Values drive value when creating sustainable service business : A study of a medium-sized values-driven company: Löfbergs Lila

Abstract: This Master thesis investigates how values can drive value when creating sustainable business.Concepts like Corporate Social Responsibility (CSR) and Sustainable Development (SD) has in the last years become more and more accepted and therefore practiced in the business world. Due to alarms of the climate change, decreased biological diversity and alarming reports of child labour in the export industry, today’s society claims for more sustainable actions among global enterprises. Evidently, some organisations have a more proactive sustainable approach and therefore managed to use sustainable actions to grow and strengthen their market positions e.g. IKEA and Starbucks. Service research related to the above research area at CTF (Service Research Center) at Karlstad University pointed out that corporate values such as social responsibility and environmental responsibility (among others) can be used to create customer value, brand equity and help strategic decision-making for future growth. This thesis investigates in the specific context of Löfbergs Lila what can be learned if the above mentioned strategy is used in a medium-sized company with strong values. Which processes are required to create sustainable business and how far has Löfbergs Lila come according to selected concepts and theoretical framework in business research? The purpose of the thesis is to investigate, in an explorative way, how values can drive value for sustainable business, both empirically through the Löfbergs in the coffee context as well as theoretically. The whole thesis can be seen as a mix of a descriptive case study and an interpretative case study where understanding of the thesis will be created in the interaction between the theoretical and empirical parts. The study has been developed using a combination of inductive and abductive methods whereby the interaction between the conceptual/theoretical framework and Löfbergs Lila, in the coffee context, have constructed a new meaning. The explorative study of Löfbergs Lila (or AB Anders Löfberg) presents an understanding of how values have affected the strategy and operation of this organization and is still doing so to this very day. Every company can work with sustainability, but strong corporate values incorporated into the business model are an advantage. There is a fundamental basis for more “sustainable growth” when these values drive “true” environmental and social progress, including accountability. This thesis claims that true core values are deep-rooted in the company and drive value for Löfbergs’ customers in the name of sustainable business. The theoretically- and conceptually-driven findings, built on five (re)-constructed thick descriptions from Löfbergs Lila in the coffee context, end up in five general concepts for valuesbased sustainable business 1. Service Logic 2. Values-based service 3. Values-based service quality for sustainable business 4. Managing Value chain responsibility 5. Creating the service experience