Are Corporate Governance and Corporate Social Responsibility having a role for sustainable Service Business?: An explorative study of IKEA, Starbucks and H&M
2014 (English)Conference paper (Refereed)
Purpose – The aim of this article is to introduce values linked to Corporate Governance (CG) and Corporate Social Responsibility (CSR) through S-D logic by focusing on how values shape actors’ resource integration, value co-creation and the resulting value-in-context. The focus is on how values enables and constrains the creation of value-in-context and thus a sustainable service business. We also focus on the interdependencies between CG and CSR to describe and analyse how core company values are embedded the company’s social and environmental responsibilities, which are aligned with customers’ and other stakeholders’ values.
Methodology/approach – Based on a literature review and interpretations of three comparative case studies of values-based companies (IKEA, H&M and Starbucks), the paper draws together a conceptual analysis of how corporate governance and CSR are of great importance in ‘converting’ values into capabilities and value-creating actions. The present exploratory study undertakes an investigation of the role of CG and CSR as resources in S-D logic.
Findings – The results show how the integration of corporate governance, social and environmental responsibility, and the norms and values of a dynamic company culture contribute to resource integration, value co-creation and a deeper understanding of value-in-context. The study also shows that mere recognition of the actors viewed as a social resource integrating other actors. This is to allow full integration of resources in the companies’ value networks, especially in the contemporary globalised world. The paper contributes by showing how values linked to CG and CSR shape actors’ resource integration within service and social systems and thus value co-creation and the resulting value-in-context.
Research implications – The notion that a service culture, grounded in company core values based on CG and CSR, drives business development has not been empirically examined in any great detail. There is a need to deepen understanding of the role of values linked to CG and CSR in relation to business ethics and how these values shape social processes in a global value network. Values resonance and values dissonance may have a major impact in resource integration, value co-creation and value-in-context. Actors are social integrators of resources. Social forces shape their value creating activities in their social reality. These ongoing social processes can be seen as values-in-context where CSR business cases are of great importance in converting values into capabilities and value creating actions.
Practical implications –The study has also shown that CG and CSR are not merely systems of command and control, but are essential for resource integration and steering and navigating to secure sustainable service business development. Three companies have been selected as our host cases: IKEA, Starbucks, and H&M. These companies have innovative entrepreneurs and distinctive business models which also include social and environmental perspectives to better understand innovative service businesses. These perspectives have been retained and developed over the decades through dissemination of the entrepreneur’s values throughout their organisations. The values have been further developed into CSR business cases as a driving force for service innovation.
Originality/value – This is a fundamental study because it shows how values linked to CG and CSR shape actors’ resource integration within service and social systems and thus further value co-creation and the resulting value-in-context. It has been shown this based on “why and how”—by understanding how value is created and networked and by integrating value co-creation with the embedded on societal and environmental perspectives to secure sustainable service business.
Place, publisher, year, edition, pages
Prague, Czech Republic, 2014.
Corporate Governance (CG); Corporate Social Responsibility (CSR); Service-Dominant logic (S-D logic); Values; and Resource integration
Humanities Business Administration
Research subject Business Administration
IdentifiersURN: urn:nbn:se:kau:diva-34345OAI: oai:DiVA.org:kau-34345DiVA: diva2:755283
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