Role of Corporate Responsibility in Business Strategy of Finnish Corporations

Abstract

In today’s world, stakeholders increasingly expect corporations to adopt responsible business practices. Therefore, companies must invest in corporate responsibility (CR) in order to meet stakeholder expectations. Responsible business practices also bring in business benefits to companies. The perspective of attaining business benefits from CR is known as strategic CR. Hence, there is a need to analyze how to incorporate CR into business strategy of companies to reap these benefits.

This study explores the role of corporate responsibility in business strategy and organizational dynamics of Finnish corporations. Specifically, this research aims to find out if CR is considered strategic by Finnish corporations. It discusses business benefits of strategic CR and how Finnish corporations incorporate CR into their business strategy at an operational level. Several CR personnel in the senior management of leading Finnish corporations, independent consultants associated with CR and a Finnish government representative participate in this study through interviews. A theoretical framework is developed from existing literature and applied to empirical data obtained from thematic interviews.

Leading Finnish corporations consider CR as strategic for their business operations. They perceive several business benefits of strategic CR. Finnish corporations tend to incorporate CR into business strategy by establishing a management structure that reflects strategic CR. Moreover, companies integrate CR and various dimensions of business strategy to establish CR-strategy links. The interviewees also point out gaps between operational CR and academic viewpoints of CR. /Kir10