University of Vaasa - Vaasan yliopisto

Jones, 1995; Clarkson, 1995, p. 244; Holme and Watts, 2000; Dawkins and Lewis,
2003; ISO, 2004).
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On the other hand, and as indicated above, nowadays many consider sustainable
development and CSR mutually reinforcing in regards to the topics both are dealing
with in their attempt of integrating economic, environmental and social/societal
issues in cooperation with relevant stakeholders. In fact both concepts are part of a
hierarchy in which sustainable development – developed at macro level – demands a
relevant corporate contribution in form of CSR (Garriga, Mele 2004). Or, as in 2002
the European Commission put it CSR is the “business contribution to sustainable
development” (European Commission 2002). Not surprisingly, societal actors as well
as managers are confronted with the same challenges when trying to implement
sustainable development or CSR (Steurer et al 2005, Moon 2007). As inherent
characteristics of both concepts are seen, (i) both bear a great number and diversity
of topics to be dealt with and are therefore internally complex; (ii) for both concepts
it is difficult to generalise across countries or industry sectors with different cultural,
economic, environmental and social/societal contexts; thus, they are “highly
contextual in terms of their temporal and societal setting” (Moon 2007). This social
construction of CSR and SD takes place in society as such which can be displayed by
the triangle and interplay of the state, businesses and the civil society.
New Societal Governance
Business forms an important triangular relationship with the state and the civil
society (van Marrewijk 2003) which is also changing over time as vividly displayed
by Van Marrewijk (2003).
Two major shifts in societal power relations directly affect the sustainable
development and CSR agenda: Firstly, parallel to the emergence of globalisation and
the peak of neo-liberal policies, civil society and especially its most encouraged
actors, NGOs gained visibility and power in relation to the other two macro-societal
actors. Businesses and governments are more and more pressured to respond to
collective actions of civil society actors (van Marrewijk 2003). Secondly, companies
take responsibility and action regarding societal issues formerly cared about by
governments, inter alia health care systems, corporate pension funds, sustainable
production and consumption, climate change and energy, natural resource