The role of CSR engagement in the Internal Brand Building
process
An exploratory study of Service firms
Authors: Chidiebere Emmanuel Eva Eriksson
Supervisor: Professor Maria Bengtsson
Student
Umeå School of Business And Economics Spring semester 2016
Bachelor thesis, 15 hp
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Acknowledgement
We would like to thank the Swedish Chamber of Commerce in the Netherlands for sharing their contact network so that we could easily get access to companies. We would also like to thank all the respondents and respective firms for their time and involvement in our study. We are thankful for their willingness to share their important thoughts and inputs which are the grounds for our thesis. Furthermore, we would like to thank our supervisor, Maria Bengtsson for her effort and advice during the thesis procedure. She has shared her knowledge and support towards the creation of this thesis.
2016-05-27
Umeå School of Business and Economics Umeå University
Chidiebere Emmanuel Eva Eriksson
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Abstract
This study explores how service firms incorporate CSR activities within the internal brand building process. It was found that CSR does influence and is implemented in every stage of our theoretical framework of the internal brand building process. The study was based on interviews conducted on managers and employees of service firms in the Netherlands and in Sweden.
CSR is an evolving concept, increasingly becoming important in affecting the consumption decisions of service firm’s customers. Service firms are now resorting to incorporating CSR in their internal brand building to appeal to consumers. Consumers who are trying to minimize the inherent risk in buying an intangible product typical of a service product are now shifting their focus from the firm’s product to the firm itself.
The purpose of this study was to explore if and how CSR influences the internal brand building processes of service firms. We did not seek to generalize the findings. We carried out eight interviews where the respondents were able to broadly shared their thoughts and opinions. The research questions we sought to answer were: In what way does CSR influence the internal brand building process in service firms? And, how do service firms implement CSR in their internal brand building process?
It was found that the service firms do define CSR as a responsibility for their Employees, Community, Environment, Clients/Customers as well as Ethical Responsibility. We also found out that CSR influences the internal brand building in service firms through their employees, brand audit, brand identity, brand positioning and brand communication, which we then included in our empirical developed model of the internal brand building processes in service firms. CSR is implemented in service firm’s employees’
management through employee education, training, recruitment and motivation. CSR is implemented in a service firm’s brand audit through a flat/hierarchical organizational structure, multicultural organization, ethics, sustainability, transparency and honesty.
CSR is implemented in a service firm’s brand identity through quality assurance, creativity/innovation and compliance. CSR is implemented in a service firm’s brand positioning through partnership, accessibility, quality, trust. CSR is implemented in a service firm's brand communication through intranet, meetings, publications and teams.
Future researchers are recommended to study service firms that are equally divided based on their size, age and wealth to get a deeper understanding. More employees could also be studied since employees might have different viewpoints and since it is found that employees are the most important asset for service firms.
Keywords: Corporate social responsibility (CSR), corporate brand, brand building,
internal brand building, service firms, managers, employees.
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Table of content
1. Introduction 1
1.1 Background 1
2. Methodological assumptions 5
2.1 Preunderstanding and selection of topic 5
2.1.1 Preunderstanding Eva Eriksson 5
2.1.2 Preunderstanding Chidi Emmanuel 5
2.2 Research philosophy/Ontological and epistemological assumptions 5
2.2.1 Ontological considerations 6
2.2.2 Epistemological considerations 7
2.3 Research process 7
2.4 Research strategy 8
2.5 Research approach 9
2.6 Research design 10
2.7 Summary of methodological assumptions 11
2.8 Ethical principles 11
2.9 Source criticism 12
3.Theoretical framework 13
3.1 Corporate Social Responsibility 13
3.2 Carroll’s pyramid of CSR 14
3.2.1 The economic responsibility 15
3.2.2 The legal responsibility 15
3.2.3 The Ethical Responsibility 16
3.2.4 The philanthropic responsibilities 17
3.3 Creating Shared value (CSV) 18
3.4 DNA model of CSR 2.0 19
3.5 Internal corporate brand building 22
3.6 The internal brand-building process in the service industry. 22
3.7 The First Phase of the brand building Process 23
3.7.1 CSR and Brand Audit in the Service Industry 24
3.8 The Second Phase of the Brand Building Process 24
3.8.1 CSR and Brand Identity in the Service Industry 25
3.9 The Third Phase of the Internal Brand Building Process 25
3.9.1 CSR and Brand positioning & communication in the Service Industry 26
4. Practical Methodology 28
4.1 Sampling 28
4.1.1 Data collection method 28
4.1.2 Participants 29
4.2 Interviews 29
4.2.1 Semi-structured interviews 30
4.2.2 Construction of questions 30
4.2.3 Conducting the interviews 31
4.3 Choice of data 31
4.3.1 Critique of data sources 32
4.4 Data analysis 32
4.5 Ethical considerations and gaining access 33
4.6 Critique of our practical methodology 33
5. Empirical findings 35
5.1 Amsterdam Business Support 35
5.1.1 General information, personal/professional background, Manager’s perspective 35
5.1.2 Personal/professional background, from an employee’s perspective 36
5.2 Klarna 37
5.2.1 General information, personal/professional background, Manager’s perspective 37
5.2.2 Personal/professional background, from an employee’s perspective 39
5.3 Intertrust 40
5.3.1 General information, personal/professional background, Manager’s perspective 40
5.3.2 General information, personal/professional background, from an employee’s
perspective 41
5.4 Storuman Energi 42
5.4.1 General information, personal/professional background, Manager’s perspective 42
5.5 CGI Sweden 44
5.5.1 General information, personal/professional background, Manager’s perspective 44
6. Analysis 48
6.1 CSR Definitions and descriptions 48
6.1.1 Employee responsibility 48
6.1.2 Community Responsibility 49
6.1.3 Ethical Responsibility 49
6.1.4 Environmental Responsibility 50
6.1.5 Client/Customer Responsibility 51
6.2 CSR implementation and influence in internal brand building 51
6.2.1 Influence of CSR on Employees 51
6.2.2 Influence of CSR on Brand Audit 52
6.2.3 Influence of CSR on Brand Identity 53
6.2.4 Influence of CSR on Brand Positioning 54
6.2.5 Influence of CSR on Brand Communication 55
6.3 Description of developed theoretical model based on the empirical studies 56
6.3.1 CSR definitions 56
6.3.2 CSR influences on Internal brand building 56
6.3.3 Employees as a new stage in the Internal Brand Building Process 56
6.3.4 Brand Positioning and Brand Communication as separate stages in the Internal
Brand Building Process 57
7. Conclusion 59
8. Future implications 61
8.1 Implications for service firms 61
8.2 Future research 62
8.3 Assessment of truth Criteria 62
Reference list 64
Appendix 71
Appendix 1 – Information email to the companies 71
Appendix 2 – Interview guide for managers 72
Appendix 3 – Interview guide for employees 73
Appendix 4 – Data structure for CSR definitions and descriptions 74