Safeguarding brand reputation through sustainable sales : A case study on Volvo Construction Equipment

Abstract: Title: Safeguarding Brand Reputation through Sustainable Sales - A Case Study on Volvo Construction Equipment Author: Ludvig Danielsson Supervisor: Jan Alpenberg Examiner: Fredrik Karlsson, Elin Funck Background and problem: When the Export Credit Guarantee Board in Sweden started increasing the demands on sustainability control for all credit applications, Volvo Construction Equipment implemented a pilot process to assess the sustainability risks in customers’ business. As the pilot progressed, new purposes emerged to also avoid engaging in business relations with irresponsible customers and thus avoid reputational damage. However, this require improved efficiency, clarification, and scope of the process to include all deals. Purpose: The overall purpose of this thesis is to develop a process devoted to control the reputational risk companies are exposed to when engaging in B2B relations with customers not complying to their sustainable responsibilities. Method: The purpose is achieved through a case study on Volvo Construction Equipment. The first part includes a critical review of a process used with a similar purpose which is used as a base for the process development. Conclusion: A process devoted to handle risk should be integrated with the company’s overall risk approach. Therefore, the process requires certain guidelines and tools to be handled efficiently on an operating level. These guidelines and tools must base on policies conforming to the CSR strategy of the company. The process should be developed in three steps; identification- which includes screening and defining risks, assessment- analysing the identified risks and decide on level of impact, Response- accepting the risk by continuing with the deal, avoiding the risk by not continuing with the deal, or reduce the risk by imposing mitigation activities on the customer.