B2B CSR
Brand
Differentiation of Profit-Driven Business-to- Business Companies with CSR-Branding
Using CSR Communication as a Corporate Brand Differentiation Strategy
Juliette Jensen
Master’s thesis
Cand.ling.merc Fransk og Interkulturelle Markedsstudier Submission date: 01 June 2016
Supervisor Søren Brier Number of pages: 78
Number of characters incl. Spaces: 201,476
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Abstract: Differentiering af Profit-Drevet Business- to-Business Virksomheder med CSR Branding
Formålet med denne kandidatafhandling er at undersøge hvilke udfordringer business-to-business (B2B) virksomheder oplever når de kommunikerer om deres virksomheds sociale ansvar (CSR), hvilke strategier B2B virksomheder bruger til at kommunikere CSR og hvordan de kan bruge CSR kommunikation til at skabe en konkurrencemæssig fordel gennem en brand differentieringsstrategi.
Metodemæssigt tager dette forskningsprojekt udgangspunkt i en abduktiv forskningsstrategi med henblik på at udforske forholdet mellem B2B virksomheder, CSR kommunikation, B2B branding og differentiering.
En dybdegående analyse af seks interviews af CSR managers i B2B virksomheder viser, at de mest effektive CSR kommunikationsstrategier, ud fra deres evne til at etablere en konkurrencemæssig fordel, udtrykte både rationelle og emotionelle budskaber. Derudover er de CSR kommunikationsstrategier der formår at differentiere virksomheden fra konkurrenter også karakteriseret af et udtryk af høje ambitioner, som dog skal understøttes af konkrete faktuelle resultater fra deres CSR initiativer. Desuden fremhæver resultaterne fra de seks interviews også hvor vigtige partnerskaber er for at legitimere CSR budskaber.
Denne undersøgelse af CSR kommunikation i B2B virksomheder identificerer desuden også særlige forskelle mellem CSR kommunikationsstrategier i forskellige B2B industrier. Forskelle blev især identificeret mellem B2B produktions- og servicevirksomheder, men også mellem industrier med et betændt ry på grund af industriens miljømæssige belastning og mellem industrier, som i forvejen er stærkt associeret med CSR.
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Content
Abstract: CSR Kommunikation i Business-to-Business virksomheder ... 1
1. Introduction: B2B Communication of CSR ... 4
1.1.1 Communication of CSR by Different Types of Companies ... 5
1.1.2 Understanding the Concept of CSR ... 6
1.1.3 Understanding Communication of CSR ... 7
1.1.4 The Business Case of CSR ... 8
1.2 Problem Statement ... 10
1.2.1 Understanding Corporate Branding ... 10
1.2.2 Understanding Differentiation ... 11
1.3 Limitations ... 12
1.4 The Structure of the Thesis ... 12
2. Methodology ... 13
2.1 Research Strategy ... 14
2.1.1 An Abductive Research Strategy ... 14
2.1.2 The Interpretivist Research Philosophy ... 15
2.2 The Research Design ... 17
2.2.1 Qualitative Versus Quantitative Research ... 17
2.2.2 Benefits and Disadvantages of Case Study Sampling ... 18
2.2.3 Non-probability purposive Sampling ... 19
2.2.4 Selecting Companies with Homogenous Purposive Sampling ... 20
2.2.5 Semi-structured Interviews ... 22
2.2.6 Qualitative Semi-Structured Interview Questions and Themes ... 24
2.2.7 Presentation of Interviewees ... 26
2.3 Method for Analysing the Research Findings ... 27
3. A Literature Review on CSR Communication ... 28
3.1 The Sender: The Company’s Influence on CSR Communication ... 29
3.2 The Encoding Process: Persuasion and Credibility Strategies ... 31
3.3 The Message: The Content of CSR-Messages ... 34
3.4 The Channel: Communication Channels for CSR-Messages ... 36
3.5 The Decoding Process: Interpretation of CSR-Messages ... 38
3.6 The Receiver: The Target Audience(s) of CSR Communication ... 42
3.7 Method for Analysing the Primary and Secondary Data ... 42
3.7.1 Challenges of CSR Communication in B2B Companies ... 43
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3.7.2 CSR Communication Tactics in B2B Companies ... 44
4. Analysis of the Semi-Structured Interviews ... 44
4.1 Challenges of CSR Communication in B2B Companies ... 44
4.1.1 No Demand for CSR by B2B companies’ External Stakeholders ... 45
4.1.2 Stakeholders’ Expectations towards and Perceptions of CSR ... 46
4.1.3 CSR Communication in B2B Service and Manufacturing Companies ... 47
4.1.4 Organisational Ownership Structures ... 50
4.1.5 Industry Image and Reputation ... 51
4.2 Strategies for Overcoming the Challenges ... 53
4.2.1 Indirect CSR Communication ... 54
4.2.2 Strategies to Achieve Credibility ... 56
4.2.3 CSR Fit ... 58
4.2.4 Strategic CSR Partnerships ... 59
4.3 How can B2B Companies Communicate CSR? ... 61
5. Discussion: CSR Brand Differentiation Strategies ... 62
5.1 Corporate Brand Differentiation ... 63
5.2 CSR Communication as a Compliance Strategy ... 64
5.3 CSR Communication as an Employer Branding Strategy ... 66
5.4 Communicating CSR through Strategic Philanthropy ... 70
5.5 CSR Communication as a Voice of Industry Strategy ... 74
5.6 Differentiating B2B Companies with CSR Branding ... 76
6. Conclusion ... 78
7. References ... 79
8. Appendices... 86
Appendix A: Translation of the Interview Themes ... 86
Appendix B: Industrial Engineering Interview Transcript ... 86
Appendix C: IT Consultancy Interview Transcript ... 96
Appendix D: IT Consultancy Interview Transcript ... 101
Appendix E: Biotechnology Interview Transcript ... 110
Appendix F: Industrial Transportation Interview Transcript ... 120
Appendix G: Pharmaceuticals Interview Transcript ... 126
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1. Introduction: B2B Communication of CSR
‘[Democratising CSR] is only possible if CSR becomes part of the culture and incentive systems of an organisation. CSR would also need to be extended beyond the usual suspects (i.e. the high profile, branded
multinationals) to the less visible B2B (business to business) [..] organisations’ (Visser, 2014: 38)
How do business-to-business (B2B) companies strategically convince stakeholders of their commitments towards corporate social responsibility (CSR)? What are the main challenges that inhibit them from
communicating CSR? How do B2B companies differentiate themselves from competitors by communicating CSR? These are the questions that motivate this thesis and which will help to understand how CSR can ‘be extended beyond the usual suspects’ (Visser, 2014: 38) to include B2B companies.
Through a qualitative analysis of CSR managers’ understanding of CSR, motivations to communicate CSR and strategic choices for communication of CSR, this thesis provides an in depth understanding of the factors that influence CSR communication in the B2B context. Although this thesis does not propose a generalizable model on how to communicate CSR, it sheds light on important factors and challenges, which B2B companies need to consider when developing CSR communication strategies. The thesis will also include descriptions on CSR communication in particular contexts, i.e. industries, which will help CSR researchers and practitioners to understand how the findings may or may not apply to their context.
Nevertheless, this does not assume that CSR, i.e. a company’s societal responsibilities, should always be encouraged. As Visser (2014) emphasises certain types of CSR practices are more desirable than others.
Yet, if it is assumed that CSR initiatives are potential solutions that enable companies to solve rather than cause societal challenges, it is important that both business-to-consumer and B2B companies engage in CSR initiatives. Moreover, companies must be able to convince their stakeholders of the importance of CSR and of their CSR commitment. Therefore, if CSR initiatives are to be long-term, companies practicing it must be able to communicate it efficiently to their stakeholders. This thesis will, therefore, explore the
communication of CSR in B2B companies, particularly focusing on best practices and challenges regarding the usage of CSR as a corporate brand differentiation strategy.
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1.1.1 Communication of CSR by Different Types of Companies
Focusing on the communication of CSR in the B2B context is important because, as Visser (2014) points out, CSR is still only practices by a minority of companies that tend to be B2C companies and multinational companies. Although, statistics on the exact number of companies addressing CSR issues are not available - possibly due to the difficulty of defining CSR - findings suggest that CSR is in fact practiced by only a few.
For instance, research by the Reputation Institute (2015a) on the CSR reputation of 100 multinational companies shows that either B2B companies are just not well-known or they are not associated with CSR.
Their sample includes only companies perceived as somewhat or very familiar by respondents, which is likely to be well-known B2C companies. Consequently, only about 13 B2B companies made the top 100 list, e.g. Microsoft, FedEx and Novo Nordisk. A similar study on the most reputable companies in Denmark, shows that only 12 out of 40 companies are B2B companies (Reputation Institute, 2015b).
Additionally, the existing research on CSR communication tends not to distinguish between B2C and B2B companies (Morsing & Schultz, 2006; Nielsen & Thomsen, 2009; Ziek, 2009; Visser, 2014) and tends to be based on B2C examples (Ligeti & Oravecz, 2009; Kotler, 2010; Colleoni, 2013).
However, research has found that 67% of employees would prefer working for a socially responsible company (The Nielsen Global Survey, 2014), which places pressure on both B2C and B2B companies.
Despite this demand by employees, the complexities of the B2B purchasing process (Herbst & Merz, 2011) suggest that the demand for CSR by customers might be different in B2B and B2C companies.
Regarding CSR in Denmark, in 2016 only 217 companies and small-medium enterprises (SMEs) (10-250 employees), out of 21,956 companies with more than 10 employees (Danmarks Statistik, 2014), have committed themselves to the CSR initiative the United Nations (UN) Global Compact (n.d. a). Half of these (116) have more than 250 employees (ibid.), but in Denmark only 1918 out of 21,956 companies had more than 100 employees in 2011 (Danmarks Statistik, 2014), so proportionally larger companies are more likely to engage in CSR. Furthermore, national legislations for CSR reporting also mainly applies to larger
companies. In Denmark, since 16th December 2008, CSR reporting has applied to most companies with more than 250 employees and a newt turnover of DKK 313 million or a total balance sheet of DKK 156 million (Danish Business Authority, n. d.). This encourages large companies to reflect on their CSR. Thus, it
P a g e 6 | 133 seems to be a challenge to encourage a broader range of companies to practice and communicate CSR. This thesis, therefore, identifies communication challenges and strategies to overcome these in B2B firms.
1.1.2 Understanding the Concept of CSR
In order to understand what B2B companies must consider when developing CSR communication strategies, it is necessary to understand how the concept is defined as this will influence the strategies.
Since this thesis will focus on companies with headquarters in Denmark, it seems relevant to consider the definition of the European Commission, i.e. that CSR is ‘a concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis’ (Commission of the European Communities, 2001: 4). According to this definition, CSR initiatives address either social or environmental issues. This definition also suggests companies must be able to communicate the value of CSR initiatives to stakeholders, because it must be relevant for them.
The idea that CSR involves different types of initiatives or responsibilities, can be traced back to Carroll’s (1991) theory on the hierarchy of corporate responsibilities. In her theory on the CSR Pyramid, Carroll argues that CSR refers to companies taking on economic, legal, ethical and philanthropic responsibilities (ibid.). According to Ziek (2009: 142), Carroll’s association of CSR with philanthropy can be explained by the historical roots of the concept: ‘philanthropy is the oldest and most widely recognized piece of CSR as it dates back to the late 1800s’. Similarly, Ziek (ibid.: 142) also ’dates the birth and popularity of the Code of Ethics back to the early twentieth century, making it clearly the second-oldest CSR behavior’. Interestingly, in contrast to the definition of the European Commission, her theory does not refer to the environment, which is arguably part of the modern definition of CSR, brought about by the recognition of the global issues of climate change and the degradation of biodiversity.
If it is assumed that the companies included in this thesis have already fulfilled their economic and legal responsibilities, the European Commission’s and Carroll’s definitions of CSR suggest that CSR
communication can focus on topics relating to either the ethical, philanthropic or environmental
dimensions of CSR. These distinctions are relevant because certain types of companies may benefit more
P a g e 7 | 133 than others from addressing a particular type of CSR initiative. Manufacturing companies may, for example, experience a greater need to address environmental issues than service companies.
All the companies studied in this thesis will be active members of the UN Global Compact, i.e. ‘the world’s largest global corporate sustainability initiative’ (United Nations Global Compact, 2014: 7), so it seems relevant to consider their definition of CSR as well. The UN Global Compact defines CSR, or in their own words corporate sustainability, as ‘a company’s value system and a principled approach to doing business.
This means operating in ways that, at a minimum, meet fundamental responsibilities in the areas of human rights, labour, environment and anti-corruption’ (ibid.: 11). Just as the definition of the European
Commission, this is a modern definition that includes the environment. Yet, since their understanding of CSR relates to a company’s procedures and operations, it does not include philanthropy. What is
particularly relevant regarding their definition, is that it is derives from internationally recognised declarations, principles and conventions, including the Universal Declaration of Human Rights and the International Labour Organization’s Declaration on Fundamental Principles and Rights at Work (ibid.: 11).
Thus, these definitions of the concept of CSR suggest that CSR is a way for companies to take responsibility for a broad range of issues, including environmental, ethical or social and philanthropic issues. Yet, it is important to recognise that other definitions might emphasise other responsibilities. Thus, choosing a relevant CSR issue to addressed adds to the complexity of its communication strategy.
1.1.3 Understanding Communication of CSR
Considering that CSR relates to a company’s responsibilities and way of doing business, it is associated with the company’s image and reputation, as opposed to the company’s particular products or services.
Therefore, CSR must be communicated through a corporate branding or corporate communication strategy and not a product or service branding strategy. A corporate brand can be defined as an ‘Attempt to attach higher credibility to a new product by associating it with a well-established company name’ (Business Dictionary, n. d.). Thus, as corporate brand can strengthen a product or service brand. According to Balmer
& Gray (2003: 991), ‘the corporate brand is the face of the organisation’. In other words, the corporate
P a g e 8 | 133 brand is related to a company’s image and reputation. Corporate branding is, thus, a strategy through which a company can manage stakeholder perceptions of the company by trying to influence how they want to be perceived. As Balmer & Gray (2003: 993) state ‘the concept of the corporate brand is only one element of a much broader tableaux: a tableau, of which the concepts of corporate reputation and image, total corporate communications and, more significantly, corporate and organisation identity studies are integral’. Corporate communication and corporate branding has, therefore, been referred to as ‘the corporate communication umbrella by emphasising that the company should design messages that address all stakeholders, i.e. speaking with one voice to multiple audiences’ (Morsing, 2006: 174).
Balmer & Gray (2003) even argue that corporate branding has developed a new form of marketing, namely corporate-level marketing. Similarly, Kotler (2010a: 4) argues that:
‘Now, we are witnessing the rise of Marketing 3.0 or the values-driven era. Instead of treating people simply as consumers, marketers approach them as whole human beings with minds, hearts, and spirits.
Increasingly, consumers are looking for solutions to their anxieties about making the globalized world a better place. In a world full of confusion, they search for companies that address their deepest needs for
social, economic, and environmental justice in their mission, vision, and values.’
Thereby, Kotler (ibid.) argues that it is an increasing tendency that a company’s marketing and
communications strategies must focus on social, economic and environmental issues, i.e. CSR. Brandz’s (2015) ranking of the 100 strongest brands globally, for instance, found that the strongest brands in terms of sales and reputation, are brands that express a higher purpose by addressing social issues.
In other words, CSR branding is a strategy through which a company attempts to influence stakeholder perceptions, so they associate the company with CSR. To do this, companies must develop a CSR
communication strategy by using marketing techniques to communicate the CSR brand to stakeholders.
1.1.4 The Business Case of CSR
In his theory on different stages of CSR, Visser (2014) argues that many companies only practice CSR if they consider it to be profitable for their business or if it improves their reputation. In other words, there must
P a g e 9 | 133 be a business case for CSR, so the question is if there is a business case for CSR in B2B companies. However, owing to the complexity of the decision-making process of B2B buyers, it is difficult to determine at what point, if at any, CSR communication or CSR corporate branding could potentially influence the purchase decision. In their research on B2B communication, Winch, Best & Hoskin (2012a) emphasise that B2B buyers use multiple sources of information to identify and evaluate their options. When asked what sources of information B2B buyers consider to be helpful in their purchase decision, 61% answered
discussions with peers and colleagues; 57% replied industry analysts and advisors; 56% found web searches and solution provider websites to be useful and 47% considered social media to be helpful (ITSMA & PAC, 2010 in Winch, Best & Hoskin, 2012a). This extensive information search, the involvement of multiple decision-makers and the financial risks involved in B2B purchase decisions (ibid.), could lead to the
assumption that emotional or even rational CSR messages would have a limited effect on the final decision.
However, some research does suggest that communicating CSR through a corporate branding strategy can effectively influence B2B decision-makers. Regarding the relationship between a B2B company’s reputation and CSR, Han & Childs’ (2016) quantitative survey of 129 buying firms found that a positive CSR reputation of suppliers can improve B2B buyers’ trust in them. Trust is particularly important in the B2B context because of the high degree of risk involved in many of the purchasing-decisions. Therefore, Kotler &
Pfoertsch (2006) argue that for B2B companies the corporate brand, i.e. the company standing behind the products, is more important than it is for B2C companies. This is also a point emphasises by Herbst &
Merz’s (2011), who argue that a strong corporate brand can reduce the perceived risk of the B2B decision- making process. Furthermore, Pai et al. (2015) found that a positive CSR-related reputation has a positive effect on industrial brand advocacy and brand performance. However, in a questionnaire of 173 industrial buyers in Taiwan, they also found that the positive effect of a CSR-reputation only applies if the buyer interprets the CSR activities as driven by intrinsic rather than extrinsic motives, i.e. by the company’s core mission and vision, rather than manipulative marketing strategies. As Kotler (2010a) also emphasises, a company must communicate CSR-related issues through their mission, vision and values, so it will not be perceived as just advertising.
These findings indicate that there is a business case for CSR in B2B companies. However, B2B companies will not be able to gain from these benefits if stakeholders are not aware of their CSR initiatives. Therefore, they must understand how to communicate CSR effectively to their stakeholders.
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1.2 Problem Statement
In order to gain an in depth understanding of the potential of CSR initiatives in B2B companies and their challenges regarding communication of CSR, this thesis will explore the following research question:
How can profit-driven business-to-business companies differentiate themselves from competitors by communicating corporate social responsibility through their corporate brand?
This research question is twofold: Firstly, this thesis explores how CSR can be communicated in B2B
companies and, secondly, the thesis will consider how B2B companies can communicate CSR as a corporate brand differentiation strategy that will create a competitive advantage.
Conducting research on the communication of CSR in B2B companies’ corporate branding, raises questions about the understanding of the concepts of CSR, profit-driven, corporate branding and differentiation.
However, regarding the definition of CSR, this will not be discussed in further detail, as it has already been discussed, although the literature review will include considerations on the implications of particular understanding of CSR for CSR communication strategies. Furthermore, the distinction of profit-driven companies has been chosen because other B2B companies, the communication of CSR is likely to be significantly different for social enterprises, NGOs, non-profits and not-for-profits.
1.2.1 Understanding Corporate Branding
The study of corporate branding inevitably prompts the questions: Why focus on corporate branding and not product/service brands, and what is corporate branding? As mentioned CSR relates to a company’s reputation and image and is, therefore, an element in a company’s corporate brand. Generally, a brand is an intangible emotional value that can influence a purchasing decision (Herbst & Merz, 2011). Regarding brands, Schultz, Yun & Csaba (2005: 13) state that ‘In the classical marketing definition of brands, the concept is associated with identification of a product and differentiation from competitors’ products using names, logos, design and other recognizable signs or symbols’. According to Kotler & Pfoertsch (2006: 79)
‘Visually spoken the corporate brand serves as some kind of umbrella and encapsulates the corporate vision, values, personality, positioning and image’. Although B2B companies also have product or service brands,
P a g e 11 | 133 Kotler & Pfoertsch (2006) and Herbst & Merz (2011) argue that in the B2B context corporate brands are the most important brands because the perceived risks of the B2B purchasing-decision and the complexity of B2B products increases the importance of the image of the company standing behind the products and services. Thus, as Balmer & Gray (2003) argue a brand, and particularly a corporate brand, is strongly associated with a company’s identity and reputation.
Thus, this thesis focuses on corporate branding because CSR is likely to be communicated and affect the corporate brand. However, some companies may also be able to incorporate CSR in their product or service brand, for example by offering sustainable products or services.
Although Schultz, Yun & Csaba (2005) critique the tendency to treat corporate branding as a responsibility exclusively related to the marketing department, it can also be argued that corporate branding cannot be removed entirely from the marketing department because it must be communicated effectively internally and externally to create awareness among stakeholders. Similarly, CSR must be communicated to
stakeholders in order for it to influence their decisions and relationships with the company.
1.2.2 Understanding Differentiation
According to Porter (Hooley, Nicoulaud & Pierce, 2012a: 43), differentiation is a marketing strategy through which a company can achieve a competitive advantage by convincing the customer of an additional value that distinguishes the company from competitors. However, in practice, multiple factors may differentiate a company from its competitors. B2B companies could, for example, use a price differentiation strategy, but this position can be difficult to maintain. Therefore, companies should aim to differentiate themselves on other parameters than price in order to create a sustainable competitive advantage (Hooley, Nicoulaud
& Pierce, 2012b: 264). CSR could be a differentiating parameter. Yet, differentiation must be clearly understood by stakeholders, so it must be communicated through branding and marketing strategies.
However, an explanation of different differentiation strategies will be outlines in the discussion on how B2B companies can use CSR communication as a corporate brand differentiation strategy.
Thus, this thesis explores CSR differentiation strategies of B2B companies through interviews with B2B manager. Focus will, therefore, be on how, if at all, the company representatives believe they differentiate themselves through CSR-branding and not on the actual results of their differentiation strategy, as it is unclear how this could be analysed.
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1.3 Limitations
Several limitations were identified during the process of researching and writing this master’s thesis.
Firstly, relying on qualitative interviews as the main source of primary data can increase the risk of biased results, as the analysis is purely based on the researcher's interpretation. Yet, no research is completely objective and using interviews enable an in depth understanding of CSR communication in B2B firms.
Furthermore, the researcher’s background and location should be considered, because due to resource constraints all interviewees were based in North Zealand. Further research will, therefore, be necessary to determine if the findings also apply to other countries and other areas of Denmark.
Additionally, the anonymity of the interviewees meant that it was not possible to supplement the interviews with, for example, the companies’ CSR communication on their websites.
Moreover, it was decided to study different industries, in order to gain an understanding of how CSR is communicated differently across industries. This means that the findings will not easily be generalizable, so it will be up to each CSR researcher or practitioner to determine if they apply to their context.
Additionally, the limited research on CSR communication in B2B markets has led to the adoption of an exploratory approach, which will not necessarily produce conclusive findings. The limited existing research also necessitated the usage of numerous sources that do not particularly study the context of B2B firms.
However, this master’s thesis aims to provide insight into what areas further research should focus on, when researching CSR in B2B markets, and what challenges CSR managers may need to consider in order to create a CSR communication strategy that differentiates the company by creating a competitive advantage.
1.4 The Structure of the Thesis
To explore how B2B profit-driven companies can differentiate themselves by communicating corporate social responsibility in their corporate brand, this thesis has the following structure:
Firstly, the methodology section will include a discussion and explanation of the methodological choices of the thesis, namely the governing research philosophy, qualitative research and semi-structured interviews.
This will be followed by a literature review with the purpose of outlining what current theory on CSR communication emphasises regarding the challenges and strategies of CSR communication.
P a g e 13 | 133 Thereafter, the analysis of the primary data from the semi-structured interviews will outline the main CSR communication challenges experienced by B2B companies and how they overcome them.
Subsequently, a discussion will be conducted on the extent to which the CSR communication strategies of the companies studied can be considered efficient corporate brand differentiation strategies.
Lastly, in the conclusion the main findings will be outlined regarding how B2B companies can communicate CSR and how they can use it to differentiate themselves from competitors.
2. Methodology
The objective of this thesis is to, firstly, explore how profit-driven business-to-business (B2B) companies can communicate corporate social responsibility (CSR) through their corporate brand, and, secondly, to explore to what extent they can use CSR communication as a corporate brand differentiation strategy that will give them a competitive advantage. Through an abductive research strategy differences and similarities of CSR communication strategies are explored to discover the main challenges and strategies to overcome these.
The findings are context specific as they are gathered from a comparative analysis of the interviewed B2B CSR managers’ experiences working with CSR and accounts of their CSR communication strategies.
According to the abductive logic of research, the findings are proposals or hypotheses on how B2B companies can communicate CSR in particular contexts.
One of the main methodological challenges is deciding how to gather the necessary information on B2B CSR communications strategies. The complexities of B2B companies is also a challenge, as differences between industries and company sizes may affect why a corporate brand is associated with CSR or not.
In order to address these challenges the following research methodology will, firstly, explain the governing research philosophy, which will help to understand why this study focuses on qualitative research methods.
This will be followed by a discussion of the main research methods, namely a purposive sampling method and semi-structured interviews. Additionally, the discussion on qualitative interviews will examine the advantages and disadvantages of the chosen type of interviews. Thereafter, the main methods used to analyse the findings from the collection of primary data will be discussed.
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2.1 Research Strategy
The research strategy of this thesis will be abductive, as the aim is to compare and contrast CSR
communication strategies in different B2B companies, in order to collect evidence that could explain how B2B companies can communicate CSR and what challenges they face when doing so. In the following reasons for choosing an abductive research strategy will be outlined, as well as the implications of following the interpretivist philosophy.
2.1.1 An Abductive Research Strategy
A researcher’s choice of research strategy, or logic, not only depends on the aim of the research, but is also influenced by the researcher’s perception of reality, knowledge and how knowledge is created (Saunders, Lewis & Thornhill, 2016a). According to Blaikie (2010a), research strategies can be categorised into four main strategies: Inductive, deductive, retroductive and abductive research strategies.
This thesis will be based on the logic of an abductive research strategy, in order to explore how B2B companies choose to communicate CSR, the main challenges they experience and the benefits they expect from communicating CSR. Thus, this thesis explores the relationship between B2B companies, CSR
communication, corporate branding and differentiation. The abductive logic of research was first referred to by Peirce (1960 in Levin-Rozalis, 2004), who considered it to be a process of discovery. Thus, in abductive research ‘the aim is to discover why people do what they do by uncovering the largely tacit, mutual
knowledge, the symbolic meanings, intentions and rules, which provide the orientations for their actions’
(Blaikie, 2010a: 89). In this case, the aim is to discover strategies and challenges of CSR communication in B2B companies by analysing the company representatives’ opinions, accounts and perceptions of their strategies. In line with these aims, Blaikie (2010a: 89) states that abductive research ‘incorporates what the Inductive and Deductive research strategies ignore - the meanings and interpretations, the motives and intentions’. However, Levin-Rozalis (2014) emphasise that the explanations of a phenomenon derived from abductive research is a ‘hypotheses on probation’ (Levin-Rozalis, 2004: 6), so the findings of this thesis are also be preferred hypotheses or hypotheses on probation on how B2B companies communicate CSR.
P a g e 15 | 133 Although certain elements of this methodology, e.g. qualitative interviews, are inductive, the overall research strategy is not inductive, as ‘The aim of the Inductive research strategy is to establish limited generalization about the distribution of, and patterns of association amongst, observed or measured
characteristics of individuals and social phenomena’ (Blaikie (2010a: 83). As the findings of this thesis will be dependent on their context, it will be up to each researcher or CSR practitioner reading the thesis to judge to what extent the context is similar to their own and, thus, if the findings can apply to their case.
Yet, it can also be argued that the literature review represents a deductive approach, because the concepts and findings of the literature review will be considered in the analysis, but the main purpose is to use the existing research in a comparative process of discover of the primary data, i.e. an abductive approach, and not to test the relevance of specific theories or models. Additionally, the existing research on CSR
communication includes a large variety of models and frameworks, so it would be difficult to determine which ones would be most relevant to test in the B2B context (Du, Bhattacharya & Sen, 2010; Nielsen &
Thomsen, 2009; Lattemann et. al., 2009; Morsing, Schultz & Nielsen, 2008; Colleoni, 2013; Kotler, 2010;
Perks et. al., 2013; Pai et al., 2010; Winch, Best & Hoskin, 2012).
Additionally, the findings of this research will not be able to produce a model of CSR communication in B2B companies, so it cannot be considered a retroductive approach (Blaikie, 2010a). Therefore, this thesis will use an abductive approach to discover, compare and contrast different strategies and challenges regarding CSR communication in B2B contexts.
2.1.2 The Interpretivist Research Philosophy
According to Denzin & Ryan (2007), the chosen research strategy is guided by a set of principles and beliefs about the nature of reality, i.e. the ontology; about how knowledge is created and what knowledge is, i.e.
the epistemology; and about how we can generate knowledge about reality, i.e. the methodology. The framework which constitutes a set of beliefs and assumptions about a particular ontology, epistemology and methodology is referred to as a research paradigm (ibid.).
The main disagreements between these paradigms relate to the researcher’s objectivity and subjectivity (Saunders, Lewis & Thornhill, 2016a). On the one hand, the positivist philosophy states that the researcher exists externally from the phenomenon researched and can, therefore, achieve objectivity and generalise
P a g e 16 | 133 findings by using quantitative methods that are similar to the natural sciences (ibid.). One of the opposing philosophies of positivism is interpretivism, according to which the research will always be subjective, because the researcher will inevitably influence the research findings (ibid.). Furthermore, social reality cannot be researched in the same way as the natural sciences study nature, because social phenomena are socially constructed and context specific, so the researcher can only understand social realities by
attempting to understand the opinions, narratives and meanings of individuals (ibid.).
The abductive research strategy of this study will be based on the interpretivist philosophy, because objectivity of the findings cannot be achieved. Not only do the complexities of B2B companies mean that it will not be possible to find one universal rule on how to communicate CSR, but the researcher will also influence the findings, in the choice of companies to include in the study and in the interpretation of them.
The interpretivist paradigm relies on the idealist ontology, which, in oppose to the realist ontology, is the belief that reality is a social construct, created through shared interpretations (Blaikie, 2010a). Thus, the interpretation and communication of CSR is likely to vary in different companies, industries and countries.
The researcher must, therefore, try to understand these complexities. Hence the empathetic role of the researcher, focus must be on the perspective of the social actors (Saunders, Lewis & Thornhill, 2016a).
In line with the idealist idea about reality, this research’s epistemology is based on constructivism, according to which achieving objectivity in research is impossible, because the research will be influenced by the researcher’s own experiences and interpretations of the phenomenon studied (Blaikie, 2010a;
Saunders, Lewis & Thornhill, 2016a). Thus, the findings of this thesis are influenced by the researcher’s residence in Denmark, as this affects the sample of companies included. Consequently, the findings may only be applicable to the Danish context.
The main limitations of using an abductive research strategy and following the interpretivist philosophy is the possible incompleteness of the findings. As they are not easily generalizable, it may be difficult to determine if they can apply to other contexts. Consequently, further research will be necessary to
determine if the conclusions or abductive hypotheses on probation can apply to other B2B companies than those studied in this thesis.
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2.2 The Research Design
One of the main considerations regarding the research design is whether to use qualitative or quantitative methods or both. This study is based on a qualitative research design, with semi-structured interviews as the main source of primary data. The semi-structured interviews enable a thorough analysis of B2B CSR managers’ accounts of their CSR communication strategies. In particular, using qualitative interviews reveals the main challenges they experience, the strategic choices they have considered and the main purpose of their CSR communication strategies. Each company represented by the interviewee has been selected using a non-probability homogenous purposive sampling method, as each company must fulfil a set of criteria in order to ensure that they are relevant for the study of B2B CSR communication.
In the following the implications and reasons for choosing qualitative, rather than quantitative methods will be explained, followed by a discussion on the benefits and challenges of using semi-structured interviews.
2.2.1 Qualitative Versus Quantitative Research
For the purpose of this research, qualitative methods are used because using quantitative methods, e.g.
surveys, requires the researcher to outline expectations or a hypothesis about how CSR is communicated most effectively and how it can differentiate companies from their competitors. A qualitative methodology is especially useful in this study, because there is little existing research on the topic in B2B contexts. It is, therefore, unclear which theories should be tested in terms of their applicability to the B2B context.
Qualitative methods enable an exploratory approach that the study of CSR communication.
However, this means that the findings will not be generalizable, which supporters of the positivist philosophy would perceive as a significant limitation to the usefulness of the findings. Additionally, positivist researchers using primarily quantitative methods may be able to collect data from a much larger sample, but these methods do not allow the researcher to understand the challenges and motivations that explain the choices of social actors. Yet, in qualitative research, there is always a risk that another
researcher would interpret the findings differently, as the researcher’s interpretation will inevitably be influenced by his or her own background and experiences. The researcher must, therefore, attempt to be aware of this to avoid biases.
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2.2.2 Benefits and Disadvantages of Case Study Sampling
The research strategy is conducted on the basis of a comparative analysis of semi-structured interviews.
However, the interviewees have not been selected from probability sampling, but from purposive sampling methods, which are often used in case studies. In fact, the interviewees each represent particular cases because what is important is not just what the accounts of the interviewee, but also the context they represent, i.e. the general characteristics of the company they work for. Therefore, despite the anonymity of the interviews, the methodology of this thesis can be considered a comparative case study. According to Dul & Hak (2007a: 4) ‘A case study is a study in which (a) one case (single case study) or a small number of cases (comparative case study) in their real life context are selected and (b) scores obtained from these cases are analysed in a qualitative manner’. Additionally, this research strategy can be categorised as a practice-oriented case study with the aim of providing relevant knowledge to particular CSR practitioners (Dul & Hak (2007b). According to Dul & Hak (2007c) practice-oriented research is a descriptive approach, aiming to explore practice and theory without a specific hypothesis. For the purpose of this research, a hypothesis cannot be formulated, as it is not possible to derive a hypothesis from the existing research, without the risk of overlooking relevant factors of B2B communication of CSR. Therefore, this study must aim to discover variables that influence B2B communication of CSR.
In the course of developing this research strategy, numerous research methods have been considered, including questionnaires, interviews and focus groups. However, interviews based on a case studies sampling method were evaluated as the most useful methods for answering the research question, as this method contributes to an in depth understanding of CSR communication. Yin (2014: 4), for instance, states that ‘Whatever the field of interest, the distinctive need for case study research arises out of the desire to understand complex social phenomena’. Thereby case studies enable a researcher to thoroughly study a real life phenomenon - in this case CSR-branding in B2B companies. According to Raf & Koen (2007), a case study is considered a useful research strategy when the topic is broad and complex and when the context is considered important in order to answer the research question. Regarding the communication of CSR in B2B companies, it is a highly complex topic due to variations in the practice and understanding of CSR in different countries, industries and companies. Furthermore, due to the complexities of B2B companies, this
P a g e 19 | 133 thesis does not aim to use the interviews to determine how all B2B companies can communicate CSR, but to reveal how different types of B2B companies might have to adopt different communication strategies.
Other methods, including probability sampling, focus groups and quantitative questionnaires were not elected because of the importance of the concepts. What is important is not just the information provided by questionnaires, interviews or focus groups, but the context, i.e. the characteristics of the companies that the interviewees represent. Thus, the interviewees could not be CSR managers for any B2B company.
The main disadvantages of case studies and qualitative interviews are biases related to the findings and the difficulty of generalising the findings. According to a literature review on the critique of case studies by Blaikie (2010b), particularly supporters of quantitative methods are sceptical of not only case studies, but qualitative research in general. They argue that qualitative research cannot be replicated because of the researcher’s influence on the results. Furthermore, the sampling method used in case studies is rarely probability sampling, so the findings cannot be easily generalised on a larger population that fits the same criteria as the sample. However, according to Blaikie (ibid.), generalisability could still be possible if judgement or purposive sampling is used, which selects cases based on detailed criteria. In theory, other researchers would be able to select cases based on the same criteria and, thereafter, conduct research with the similar results. Blaikie (ibid.) also refers to the argument that transferability of the findings in case studies may be possible if the researcher supplies detailed information about the context, so other researchers can judge whether or not the findings can be related to their cases as well.
To address these critiques, this thesis uses purposive sampling to select relevant cases and provide a detailed description of the selection criteria, as well as the contextual characteristics of the cases
2.2.3 Non-probability purposive Sampling
Purposive sampling or judgement sampling, is a non-probability sampling method that selects cases based on certain criteria (Saunders, Lewis & Thornhill, 2016b). It is often used to study organisational behaviour.
Thus, Blaikie (2010a) explains that one approach to the selection of cases is choosing companies that successfully operate the studied phenomenon, i.e. best case practices. Saunders, Lewis & Thornhill (2016b:
301-303) distinguishes between the following six types of purposive sampling methods:
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Extreme case purposive sampling: Select unusual or extreme cases to highlight particular findings.
Heterogeneous purposive sampling: Select cases on the basis of distinguishing characteristics.
Homogeneous purposive sampling: Select cases with similar characteristics.
Critical case purposive sampling: Select a case that can clearly illustrate your point.
Illustrative case purposive sampling: Select typical cases.
Theoretical sampling: Cases selected with the purpose of developing a theory.
For the purpose of this study, homogenous purposive sampling will be carried out, in order to select case study companies that represent best practices in the communication of CSR in B2B corporate branding.
2.2.4 Selecting Companies with Homogenous Purposive Sampling
According to Saunders, Lewis & Thornhill (2016b), homogenous purposive sampling consists of selecting cases on the basis of predefined criteria to ensure that the cases share similar characteristics (ibid.). The similarities between the cases will facilitate the identification of significant differences. For this study, the companies for which the interviewees work will share the following characteristics:
B2B: The core business must be business-to-business.
Profit-driven: The core business must be profit-driven.
Location: The headquarters must be in North Zealand.
Market leader: The company must be leading in Denmark, based on sales and labour force.
CSR legislation: The company must be required to report on CSR initiatives in their annual financial statement, i.e. categorised as either accounting class C or D (Dansk Industri, n.d. a).
The United Nations Global Compact: The company must be a member of the UN Global Compact.
Corporate purpose: The company must communicate CSR in either their vision, mission or values.
In the following, the above mentioned selection criteria will be explained with particular focus on why these criteria are important in order to answer the research question.
Company-related Criteria
The first criterion is that all the cases must be B2B companies, so their main customer must be business customers. According to the second criterion, all cases must be profit-driven, thereby excluding non-profit, non-for-profit or social enterprises, as these companies might communicate CSR significantly differently.
P a g e 21 | 133 Additionally, it is a criterion that the companies’ headquarters are in North Zealand, not only due to the limited resources for travelling of the researcher, but also because this will make it more likely for the interviewees are knowledgeable of the company’s strategy for CSR and corporate branding.
In order to identify best practice companies, the selected cases must also be leading nationally within their industry. Hence the selection of relatively large companies. In fact, all the selected companies operate on international markets, although the reach of their business operations varies significantly.
Interestingly, the selection of the six companies for the interviews is also a heterogeneous sampling method, as the companies selected represent different industries, including industrial engineering, IT consultancy, pharmaceuticals, biotechnology and industrial transportation. Since the context of the companies will, therefore, vary significantly, any patterns that are discovered will be of particular interest.
CSR-related Criteria
Each of the selected companies must be required by law to communicate their CSR policy in their annual financial statement, i.e. they must belong to either accounting class C or D (Danish Business Authority, n.
d.), which includes listed and state-owned European companies with +500 employees, as well as companies that are likely to have +250 employees, a net turnover of DKK 313 million and a total balance sheet of DKK 156 million (Dansk Industri, n. d. a).
In addition to this, each of the selected companies must be a member of the UN Global Compact, because they thereby signify that they are not only communicating CSR because it is required by law, but because they are genuinely committed to engage in CSR initiatives. The initial sample of this thesis consisted of the 133 Danish companies that are active members of the United Nations Global Compact (n. d. a). Each of those companies were then evaluated in order to find out which of them also fulfil the other criteria.
Both Visser (2014) and Kotler (2010) emphasise the importance of communicating CSR in the corporate vision, mission and values. Therefore, the selected companies must also express their CSR commitment through either their vision, mission and values. Visser (2014: 4-5) explains this reasoning by referring to his definition of CSR, namely Corporate Sustainability and Responsibility, where ‘sustainability can be
conceived as the destination—the challenges, vision, strategy and goals, i.e. what we are aiming for—while responsibility is more about the journey—our solutions, responses, management and actions, i.e. how we get there’. Similarly, Kotler (2010) emphasises the importance of planning long-term when implementing CSR: ‘To be long-term, sustainability has to be the company’s strategy arising out of its mission, vision and
P a g e 22 | 133 values’ (ibid.: 110). Thus, expressing CSR in either the corporate mission, vision and values suggests that a company considers CSR to be a part of their long-term strategy.
Out of the initial sample of 113 Danish UN Global Compact members, six where selected for interviews. The main reasons that companies did not fulfil the criteria was that they mainly operated in B2C markets, they could not be considered market leaders, they did not belong to the right accounting class or their
headquarters were not in Denmark. The six companies selected operate in the following B2B industries:
industrial engineering, IT consultancy, industrial transportation, biotechnology and pharmaceuticals.
2.2.5 Semi-structured Interviews
As mentioned, six companies were selected from the sample of B2B companies that fulfil the criteria of the homogenous purposive sampling method. In each of these companies, the manager and in some cases vice-president responsible for the communication of CSR was interviewed. Although questionnaire surveys would be able to collect data from a larger sample, these were not selected as the data that needs to be collected stems from middle-managers in several corporations, who may be more willing to participate in interviews than answer a questionnaire. This is supported Saunders, Lewis & Thornhill (2016c: 394), who found that ‘managers are more likely to agree to be interviewed, rather than complete a questionnaire, especially where the interview topic is seen to be interesting and relevant to their current work’. They argue that face-to-face interviews allows them to obtain personal assurance about how the information they provide will be used. Managers, in oppose to other employees, will be interviews as they may have a more detailed knowledge of the company’s CSR communication strategy. Additionally, questionnaires cannot collect data on the respondents’ meanings and experiences, which is important in this thesis.
With regard to interviews, it is important to consider which type of interview is most suited for the purpose of this research. Saunders, Lewis & Thornhill (2016c) distinguishes between three types of interviews, namely structured interviews, semi-structured interviews and unstructured or in-depth interviews.
Structured interviews consist of standardised questionnaires and aim to collect quantifiable data that is generalizable (ibid.), so these were not selected because this they do not recognise the subjectivity and
P a g e 23 | 133 complexity of the socially constructed nature of social reality. Although generalisation is practical, it is also a simplifying of the complexities of the findings (ibid.). In this study, for example, using structured
interviews with closed questions, would not provide information regarding the perceived challenges of CSR communication or the main purposes of the strategies.
Therefore, either semi-structured or in-depth interviews must be used for this study, particularly because they are non-standardised qualitative research interviews, which allows the researcher to understand the what, how and why of certain behaviour, without ignoring the significance of context (ibid.). As in-depth interviews are not based on pre-selected questions, these allow the conversation to flow more naturally and perhaps allows it to take unexpected turns. However, in order to ensure that the topics covered during the interview will provide adequate information to answer the research question, semi-structured
interviews will be conducted. In semi-structured interviews the researcher relies only on a list of themes that need to be covered, and sometimes a few open-ended questions (ibid.). The themes and questions ensure that the conversation does not take irrelevant turns, but at the same time they allow the researcher to be flexible and allow the interviewee to talk about what he/she perceives to be relevant for the theme.
As with qualitative research in general, there are a number of concerns regarding the quality of semi- structured and in-depth interviews. These mainly concern the generalisability, reliability and the credibility of the research and the research findings (ibid.), but there are ways to overcome some of these issues.
As mentioned, generalisability is not the aim of this research, as the findings regarding CSR communication will be context specific, so others will have to judge whether the findings apply to other contexts.
With regard to the reliability of the findings, there are a number of biases from both the interviewer and the interviewee that one must be aware of (Saunders, Lewis & Thornhill, 2016c). Regarding the researcher, he/she must be careful not to influence the answers of the interviewee by using a certain tone of voice or formulating ambiguous questions during the interview. Yet, at the same time the researcher must ask probing questions and express interest in what the interviewee is saying. Additionally, there is a risk of creating biased results in the analysis and interpretation of the interviews. To reduce the risk of biased interpretations, the analysis will draw on existing research on CSR communication. However, it is not possible to avoid all biases, as the research will always be subjective. Furthermore, concerning the bias of
P a g e 24 | 133 the interviewee, there is a chance that the interviewee may omit certain information in order to present the company in a particular light (ibid.). It will, therefore, be up to the researcher to use probing questions to in order to determine when the interviewee is doing so. Moreover, it is important to note that the interviewees include both CSR and communication manager, depending on which department is responsible for CSR communication, but it is unclear how this affects the results of the thesis.
Additionally, according to Saunders, Lewis & Thornhill (2016c) there is a concern regarding the credibility of the research, which refers to the extent to which the results are believable, but it also refers to the
credibility of the interviews (ibid.). Credibility is achieved through a thorough explanation of the
methodological choices and a thorough analysis of the data. Regarding the interviews, Saunders, Lewis &
Thornhill (2016c) suggest that the interviewer sends the list of themes prior to the interview, so the interviewee can prepare for the interview and, thereby, provide more credible information. Yet, the
interviewee must also perceive the interviewer to be credible, or he/she may hesitate to share information.
Therefore, Saunders, Lewis & Thornhill (2016c) suggest that the researcher prepares the interviews by researching the existing literature on the topic, in detail. This will be done by studying the annual report and sustainability report of the companies prior to the interviews.
For this thesis, six interviews were conducted with managers responsible for CSR communication in B2B companies. The interviews were planned and tested to be approximately 30 minutes, but in practice their length varied depending on the answers of the interviewees. Importantly, each of the interviews are anonymous. Since the interviewees were all managers or Vice-Presidents of CSR, communication or CSR communication, revealing the company they work for would also reveal who they are. Consequently, the companies they represent must be anonymous as well. Yet, the particular characteristics of the companies can still be considered in the analysis, in order to highlight differences between industries.
2.2.6 Qualitative Semi-Structured Interview Questions and Themes
In the following the themes provided to the interviewees prior to the interviews will be outlines. Inspiration to the themes were gathered from the literature review on CSR and discussions with a former marketing student and current content manager in a B2C company, who also had experience working in B2B
P a g e 25 | 133 companies. Several of the themes are also based on Visser’s (2014) 70-questions in his self-assessment diagnostic tool, which he developed to help companies evaluate their CSR initiatives. Specific questions from Visser’s assessment tool will, however, not be included as the questions were formulated to provide quantifiable data. Finally, all the themes were evaluated according to their ability to answer the following sub questions of the research question:
What strategies do B2B companies use to communicate CSR?
What is the main purpose of their CSR communication strategy?
Which stakeholders do B2B companies primarily communicate their CSR messages to?
Is CSR perceived by B2B companies to be a competitive advantage?
What are the main challenges regarding communication of CSR in B2B companies?
By using themes instead of specific questions, the interviews were expected to correspond more to a natural conversation and, thereby, lead the conversation to unexpected topics. It should be noted, however, that although the interviews are referred to as conversations, the interviewee was only
participating in the conversation with questions, probing questions and expressions of interest, which were intended to encourage the interviewee to provide more detailed answers.
It was not possible for the interview themes to be tested on a representative from a B2B company.
However, they were tested on a content manager responsible for the Danish market in a B2C company. The test particularly showed that it may be useful to ask questions about particular types of information
through which the company communicates CSR, e.g. factual information, emotional appeals and references to external experts. The test also found that it is useful to begin by asking simple questions about the interviewees particular job and responsibilities, as this is a simple way to get the conversation going.
Additionally, the interview test revealed that it may be useful to begin by asking the interviewee to explain his/her understanding of CSR, as this will provide a deeper understanding of their CSR strategy.
Semi-structured Interview themes Your understanding of CSR
Motivation for communication of CSR
P a g e 26 | 133 The role of CSR in your company
Your CSR communication strategy
Main messages
Communication channels, online and offline, internal and external
Types of information: factual, quotes from experts, emotional appeals etc.
Target audience(s) of your CSR communication strategy
Communication of CSR in your industry - expectations from stakeholders regarding CSR Challenges of communicating CSR
The role of CSR for your corporate reputation and image Competitive advantages of communicating CSR
Your ambitions regarding CSR
Communication of CSR in business-to-business companies
These interview themes were translated (appendix A) and sent to the interviewee as all except one of the interviews were conducted in the native language of the interviewees, i.e. in Danish. One interviewee was a native English speaker, so naturally the interview was conducted in English. However, it is important to note that the researcher’s native languages are both Danish and English. All interview citations from the Danish interviews, which are used in this study have been translated. There is of course a risk that the researcher expresses a certain interpretation of the interviewee’s words in the translation. However, it was important that the interviewee felt comfortable and willing to share detailed information during the interview, which was perceived to be more likely in their native language. To avoid too many
interpretations through translations, each interview was transcribed and analysed in its original language, as misinterpretation is more likely to occur if the entire transcripts were translated.
2.2.7 Presentation of Interviewees
The six interviewees are all managers or vice-presidents in their companies with responsibility for making strategic decisions regarding the communication of CSR. However, some were CSR managers, responsible for developing CSR projects, and some were communication manager, responsible for all internal and
P a g e 27 | 133 external communication, including branding. This seems to affect the results because the interviewees responsible for CSR spoke more detailed about the company’s CSR projects than the communication managers. Additionally, despite using homogenous sampling to select best case practices of CSR communication in B2B contexts, the six selected companies do not all represent best case practices, as some of them do not use CSR strategically, but just for CSR reporting purposes. This suggests that the criteria of the homogenous purposive sampling method were not sufficient to identify best case practices.
However, including these companies turned out to be particularly useful to identify the main challenges that B2B companies are faced with when communicating CSR.
2.3 Method for Analysing the Research Findings
Research can be based on either primary or secondary data (Saunders, Lewis, & Thornhill, 2016d), referring to data that is collected by the researcher or by other researchers.
Secondary data can be useful if the researcher’s resources to collect his or her own data are limited economically or time-wise (ibid.). Yet, relying only on secondary data can create misleading results, as secondary data was originally collected for a different purpose (ibid.). In this thesis the main sources of secondary data used will come from the findings from existing research on CSR communication, which will be used to illustrate and emphasise the significance of findings from the analysis of the interviews. This data is defined as secondary data because it has not been created for the purpose of this thesis.
On the one hand, collecting primary data may be costly and time consuming, so in the time frame of this thesis, it will not be possible to collect data from a large sample. Yet, on the other hand, using primary data is useful because it is collected for the purpose of this thesis and it represents the exact time and context studied. The primary data of this thesis will be textual and qualitative, i.e. the semi-structured interviews.
Although abductive research strategies tend to rely only on observations, this research uses existing research on CSR communication to reduce the risk of biased results in the analysis of the primary data. A literature review was conducted with the purpose of outlining the main challenges and strategies for CSR communication, as well as particular concepts which, according to the research, influences CSR
communication. This will help to understand if similar challenges or strategies apply to the B2B contexts.
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3. A Literature Review on CSR Communication
This thesis draws on primary data from semi-structured interviews of six B2B CSR managers. In the
following literature review, previous research on CSR communication has been analysed in order to identify the challenges that highlight, the concepts they relate to CSR communication and the strategies used to communicate CSR. These have been evaluated to determine if they also apply to the B2B context.
CSR communication and CSR corporate branding are both forms of communication. Communication can take many forms and has received numerous definitions, including ‘the passing of information, the exchange of ideas, or the process of establishing a commonness or oneness of thought between a sender and a receiver’ (Belch & Belch, 2012: 148). In other words, communication involves a minimum of two parties, i.e. a sender and a receiver, and some information that is being transmitted. Without a doubt, this is a simplification of the complexities of a communication process, as the receiver will not necessarily perceive the information in same way as the sender. The receiver’s interpretation of the information will, for instance, be influenced by his/her personal experiences and perception of the sender (ibid.). According to Belch & Belch (2012) a communication process can, therefore, include the following elements:
A sender, which can refer to a person, a group of people or an organisation
An encoding process through which the sender encodes a message
A message, i.e. what the sender aims to communicate to the receiver
A channel through which the message and information is communicated
A decoding process through which the receiver interprets the message
A receiver, i.e. the target audience of the communicated message
It is important to note that the actual CSR communication process may be more complex than the above six elements suggest, as they, for example, do not consider the context through which the sender
communicates the message or the context through which the receiver interprets it. Yet, within the limits of this thesis, it has not been possible to contact the target audience, i.e. the receivers of the CSR
communication strategies. Despite this, focusing on each of the six elements in the analysis of existing research, will suggest in what areas of the communication process companies are particularly challenged regarding CSR communication and whether or not these challenges apply to the B2B context.
