For the Good of All : Integrating corporate social responsibility into the business strategy of small and medium sized enterprises in Finland: CASE: Oy Vallila Interior Ab
Anttila, Hannele (2010)
Anttila, Hannele
Metropolia Ammattikorkeakoulu
2010
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2010091312985
https://urn.fi/URN:NBN:fi:amk-2010091312985
Tiivistelmä
Corporate social responsibility (CSR) can be defined as a concept that includes simultaneous fulfilment of a company’s economic, legal, ethical and philanthropic responsibilities, as well as companies integrating social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis.
The purpose of this dissertation is to investigate CSR from the perspective of small and medium sized enterprises (SMEs), more specifically from the viewpoint of a Finnish medium sized family owned company Vallila Interior. Since the majority of existing research on CSR has been conducted considering large organizations the aim of this dissertation is to find out the significance of integrating CSR into the corporate strategy of an SME, the specific drivers of CSR to SMEs, and the extent to which CSR practices should be adapted considering the fundamental differences between large organizations and SMEs. The main focus of this paper is on Finland as the business area, but the European Union policies on SMEs and CSR has been considered due to the direct effect of the European Commission policies to business policies in Finland.
The methods used in conducting this dissertation included reviewing existing research and literature as well as conducting primary research in forms of a survey and informal correspondence with employers of Vallila Interior.
Vallila Interior, an interior decorating company, is a typical family owned business in Finland and committed to operating in a responsible manner, but has still a way to go in recognizing and making use of their responsibility performance. The company has a need for more structured approach to CSR as well as systems to monitor and measure their CSR performance in order to allow evaluation of their performance and future development. The perceptions of Vallila’s customers on sustainability and CSR have been investigated by conducting an online survey. The results of the survey indicate that consumers expect companies to be responsible, ethical and take care of their employees as well as the environment. The degree to which consumers reward companies for being good corporate citizens could not be concluded. However, reputation of irresponsible behaviour affects companies negatively by reducing its attractiveness as an employer as well as affecting consumers’ decisions to purchase products from that company.
Adopting a responsible corporate strategy requires good leadership, flexibility and openness for engagement. It is a step by step process including the evaluation of the company’s mission and values, defining specific objective and picking the best tools and procedures to achieve the desired results. Various metrics and indicators exist to measure companies’ CSR performance. The key for SMEs is to adopt the tools appropriate for their specific needs, and to a certain extent adapt them to fit the characteristics of the company. Cooperation among SMEs regarding CSR initiatives has potential to save resources and offer mutual benefits for the companies involved and society as a whole.
The significance of SMEs recognizing and developing their economic, social and environmental responsibility to the society derives from the facts that SMEs comprise a majority of companies in Finland and Europe, they form the backbone of the Finnish and European economies and are integral parts of their local communities. For the companies themselves, operating responsibly contributes to securing continuity and long-term success.
The purpose of this dissertation is to investigate CSR from the perspective of small and medium sized enterprises (SMEs), more specifically from the viewpoint of a Finnish medium sized family owned company Vallila Interior. Since the majority of existing research on CSR has been conducted considering large organizations the aim of this dissertation is to find out the significance of integrating CSR into the corporate strategy of an SME, the specific drivers of CSR to SMEs, and the extent to which CSR practices should be adapted considering the fundamental differences between large organizations and SMEs. The main focus of this paper is on Finland as the business area, but the European Union policies on SMEs and CSR has been considered due to the direct effect of the European Commission policies to business policies in Finland.
The methods used in conducting this dissertation included reviewing existing research and literature as well as conducting primary research in forms of a survey and informal correspondence with employers of Vallila Interior.
Vallila Interior, an interior decorating company, is a typical family owned business in Finland and committed to operating in a responsible manner, but has still a way to go in recognizing and making use of their responsibility performance. The company has a need for more structured approach to CSR as well as systems to monitor and measure their CSR performance in order to allow evaluation of their performance and future development. The perceptions of Vallila’s customers on sustainability and CSR have been investigated by conducting an online survey. The results of the survey indicate that consumers expect companies to be responsible, ethical and take care of their employees as well as the environment. The degree to which consumers reward companies for being good corporate citizens could not be concluded. However, reputation of irresponsible behaviour affects companies negatively by reducing its attractiveness as an employer as well as affecting consumers’ decisions to purchase products from that company.
Adopting a responsible corporate strategy requires good leadership, flexibility and openness for engagement. It is a step by step process including the evaluation of the company’s mission and values, defining specific objective and picking the best tools and procedures to achieve the desired results. Various metrics and indicators exist to measure companies’ CSR performance. The key for SMEs is to adopt the tools appropriate for their specific needs, and to a certain extent adapt them to fit the characteristics of the company. Cooperation among SMEs regarding CSR initiatives has potential to save resources and offer mutual benefits for the companies involved and society as a whole.
The significance of SMEs recognizing and developing their economic, social and environmental responsibility to the society derives from the facts that SMEs comprise a majority of companies in Finland and Europe, they form the backbone of the Finnish and European economies and are integral parts of their local communities. For the companies themselves, operating responsibly contributes to securing continuity and long-term success.