University of Vaasa - Vaasan yliopisto

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majority shareholder. The main reasoning is that the activities in all the companies
that the Danfoss Group is associated with should have some influence on the
reputation of the company as a whole, no matter how significant. As long as these
companies bear the Danfoss brand, then the suppliers, the employees and the public
would also associate the Danfoss Group with these companies.
Sauer‐Danfoss Inc. which was a merger of the mobile hydraulics activities in
Danfoss A/S and Sauer‐Sundstrand Inc. is considered in the analyses as the Danfoss
Group holds a majority of 55.4% shares. The Danfoss Group are also in partial
ownership of companies such as Devi A/S, Danfoss Redan A/S, Gemina Termina
A/S, Danfoss Ventures, Danfoss GmbH, AGH Warmte‐units b.v., Danfoss Industri
Service, Danfoss Heat Pumps, Global Services – Technology and Danfoss
PolyPower A/S. On top of this, the Danfoss Group is involved in three joint ventures,
forming the following companies: Proekspert, Danfoss Saginomiya and Danfoss
Turbocor Compressors Inc. There are also associated companies in which the
Danfoss Group is a significant investor and thus have influence in their financial and
operational decision‐making, they are namely; Danfoss Universe, Danfoss Tantalum
Technologies and Danfoss Semco A/S Fire Protection. These companies are
considered to have some association with the Danfoss Group.
In the annual reports, the social and environmental performances of each of the three
main divisions are reported individually. However, in this research, the information
gathered was not distinguished between the divisions. All the information was
considered as pertaining to the Danfoss Group as a whole, and not specific to any of
the associated companies or to any division, unless specified so.
CSR Modes and Waves
Chapple and Moon (2005) distinguishes three stages of CSR development which
they termed as ‘CSR Waves’. CSR Waves refers to the areas of focus of the CSR
activities, which also reflect on the alignment of CSR to the core business of the
specific corporation. The waves of CSR development start with Community
Involvement, progressing to Products & Processes and finally to Employee Relations,
however overlaps of these waves may occur.
� 1st Wave: Community‐involved projects, activities such as building schools,
improving child welfare
� 2nd Wave: Socially responsible products and processes which include efforts
such as reduction of energy use, improved production efficiency, product life
cycle and etc., and lastly
� 3rd Wave: Employee relations that describe the extent of the involvement of
employees in CSR related initiatives such as the employee development
program or the extent of the concern of the company on employee‐related
issues.