University of Vaasa - Vaasan yliopisto

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While looking at the CSR Waves, the methods with which the company employs to
build their CSR activities are referred as CSR Modes. These modes would reflect on
the behaviour of the company and how exactly it involves itself in CSR practices.
These CSR Modes can provide an idea on the extent of institutionalisation of CSR in
the company. The traditional way of making mere philanthropic contributions are
considered the least institutionalised Mode, as compared to other Modes such as
engaging in partnerships, sponsoring, adopting CSR codes and encouraging
employee participation in CSR activities. Based on the authors’ interpretation from
Chapple and Moon (2005), the CSR modes are distinguished into these categories:‐
� Foundation: These are usually non‐profit organizations or legal set‐ups with
charitable purpose. It either donates funds or provides support to other
organizations or communities. In this research, the foundations mainly refer
to the Fabrikant Mads Clausen Foundation, the Bitten and the Mads Clausen
Foundation, the Danfoss Foundation for Education and the Danfoss
Employee’s Foundation.
� Partnership: collaborating with other companies or the academia in
CSR‐related projects such as that of the carbon‐neutral project in Sønderborg.
� Codes and Policies: CSR codes are formulated into formal policies and are
considered to be embedded in the company’s activities and decision.
� Volunteering: these are related to the volunteering activities of employees
that are related to CSR matters.
� Sponsorship: provision to institutions in the form of monetary donations or
funding by the company, but not through its foundations.
The CSR waves and corresponding modes are identified to illustrate the progression
of CSR in the Danfoss Group, whilst gaining insights as to how it reacts to major
events and the changes it goes through as well as its earning process. From the
empirical findings obtained from the reports and questionnaires, it is possible to
investigate and determine the CSR Wave at which the Danfoss Group is practising
CSR.
In terms of the first CSR Wave, Community Involvement, the Danfoss Group makes
a lot of charitable contributions to communities, starting out with local communities
when Danfoss first began its operations in Denmark, and as the business expanded
worldwide, so did the contributions. The contributions were also made in a timely
manner, sometimes to coincide with catastrophic events when the donations are most
needed. There are also a few examples in which the Danfoss Group had been in
partnership with social communities, such as the academia, and with local
organizations, for example with the Andares group in Mexico. Therefore, based on
the findings from the available materials, the CSR Mode which it employs are
mainly “Foundation”, and in some cases, the Danfoss Group was in partnership with
communities or was engaging in voluntary activities in CSR‐related projects. This
then makes “Foundation” the correspondingly most dominant CSR Mode for the
Community Involvement Wave. This could be a consequence of the long history of