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Corporate Social Responsibility Communication - a Case Study of Oatly

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Corporate Social Responsibility Communication - a Case Study of Oatly Corporate social responsibility communication - a case study of Oatly Alexandra Mendebaba Master's thesis • 30 credits Environmental Economics and Management - Master's Programme Degree project/SLU, Department of Economics, 1207• ISSN 1401-4084 Uppsala, Sweden 2019 Corporate Social Responsibility Communication – a case study of Oatly Alexandra Mendebaba Supervisor: Cecilia Mark-Herbert, Swedish University of Agricultural Sciences, Department of Forest Economics Examiner: Richard Ferguson, Swedish University of Agricultural Sciences, Department of Economics Credits: 30 hec Level: A2E Course title: Master thesis in Business Administration Course code: EX0904 Programme/Education: Environmental Economics and Management - Master's Programme 120,0 hec Responsible dep.: Department of Economics Faculty: Faculty of Natural Resources and Agricultural Sciences Place of publication: Uppsala Year of publication: 2019 Name of Series: Degree project/SLU, Department of Economics No: 1207 ISSN 1401-4084 Online publication: http://stud.epsilon.slu.se Key words: code of conduct, corporate communication, corporate marketing, corporate social responsibility, corporate social responsibility communication, stakeholder management, stakeholder involvement strategy, sustainability report Swedish University of Agricultural Sciences Faculty of Natural Resources and Agricultural Sciences Department of Economics Acknowledgements I express my most sincere gratitude to Cecilia Mark-Herbert, who has passionately supported and helped me along the way. Without her guiding supervision, constant encouragement, enthusiasm, and experienced teaching skills, the results of the thesis project would not be possible. Moreover, I would like to thank for Carina Tollmar, the sustainability manager at Oatly AB for sharing her knowledge and enriching my study with her expertise. I truly appreciate the opportunity of having an interview and providing me in-depth insights into corporate motivations of Oatly. I would like to express special thanks to my opponent group, Moa Gunnarson, Saga Larsson, and Stina Laggren, for their useful feedback and inputs during the research process and the study environment we had. Last but not least, I wish to thank all the focus group members for their participation in my study and everyone who have supported me, proofread the project to make the thesis better. Alexandra Mendebaba iii Abstract The concept of corporate social responsibility (CSR) offers a solution for businesses to identify their roles in society in order to maintain corporate legitimacy in cooperation with the communities they exist. Even though companies started to work with CSR as part of their business, CSR communication remained overlooked, and the literature is scattered around various disciplines. Therefore, this study intends to gain insight into the role of CSR communication between businesses and their multiple stakeholders. By connecting CSR with the corporate marketing philosophy, this study aims to identify key factors that promote CSR communication. At the same time, the study aspires to show the interlinkages between sustainability, corporate responsibility, and corporate marketing practices with attempts to better understand the communicative perspectives on CSR through a case from the food industry. The empirical analysis is structured in accordance with the pillars of corporate social responsibility: stakeholder theory, corporate marketing philosophy and the shared- understanding communication model. A qualitative method is applied to study the phenomenon of CSR communication through a single-case using Oatly AB as an empirical case. Besides, the focus group technique is included to explain how consumers perceive corporate communication intents. During the project, empirical data was collected from multiple sources, such as corporate sustainability report, code of conduct, semi-structured interview, available online materials and focus groups were organized. Findings of the study justify that communication has the value to foster sustainability and CSR in society through a dynamic interplay between the corporation and its constituencies. Proactive two-way dialogues, including and connecting diverse actors in decision-making, are key to produce, reproduce meaning and create reality. The empirical case illustrates that the combination of the political-normative and communicative aspects of CSR and constant negotiations have the potential to attain shared meanings and value. Moreover, openness and transparency perceived to be crucial factors in communication to promote sustainability in the food industry; complemented with authentic messages, consumers are likely to obtain clear meanings of communicational intents. However, the current marketing channels are not the most optimal; thus, new alternatives are needed to avoid communication gaps. iv Sammanfattning Begreppet sociala ansvar i företagsvärlden benämns ofta med ”Corporate Social Responsibility”, CSR. Det innebär att företag tar ett etiskt ansvar för hur verksamheten påverkar samhället i stort lokalt, regionalt och globalt. Etiskt ansvarstagande blir ett sätt att etablera och bibehålla legitimitet. Även om företagsetik är ett väl etablerat koncept är kommunikationen om etiska aspekter av företagande ett splittrat forskningsfält. Den här studien bidrar till att öka förståelsen förutsättningar för dialog om etiskt företagande mellan företag och andra intressenter i samhället. Syftet med den föreliggande studien är att identifiera faktorer som utgör förutsättningar för kommunikation av företags etiska ansvarstagande. Av speciellt intresse blir uppfattningar om kommunikationsstrategier för hållbar utveckling, företagsansvar och marknadsföring. Empiriskt fokus i studien är lagt på en fallstudie inom livsmedelsindustrin, Oatly AB. Viktigt empiriskt material utgörs av strategiska dokument som speglar företagets CSR-strategier, en intervju med en väl insatt företagsrepresentant och fokusgruppstudier för att få en känsla för hur Oatly ABs kommunikation uppfattas från konsumenthåll. Resultaten i studien är strukturerade i enighet med utpekade grundvalar för CSR: intressentteori, marknadsföringsfilosofi och marknadsföringsdialog. Fallstudien pekar på den centrala rollen för kommunikation för att fostra hållbar utveckling och ansvarstagande i dialog mellan företag och samhällsaktörer. Dialogen karaktäriseras av det som kallas politisk CSR som innebär kontinuerliga förhandlingar för att skapa delad förståelse och insikt om värderingar. Den pro-aktiva dialogen utgör i sin tur en förutsättning för väl grundade CSR beslut. Öppenhet och transparens i dialog skapar förutsättningar för konsumentupplevda värden. Studien pekar på att marknadsföringskanalerna för kommunikation och dialog dock inte är idealiska i ögonen på ett ungt konsumentsegment i fokusgrupperna. v Abbreviations CoC Code of Conducts CSR Corporate Social Responsibility GHG Greenhouse gas emissions SD Sustainable Development SDGs Sustainable Development Goals SR Sustainability Report SLU The Swedish University of Agricultural Sciences TBL Triple Bottom Line UN The United Nations WCED The World Commission on Environment and Development vi Table of Contents 1 INTRODUCTION ............................................................................................................................ 1 1.1 Background .............................................................................................................................. 1 1.2 Problem .................................................................................................................................... 2 1.3 Aim ........................................................................................................................................... 4 1.4 Delimitations ............................................................................................................................ 4 1.5 Structure of the report .............................................................................................................. 5 2 METHOD ........................................................................................................................................ 6 2.1 Research design ...................................................................................................................... 6 2.2 Literature review ...................................................................................................................... 7 2.3 Unit of analysis ......................................................................................................................... 7 2.4 Case study ............................................................................................................................... 7 2.5 Data collection ......................................................................................................................... 8 2.5.1 Secondary data collection ...................................................................................................................... 9 2.5. 2 Interview ................................................................................................................................................ 9 2.5.3 Focus group ........................................................................................................................................... 9 2.6 Data analysis ........................................................................................................................
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