Development of corporate social responsibility in Finnish forest industry

The main objective of this thesis was to map the development of corporate social responsibility (CSR) in Finnish forest industry. The aim was to describe the development and find factors that explain the development. Another objective was to understand the influence of different stakeholders on the development as well as examine the development of CSR reporting. This qualitative case study used thematic interviews as the research method. The research data were collected by conducting 11 interviews among the case company representatives and stakeholders. Based on the research results, no single factor in the background of the phenomenon could be showed. Instead, CSR has developed in stages through its different dimensions. The main drivers of CSR turned out to be environmental organizations, customers and local communities. It can be concluded that the forest industry has taken CSR seriously for a long time, which has benefited the forest companies in many ways.

The Market Behavior of Emerging Stock Markets in Europe

This study investigates the over and underreaction effects in nine emerging stock markets of Europe. Especially, the possible behavioral aspects behind them are an area of interest. These aspects would link them strongly to behavioral finance. Second, our aim is to provide more evidence of the similar or dissimilar behavior in general among these countries. Third, the possibility to gain abnormal returns from these markets is also under investigation. Data from nine emerging stock market indexes in Europe is gathered from January 1, 1998 to January 1, 2008 to find answers to the stated questions. Studies for the over and underreaction effects are done using a variant of the event study methodology which in this case includes two different calculation methods for the expected returns. Studies are performed using 60 day time intervals. The results between the two different methods used are relatively similar concerning the over and underreaction effects. Another of the methods, however, suggests there to be behavioral aspects behind the effects interpreted. On the other hand, the another method does not support this suggestion. However, a conclusion can be made that the factors driving these countries' behavior are related to their geographical location and to the fact that they are emerging countries.

Digital social media: An interactive technology incorporated as a competitive advantage for business

In a more transparent and dynamic world, in which consumers trust other consumers more for advice and recommendations on products and services, the continuity of organizations appears to be associated with socialization, the sharing of interests and the interaction with the audience. This is associated with the incorporation of digital technologies to business, specifically the use of social media. Consequently, it is timely and interesting to explore the phenomenon of virtual socialization, although it is a littlestudied field and what is needed is an innovative and theoretical approach based upon theories of marketing and communication. Expertise in these areas is present in all organizations and their performance is important for appropriate development of them. This work is a qualitative analysis about the behavior, reactions and attitudes of individuals to organizations, in order to understand the social factors that contribute to sustainable competitive advantages of organizations which can support strategic and future actions. We conclude that relevant factors associated with the tacit knowledge of the organization, specifically to learning and social interaction of the organization and their knowledge of virtual communities. The higher the coexistence of factors, the more difficult is the replication and greater will be the hypothesis of sustainable competitive advantage.

Buying behavior of public organizations and its influence on export partner governance

Public organizations form a significant part of any economy, yet their buying behavior has received very little attention. Operating with complex public sector is further complicated when sales and marketing activities are done by foreign export partners. This thesis explores the buying behavior of public organizations and how partnership governance is influenced by it. The theoretical part focuses on two subjects. Firstly the strictly regulated purchase process, rigid decision making and other special characteristics of public organizations are examined. Secondly the thesis examines partnership governance forms and how coordination is arranged in the relationships. The empirical part investigates the subjects of public organization buying behavior and partnership governance using a case study of a Finnish SME and their two export partners. The findings suggest high degree of uniformity between public organizations enables the use of unilateral governance forms. By creating mutual dependence through training the possibility of adopting a purely bilateral governance form exists as well.

Corporate Social Responsibility in Global Mining Industry

Corporate Social Responsibility is company’s interest and actions towards its environment and the society that the company takes from its free will, to give back to the community and environment. Corporate Social Responsibility is current topic as companies are challenged to take responsibility for their action, due to the constant tightening environmental legislations and raising pressure for transparency from the public. The objective of this Master’s Thesis research is to study if Corporate Social Responsibility affects suppliers’ brand image and mining companies’ buying decisions within global mining industry. The research method is qualitative and the research is conducted with secondary and primary research methods. The research aims to find out what are the implications of the research for the case company Larox. The objective is to answer to the question; how should case company Larox start to develop Corporate Social Responsibility (CSR) program of its own, and how the case company could benefit from CSR as a competitive advantage and what actions could be taken in the company marketing. Conclusions are drawn based on both the secondary and primary research results. Both of the researches imply that CSR is well present in the global mining industry, and that suppliers’ CSR policy has positive effect on company image, which positively affects company’s brand, and furthermore brand has a positive effect on mining companies buying decision. It can be concluded that indirectly CSR has an effect on buying decisions, and case company should consider developing a CSR program of its own.

Consumer Search Behavior in High Involvement Purchases

The aim of this study is to investigate the consumer search behavior in high involvement purchases. The results of this research provide the descriptive analysis of the information search phase which is a part of the decision-making process. The study focuses on customer’s choice of the information sources, motivation behind it and different factors that influence the search behavior. Particular attention is paid to the purchase categorization and the differences in information search between products and services. The qualitative research method is chosen for this study. The data is gathered through ten theme interviews. Each participant of the interview describes his/her own search behavior in a product and a service case. The results indicate that consumer search behavior vary according to the purchase categorization, demographic, individual and situational factors. Moreover, the above-mentioned factors influence the purpose and position of the information search phase in a five-step decision making model.

Strategic supply chain alignment to customer buying behavior

In search for competitive advantage, designing and managing supply chain networks have become a necessary competence for organizations. The target of this thesis is to answer a question, how to design a multiple supply chain network. The purpose is to study, what kind of different supply chain designs exist and, how to choose appropriate supply chain designs for a company. In the thesis, the focus is on the supply chain alignment to customers, more specifically to customer buying behavior. The research method was a case study. A framework for measuring customer buying behavior was developed based on the literature and it was used in the study of customer buying behavior in the case environment. In the case company structured interviews and data records were used as sources of evidence. Persons working in the customer-interface were interviewed face-to-face and through an e-mail questionnaire. When analyzing the data, a Quality function deployment matrix was used as one analysis method. As a result of the thesis, supply chain network of the case company is proposed to be divided into three separate supply chains, which focus on different areas and they could be called lean, agile and continuous replenishment supply chains. In conclusion, in the supply chain alignment to customer buying behavior several aspects have to be studied from different perspectives. According to the results, a multiple supply chain strategy is recommended to be implemented in the case company, since the diversity of the customer needs cannot be managed efficiently through a single supply chain.

Animal Lovers, Bridge-Builders, and Supervising Watchdogs: Framing and Civil Society Construction by Japanese Pro-Animal Organizations in the Kansai and Tokyo Areas

Unlike their counterparts in Europe and America, the citizen organizations acting for the well-being of animals in Japan have not received scholarly attention. In this research, I explore the activities of twelve Japanese pro-animal organizations in Tokyo and Kansai area from the perspective of social movement and civil society studies. The concept of a ‘pro-animal organization’ is used to refer generally to the collectives promoting animal well-being. By using the collective action frame analysis and the three core framing tasks – diagnostic, prognostic, and motivational – as the primarily analytical tools, I explore the grievances, tactics, motivational means, constructions of agency and identity as well as framing of civil society articulated in the newsletters and the interviews of the twelve organizations I interviewed in Japan in 2010. As the frame construction is always done in relation to the social and political context, I study how the organizations construct their roles as civil society actors in relation to other actors, such as the state, and the idea of citizen activism. The deficiencies in the animal welfare law and lack of knowledge among the public are identified as the main grievances. The primary tactic to overcome these problems was to educate and inform the citizens and authorities, because most organizations lack the channels to influence politically. The audiences were mostly portrayed as either ignorant bystanders or potential adherents. In order to motivate people to join their cause and to enforce the motivation within the organization, the organizations emphasized their uniqueness, proved their efficiency, claimed credit and celebrated even small improvements. The organizations tended to create three different roles for citizen pro-organizations in civil society: reactive, apolitical and emphatic animal lovers concentrating on saving individual animals, proactive, educative bridge-builders seeking to establish equal collaborative relations with authorities, and corrective, supervising watchdogs demanding change in delinquencies offending animal rights. Based on the results of this research, I suggest that by studying how and why the different relations between civil society and the governing actors of the state are constructed, a more versatile approach to citizens’ activism in its context can be achieved.

Development of a social service in a multi-party network

Tämän pro gradu-tutkimuksen tarkoituksena oli tutkia monen toimijan sosiaalipalvelukehittäjäverkoston toimivuutta ja sen toimivuuteen vaikuttavia tekijöitä. Aihetta lähestyttiin erilaisten teoreettisten kokonaisuuksien kautta, joiden avulla saatiin luotua tutkimukselle pohja. Viitekehys tutkimukselle luotiin yhdistäen erilaisia teoreettisia aihealueita verkostoista, verkostojen johtamisesta ja palveluista. Tutkimuksessa korostuu motivaation, yhteisen, tarpeeseen perustuvan tavoitteen, sitoutumisen ja orkestroinnin merkitys verkostotoiminnassa hyvän lopputuloksen aikaansaamiseksi. Tutkimuksen empiirisessä osuudessa tehty kvalitatiivinen case-tutkimus keskittyy tiettyyn verkostoon, joka on Socomin koordinoimana kehittänyt Kaakkois-Suomen alueelle uudenlaista sosiaalipalvelua liittyen henkilökohtaiseen apuun. Verkosto on monen toimijan verkosto, jonka jäsenet edustavat erilaisia tahoja ja organisaatioita. Tutkimuksen perusteella verkosto on toiminut hyvin ja tehokkaasti ja saanut luotua toimivan sosiaalipalvelun. Verkosto tukee kirjallisuuskatsauksessa löydettyjen tekijöiden, kuten verkosto-orkestroinnin, sitoutumisen ja yhteisen päämäärän, vaikutusta verkoston toimintaan ja lopputulokseen.

CORPORATE SOCIAL RESPONSIBILITY from theory into financial statement: UPM-Kymmene Oyj

For number of reasons social responsibility in corporations has become a more essential part of business operations than before. Corporate social responsibility (CSR) is dealt with different means and aspects but the overall effects it has on organisations performance, communication and underline actions is indisputable. The thesis describes corporate social responsibility and the main objective was to observe how corporate social responsibility has developed in our case company with answering to main research question how CSR reporting has evolved in UPM-Kymmene Oyj? In addition following questions were also addressed: Is there a monetary value of CSR? What does proficient CSR report consist of? What does corporate social responsibility consist of? Qualitative research method, content analysis to be precise, was chosen and excessive literature study performed to find the theoretical back ground to perform the empirical part of the study. Data for the empirical part was collected from UPM-Kymmene Oyj financial data and annual reports. The study shows that UPM-Kymmene Oyj engagement to CSR and reporting of CSR matter have improved due time but still few managerial implications could be found. UPM-Kymmene Oyj economic key figures are only building shareholder value and stakeholders are identified in very general level. Also CSR data is scattered all over the annual report which causes problems to readers. The scientific importance of this thesis arises from the profound way CSR has been addressed in a holistic manner. Thus it is giving a good basis to understand the underlying reasons of CSR from society towards the organisation and vice versa.

Corporate Social Responsibility in the Oil and Gas Industry: Environmental Management Systems as a Source of Sustainable Development

The environmental aspect of corporate social responsibility (CSR) expressed through the process of the EMS implementation in the oil and gas companies is identified as the main subject of this research. In the theoretical part, the basic attention is paid to justification of a link between CSR and environmental management. The achievement of sustainable competitive advantage as a result of environmental capital growth and inclusion of the socially responsible activities in the corporate strategy is another issue that is of special significance here. Besides, two basic forms of environmental management systems (environmental decision support systems and environmental information management systems) are explored and their role in effective stakeholder interaction is tackled. The most crucial benefits of EMS are also analyzed to underline its importance as a source of sustainable development. Further research is based on the survey of 51 sampled oil and gas companies (both publicly owned and state owned ones) originated from different countries all over the world and providing reports on sustainability issues in the open access. To analyze their approach to sustainable development, a specifically designed evaluation matrix with 37 indicators developed in accordance with the General Reporting Initiative (GRI) guidelines for non-financial reporting was prepared. Additionally, the quality of environmental information disclosure was measured on the basis of a quality – quantity matrix. According to results of research, oil and gas companies prefer implementing reactive measures to the costly and knowledge-intensive proactive techniques for elimination of the negative environmental impacts. Besides, it was identified that the environmental performance disclosure is mostly rather limited, so that the quality of non-financial reporting can be judged as quite insufficient. In spite of the fact that most of the oil and gas companies in the sample claim the EMS to be embedded currently in their structure, they often do not provide any details for the process of their implementation. As a potential for the further development of EMS, author mentions possible integration of their different forms in a single entity, extension of existing structure on the basis of consolidation of the structural and strategic precautions as well as development of a unified certification standard instead of several ones that exist today in order to enhance control on the EMS implementation.

SOCIAL MEDIA IN INTERNATIONAL BRAND COMMUNICATION OF SMES - A multiple case study of small Finnish design-intensive companies

Social media is a rather new phenomenon which has revolutionised the world of online communication. However, academic research on how companies can benefit from social media is lacking. The research objective of this thesis was to examine the use of social media in international brand communication of small Finnish design-intensive companies. Therefore, this research contributes also to the research gap in SME branding. The focus was on communication targeted at consumers. The research was carried out as a mixed methods research employing the questionnaire and multiple case study methods. The questionnaire was used to gather preliminary information on Finnish design-intensive companies and to provide an eligible list of companies for deeper examination. Then, four case companies were studied in more depth. The empirical evidence of the case companies was mainly gathered through theme interviews. The results of the questionnaire shed light on the internationalisation of small Finnish designintensive companies. On average, the companies had internationalised rather quickly after they had been founded. However, the share of exports was rather low in most of the companies. The results revealed also that social media was already used widely in the exporting companies and the use can be expected to grow in future. The findings of the multiple case study suggest that branding activities in small Finnish designintensive companies are constrained by limited resources and skills. In addition, the branding activities are strongly guided by the vision and values of the entrepreneur(s) rather than extensive marketing research. The brand structure was simple in all case companies and they aimed at having a standardised brand image across markets. However, all case companies had faced a need for some adaptation of their international brand communication. Internationally important brand communication channels were international fairs, the internet, word-of-mouth and social media. Social media offered a cost-effective brand communication channel for the case companies. It was used for various purposes, such as creating brand awareness and affecting how the brand is perceived. The entrepreneurs found the use of social media to be rather easy and the case companies had not faced any major challenges. However, the companies had recognised that communication in social media requires consistency and planning. The planning was rather informal and stayed on a general level. Overall, the utilisation of social media in the case companies was limited by a lack of resources. It seemed to affect especially the follow-up of brand communication in social media which stayed rather superficial.

Post-industrial 2.0 – Social Web as the second coming of the post-industrial society

This study presents a review of theories of the so-called post-industrial society, and proposes that the concept of post-industrial society can be used to understand the recent developments of the World Wide Web, often described as Web 2.0 or social Web. The study combines theories ranging from post-war management science and cultural studies to software development, and tries to build a holistic view of the development of the post-industrial society, and especially the Internet. The discourse on the emergence of a post-industrial society after the World Wars has addressed the ways in which the growing importance of information, and innovations in digital communications technology, are changing our society. It is furthermore deeply connected with the discourse on the postmodern society, which emphasizes cultural fragmentation, intertextuality, and pluralism. The Internet age is characterized by increasing masses of information that are managed through various technologies. While 1990s Internet technologies often used the network as a traditional broadcasting channel with added interactivity, Web 2.0 technologies are specifically designed to utilize the network model by facilitating communication between various services and devices, and analyzing the relationships between users and objects in order to produce intelligent insight. The wide adoption of the Internet, and recently of Internet-enabled mobile devices, is furthermore continuously producing new ways of communicating, consuming, and producing. Applications of the social Web, such as social media or social networking services, are permanently changing our traditional social, cultural, and economic practices. The study first presents an overview of the post-industrial society, the Internet, and the concept of Web 2.0. Then the concept of social Web is described with an analysis of the term social media, the brief histories of the interactive Web and social networking services, and a description of the concept ―long tail‖, used to represent the masses of information available in the Web that do not receive mainstream attention. Finally, methods for retrieving and filtering information, modeling social and cultural relationships, and communicating with customers, are presented.

Application of social media and ICT-tools in new and small business ventures.

The current research emphasizes on various questions raised and deliberated upon by different entrepreneurs. It provides a valuable contribution to comprehend the importance of social media and ICT-applications. Furthermore, it demonstrates how to support and implement the management consulting and business coaching start-ups with the help of social media and ICT-tools. The thesis presents a literary review from different information systems science, SME and e-business journals, web articles, as well as, survey analysis reports on social media applications. The methodology incorporated into a qualitative research method in which social anthropological approaches were used to oversee the case study activities in order to collect data. The collaborative social research approach was used to shelter the action research method. The research discovered that new business start-ups, as well as small businesses do not use social media and ICT-tools, unlike most of the large corporations use. At present, the current open-source ICT-technologies and social media applications are equally available for new and small businesses as they are available for larger companies. Successful implementation of social media and ICT-applications can easily enhance start-up performance and overcome business hassles. The thesis sheds some light on effective and innovative implementation of social media and ICT-applications for new business risk takers and small business birds. Key words

Intra-organizational knowledge transfer in a Finnish multinational company

The ability of a multinational company to effectively transfer knowledge from one unit to another can create a great source of competitive advantage and is crucial for long-term success. However, in their attempts to disseminate existent knowledge across national boundaries, organizations encounter several obstacles. Especially challenging is the transfer of tacit knowledge, the most valuable kind, as it is embedded in the minds and the behavior of people. The purpose of this study is to identify the main factors and challenges to be considered in intra-organizational knowledge transfer and consequently develop a framework that could be utilized to improve the process. The research is of qualitative nature and it adopts an exploratory approach. The study was further conducted as an intensive single-case study through studying a Finnish multinational company, and the researcher adopted a role as a participant observant in the research setting. Other data collection methods include semi-structured interviews and an online survey. The research findings show that knowledge transfer is currently challenging within the international sales organization of the case company. The majority of knowledge is currently concentrated in the company headquarters, and it is not always systematically distributed to the regional offices abroad. The main factor affecting knowledge transfer seems to be the organizational culture, which does not support or encourage knowledge sharing. The company is struggling in having a common place for information and employees that lack proper social networks have difficulties accessing relevant knowledge. Some recommended improvement suggestions include the institutionalization of knowledge transfer by turning it into an articulated organizational goal, and the implementation of a reward system that includes soft factors, such as teamwork and knowledge sharing behavior. Furthermore, the organizational culture should be more open and supportive in order to reinforce trust. Individuals in regional offices should be given better support by offering them dedicated mentors and increasing the amount of expatriation. Finally, knowledge should actively be codified and stored in commonly shared platforms where it is easily accessible by all employees.