Corporate Social Responsibility, Sustainability Reporting and Forest Fires: Evidence from the 2018 Megafires»
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Aristotle University of Thessaloniki Faculty of Agriculture, Forestry and Natural Environment Department of Forestry and Natural Environment MSc in Natural Resources: Monitoring, Technology and Bio – Economy «Corporate Social Responsibility, Sustainability Reporting and Forest Fires: Evidence from the 2018 Megafires» Master Thesis by: Eleni Stathi Supervisor: Ioannis Gitas Thessaloniki, July 2021 Abstract This study explores the way that the top Greek and Californian corporations responded to the 2018 megafires, of Mati, Attica and Camp Fire, California. As megafires are becoming more often and their impacts more destructive, through the years, coordinated efforts are directed towards elimination of these tragic events and building of resilient communities. The private sector can play a vital role to achieving these goals, through philanthropic activities that are part of their Corporate Social Responsibility (CSR) and usually expressed by the corporations’ sustainability reporting (SR). Based on CSR and natural disaster literature, and with the empirical data that were collected, the current research shows A) an important movement from both the Greek and Californian corporations towards the disaster relief efforts, B) the existence of different CSR patterns between the two regions and C) an extensive use of SR of the CSR performers. This is an empirical study among the first that comparatively examine CSR during two megafires in two different parts of the world and aims to add to the existing literature, as well as give a new perspective for future researchers, for corporations and public authorities. Key- words: California wildfires, Mati wildfire, resilience, natural disasters, corporate philanthropy, GRI 1 Περίληψη Η παρούσα εργασία ερευνά τον τρόπο με τον οποίο έδρασαν οι εταιρείες σε Ελλάδα και Καλιφόρνια κατά τις μεγαπυρκαγιές του 2018, σε Μάτι, Αττικής και στην Camp Fire, στην Καλιφόρνια. Καθώς οι μεγαπυρκαγιές γίνονται όλο και πιο συχνές και οι συνέπειές τους όλο και πιο καταστροφικές, κατά τη διάρκεια των χρόνων, γίνονται συντονισμένες προσπάθειες προς τον περιορισμό αυτών των τραγικών γεγονότων και την οικοδόμηση της ανθεκτικότητας στην κοινωνία. Ο ιδιωτικός τομέας μπορεί να διαδραματίσει σημαντικό ρόλο προς στην επίτευξη των στόχων αυτών, μέσω φιλανθρωπικών ενεργειών που είναι μέρος της Εταιρικής Κοινωνικής τους Ευθύνης (ΕΚΕ) και συνήθως εκφράζεται μέσα από τις εκθέσεις βιωσιμότητας. Βασιμένη στη σχετική με την ΕΚΕ και τις φυσικές καταστροφές βιβλιογραφία και με τη συλλογή εμπειρικών δεδομένων, η παρούσα έρευνα αποδεικνύει Α) μια σημαντική κινητοποίηση τόσο των εταιρειών στη Ελλάδα όσο και των εταιρειών στην Καλιφόρνια, στην προσπάθεια αντιμετώπισης της καταστροφής, Β) την ύπαρξη διαφορετικών μοτίβων ΕΚΕ ανάμεσα στις δυο περιοχές και Γ) μια εκτεταμένη χρήση των εκθέσεων βιωσιμότητας από τις εταιρείες εκείνες που έδρασαν με ΕΚΕ. Αυτή είναι μία εμπειρική εργασία, ανάμεσα στις πρώτες που εξετάζουν συγκριτικά την ΕΚΕ κατά τη διάρκεια δύο μεγαπυρκαγιών σε δύο διαφορετικά μέρη του πλανήτη και στοχεύει να προσθέσει γνώση στην υπάρχουσα βιβλιογραφία, καθώς και να δώσει μία νέα προοπτική σε μελλοντικούς ερευνητές, σε επιχειρήσεις και σε δημόσιους φορείς. 2 Acknowledgements With this master thesis my studies at MCs in Natural Resources: Monitoring, Technology and Bio – Economy are completed. I would like to thank the members of the thesis Examination Committee: Ioannis Gitas, for accepting to supervise this thesis and help me accomplish my master studies. Through his lessons and his insights, he contributed to my understanding on forest fires, their monitoring and management. Konsatntinos Papaspyropoulos, for his helpful advice and guidance during this master. I appreciate that he recognised my background in Economic Sciences and directed me this topic. His suggestions on Sustainability Reporting and Forestry matters, as well as his encouragement were of main importance. Marios Trigkas, for his advice and the fresh insights of his teaching, that combines environmental with business and economics aspects. He has always been eager to help and support all of his students. Finally, I couldn’t have done it with the support of my friends and family, they have always been by my side and I would like to express my gratitude to them. Thank you all! 3 Contents Glossary ......................................................................................................................... 5 1. Introduction ....................................................................................................................... 7 2 Forest Fires ....................................................................................................................... 10 2.1 Forest Fires in Greece ................................................................................................ 11 The 2018 fires in Greece .............................................................................................. 14 2.2 Forest Fires in California (U.S.) .................................................................................. 17 The 2018 fires in California .......................................................................................... 20 3 Corporate Social Responsibility and Sustainability Reporting.......................................... 23 3.1 Corporate Social Responsibility ................................................................................. 23 Stakeholder Theory ..................................................................................................... 23 Institutional Theory ..................................................................................................... 25 Legitimacy Theory ....................................................................................................... 26 Other Theories ............................................................................................................. 27 Integration of Theories ................................................................................................ 28 3.2 Sustainability Reporting ................................................................................................ 29 3.2.1 Sustainability Reporting in Greece ......................................................................... 31 3.2.2 Sustainability Reporting in California ..................................................................... 32 4 Research Process .............................................................................................................. 34 4.1 Research Design ........................................................................................................ 34 4.2 Conceptual Development .......................................................................................... 35 4.2.1 CSR philanthropic activity in Greece VS California ............................................. 35 4.2.2 CSR patterns of the Greek and Californian corporations ................................... 36 4.2.3 Sustainability Reporting of the CSR performers ................................................. 36 4.3 Research Method ...................................................................................................... 37 5. Findings and Discussion ................................................................................................... 40 5.1 General Data Characteristics ..................................................................................... 40 5.2 CSR philanthropic activity in Greece VS California: Answering Q1 ........................... 42 5.3 CSR patterns of the Greek and Californian corporations: Answering Q2 ................. 43 Extra analysis ............................................................................................................... 46 5.4 Sustainability Reporting of the CSR performers: Answering Q3 ............................... 47 6. Conclusions ...................................................................................................................... 49 References .................................................................................................................... 52 4 Glossary Natural Disaster A natural disaster is an event caused by a natural hazard. United Nations (2009), define a natural hazard as the natural process or phenomenon that may cause loss of life, injury or other health impacts, property damage, loss of livelihoods and services, social and economic disruption, or environmental damage. They can be characterized by their magnitude or intensity, speed of onset, duration, and area of extent. UNISDR. 2009. Terminology on Disaster Risk Reduction. Geneva, Switzerland Onyango, M.A, Uwase M. 2017. Humanitarian Response to Complex Emergencies and Natural Disasters. International Encyclopedia of Public Health (Second Edition). 106-116 Forest fires Forest fires are uncontrolled fires that occur in nature, often rendered more severe by climatic conditions. Long dry spells increase the risk of forest fires breaking out. Weather conditions, such as rain and wind, vegetation, the layout of the terrain as well as forest management practices are factors that have a huge bearing on the scale of forest fires. European Commission. 2021. European Civil Protection and Humanitarian Aid Operations: Fact Sheet. Mega-fires Mega-fires are often extraordinary for their size, but they are more accurately defined by their impacts. Their complexity and their deep, long-lasting social, economic, and environmental consequences make them