University of Vaasa - Vaasan yliopisto

when CSR policies in Denmark were mainly focusing on social inclusion and
adequate labour.
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For some Danish corporations, it is their intrinsic desire to contribute back to society.
Some companies claim that behaving responsibly towards civil society has always
been a tradition they practise since it was established. An example is Grundfos,
whose founder, Poul Due Jensen, had established a strong culture and long standing
tradition of contributing to social causes since he had gone through difficult times
himself. This desire to do good for society is also expressed in companies such as
Carlsberg and Arla Foods. For other companies, incorporating the CSR element
simply makes good business sense (Morsing 2003). Having good business sense in
this context, could mean that incorporating CSR in business activities can improve a
corporation’s reputation in business and thus this could possibly influence its
profitability in the financial market in a positive manner. In addition, there are also
existing pressures from the employees in a company, who might be concerned of
their direct association to the company and thus expect the company to act in a
proper and socially acceptable way.
However, with the ongoing financial recession, the government is indeed taking
more than just precautionary measures. Incorporating CSR makes good business
sense and this sentiment is equally echoed by Haisler (in Morsing and Thyssen, 2003)
who warns that economic rationality should be viewed with long‐term considerations,
taking into account especially the speed in which competition takes place today. In
2000, Danish corporations formed “Responsibility 2000” which consisted of five
major organizations: Danfoss (industrial manufacturer), Danish National Police,
Rambøll (engineering firm), Den Danske Bank, and the Danish Boy Scouts
movement (Pruzan 2003). This further proves that Danish corporations are generally
receptive to the concept of CSR, and being proactive and their willingness to
participate have been beneficial for CSR to progress within these organizations.
In 2009, A.T. Kearney, a global management consulting firm, published its analyses
on 99 global firms3 that during economic recessions, companies that commit to
sustainability appear to outperform their industry peers in the financial markets
(Mahler et al. 2009). This piece of report has certainly spurred not just the Danish
corporations but other corporations as well to either take up the challenges of CSR
matters and to continue with their efforts in engaging actively with society, in the
right manner.
The Danfoss Group
Danfoss A/S was founded by Mads Clausen in 1933, which means that it has since
been operating for over seventy years. The private company which started out from
the attic of Mads Clausen’s parents’ house in Nordborg has expanded hundred‐folds
and it is now a global manufacturing company with over 70 factories, with locations
in about 25 countries. It is also currently employing approximately 23,000 people
worldwide. Additionally, the Danfoss Group’s products are sold and serviced
internationally by a network of 115 sales companies. The expansion of the Danfoss
Group to other countries, as far as Asia and South America, provides an idea of the