have also been discussed in the paper, although with varying degree of scrupulousness.

Methodology The interest in the subject matter was born as a result of participation in the research project implemented at the Aalto University School of Business. The nature of the study is largely exploratory and qualitative. The applied research method is a multiple case study, whereby nine different firms, seven of which are Finnish, one Estonian, and one Lithuanian respectively, were interviewed to garner insights as to their participation in the BSAG initiatives. Information gathered by means of semi-structured interviews has been greatly enriched and expanded by utilization of a litany of secondary sources of information.

Main findings The results of this study further corroborate the fact that CSR is no longer a domain occupied solely by large-sized firms. Smaller firms, who were traditionally thought to be less reliant on or cognizant of benefits proffered by CSR, are increasingly realizing its untapped potential. Moreover, the tripartite typology comprising Philanthropy, CR innovation, and CR integration has been found effective in both canvassing a wide variety of organizational behaviours that were demonstrated in the course of the Baltic Sea initiatives and better understanding the impact exerted by the integration of CSR into a firm’s core business. Furthermore, the trend of tides moving away from traditional philanthropy-dominated conception of CSR world has been observed, particularly in favour of more novel forms of CSR. And more importantly, the benefits and outcomes of this occurring shift have been conceived of being both conspicuous and substantial.