Challenges in Implementation of CSR : A case study of Karlstad Bus

Abstract: Corporate Social Responsibility (CSR) is well considered as an important managements’ thinking due to changes in organizations and social environment. CSR initiatives are believed to be beneficial to the society, environment as well as businesses (McWilliams & Siegel 2001). There is an increasing demand for CSR from stakeholders, hence, businesses have started to incorporate the idea of CSR into their organizational strategic planning document. CSR aims to generate shared value by working to solve differing and competing stakeholders’ interests (Pratima & Mark 2014). The aim of this study is to assess the challenges faced during implementation of CSR in the achievement of sustainable business development. In addition, this thesis, will also examine approaches used to overcome the challenges. To reach to the aim of this research paper, a qualitative method is used. Both primary and secondary data are collected to compile this thesis. While the former was collected through interview, the latter was obtained from textbooks, scientific journal articles as well as documents and reports published by Karlstad Municipality (Karlstad Kommun). To write this research paper, a single case study approach was used. Karlstad bus, a department within urban management (Stadsbyggnadsförvaltningen) in Karlstad municipality (Karlstad Kommun) was selected to accomplish the objectives of the study. The findings of the study reveal that Karlstad bus department (KBD) biggest challenge faced during CSR implementation was the higher CSR investment cost. This agrees with Jonker & Witte (2006) argument that states, the main reason of CSR challenges in practical implementation process is CSR requires high implementation cost. To overcome high implementation cost challenges, KBD communication with stakeholders enabled to get additional funds from other government authorities. KBD is accountable & transparent and hence, it prepares integrated report on both financial and CSR narrative operational reports. Besides the major challenge of high CSR implementation cost, there was also some challenge of mindset which is failure in identifying the advantages of long-term benefits of new systems over the existing old systems. This challenge was solved through making detailed cost-benefit analysis. KBD is socially responsible and considers CSR in its investment decision and continues to fulfill the needs and requirements of the environment and the society.