University of Vaasa - Vaasan yliopisto

The approach to CSR of companies in the top left-hand corner of the matrix is
described as formal because, though such firms have developed standard systems
and formal documentation for managing CSR, this aspect tends to prevail over the
integration of CSR issues into their business strategy. Company H provides a good
example of what is meant by a formal approach to CSR.
Company H: Formal CSR
Company H has formalized its management of CSR issues in a different way. In 1998
it implemented an environmental management system conforming to ISO 14001, and
in 2007 all the operational manufacturing sites had a certified environmental
management system. It began reporting on environmental issues in 2000 with its first
Environmental Report; in the same year it implemented the OHSAS 18001 standard.
The Values and Ethical Code was approved in 2003 and translated into the
languages of all the countries in which the company operates. In 2004 it adopted a
new Policy for Health, Safety, Environmental and Social Responsibility, and
implemented the SA8000 standard. In the same year, a Steering Committee for Social
Responsibility was created. In 2006 it published its first Sustainability Report, which
was certified by an external auditor, and it defined a CSR Operating Procedure
providing for the creation of the formal roles of Group CSR Manager, Sector CSR
Managers and Company CSR Managers. The role of CSR management is regulated
by the Operating Norms on Corporate Social Responsibility (issued in 2006) which
describe, govern and discipline the internal management of activities relating to
Corporate Social Responsibility, with particular emphasis on the roles and
responsibilities of the functions involved, the operational process for planning and
control, the process of producing the Sustainability Report, and the management of
external reporting of CSR.
This formal management process of CSR appears to prevail over the strategic
relevance that the company attributes to CSR. The company's mission makes mention
of CSR through formulaic expressions such as ‘social and environmental
sustainability’ and ‘meeting the needs of all stakeholder’. Stakeholders are involved
only by means of standard tools such as e-mail, toll-free numbers or questionnaires.
The projects in which the firm participates, though unquestionably important for
society, are often not related to its core business (e.g. interventions during natural
disasters or emergencies, donations to hospitals, cultural initiatives). That said, the
company has recently started to enter new business areas related to green products
and environmental strategies. However these are as yet only niche markets, with
little significant impact on total profits.
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