Understanding The Motives Of Scandinavian Retail Companies CSR-efforts At Their Offshore Suppliers

Abstract: Corporate Social Responsibility (CSR) has gained substantial significance in recent years, driven by the growing societal emphasis on sustainability. Businesses are now expected to contribute to social and environmental goals alongside economic performance. While prior studies have examined CSR practices within companies, limited attention has been given to the promotion of CSR among offshore suppliers and subcontractors. This research aims to address gaps in the understanding of Scandinavian retail companies' motivations for undertaking CSR initiatives with their offshore suppliers. This research employs a deductive, qualitative approach and is based on nine semi-structured interviews conducted with representatives from Scandinavian retail firms, sustainability and procurement consultants and representatives from a developing nation. The research findings demonstrate that primary drivers include legal requirements, brand management, and general sustainability consciousness. Furthermore, motivations and approaches to CSR were found to be influenced by factors such as company size, niche, product complexity, and supplier relationships. The Stakeholder Salience theory (Mitchell, Agle & Wood, 1997) and Institutional Theory (DiMaggio & Powell, 1983) were found to be effective in explaining the observed phenomenon. However, the CSR pyramid (Carroll, 1991) was found to be too general for industry-specific analysis in practice. As a result, an update to the pyramid is suggested. The study contributes to the current body of knowledge by providing insights into the motivations of Scandinavian companies in today’s retail business climate. The findings underscore the importance of industry-specific examinations of CSR practices and offer valuable insights for practitioners seeking to foster responsible business practices within global supply chains.