Epsilon Archive for Student Projects

Abstract

The concepts and practices of Corporate Social Responsibility (CSR) in forest products industry have been evolving since the 1970’s, initially promoted by stakeholder criticism. As nature-based raw materials industries, the selected forest products companies aim to ensure that their business operations are ethical and that their company plays a role in sustainable development.

The researcher selected four forest products companies: Stora Enso, Korsnäs, Arctic Paper, and Sappi. In addition, the customer’s perspectives were gathered from three selected customer-firms: Tetra Pak, Jernström, and Color Print. The selected forest products companies have CSR programs which address the three pillars of sustainability: environmental, social and economic aspects. The following CSR processes were identified in the selected forest products companies: community development and communication, corporate governance and law compliance, code of ethics and business conduct, environmental management, health and safety programs, human resources process, human rights, supply chain management, products and services quality, arts and culture programs, independent CSR organization, anti corruption policy, and CSR report.

In practicing their CSR programs, the selected companies were driven by different predominant factors such as the values, performance, and stakeholders of the companies.
The results also show that there are similarities among the selected companies and yet different approaches in the profile of CSR processes. The differences in approaches are affected by the size of the company and the geographical position of operations; in which it is strongly correlated with different socio cultural condition and economic development of the given area.

Regarding the customer-firms, they perceive that there are more interests in their suppliers’ CSR programs, specifically about environmental issues. However Swedish companies with local production operations do not really perceive CSR and the environment as predominant factors in selecting their suppliers. In addition, the customers mention that quality is the major driving factor in selecting their suppliers. The researcher also concludes that the organizational scale of direct customers; whether they are local or Multinational Corporation, also affect their purchasing behaviour.