Sustainable Community Development in the Supply Chains of Swedish Multinationals located in Developing Countries: A Case Study of the CSR Strategy at IKEA & Ericsson AB, using the HDI as a benchmark to measure progress.

Abstract: This thesis is based on a case study approach investigating the impact of the Corporate Social Responsibility (CSR) strategies on community development in corporate supply chains that are located in developing countries. The cases chosen for the in-depth analysis are two notable Swedish multinationals, Ericsson, and IKEA. These cases were not fully comparable due to the imbalance in the available data. The study employed the Brundtland definition of sustainable development, under the broader theoretical framework of stakeholder theory. The impact of the two CSR strategies were measured against the eight variables of the Human Development Index (HDI), centred on the proposition that positive progress on these would be an enabler for accomplishing the objectives of the sustainable development goals (SDG’s). In the case of IKEA, using both semi-structured interviews and empirical data, it was premised that the partnership between IKEA and Rangsutra, as part of the CSR strategy titled, “People Planet Positive 2020” is delivering meaningful change in line with the suggested benchmark of the HDI/SDG. In the case of Ericsson, it was not possible to determine what change has been effected due to the lack of primary and secondary information, though they are helping to develop communities through certain pilot programs in association with other actors. It was further determined that there is a lack of source material available, and additional studies are required to evaluate the extent of empowerment that CSR programs in global Swedish enterprises generate in communities that are part of their supply network.