2014 Ukraine crisis – Implications for corporate crisis management

In the late year 2013 events started to unfold in Ukraine’s capital city Kiev that would change the political and economic environment of the EU and Russia. The tension had been building for years between the two parties with Ukraine in the middle and during 2014 the tension blew up and events started to escalate into a crisis, which we now know as the 2014 Ukraine crisis. The crisis would include political, economic, and even military actions by all the parties involved with Ukraine slipping close to civil war. Both political and economic hardships followed for others as well with both the EU and Russia placing heavy political and economic sanctions on each other. Most notably in terms of this paper, the Russian federation placed total import embargo sanctions on food imports from the EU and some other countries. This meant that a Finnish dairy company, Valio, had to engage in corporate crisis management as almost a fifth of its total revenue was cut in a heartbeat. Valio had been prepared for some kind of complications with their Russian market as events started to unfold in Ukraine in the beginning of 2014 but never did they suspect that a complete shutdown of the Russian market would follow. The company is still recovering after more than a year after the sanctions were posed and have not been able to supplement the lost revenue streams. This research is a qualitative research aiming to find answers to the main questions: 1) What is the 2014 Ukraine crisis and what kind of special implications does it have and 2) How did the crisis affect Valio and how did Valio fare in its crisis management efforts. The data has been collected both from secondary document sources and primary sources. The main findings of this research are that the political and economic environment of the EU and Russia has gone through a profound change during the years 2013-2015. The companies and governments should re-evaluate what kind of environment they are now facing and what kinds of risks the new situation poses. This also calls for a deep academic analysis from the academic community. In corporate crisis management of Valio the main findings are that the former literature has looked into crisis management as one-time occurrence but the new crises and global events would call for a more on-going crisis analysis and active crisis management. Thus, corporate crisis management should be viewed as a cycle. Valio specifically handled the situation surprisingly well, considering that their revenue was indeed cut by a fifth. The main aspects of crisis management, which Valio did not handle as well, concern the learning curve of crisis management. They could be doing more in order to prepare for future crises better by learning from this experience. The situation is then still on-going in the autumn 2015 both in Ukraine and within Valio.

Perceptions of corporate social responsibility: A case study of the perceived contents and outcomes

CSR has been subject of broad debate and research over the decades and has gained attention recently. The purpose of this thesis is to find out how companies perceive CSR. In addition this thesis is researching what is CSR in Finnish companies, how do companies measure CSR, what are the effects of CSR and how companies perceive those effects and what actors and factors support CSR. This research is a case study where altogether nine informants from seven companies were interviewed. This research is qualitative case study implemented with theme interviews. The analysis method is content analysis. Several interesting issues emerged from the empirical findings. CSR is playing pivotal role in companies values, vision and mission. CSR was perceived differently in companies but also mutual points emerged. The role of stakeholders is essential in CSR. In addition the communication with stakeholders was seen very important. Companies perceived that they can gain many benefits when acting responsibly for instance in issues related to cost reduction, reputation and personnel. However measuring these effects from CSR point of view was seen challenging. Other CSR related challenges are for example change and lack of resources. When considering empirical findings from a theoretical point of view, three interesting issues emerged. CSR reports play an important role in measuring and developing of CSR. However, this is not the case with all companies and some of them argued that reporting has too much attention nowadays when talking about CSR. The benefits of CSR are mostly related to responsive CSR. However maybe in a long-term follow-up strategic CSR related competitive advantage benefits could be more easily noticed. Many different issues supported CSR. Some issues are driven by outside of companies like NGO`s and media and some inside like the motivation of personnel and management. Vastuullista liiketoimintaa on tutkittu vuosien saatossa laajalti ja se on saanut viime vuosina erityisen paljon huomiota. Tämän pro gradu –tutkielman tavoitteena on selvittää, miten yritykset kokevat vastuullisen liiketoiminnan. Tämän lisäksi tutkimuksessa selvitetään, mitä vastuullinen liiketoiminta suomalaisissa yrityksissä tarkoittaa, miten yritykset mittaavat omaa vastuullisuuttaan, mitkä ovat vastuullisuuden vaikutukset, miten yritykset kokevat vastuullisuuden vaikutukset ja mitkä tekijät tukevat vastuullisen liiketoiminnan syntyä. Tutkimus toteutettiin haastattelemalla yhdeksää suomalaisen yrityksen yritysvastuusta vastaavaa tai sen kanssa työskentelevää henkilöä seitsemästä eri organisaatiosta loppuvuodesta 2014 ja alkuvuodesta 2015. Tutkimus on laadullinen, teemahaastatteluilla toteutettu haastattelututkimus. Aineisto on analysoitu teemoittain. Tutkimusaineiston perusteella vaikuttaa siltä, että vastuullinen liiketoiminta on tärkeässä roolissa yritysten arvoissa, visiossa ja missiossa. Yritysvastuu koettiin yrityksissä erilailla, mutta myös yhtäläisyyksiä on nähtävissä. Sidosryhmien rooli on erittäin tärkeä yritysvastuusta puhuttaessa ja myös kommunikointi sidosryhmien kanssa nousi tärkeäksi aiheeksi. Yritykset kokivat saavuttavansa monia hyötyjä vastuullisesta toiminnasta kuten kustannussäästöihin, maineeseen ja työntekijöihin liittyvissä asioissa. Näiden hyötyjen mittaaminen yritysvastuun näkökulmasta koettiin kuitenkin haasteelliseksi. Muita vastuullisuuteen liittyviä haasteita olivat esimerkiksi siihen liittyvä muutos sekä niukat resurssit. Tutkimuksen johtopäätöksistä nousi esille kolme merkittävää seikkaa. Vastuullisuusraportoinnin koettiin olevan hyödyllinen yritysvastuun mittaamisessa ja kehittämisessä. Kaikki yritykset eivät kuitenkaan olleet tätä mieltä ja osa koki raportoinnin saavan liian paljon huomiota nykypäivänä. Yritysten kokemat hyödyt vastuullisuuteen liittyen syntyivät pääosin reaktiivisesta vastuullisuudesta. Tässä kohdin on kuitenkin huomionarvoista mainita, että strategisen vastuullisuuden hyödyt olisivat saattaneet nousta paremmin esille pidemmän aikavälin tutkimuksessa. Yritysvastuun syntyä tukevia tekijöitä löytyi monia. Osa tekijöistä oli yrityksen ulkopuolisia kuten kansalaisjärjestöt ja media ja jotkut taas kumpusivat yrityksen sisältä esimerkiksi työntekijöiden ja johdon motivaatio.

Corporate social responsibility in online retail – Perceptions from online discussions on Amazon

Online retail has experienced substantial growth due to the increased utilization of digital technologies. The growth in the industry has created numerous multinational corporations, which serve customers all around the world. As a result, the online retailers’ efforts in sustainability have been more often in publicity. Corporate Social Responsibility (CSR), the efforts going beyond the company’s interest in order to bring social good, have been discussed in the academic community for decades. While the various effects of CSR in retail and business generally have been realized, the research aims to make a contribution by examining the concept from the viewpoint of online retail by focusing on interaction at online discussion forums. The main research question asks: What is the role of online retailer CSR in the online discussion forum context? In order to answer this question, additional three sub-research questions are suggested: 1) What elements of CSR are relevant in the online retailer context? 2) How are discussion forums used in communication regarding CSR and online retail by different discusser types? 3) What kind of company perceptions and consumer behavior appear in online discussions of Amazon’s CSR? The study is qualitative of nature, using the content analysis research method to examine posts found from four different public online discussion forums. A qualitative, interpretative analysis was used, although quantitative measures regarding discussion posts were also presented. The analysis contains a coding process, where attributes are attached to discussion posts. As a result of the process, specific patterns can be indicated in order to categorize the posts. As the research uses Amazon as the case company, the case study method is also adopted. In the online retail context, ethics regarding the online retailer’s tax and labor policies are found as most relevant elements. Customers, using discussion forums to share their experiences and opinions regarding online retailer CSR efforts, are realized as the most prominent stakeholder. The research also highlights the role of online retailer employees providing details on internal business practices. However, the not realize the possibility to participate in discussions. Most discussion posts refer either to a positive, negative or mixed reaction towards CSR efforts, it is suggested that the concept is relevant also in online retail. Although online retailer CSR efforts are somewhat linked to company perceptions, the concept has a minimal role in consumer behavior. In online retail, CSR efforts can reduce the risk of being involved in discussions related to controversies. In addition, online retailer CSR efforts should communicate how the retailer contributes locally.

Static waves in corporate space : characterizing oscillating trading patterns in New York stock exchange

Various researches in the field of econophysics has shown that fluid flow have analogous phenomena in financial market behavior, the typical parallelism being delivered between energy in fluids and information on markets. However, the geometry of the manifold on which market dynamics act out their dynamics (corporate space) is not yet known. In this thesis, utilizing a Seven year time series of prices of stocks used to compute S&P500 index on the New York Stock Exchange, we have created local chart to the corporate space with the goal of finding standing waves and other soliton like patterns in the behavior of stock price deviations from the S&P500 index. By first calculating the correlation matrix of normalized stock price deviations from the S&P500 index, we have performed a local singular value decomposition over a set of four different time windows as guides to the nature of patterns that may emerge. I turns out that in almost all cases, each singular vector is essentially determined by relatively small set of companies with big positive or negative weights on that singular vector. Over particular time windows, sometimes these weights are strongly correlated with at least one industrial sector and certain sectors are more prone to fast dynamics whereas others have longer standing waves.

Marketing performance measurement in the marketing-finance interface

Marketing and finance are both facing challenges in the constantly changing business environment. Finance is challenged to change its role from cost control to value-adding business partner while marketing needs to be able to demonstrate its accountability so how it contributes to firm performance. Finance is the key partner for marketing to prove its impact by helping marketing to measure its actions. By doing so, finance can also emphasize its business partner role. There is not a lot of research conducted of the relationship between marketing and finance departments. The aim of this study is to investigate how the professional differences of marketing and finance and their forms of cooperation affect marketing performance measurement. Literature of marketing and finance disciplines, their cooperation, performance implications of their interface as well as the roles of marketing performance measurement, performance measurement system and measures were reviewed. This research was conducted as a qualitative case study among senior management of marketing and finance in the sporting goods company. The data collected through semi-structured interviews, participant observation and secondary data was described and classified and connections were made. The results of the study show that the nature of marketing and finance disciplines has many effects on their cooperation and performance measurement. Due to the ambiguous nature of marketing, measuring its performance is still seen as a challenge but digitalization is helping the measurement. It was indicated that marketing and finance professionals need to have different skillsets in order to perform their roles effectively and thus cooperation is needed. Marketing performance needs to be measured with both financial and nonfinancial measures. Both marketing and finance interviewees highlighted the importance of marketing measures over financial measures. Measuring marketing performance comprehensively is seen as a challenge since marketing and finance cooperation is still shaped by the cost control and budget management roles, rather than performance measurement. We recognized three constraints affecting this cooperation and performance measurement: people, time and software. If marketing and finance would develop deeper cooperation, they could create comprehensive performance measurement system that improves organizational performance.

Corporate social responsibility in online retail – Perceptions from online discussions on Amazon

Online retail has experienced substantial growth due to the increased utilization of digital technologies. The growth in the industry has created numerous multinational corporations, which serve customers all around the world. As a result, the online retailers’ efforts in sustainability have been more often in publicity. Corporate Social Responsibility (CSR), the efforts going beyond the company’s interest in order to bring social good, have been discussed in the academic community for decades. While the various effects of CSR in retail and business generally have been realized, the research aims to make a contribution by examining the concept from the viewpoint of online retail by focusing on interaction at online discussion forums. The main research question asks: What is the role of online retailer CSR in the online discussion forum context? In order to answer this question, additional three sub-research questions are suggested: 1) What elements of CSR are relevant in the online retailer context? 2) How are discussion forums used in communication regarding CSR and online retail by different discusser types? 3) What kind of company perceptions and consumer behavior appear in online discussions of Amazon’s CSR? The study is qualitative of nature, using the content analysis research method to examine posts found from four different public online discussion forums. A qualitative, interpretative analysis was used, although quantitative measures regarding discussion posts were also presented. The analysis contains a coding process, where attributes are attached to discussion posts. As a result of the process, specific patterns can be indicated in order to categorize the posts. As the research uses Amazon as the case company, the case study method is also adopted. In the online retail context, ethics regarding the online retailer’s tax and labor policies are found as most relevant elements. Customers, using discussion forums to share their experiences and opinions regarding online retailer CSR efforts, are realized as the most prominent stakeholder. The research also highlights the role of online retailer employees providing details on internal business practices. However, the not realize the possibility to participate in discussions. Most discussion posts refer either to a positive, negative or mixed reaction towards CSR efforts, it is suggested that the concept is relevant also in online retail. Although online retailer CSR efforts are somewhat linked to company perceptions, the concept has a minimal role in consumer behavior. In online retail, CSR efforts can reduce the risk of being involved in discussions related to controversies. In addition, online retailer CSR efforts should communicate how the retailer contributes locally.

2014 Ukraine crisis – Implications for corporate crisis management

In the late year 2013 events started to unfold in Ukraine’s capital city Kiev that would change the political and economic environment of the EU and Russia. The tension had been building for years between the two parties with Ukraine in the middle and during 2014 the tension blew up and events started to escalate into a crisis, which we now know as the 2014 Ukraine crisis. The crisis would include political, economic, and even military actions by all the parties involved with Ukraine slipping close to civil war. Both political and economic hardships followed for others as well with both the EU and Russia placing heavy political and economic sanctions on each other. Most notably in terms of this paper, the Russian federation placed total import embargo sanctions on food imports from the EU and some other countries. This meant that a Finnish dairy company, Valio, had to engage in corporate crisis management as almost a fifth of its total revenue was cut in a heartbeat. Valio had been prepared for some kind of complications with their Russian market as events started to unfold in Ukraine in the beginning of 2014 but never did they suspect that a complete shutdown of the Russian market would follow. The company is still recovering after more than a year after the sanctions were posed and have not been able to supplement the lost revenue streams. This research is a qualitative research aiming to find answers to the main questions: 1) What is the 2014 Ukraine crisis and what kind of special implications does it have and 2) How did the crisis affect Valio and how did Valio fare in its crisis management efforts. The data has been collected both from secondary document sources and primary sources. The main findings of this research are that the political and economic environment of the EU and Russia has gone through a profound change during the years 2013-2015. The companies and governments should re-evaluate what kind of environment they are now facing and what kinds of risks the new situation poses. This also calls for a deep academic analysis from the academic community. In corporate crisis management of Valio the main findings are that the former literature has looked into crisis management as one-time occurrence but the new crises and global events would call for a more on-going crisis analysis and active crisis management. Thus, corporate crisis management should be viewed as a cycle. Valio specifically handled the situation surprisingly well, considering that their revenue was indeed cut by a fifth. The main aspects of crisis management, which Valio did not handle as well, concern the learning curve of crisis management. They could be doing more in order to prepare for future crises better by learning from this experience. The situation is then still on-going in the autumn 2015 both in Ukraine and within Valio.

Corporate grassroots lobbying in the European Union

The European Union has gone through significant changes in the past 20 years. The importance of public opinion in politics has increased and the new technologies are empowering the wider public to express its opinions. The purpose of this study is to explore how corporations use the tactic of grassroots lobbying in the European Union environment. The research objectives were addressed through qualitative research methods. Six expert interviews were conducted to find new perspectives and to deepen the understanding of the research objectives. Following the data collection, the research material was transcribed and analysed. In the analysis, the data was organized based on concepts and themes found from the literature review. The empirical findings on grassroots lobbying in the EU were presented. It was found that when a company is selecting grassroots lobbying tactic, the familiarity of the tactic, organizational culture, financial resources and amount of stakeholders seem to have an impact to the selection. The issues that are successfully lobbied through the grassroots-lobbying tactic were seen to be those, which have high and direct impact on lives of people, arouse strong feelings and are not very complex. Furthermore, when deciding on the timing of a campaign, in the EU it was found that a company should take into account the long policy process and limited capabilities to mobilise people. Targeting the object of the campaign and selecting the channels used in a grassrootslobbying campaign were seen to be in function of identifying the key decision-makers on the issue. The decisions of who to mobilise and the mobilisation channels were considered to be dependant on who the campaign is trying to influence. Also, it was found that when the implementing a grassroots lobbying campaign in the EU environment, the special features such as multiple cultures and languages should be taken into account. This study has provided novel practical insights for corporate grassroots lobbying in the EU environment and furthermore successfully contributed to the academic research in the field.