University of Vaasa - Vaasan yliopisto

threats are more likely to succeed by establishing a competitive advantage over their
competition” (Friedman & Friedman 2009).
120
The purpose of this research paper is to explore and analyze strategic implications of
CR. The study aims at increasing the understanding of the phenomena with a model
building approach that is based on the stakeholder theory (cf. Freeman 1984). The
main problem is phrased as follows: how a firm can differentiate with corporate
responsibility (CR) and in particular with an environmentally responsible image?
Because of the non-existence of antecedent models the stress of the study is on
theoretical reasoning, however an empical case study is conducted to support the
working propositions and theoretical framework. The selected case is a hotel chain,
Scandic, and the dissected context is the Swedish-Finnish hospitality industry.
Theoretical Framework
This chapter presents the concepts, reviews the strategy approach and aims at
developing five working propositions.
Corporate Responsibility
The concept of corporate responsibility (CR), a part of the entity of corporate
sustainability, consists of economic responsibility, environmental responsibility (Van
Marrewijk 2003), and socio-cultural responsibility (Ketola 2008). Corporate
responsibility cannot and does not equal to sustainability, because responsibility is
relative and sustainability is absolute (Ketola 2005, 2007). In this study CR is
considered as a voluntary task, meaning that companies do more than laws and
regulations acquire (cf. Carroll 1979).
CR impacts the organizational culture, which requires the development of new
shared values, as well as strategic embedding within organization of the three pillars:
people, planet and profit (Cramer 2005).
Strategic CR is one way to execute corporate responsibility. The aim is to create a
win-win-win situation, in which the CR ables the people, planet and profit to prosper.
Moreover, CR becomes strategic when it yields substantial business-related benefits
to the firm, in particular by supporting core business activities and thus contributes to
the firm's effectiveness in accomplishing its mission (Burke & Logsdon 1996).
Differentiation Strategy
Each industry has its own characteristics and reacts uniquely to external and internal
changes. Also in the case of corporate responsibility (CR), not all industries behave
in a similar manner because of non-equal exposure to CR challenges. Peng (2006)