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The how and why of a firm’s approach to CSR and sustainability: a case study of a large European company

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Abstract

This paper aims to analyse “how” and “why” a company engages in CSR and sustainability. The “how” concerns the features of the firm’s CSR and sustainability approach, defined in terms of a firm’s strategy (implemented issues, initiatives and activities) and organization (organizational structures and roles and managerial systems adopted). The “why” refers to the key determinants, both internal and external, of CSR and sustainability. Finally, how the firm’s CSR and sustainability approach evolves over time and the relation between CSR determinants in various stages of the CSR evolutionary path are also investigated. The research method is based on the longitudinal analysis of a case study concerning a large multinational company operating in the telecommunications industry in Europe. The analysis of the case study shows that sub-cultural differences in the approach to CSR and sustainability may occur across hierarchical levels and functional units. Moreover, embedding CSR and sustainability principles doesn’t follow a linear and continuous process, made by sequential stages. Indeed, it can be characterized by an up and down evolutionary path, based on different stages with a changing emphasis given to CSR and sustainability issues. Finally, we find that the firm CSR and sustainability approach is not an autonomous choice, but it is a consequence of the contingent role played by both the external and the internal drivers and by their relative importance during the company’s CSR history.

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Notes

  1. It is noteworthy that previous literature refers to both sustainability and CSR issues, depending on the focus of various studies. Even though the two concepts imply specific and slightly different aspects, we have taken into consideration all the studies related to our research goals, whether they came from the sustainability field or the CSR side. Consequently, in this paper the words CSR and sustainability are used as synonymous.

  2. Such indexes were the following: Dow Jones Sustainability Index (DJSI): World and Stoxx; the Financial Times Stock Exchange for Good (FTSE4): Global, Europe and Environmental Leaders Europe; the Ethibel Sustainability Index (ESI): Excellence Europe, Excellence Global, Pioneer Global; the Advanced Sustainable Performance Index (ASPI) Eurozone; E.Capital Partners indices (ECPI): Ethibel Global, Ethical Europe, Ethical EMU, Global TOP 30; AXIA: Ethical, Euro Ethical and CSR; the KLD Sustainability Index: Global, Global ex US, Europe, Europe Asia Pacific.

  3. The European Commission and NRAs are not the only regulators in the European market. Other advisory bodies and institutions are also active, such as the European Information Technology Observatory, Global e-Sustainability, the European Competitive Telecom Association, Telecoms without Borders, ICT for Sustainable Growth, the European Information Society Institute, The European Telecommunications Standard Institute and the World Health Organization (Giannarakis and Litinas 2011).

  4. The most relevant treaties which affect the ICT sector are the following: the Basel Convention on the trans-boundary movement of hazardous wastes, the London Convention Protocol forbidding most forms of ocean dumping, the Rotterdam Convention requiring prior informed consent on the export of certain dangerous product chemicals, and the Stockholm Convention concerning the release of persistent organic pollutants (POPs). Moreover, the Electronics Industry Code of Conduct (EICC) refers to environmental performance along the supply chain as well as working conditions. http://www.ihrb.org/project/eu-sector-guidance/submissions-to-draft-sector-guidance-consultation.html.

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Authors and Affiliations

  1. Department of Economics, University of Insubria, Varese, Italy

    Anna Pistoni

  2. Department of Economics and Business, University of Eastern Piedmont, Novara, Italy

    Lucrezia Songini

  3. Bocconi University, Milan, Italy

    Oriana Perrone

Authors
  1. Anna Pistoni
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  2. Lucrezia Songini
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  3. Oriana Perrone
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Correspondence to Anna Pistoni.

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Pistoni, A., Songini, L. & Perrone, O. The how and why of a firm’s approach to CSR and sustainability: a case study of a large European company. J Manag Gov 20, 655–685 (2016). https://doi.org/10.1007/s10997-015-9316-2

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