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Comparing Sustainability Communication in Swedish and Ukrainian Companies

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Comparing Sustainability Communication in Swedish and Ukrainian Companies Comparing Sustainability Communication in Swedish and Ukrainian Companies: The case of Cloetta and Roshen. Karl Volkohon Master thesis, 15 hp Supervisor: Media and Communication Studies Ekaterina Kalinina Sustainable communication Examiner: Spring 2021 Renira Gambarato JÖNKÖPING UNIVERSITY Master thesis, 15 credits School of Education and Course: Sustainable Communication Communication Term: Spring 2021 Box 1026, SE-551 11 Jönköping, Sweden +46 (0)36 101000 ABSTRACT Writer: Karl Volkohon Title: Comparing Sustainability Communication in Swedish and Ukrainian Companies Subtitle: The case of Cloetta and Roshen. Language: English Pages: 44 This is a study of how two companies from different countries construct and communicate their Sustainability and Corporate Social Responsibility (CSR). The companies are from the confectionery industry with a similar size, sales, and number of factories. The only difference is the origin of the companies. One is from a developed country (Cloetta based in Sweden) and another is from a developing country (Roshen based in Ukraine). The combination of critical discourse and comparative analysis is used in the study to explain the contexts of countries and companies. The analytical categories are based on Triple Bottom Line Theory and the value-based concept of Sustainability. The study shows the differences in the constructs of Sustainability and CSR of companies from Sweden and Ukraine. Cloetta's communication is used as a form of legitimization and a tool of green marketing (for enhancing the image and its repair in case of a crisis). Roshen's communication is less developed and used as a self-promotion tool (sustainability understood as philanthropy). The findings add the knowledge in Sustainability and CSR traditions in developing and developed countries. Key words: Sustainability, Communication, Cloetta, Roshen, Sustainable Development Goals, Sweden, Ukraine, Comparative Study 2 Table of contents List of figures 4 Introduction 5 Background 7 Aim and research questions 8 Research review 9 Knowledge gaps 11 Theory 12 CSR and public relations. Legitimacy 12 CSR and sustainable development. Triple bottom line theory 13 Methods and material 16 Methods 16 Critical Discourse Analysis 16 Comparative analysis 17 Critique of the method 18 Material 18 Analysis and results 20 Sustainability in Roshen’s communication 20 People 20 Profit 24 Planet 28 Sustainability in Cloetta’s communication 30 People 31 Profit 35 Planet 38 Differences in the constructing sustainability messages 40 People. Presence and absence 42 Profit. Presence and absence 42 Planet. Presence and absence 43 Conclusions 44 References 46 3 List of figures Figure 1. Relationship between corporate sustainability and CSR 14 Figure 2. The company’s logo on the playground 23 Figure 3. The example of depicting invested money 25 Figure 4. The numbers are emphasized in the report 26 Figure 5. “Risks we consider” box 33 Figure 6. The photos, which represent people 34 Figure 7. The financial data in the sustainability report 35 Figure 8. The titles for Sustainability targets 2020 36 Figure 9. “For you” and “For people” divide in the report 37 Figure 10. Graphs show that two out of three goals are not fulfilled 39 4 Introduction Scholars have explored that sustainability and corporate social responsibility (CSR) reporting have become “commonplace in organizations” and recognized it as a “dominant issue across the globe” (Ki & Shin, 2014, p. 2). Research shows that businesses and corporations play a significant role in sustainable development and implementation of the UN Sustainable Development Goals (Zhang, Morse, & Kambhampati, 2018, p.88). However, sustainability reporting and communication in companies have become stakeholders-related information and public relations strategies, business strategies, and self-promoting activities (Koep, 2017, p.2; Amaran & Haniffa, 2011, p.153). Companies could use their positive CSR reputation to help the brand to recover in a case of an ethical crisis or misconduct (Insch & Black, 2018, p.7-8). This research is situated in the field of sustainability and organizational communication in countries with different backgrounds (a developed country, Sweden, and a developing country, Ukraine). In developed countries, companies and organizations have a stronger tradition of CSR strategies and communication (Jamali & Karam, 2018, p.44). The responsibility reporting and literature on CSR have decades of history and focus on a vast number of issues: the role of business in sustainable development; the history of CSR; the aims of CSR; traditions of CSR-reporting; greenwashing (Jamali & Karam, 2018; Zhang et al., 2018). On the other hand, in developing countries sustainability reporting is less popular. The research done by Jamali and Karam (2018, p.35) shows that the number of research studies on sustainability reporting in developing countries has been growing only after 2005. By 2013, the scholars characterized the CSR-reporting in developing countries to be in its infancy. They described it as a less popular and less researched practice than in developed countries. Another problem was that those studies were concentrated on Western countries (Fifka, 2013, p.19; Jamali & Mirshak, 2007, p.244; Makarenko & Adu, 2018; Petrashko, 2018, p.6). This study could fill this gap: expand the knowledge about CSR traditions and methods of a company from a developing world. The thesis project compares two similar companies from the same sector with the same business model and size. The key difference is the origin of those companies. One is from a developed country, the other based in a developing country. The CSR/Sustainability communication will be compared, and similarities and differences will be analyzed. 5 Comparing CSR traditions and communication strategies could show the differences in CSR perception and ways of communicating it. According to Nielsen’s (2011) “Classifications of Countries Based on Their Level of Development,” the developed and developing countries were chosen. The author analyzed UNDP, the World Bank, and IMF (International Monetary Fund) standards to list developed and developing countries. The choice of Ukraine could expand the knowledge about responsibility reporting in Eastern Europe, where the CSR reporting tradition had just begun (Fifka, 2013, p.19). Moreover, the language skills of the author could contribute to more knowledge about Ukrainian-language CSR communication because English-language communication and publications prevail in the field (Fifka, 2013, p.3-4). The study focuses on the confectionery industry, which is interesting for the analysis because it faces difficulties in reaching sustainability: the main issues are unethical sourcing of raw materials and child labor (Cocoa Barometer, 2018; Laugesen, 2013). Those unsustainable practices lead to threading biodiversity and forests. From the food industry company’s perspective, it is essential to use communication to build a positive CSR reputation because it could mitigate potential crises due to unsustainable behavior (Insch & Black, 2018; Laugesen, 2013; Lingard, 2012; Zhang et al., 2018, p.110). The two companies from the confectionery industry are Cloetta AB, referred to as “Cloetta,” and Roshen Confectionery Corporation, referred to as “Roshen” in this paper. Cloetta is based in Sweden, Roshen in Ukraine. Their comparable size, revenue and number of factories explains the choice of companies. They have almost the same ranking in the 2020 Global Top 100 Candy Companies list, which Candy Industry Magazine did. According to it, Roshen has $800 billion net sales per year, and Cloetta has $676 billion. It resulted in 27th place for Roshen and 31st for Cloetta in a global list. Moreover, those companies are from the same sector (confectionery industry); have the same number of factories (8); work in the same amount of countries (more than 50), which makes these companies relevant for the comparison study (Candy Industry, 2020). 6 Background The confectionery industry has a long story of unsustainable actions. In the 17th-century, candy production was tied to the trade of enslaved people. People in Africa worked on the plantations in tough conditions to collect sugar cane. After abolishing slavery in Britain in 1807, the sweet industry had economic problems because of the increased price of sugar. Later, a cheaper alternative was found, sugar beet, which resolved the issues and ended the crisis. In the 21st century, the environment was proclaimed a crucial area of responsibility for food industry companies. In the case of confectionery manufacturers, the most significant hazard is unsustainable cacao production in African and Latin American countries. Some farmers work under challenging conditions, which could be compared with slave conditions in the 17 century. The other problem is child labor. More than 2 million children worked on cocoa production in 2018 in West Africa. (Balch, 2018; BBC Bitesize, 2021; Insch & Black, 2018; Maloni & Brown, 2006). The analysis of the Swedish confectionery industry shows that the country’s chocolate market is highly engaged in sustainability-related activities. The companies are supporting the projects of improving the working conditions in the cacao fields. The most attention is paid to establishing sustainable production, fighting with child labor, and saving rainforests (Berg & Lidfors, 2012, p.11). United Nations Development Programme (2007) in its report described that in Ukraine, an eastern European
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