The management of CSR within the
plastic industry
A study of plastic producing companies within the Gnosjö region in
Sweden
Master’s degree project
Thesis within: Business Management Numbers of credits: 30 ETCS Programme of study: Civilekonom
Authors: Sara Avramidou & Maria Tellstedt Jönköping: May 2020
Master Thesis in Business Management
Title: The management of CSR within the plastic industry Authors: Sara Avramidou & Maria Tellstedt
Tutor: Elvira Ruiz Kaneberg Date: May 2020
Key terms: Sustainable production, Corporate Social Responsibility, Plastic industry, and Plastic waste management
Abstract
Background: The matter of Corporate Social Responsibility (CSR) has more and more become a topic of interest today. As the concept has gained attention, the emphasis on its different concepts has shifted from the focus lying on the social responsibilities, to being more about the environmental responsibilities and impact of companies. Although the attention put on CSR and the environment has increased, an increase in the amount of plastic waste is still seen in the world. In Sweden, corporations accounts for as much as 50% of the total amount of plastic waste every year.
Purpose: The purpose of this thesis is to analyse the management of environmental Corporate Social Responsibility in plastic producing companies, specifically the management of CSR within the Gnosjö region in Sweden
Method: This qualitative study involves multiple case studies primarily based on semi-structured interviews with managers of plastic producing companies in the Gnosjö region of Sweden.
Findings: The study showed that plastic companies are challenged in several ways, like re-using their production waste, caring for their employees, switching to more sustainable energy sources, and adhering to sustainable standards. Thus, companies’ goals are required to satisfy environmental demands by positioning their CSR-work towards customers’ environmental needs.
Conclusion: This thesis conclude that companies’ have different views on the meaning of CSR. It was found that sales and profit were the main motivators of adopting CSR practices, followed by some ethical aspects. Companies will continue to experience an increased demand for recycled plastics and that the importance of CSR will persistently grow. New knowledge demands the development of new materials and better strategies for recycling.
Table of contents
1. Introduction
...7
1.1 Background ...7 1.2 Problem ...8 1.3 Purpose...9 1.4 Research questions ...9 1.5 Keywords ... 10 1.6 Delimitations ... 11 1.7 Perspective ... 122. Literature review
...13
2.1 The management of Corporate Social Responsibility ... 13
2.2 The plastic industry ... 16
2.3 Carroll’s Pyramid of Corporate Social Responsibility ... 16
2.4 The Triple Bottom Line of Sustainability ... 18
2.5 Legislations of Corporate Social Responsibility ... 19
3. Methodology
...22
3.1 Research philosophy ... 22 3.2 Research design ... 23 3.2.1 Qualitative research ... 24 3.3 Research method ... 25 3.4 Sampling strategy ... 25 3.4.1 Sample size ... 26 3.5 Data collection... 273.5.1 Primary and Secondary data ... 27
3.5.2 Search process... 28
3.5.3 Outline of interviews ... 28
3.6 Data Analysis ... 29
3.7 Trustworthiness & Limitations ... 30
3.8 Ethical considerations ...
32
4. Findings
... 344.1 Plastic use in Sweden ... 34
4.2 Plastic waste streams in Sweden ... 35
4.3 Legislation of sustainable reporting in Sweden ... 36
4.5 Interview Findings ... 37 4.5.1 Case 1 ... 38 4.5.2 Case 2 ... 40 4.5.3 Case 3 ... 42 4.5.4 Case 4 ... 45 4.5.5 Case 5 ... 47 4.5.6 Case 6 ... 49 4.5.7 Case 7 ... 52 4.5.8 Case 8 ... 54 4.5.9 Case 9 ... 56
5. Analysis
...58
5.1 Management ... 59 5.2 Actions ... 61 5.3 Future ... 686. Conclusion & Discussion
...72
6.1 Implications ... 73
6.1.1 Managerial Implications ... 73
6.1.2 Theoretical Implications ... 74
6.1.3 Ethical Implications ... 74
6.2 Limitations & Future research ... 75
List of figures
Figure 2.1 - Carroll’s Pyramid………...17 Figure 5.1 - Linking of findings and theory………...58
List of tables
Table 3.1 - Summary of primary data……….26 Table 3.2 - Coding scheme……….30 Table 4.1 - Case information………...37
Appendices
Appendix 1 - Consent form………....82 Appendix 2 - Interview questions………...83
Abbreviations
CSR Corporate Social Responsibility
ISO International Organization for Standardization SIS Swedish Institute for Standards
UNGC United Nations Global Compact UN United Nations
SMED Svenska MiljöEmissionsData TBL Triple Bottom Line
CEO Chief Executive Officer RQ Research Question
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1. Introduction
In this chapter, the background of the thesis is first presented followed by the problem statement, purpose, and research questions. After that, the parts including keywords, delimitations, and perspective is presented.
1.1 Background
Corporate social responsibility (CSR) is today a widely discussed and current topic of concern in the globalized world. However, it wasn’t until the first contribution of the publication Social
Responsibilities of the Businessman, that the modern era of discussion around CSR was
acknowledged (Ahmad, 2016). The book was published back in 1953 and discussed how companies needed to take more responsibility for their social impact. This was one of the reasons behind the upcoming debate about CSR during the last couple of decades (Garriga & Melé, 2004). Whereas there is still not a known definition of CSR (Dahlsrud, 2008), there are several interpretations behind the concept. According to the European Commission’s official website, CSR is defined as “The responsibility of enterprises for their impact on society” which includes the impact that corporations hold responsibility for in regard to the environmental, social, and economic factors (European Commission, n.d., para. 5). According to the CSR framework developed by Carroll (1991), CSR consists of four different dimensions of responsibilities that companies should strive to fulfil in order to become successful. These four dimensions are economic, legal, ethical, and philanthropic responsibilities which all argue for why companies should fulfil their responsibilities in order to stay in production.
The difference of CSR today compared to before was that the original purpose behind CSR was mainly focusing on the social responsibility of companies. In comparison to today’s development of CSR where the focus has shifted and corporations have become more aware of their environmental responsibility and impact as well (Flammer, 2013). Furthermore, CSR holds an important role in today’s corporations, both in performance as well as in reputation. The ratings of CSR in different companies of today can affect the popularity among their stakeholders in several ways which is why CSR has started to become such an important role in companies’ decision making. As a result of this, companies have now also become more aware of their responsibilities
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towards their impact on the environment and how to sustain sustainability. The discussion of CSR has therefore affected how corporations aim to respond to their responsibilities in order to become more inclusive and aware of the transparency as well as the accountability in their decision making in regard to these perspectives (Ahmad, 2016).
The use of plastic products is an increased convenience in many parts of the world, nonetheless in Sweden. A statistical comparison conducted for Naturvårdsverket, the Swedish Environmental Protection Agency, shows that the use of plastic products has increased by almost 300 000 tons per year between 2010 and 2017. This number is equivalent to an almost 30 kg increase in plastic use per Swedish citizen. Along with the use of plastic products, there is naturally also an increase in plastic waste, which was also investigated in the previously mentioned study. The results showed that the plastic waste in Sweden amounts to 1,6 million tons which is also a tremendous increase compared to previously conducted studies. The largest contributor to this huge amount of plastic waste was identified to be corporations that accounted for approximately 791 000 tons of the total number. Hence, almost 50% of the plastic waste in Sweden comes from corporations (Naturvårdsverket, 2019a). Based on the previous steady increase in the use of plastic products and plastic waste every year, it is justified to assume that the above-presented numbers will continue to increase in the future. This, in combination with the large impact of corporations, makes this topic of interest to investigate.
1.2 Problem
The problem addressed in this thesis is the increased debate about the impact of plastic materials on the environment. The topic of CSR implementation within companies and their handling of waste management is a widely discussed topic that has gained a lot of attention in recent years. A lot of information exists from external parties about the impact and worldviews on plastic products and production. However, a gap was found in the previous literature about the views and thoughts of the people that are actually operating in this business on a daily basis. Namely, leading people within the companies that produce these types of products.
The concept of CSR is a wide subject that most likely exists in some form in most companies. It has gained importance due to its performance-related benefits within companies, but also due to the heavy load of information about how much damage people and organisations are causing to our environment. Many people have now understood the message that everyone needs to contribute to
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the restoration of our environment, not the least from the company side. Since companies and the production industry are a large contributor to environmental harm, they face great expectations and responsibility.
A report made by Naturvårdsverket with the aim to summarize the 2019 progress of the environmental goals of Sweden, states that the overall temperature has increased by one-degree Celsius since the beginning of the industrial era. The report concludes that Swedish companies need to reduce their emissions by 85% from the emission level reported in 1990 if the goal of having zero net greenhouse gas emissions before the year 2045 is to be reached (Naturvårdsverket, 2019b). Small progress on the reduction of greenhouse gas emissions has been identified. However, the desired levels of where the progress should be in the year 2020 will not be reached and it is clear that more actions have to be taken for the possibility of reaching the long-term goal (Sveriges Miljömål, 2019).
With information like the above stated taken into consideration, uncertainties still exist among the authors of this thesis about the bigger picture of plastic products and production. Since a large amount of critique has been directed towards the plastic industry and its producers, it is of great interest to generate insights of the leaders within this industry and enlighten this topic from a holistic perspective.
1.3 Purpose
The purpose of this thesis is to analyse the management of environmental corporate social responsibility in plastic producing companies, specifically the CSR management within the Gnosjö region in Sweden.
1.4 Research questions
RQ1. What is the management’s view of CSR in the plastic industry?
RQ2. To what extent do companies in the Gnosjö region implement CSR practices within their businesses?
RQ3. What are the companies view on future sustainable developments within the plastic industry?
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1.5 Keywords
Sustainable production
In this thesis, sustainable production will imply the directions and actions that companies take to develop products with an overall less environmental impact (Vergragt, Akenji & Dewick, 2014). Therefore, the focus will be on whether companies’ waste management adopt new practices in order to become more sustainable within their production.
Corporate Social Responsibility
In regard to this thesis, the concept of CSR will be defined as the responsibility that companies hold for in regard to meet the concerns from an environmental, economic, and social perspective (European Commission, 2011). This is due to the number of definitions that appear in literature as well as the several different interpretations there are of CSR (Dahlsrud, 2008). Moreover, the main theory about CSR that will be applied throughout the research is Carroll’s Pyramid which covers the areas of economic, legal, ethical, and philanthropic responsibilities (Carroll, 2016).
Plastic industry
In this thesis, the definition of the plastic industry is companies who either develop own products or work as subcontractors. Also, the definition covers the area which solely focuses on plastic producers who are developing their own plastic material from scratch into new products (Gourmelon, 2015).
Plastic waste management
The definition of plastic waste management within this thesis will mainly embrace the responsibilities and environmental impact that plastic producers have (Gupt & Sahay, 2019). In addition to this, the actions taken by the plastic producers concerning the disposal of solid waste within their production will also be embraced. Furthermore, the term waste manager is defined as the person responsible for a business’ prevention of waste, reuse of waste material, and recycling (Zacho & Mosgaard, 2016).
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1.6 Delimitations
Several delimitations were identified throughout the research. In order to narrow down the amount of literature and results that were of concern in relation to the research questions (RQ), there is an importance of reaching certain delimitations of the thesis.
Research topic delimitations
Due to the recent questioning of the production of plastic products as well as the plastic industries’ operations and environmental impact, there is an interest in investigating the possible CSR practices within the plastic industry. In concern of this thesis, the aim is, therefore, to solely investigate to what extent and concern that plastic producers’ take in order to follow sustainable practices. Further research of the plastic waste outside the producer’s operations is therefore not of interest due to the lack of relation to the thesis purpose as well as the topic.
Sample delimitations
The sample size of the thesis was nine managers from different companies within the plastic industry in the Gnosjö Region and the interviews were held separately at different times and locations. Thus, in order to narrow down the primary data and get a more in-depth analysis, the sample size of nine cases was chosen due to its feasibility. The chosen managers were all responsible for the companies’ waste management and were therefore most suitable interviewees in accordance to the purpose of the thesis.
Waste management delimitations
The waste management’s perspective is the main view of this thesis, hence only the managers’ perspective will be presented and not consumers. Moreover, this is due to that the sample of the thesis is managers and the purpose is to gain insights from their view of the plastic industry’s environmental impact. Thus, only the waste managers are of interest to interview since they work within this area of occupation.
Geographical area delimitations
The delimitation of the chosen area to be the Gnosjö region is due to that the purpose of the thesis is to investigate the waste management of plastic companies within this area and not all of Sweden. Since the Gnosjö region is a well-known area of plastic producers, there is a big interest in investigating the management’s operations within this specific region as well as identifying the similarities and differences of behaviours.
12 Theory delimitations
Due to the purpose and direction of the research, one of the several definitions of CSR was chosen in order to fit in with the purpose. Hence, due to the issue of the great degree of literature within the field of CSR, only the most relatable and applicable literature to the research problem was included in the literature review. This was done in order to narrow down the amount of literature found within this field of research and CSR.
1.7 Perspective
The main perspective throughout the conducted research is based on the interviewees’ managerial perspective. Moreover, the interpretation of the plastic producers’ perspective is of interest to investigate in this thesis. Hence, only their view of possible issues and opinions in regards to the topic is therefore presented.
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2. Literature review
The aim of this chapter is to give a better understanding of the research topic and provide additional literature that stands for the theoretical background of the research. Moreover, the literature of this chapter generates a base for the final analysis of the thesis, especially the responsibilities of Carroll’s Pyramid which will serve as a tool for analysing the findings.
2.1 The management of Corporate Social Responsibility
There are many definitions of CSR, however, there is no officially confirmed definition which is why the concept has repeatedly been interpreted by different authorities and organizations (Dahlsrud, 2008). The European Commission has explained CSR as a way for companies to express concerns related to the social and environmental issues within the businesses’ operations. In other words, the responsibility that companies hold for these concerns and how they are working to meet the social, economic, and environmental responsibilities. Furthermore, the concerns are reported and interacted with the companies’ stakeholders (European Commission, 2011).
CSR is not only a positive concept of establishing concerns within the company but also a great opportunity to form a strategic approach to help the companies’ competitiveness in their respective industry (European Commission, 2011). Therefore, by including CSR as an independent part of the companies’ business plans with future and original goals of the business included, but not naturally as an independent part of the plan, could benefit the performance of corporations (Farcane & Bureana, 2015). Primarily, CSR can benefit several aspects of business competitiveness including the savings of costs, relationships to customers, human resource management, risk management, innovation, and capital access (European Commission, 2011).
Adopting CSR practices within companies has become more important in the modern business world. When operating within an industry that has a high environmental impact, the expectations are higher, and the matter of CSR is even more important (Cederholm & Svensson, 2009). Even within a specific industry, companies face different expectations depending on several factors such as size and geographic operation. However, Borglund (2008) argue that it is not a matter of if a company should adopt CSR practices, but rather how they should do it, independent of size, etc.
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CSR also includes other matters than the environmental aspect. The expectations set on companies requires them to work productively, create new job opportunities, as well as yield financial return for their shareholders. However, the environmental aspect receives the most attention nowadays and has forced companies to see the bigger picture and realize their role within the society at large (Borglund, 2008). Wilson (2000) argues that the market is constantly changing and that companies have to keep themselves updated and adjust to current rules and norms. Further, he argues that these types of changes emerge from several different factors. These factors can be changes within markets both nationally and internationally, changes within the competition, and changes in society’s expectations about the company’s behaviour and practices. Wilson (2000) also declares that the effect of society’s expectations is a fact due to the existing trend of companies more often being held responsible for their actions and the damage to people and the environment caused by their products. However, this increased awareness has caused companies to be cautious about how they communicate their CSR practices with the fear of being part of a scandal. Unfortunately, this cautiousness collides with the continuous importance of displaying goodwill as argued by Borglund (2008). Practicing goodwill is important for companies to create trustworthiness which then strengthens the company’s assets and position in the market.
Along with higher expectations of companies, the incentives for sustainable reporting has increased. Although it is not obligated by law for most companies, a large portion of companies still chooses to conduct it of varying scope. Since it is not directly specified by law what such reports should contain, many companies adhere to different non-governmental organisations and directives for recommendations (Russo-Spena, Tregua, & De Chiara, 2018). As an effect of increased expectations from society, both customers and investors have started to put pressure on companies to act responsibly. This also acts as an incentive for companies to conduct sustainable reporting as a way to show their CSR goals and achievements (James, 2014). These reports generally show what companies do to benefit social, economic, and environmental conditions. However, as most companies conduct these types of reports as a way of showing concrete results of their CSR practices, some companies take advantage of the power of the concept of CSR and are only doing it to be perceived in a positive way (Onkila, Joensuu & Koskela, 2014). These companies often state several goals or actions that they take in favour of sustainability. However, they seem to never really report the outcome or progress of these claimed actions (Hummel & Schlick, 2016).
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The recycling of plastic products and waste is essential for the benefit of both people and the environment. This increases the importance of raising awareness among companies and promoting initiatives for acting by the principles of CSR. Some factors contribute to the initiatives of companies for applying CSR practices. These factors affect both incentives for, and against, the use of CSR. Important factors are regulations and industry-specific norms which can limit the use of recycled plastics. This results in that recycled plastic may not be used in the same new products. Instead, it is only used for the production of lower-standard products. Another factor that does not favour sustainable behaviour is the financial factor. An example is the high volume of plastic waste that was sent to the cement industry to be used as fuel as well as a replacement for coal and oil, instead of being recycled. This behaviour is probably initiated by the willingness of the cement industry to pay more than the financial benefits gained by recycling (Fråne, Stenmarck, Sörme, Carlsson & Jensen, 2012).
A recently acknowledged issue that negatively affects companies’ incentives for CSR is the rising price of recycled plastics. Skagerström Lindau (2019) reports about the highest price levels of recycled PET-plastics in over ten years, which now makes the recycled plastic more expensive than newly produced ones. This shift in price might lead to those companies, especially smaller ones, choosing to abandon the recycled alternative due to cost matters. If this trend continues it might lead to huge negative consequences for the development of, as well as incentives for, CSR practices among companies.
A factor that strongly benefits the incentives for CSR practices is the fact that both the demands and the expectations of companies to act sustainably or to carry some type of CSR-related work has increased. However, although it might affect incentives positively, the underlying motivation for adopting CSR practices might not be ethically right. Trollestad & De Geer (2009) states that some companies outing their interest in CSR are looking for a competitive advantage, financial benefits and to promote their brand. They also state that CSR practices should not solely be based on desiring these types of benefits. Rather benefitting people and the society at large should act as motivators for adopting such practices. Wilson (2000) also states that acting ethically and sustainably is just as important as financial performance. The difference nowadays is that adopting sustainable practices within a business is not taken for granted the same way as performing financially. Therefore, the subject has gained increased importance.
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On another note, the increased attention directed at the subject of CSR, although it has brought many positive outcomes, has to lead to some negative incentives as well. Borglund (2008) stated that Swedish companies, in particular, could avoid promoting their CSR work because of the fear of being part of any scandals. However, he also states that the concept will continue to gain importance and be a vital part of a company’s trustworthiness.
2.2 The plastic industry
There has been a reported steady increase in the production of plastics in the last half-century. Due to the versatility of the material and its facilitation of business due to its durability, light-weight, and low cost, it is also expected to double in about 20 years (World Economic Forum, Ellen MacArthur Foundation & McKinsey and Company, 2016). Plastics Europe (2018) reported an increase in plastic production in the world and Europe from 322 million tonnes and 58 million tonnes in 2015 to 335 million tonnes and 60 million tonnes in 2016 respectively. The sector that demands the largest share of plastic in Europe is the packaging industry which accounts for 39,9% of the total plastic production. Other industries that account for large numbers of the plastic that is produced are the building and construction sector as well as the automotive sector. Although plastic production and use are on a steady increase, Europe stands out with 63% of plastic waste in 2016 being recycled, compared to only 37% in the rest of the world. However, between 2006 and 2016, the overall total amount of plastic waste that was collected in Europe for recycling increased with 79%. Not to be neglected is that on a country-specific level, the numbers of plastic recycling is still very uneven (Plastics Europe, 2018).
2.3 Carroll’s Pyramid of Corporate Social Responsibility
Carroll’s Pyramid of CSR includes four different obligations and responsibilities. These are economic, legal, ethical, and philanthropic responsibilities. Overall, the theory explains how companies emphasize ethical responsibility while also making a profit. It, therefore, explains the responsibility companies take on towards the welfare of the community while also making profits. By fulfilling each step of responsibility at a time, you simply move on to the next obligation in the ranking of the responsibilities. In regard to waste management, CSR can help to create even more opportunities within businesses. Yet, it can also help to review the actions that are already taken by firms within the plastic industry (Carroll, 1999).
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Figure 2.1 - Carroll’s Pyramid
Source: (Carroll, 2016)
Economic responsibilities
The economic responsibility that businesses hold for is the first and most fundamental condition to be met for the company to even exist. For businesses to continue their operations, it is required for them to also be profitable as a business which is the main expectation from a societal point of view. As of an origin, the societal expectation of businesses is seen as the institutions who produced and fulfilled the need for different products or services that were requested of them. Therefore, it is of great importance to encourage various shareholders or owners to continue their investment in the business for them to proceed with their operations and fulfil this responsibility (Carroll, 2016).
Legal responsibilities
The legal responsibilities include the minimal amount of ground rules and laws that businesses are expected, as well as required, to be following to proceed with their operations. These regulations are based upon the laws that each country, state, or domestic area has where the businesses hold their operations. Furthermore, from a societal perspective, it is therefore expected that companies follow the rules and laws that their businesses are affected by for them to continue their operations (Carroll, 2016).
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Ethical responsibilities
The ethical responsibilities represent the expectations of businesses to not only follow the regulations such as laws and rules but also the ethical actions during their operations. Whereas laws cannot assign the guidance needed, the ethical expectation is therefore considered to be the main aspect when conducting the work in businesses in consideration of a societal perspective. Overall, the ethical responsibilities cover what is not included in the law, which is the standards, activities, practices, and policies in society (Carroll, 2016).
Philanthropic responsibilities
The philanthropic responsibilities are neither required or expected by society, but instead, it could be considered as a desired responsibility that businesses undertake due to the expectations from the public sector. Philanthropy explains the behaviour and actions that businesses do to be considered as a good corporate citizen as a business in society. These actions or behaviours are often considered as giving back to society in various forms of donations, volunteerism, gifts, community contributions, etc. Furthermore, philanthropic responsibility has historically been considered the most influential and important element of CSR (Carroll, 2016).
2.4 The Triple Bottom Line of Sustainability
The Triple Bottom Line (TBL) theory explains the three pillars of sustainability which are economic, social, and environmental. It helps companies to measure the commitment in the three different pillars as well as incorporate the values of each category. The measurement, therefore, helps companies to discover gaps where they need to put more focus on the values within the economic, social, and environmental factors. Furthermore, the three pillars can be categorized in to three different sectors where profit equals the economic pillar, people explain the social pillar and lastly, the planet stands for the environmental pillar. The idea was to seek sustainable development when combining and fulfilling these three categories (Shnayder, van Rijnsoever & Hekkert, 2015).
The people category which stands for the social pillar of the TBL theory, explains the importance of preserving the relationship with people affected by the business. These relationships include all the parts who are affected by the operations of a business, both internally and externally. The internal stakeholders in the case of businesses are the employees working for the firm as well as the consumers buying the products and services of the company. Furthermore, the external category
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includes everything from shareholders and stakeholders to the members of the community. The environmental pillar explains the planet category which includes information regarding the sustainable actions firms are expected to take on to protect the planet and sustain sustainability. Waste management, water reduction, saving of energy, and developing renewable energy are only a few examples of ways businesses can contribute to fulfilling this category of the TBL. The last category, which is profit, stands for the economic pillar where the economic health of businesses is explained. The profit that businesses make contributes to the total net worth that is presented which can be fulfilled and improved by example introducing new market entries or cost reduction in production (Shnayder et al., 2015).
2.5 Legislations of Corporate Social Responsibility
As of today, there exist several different guidelines, principles, and standards to follow in regard to the work of CSR in different industries as well as regulations covered by the law, which are then mandatory to follow. These legislations, as well as directions, are based upon the expectations that the society and consumers have on plastic producers. Furthermore, this comprehends the overall impact that companies have on the environment and society, both from a positive and negative perspective. The legislations are therefore created as a tool for companies to follow so that one may reduce and prevent the risks of the negative sustainable impact of our environment (European Commission, n.d.). Regarding this thesis, the legislations and standards that were of interest were the United Nations Global Compact (UNGC), Sustainable Development Goals (SDG), and International Organization of Standardization (ISO), which will be further explained in this chapter. Through corporate sustainability reports, the stakeholders and the public can follow businesses’ sustainability performances. However, over the years due to the voluntary sustainability reporting, the possibility of interpreting and focusing on the main positive aspects of the performances, businesses can manipulate reports to be interpreted as far more positive than they are. In some cases, greenwashing as a tendency of reporting can occur (Hahn & Lülfs, 2013). The concept of greenwashing is a repeatedly used term for negative purposes as it refers to the misleading information that is given to consumers regarding companies’ sustainable impact. Furthermore, greenwashing helps to distract consumers’ attention from the less environmentally friendly impact that companies have by instead conducting greenwashing and showing off what they are doing for the environment (Parguel, Benoît-Moreau & Larceneux, 2011).
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Back in 1999 at the World Economic Forum, UNGC was initiated by the United Nations’ (UN) secretary-general of the time. The initiative was first put in motion by the 26th of July in 2000 and was then officially launched at UN’s headquarters in New York. The aim of the initiative and the official compact was to create universal principles and guidelines regarding labour law issues, human rights, corruption directed to companies, and environmental issues. Furthermore, the purpose of the initiative was to bring the UN and businesses together to work against these global issues and together create a global movement to develop a sustainable future (Global Compact Network Sweden, n.d.).
Today, UNGC has reportedly more than 10 000 companies registered in 173 countries with more than 77 000 public reports (United Nations Global Compact, n.d.). By becoming a member of the UNGC, companies accept the rules and conditions of the organization as well as commits to work with the principles of the compact. These are based upon 10 principles which include the earlier mentioned human rights, labour law issues, anti-corruption, and environmental issues. Furthermore, since 2015, members of UNGC are also expected to work with the 17 UN sustainable development goals. Also, the companies are expected to report about the work and progress made within these principles and goals annually to the UN (Global Compact Network Sweden, n.d.). In 2015, the united nations general assembly adopted what is called “Transforming our world: the
2030 Agenda for Sustainable Development”. This project includes the 17 sustainable development
goals that are aimed to be reached before the year 2030. These goals are embraced by all the united nation member countries and the aim is for all countries to work together to reach the goals (United Nations, n.d.).
Furthermore, ISO was founded in 1946, became operational in 1947, by a group mainly consisting of engineers who were concerned about the national standard settings in the various industries (Murphy & Yates, 2009). ISO is today the largest non-governmental institutional developer of voluntary international standards in the world and has its Central Secretariat based in Geneva (International Organization for Standardization, 2018). The Swedish Institute for Standards (SIS) is the Swedish organization that works with the development of standards and is therefore also a member of the international institute of standards (Svenska Institutet för Standarder, n.d.).
ISO has developed more than 22 000 published international standards which are including various sectors of industries as of today and has 164 member countries within their organization
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(International Organization for Standardization, 2018). Furthermore, the work of ISO has had an important and considerable impact on the procedures of operations within the different sectors of industries and businesses which has formed the way corporations conduct their operations today (Murphy & Yates, 2009). In line with the purpose of this thesis, the ISO standards that are of interest are 9001 and 140001. ISO 9001 stands for quality management within an organization’s production of goods (International Organization for Standardization, 2015a) and ISO 14001 specifies the environmental management requirements that companies can care for to proceed with their sustainability work and performances (International Organization for Standardization, 2015b).
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3. Methodology
In this chapter, the overall philosophical view of the research is established and presented, as well as the method of the conducted study. Furthermore, each step of the sampling strategy will be introduced in more detail which is the overall purpose of this chapter. The trustworthiness, limitations, and ethical considerations will also be further discussed.
3.1 Research philosophy
According to Easterby-Smith, Thorpe & Jackson (2015), it exists several reasons and motives as to why authors should explain the philosophical issues behind their research. To give readers an understanding of how authors have reached the outcome of their research, it is of great importance to explain the philosophical factors behind the study. Within the field of philosophical research, it exists two different views that can be interpreted while conducting new research which is ontology and epistemology (Easterby-Smith et al., 2015).
As for the ontology, it is of great importance to argue for what ontological perspective that the thesis is based on since it explains the philosophical assumptions that the authors have taken while conducting their research. Concerning this thesis, relativism has been the chosen ontology where its meaning is based on the perspective of several different realities depending on the observer’s viewpoint. Also, the chosen ontology is supported by the choice of conducting a qualitative study with cases and interviews which are repeatedly connected to the perspective of relativism. However, it could be argued to be a combination of the ontological perspectives of relativism and internal realism, due to the perspectives’ relation to conducting multiple-case studies. Yet, the philosophical perspective as internal realism is supported by a larger sample of cases and surveys for research where the truth is already set and existing, however not visible. Thus, since the collection of primary data will be based on a smaller sample size of 9 individual cases’ views, the
truth will be following relativism due to the several perspectives of different companies
(Easterby-Smith et al., 2015). Moreover, the choice of relativism is, therefore, the most suitable approach for this thesis.
Furthermore, epistemology is explained by the authors Easterby-Smith et al. (2015) as “...the
theory of knowledge and helps researchers understand best ways of enquiring into the nature of the world.” (Easterby-Smith et al., 2015, p. 134). It exists two different perspectives in
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epistemology of how researchers should conduct their social science research which is positivism and constructionism. The perspective of positivism argues that with the help of objective methods, the existence of the social world is mainly externally perceived through these methods. This perspective is in strong contrast to the perspective of constructionism where the main assumption is based on that there is no pre-existing reality which is the case of this thesis. Therefore, the work of a researcher is based on the encouragement to observe and understand how people are perceiving their reality (Easterby-Smith et al., 2015).
In addition to the previously mentioned arguments, there is an intermediate chance of a combination of epistemologies when conducting both a within- and cross-case analysis (Easterby-Smith et al., 2015). As for this thesis, there is a need for combining both approaches due to the RQs as well as the purpose of the thesis. As in RQ2, the purpose is to investigate the individual cases’ implementation of CSR practices where a within-case analysis is the most appropriate method. Moreover, as for RQ1, the purpose is to investigate the management’s view of CSR in the plastic industry, and it is therefore of interest to conduct a cross-case analysis to compare the different answers from the interviewees. Therefore, the most suitable approach is a combination of positivism and constructionism due to the necessity of including the two different types of analysis in this thesis.
3.2 Research design
The research design for this thesis is of an exploratory nature that is highly compatible when conducting a qualitative multiple-case study. As the aim of the thesis is to gain a holistic perspective of managers’ views of CSR within the plastic industry, the exploratory method served as a natural choice.
Apart from an exploratory research design, there is an explanatory method that is also used when conducting a multiple-case study. The difference between these designs is that an explanatory design builds on the purpose of affirming an existing theory in literature, while an exploratory design allows the researchers to build a new theory (Yin, 2018). Furthermore, Yin (2018) explains that the purpose of conducting a study with multiple cases strengthens the argument of theory building due to the several different perspectives that allow being compared. Additionally, an exploratory research design is most often connected to research questions that begin with a “what”, “to what extent”, “how many” or “how much”. Hence, in regard to the research questions of this
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thesis which begins with a “what” and “to what extent”, the choice of an exploratory method is therefore favoured and also serves as the most applicable method
(Yin, 2018).
3.2.1 Qualitative research
Qualitative data represent non-numeric sources of information. The collection of qualitative data most often occurs in conjunction with other people, either directly or indirectly. Common methods through which researchers collect qualitative data are interviews and their transcripts, other written information collected through observations of different kinds, and information gathered from documents such as different company reports and meeting documentation. In other words, qualitative data includes recordings or written documentation of what has been said or done by people that are of interest to the research. However, what is important to acknowledge about qualitative data is that it often does not exist beforehand. For example, when choosing to do interviews, potential interviewees must be contacted, and the interviews must be prepared for. After that, the interviews must be conducted and later transcribed. Hence, it is the researcher that must create and set the conditions for what the outcome of the interview is going to be. The individual differences and presumptions can create unique outcomes and will result in data that did not exist before (Easterby-Smith et al., 2015)
In contrast with quantitative research, qualitative data is a lot less standardized and structured. When conducting qualitative research, open-ended questions are the favoured structure of interviews which opts for a more explorative nature. This makes it of great importance to document the collection of qualitative data since the answers may vary and go beyond what the researchers had planned. This diversity usually limits the number of people or companies that a researcher has the resources to work with as well as the analysis between the data and statistical resources (Easterby-Smith et al., 2015)
As for this thesis, the most appropriate method is to conduct qualitative research due to that it fits well with the purpose of investigating the management of CSR within the plastic industry as well as conducting a case study. Further, qualitative research is applicable when managing and transcribing recorded data from interviews into words whereas the quantitative research focus is more on numeric data. Thus, since the concept of CSR is still an undefined and discussed topic of
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concern, there is difficulty in explaining and comparing this concept in numeric data as for the quantitative research which argues for applying a qualitative research method.
3.3 Research method
For the research method of this thesis, we decided to use the case study method. Yin (2018) describes the use of case study method as a way to understand complex social phenomena. He suggests this specific method when investigating organisational and managerial processes, amongst others, which is best suitable for this thesis. While the method gives a holistic and real-world perspective, it also enables the researchers to go more in-depth with a case. There are two different methods to choose from within case study research. These are either single or multiple-case study methods. For this thesis, we decided to conduct a multiple-case study of nine companies and hence view each participating company within our thesis as an individual case. We chose the multiple-case study method as it aims to exploit differences and similarities between each multiple-case which is in line with the intent of this thesis. However, the method still allows one to perform analysis within each case as well as across them. This is in contrast to the single-case study method which is best suited when the aim is to explore and relate to theory (Yin, 2018).
3.4 Sampling strategy
We chose to conduct our research in Sweden to narrow down the information search as well as for accessibility reasons and to be able to utilize our national contacts and native language. To further narrow down our research we chose the Gnosjö region as our sample. The Gnosjö region is a region in the southwest of Sweden that consists of the four Swedish municipalities Gislaved, Gnosjö, Värnamo, and Vaggeryd. The region is known for its many, and often successful, industries where plastic production is a very common focus. Due to the accessibility and the relevance of the Gnosjö region for this research and the pre-existing connections between the authors and the region, selecting this region as the area of research was a justified choice.
With plastic producing companies within the Gnosjö region as our identified population, we first decided to use non-probability sampling, or more specifically purposive sampling, which is a form of non-probability sampling. Purposive sampling is explained by Easterby-Smith et al. (2015) as a method where specific criteria for the sample are pre-defined. Hence, before selecting subjects to be included in the project, they are first examined to determine their fit for inclusion. When selecting companies to include in our thesis, we had pre-defined criteria of the companies having
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at least 20 employees for them to be of interest. However, after reaching out to all companies we could find within our criteria of size and location, which ended up to be 21 companies, and not receiving enough approvals, we decided to make a change. To expand the number of possible companies to target, we decided to remove the criteria of at least 20 employees completely. This resulted in that our new sampling strategy became a form of probability sampling since all plastic producing companies within the Gnosjö region now had an equal chance of being selected (Easterby-Smith et al., 2015). Thus, with regards to the changes in our sampling strategy criteria, we ended up contacting a total of 24 plastic producing companies whereas nine of these agreed to participate in an interview.
Overall, we will compare companies of different sizes that are operating in the same region, and that are all working with injection moulding, which is a method of injecting molten plastic into a mould. This will be done to investigate why they are working with CSR and what the drivers are in general to gain a holistic understanding of the general view of waste management within the local plastic industry. Also, we will investigate to what extent the concept is implemented within the companies and what effect it has on their daily operations as well as possible changes that have been done in regard to the subject of CSR during the last decades.
3.4.1 Sample size
Table 3.1 - Summary of primary data
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After defining our sample and reaching out to a total of 24 companies, we ended up with a sample of nine companies of varying sizes. The chosen interviewees from the different plastic producing companies were both CEOs and sustainability managers. Out of the nine interviewees, three were women in leading positions and six were men. The ages of the participants were between 28-53 years old.
3.5 Data collection
3.5.1 Primary and Secondary data
To construct this thesis, both primary and secondary data were used to gather a sufficient amount of valuable information. Qualitative interviews were chosen as the method for collection of primary data which is suitable for an exploratory method where the aim is to generate in-depth information (Charmaz, 2014). The outline of the interviews was semi-structured which allowed both the interviewers and the interviewees to be more flexible. This, in contrast with a structured or unstructured interview approach where there is no room for further discussion or no clear path of direction and possibility for preparation respectively (Easterby-Smith et al., 2015). It is argued that the use of qualitative interviews should be done with the desire to create a discussion to gain the insights and worldviews of the interviewees about the chosen topic or phenomena. This view of qualitative interviews puts pressure on the interviewers to construct the interviews in a way that enables this type of information to be collected (Kvale & Brinkmann, 2009). Hence, the use of semi-structured interviews is a suitable choice to promote the intent of qualitative interviews (For specification of interview questions see Appendix 2).
Secondary data refers to previously published information that is gathered by the researcher. This type of data often consists of electronic sources such as publications but can also include books and other printed sources (Easterby-Smith et al., 2015). Secondary data was used in this thesis to provide background information on the different parts included. It was also used as a source of complementary information which is suitable according to Easterby-Smith et al. (2015) when having primary data in the form of interviews. Secondary data is an effective source of information due to its accessibility which serves as a time-saving option for the researcher. However, it also puts pressure on the researcher to continuously assure the credibility of the sources used (Easterby-Smith et al., 2015). This has been done for this thesis by using trusted search engines and making sure that the majority of articles used were peer-reviewed.
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3.5.2 Search process
To gather information for this report, several search engines were used. The most frequently used was the university library search engine Primo, the university database DiVA, and Uppsatser.se. These gave us the primary material for this report. While searching for literature we used several keywords to receive the most relevant academic articles for our work. Our main keywords were “corporate social responsibility”, “CSR” and “plastic industry”. We used these keywords in different constellations and combinations with other words to create a diversified portfolio of information. To further narrow down our search we used different functions provided by the search engines such as choosing to only view articles, peer-reviewed journals, and data published in recent years. These functions were used as frequently as possible, however, exceptions were made when an insufficient amount of data were presented. To gather sources for complementary information such as newspaper articles we also used the same key words for the regular google search engine.
3.5.3 Outline of interviews
To get in contact with companies for potential interviews we used both a personal connection as well as the company websites for contact information on environmental managers, CEOs or the company in general. We managed to get interviews approved with nine different companies within the Gnosjö region. The interviewees turned out to be mostly CEO’s and the interviews lasted around 20-60 minutes. Furthermore, a total of 23 interview questions were asked which in turn were categorized into different themes. During the interviews, questions regarding the evolvement of CSR, the company’s sustainable practices, and the interviewee’s view on the company’s responsibility were brought up, among other questions (see Appendix 2). The interviews were then transcribed and analysed to eventually result in the findings of the thesis.
Conducting the interviews face to face at the companies’ facilities was the favoured method for this thesis. However, due to difficulties in coordinating the schedules of the interviewees, two of the interviews were planned to be conducted via Skype. Also, because of the unfortunate development of COVID-19 (World Health Organization, 2020), only three physical interviews were conducted at the producers’ offices. The other six interviews had to be rescheduled and conducted as phone interviews instead of face-to-face meetings. This was done concerning the safety reasons for COVID-19 and the advice from the government to avoid unnecessary physical meetings.
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3.6 Data Analysis
For the data analysis of the research findings, the authors adopted an inductive way of analysing the data. This approach enhanced the possibility for the authors to keep an open mind and have fewer preconceptions that allow new theory to be developed through the collected data (O’Reilly, 2009). Furthermore, as mentioned earlier, the authors used a combination of within- and cross-case analysis to identify possible differences and similarities of the collected data which was encouraged in a multiple-case study (Yin, 2018). Through a within-case analysis, the authors had the possibility of analysing the results within each case in more depth which helped to gain a bigger understanding of the case’s answers as well as answer RQ2. After this, a cross-case analysis was implemented to find the differences between the cases which helped to answer RQ1.
Based on the findings and collection of data, a coding scheme was invented (see Table 2) to facilitate the analysis of the thesis. For coding techniques, the authors used both open-coding, axial coding as well as data coding. An open-coding approach helps to understand raw data from interviews which therefore was applied to interpret the primary data findings. Later, axial coding was used where one easier can see the connections of codes and similarities, and lastly, data coding was established to withdraw codes from the interviews (Easterby-Smith et al., 2015). Furthermore, the theoretical data findings were repeatedly used as a basis throughout the analysis to see possible connections to the empirical data.
The coding scheme was further categorized based on codes that were repeatedly mentioned and acknowledged in the interviews by the authors. Moreover, when the codes were established, seven categories were settled to categorize the codes which lastly ended up in three themes with an overall overview of the primary data. The themes facilitated the approach of analysing the data with connection to the appropriate theories which were applicable for the thesis research.
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Table 3.2 - Coding Scheme
Source: Avramidou & Tellstedt, 2020
The coding scheme was further used for the chapter of the analysis where the presented evidence favoured a more in-depth analysis. Moreover, the three themes represent the structure of the analysis where each code was analysed and compared with the chosen theories of the thesis and discussed within the related theme.
3.7 Trustworthiness & Limitations
To provide trustworthiness for the readers of this thesis, the trustworthiness criteria of Guba (1981) was followed. The criteria are based on four terms of research that authors are encouraged to follow while conducting research. Lincoln & Guba (1985) explain these four terms of the criteria to be credibility, transferability, confirmability, and dependability. All of these areas will be further explained in detail and applied to the thesis research.
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The credibility of research is about whether the authors of the conducted research are presenting truthful data (Lincoln & Guba, 1985). In consideration of this thesis, the authors have contemplated several approaches to data collection to maintain high credibility. First, several methods of data collection have been used throughout the research. Primary and secondary data has been collected from face-to-face interviews, phone/skype interviews, articles, and other publications.
Furthermore, for this thesis, several methods of triangulation have been applied throughout the research. Investigator triangulation is applied when there is more than one researcher involved which is the case of this thesis. Therefore, it was emphasised both in the study and during the interviews, to include different aspects and observations of the interviews. Data source triangulation is exercised when a study uses different samples for primary data collection which is in line with this thesis where interviews with different companies were conducted and several perspectives were analysed. Lastly, theory triangulation is needed in research where several theories are emphasised. Due to the implication of the two theories TBL and Carroll’s Pyramid, data triangulation was used since it enhances the interpretation of different ways to analyse the data collected (Carter, Bryant-Lukosius, Dicenso, Blythe & Neville, 2014).
Due to these methods, the authors have maintained high credibility by increasing the usage of triangulation of data when applying several triangulation methods. Also, the interviewees that were chosen are experts within their field of work which increases the credibility of presenting the rights facts behind each company (Easterby-Smith et al., 2015)
As for the dependability of this research, the authors can assure high trustworthiness. The dependability builds on the tactics of replicating the conducted study and coming up with similar results by applying the same research methods (Lincoln & Guba, 1985). Due to a clear structure of the research findings, there is a simplicity of tracing the results back to the Gnosjö region as well as replicating the interview structure by following the interview questions (see Appendix 2). Requirements as the ones mentioned indicate high dependability of the research (Tobin & Begley, 2004).
To provide a high transferability of research, one must present a well-informed description of the context and situation. The authors have therefore presented a detailed view of the interviews, participants, and other contexts in different tables (see Table 3.1, 3.2 & 4.1) as well as appendices (see Appendix 2). This is of great importance when replicating the research method in future
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research. External and internal validity are described as a parallel explanation of transferability (Lincoln & Guba 1985). The context of the interviews is easily followed in Appendix 2 as well as in the sampling strategy, which indicates a strong external validity and a high transferability. Furthermore, due to that the purpose of the thesis is to investigate the management of CSR within the plastic industry, the possibility of replicating the interviews in other areas of Sweden and the world is highly achievable. Additionally, the research is highly applicable in other contexts of production as well, as a cause of CSR being a topic of interest in several other industries, not only in plastic.
The trustworthiness of confirmability in research is first reached when credibility, transferability, and dependability are fulfilled (Lincoln & Lincoln, 1985). According to Tobin & Begley (2004), achieving confirmability is interpreted as the stage where authors can assure the trustworthiness of the data and findings collected to be true regarding the actual results of the research. Hence, due to the choice of applying a semi-structured interview approach and recording the interviews, the risk of bias is minimised as well as the possibility of influencing the results. Also, while compiling the findings of the primary and secondary data, the assumptions that have been made and presented is solely based on the information presented in this thesis. Based on the arguments mentioned, high trustworthiness of confirmability has been taken into consideration while conducting this research. The sample size of nine different interviewees could be questioned to be a reasonable sample size for this type of research. However, there is an important aspect to take into consideration which is that the research has its main focus on the Gnosjö region, which causes the tight scope of contacts and the range of plastic producing companies within this region to be fairly limited. Also needed to be taken into consideration is the situation of COVID-19 which has restricted the number of volunteers for interviews even further. Therefore, considering the mentioned arguments, nine participants are considered to be a reasonable sample size for this thesis. However, a larger sample size might have provided more accurate answers from a broader perspective. Due to COVID-19, the majority of the interviews were not able to be conducted physically which would perhaps have provided more thorough answers from the interviewees and hence enriched the results of this thesis.
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3.8 Ethical considerations
The interest in considering ethical reviews and issues while conducting research is of great concern for authors. Not only to create trustworthiness for the reader but also a direction to take to reflect on the issues that could or have arisen during the research process (Easterby-Smith et al., 2015). To conduct as ethical research as possible in this thesis, the ten key principles and standards of research ethics were followed throughout the research process (Bell & Bryman, 2007).
To create trust and respect the participants, the interviewees were assured anonymity to protect their identity and participation. Likewise, a consent form (see Appendix 1) was given to each of the interviewees beforehand. Further, the companies’ names were also made sure to be anonymous and were not mentioned by name in the thesis. The implication of honesty and assuring truthful answers throughout the interviews, a centrality measurement was followed. The centrality measurement is a principle that supports truthful findings through interviews by only choosing participants who are considered most experienced within their field of work (Esaiasson, Gilljam, Oscarsson & Wängnerud, 2007). In line with this thesis and the sample of interviewees chosen for the research, the principle is followed whereas all the participants’ field of work includes the environmental responsibility within the companies.
Other ethical considerations that were taken into consideration were the risk of bias due to that one of the authors’ personal contact was chosen as an interviewee. However, due to the purpose of investigating possible CSR practices by different plastic producing companies, there was no favoured outcome of the interview and a personal bias was not considered an issue. Instead, due to the earlier personal connection, an open dialogue and trust were established throughout the interview. Also, as previously mentioned in the thesis, the risk of greenwashing is a well-known ethical issue in regard to this industry. Thus, since the interviewees that participated in this research were assured anonymity throughout the process, the risk of conducting greenwashing was also minimised. This was due to the assurance that no names of the companies or interviewees would be published and therefore their participation would not favour the company’s reputation due to anonymity.
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4. Findings
The findings of the thesis are presented in the order of secondary data findings and then followed by the primary data findings. The secondary data findings are primarily based upon previously published information about plastic use and its industry in Sweden while the primary data findings are based on the interview findings. Furthermore, the primary data findings are presented following the structure of the interviews, hence the titles represent the main areas of discussion.
4.1 Plastic use in Sweden
Plastic is a heavily used material in a lot of different aspects of our everyday life. Although there is an ongoing trend in society, especially in Sweden, to reduce the use of plastic, a study by Naturvårdsverket showed the opposite result. The study showed that the supply of plastics increases every year both nationally as well as internationally and that every citizen in Sweden uses about 130kg plastic per year (Naturvårdsverket, 2019a). In an article written by Hambraeus (2019), Petra Selander, who is responsible for issues regarding plastic at Naturvårdsverket, argues that the reason for the heavy increase in the use of plastics is due to the overall increase in consumption. This, along with that more of the products that we buy on a daily or weekly basis, is wrapped in or packaged in plastic.
Even though people use more plastic than ever, the recycling of plastics in Sweden is less than half of the volume that we use. This might be due to the number of different kinds of plastic that are hard to recycle, but also that people and companies do not take full responsibility for the recycling of their products and waste. To increase the opportunities for recycling, those who produce and sell plastic products need to make sure that their packages are recyclable (Hambraeus, 2019). On Avfall Sverige’s (2019) website, Wiqvist states that targeting plastic products directly when they are put on the market is necessary. He argues that there should be an increase in price for companies who produce plastic products that are put on the market without any strategy for how they are going to be re-collected or recycled. On the contrary, he also argues that companies who provide recyclable products or who put in work to recollect their used products should be rewarded and encouraged to continue with their work.
The Swedish government has issued the law of producer responsibility which includes regulations in favour of sustainability. Its purpose is to reduce the amount of plastic waste, among other
