Skip to main content

Corporate Social Responsibility in Estonia: Moving Towards a More Strategic Approach

  • Chapter
  • First Online:
Corporate Social Responsibility in Europe

Part of the book series: CSR, Sustainability, Ethics & Governance ((CSEG))

Abstract

Since my previous publication in the book on CSR Across Europe about corporate social responsibility (CSR) in Estonia several positive changes have taken place and we have seen a more active approach to ethics and responsibility in business. The analysis of our more recent studies shows that although companies may not publicly claim to be aware of the concept and may not realise how their activities are related to CSR, much more is actually being done in practice. Besides that, the number of organisations which have realised that being ethical and responsible in business contributes to long-term and sustainable success is growing every year. These organisations are not asking the question why they should be ethical and responsible in business, but the focus has been directed to how they should do it better.

This particular paper discusses the developments of ethical and responsible business in Estonia since 1995, the time when the country’s political and economic situation became more stabilised after regaining its independence in 1991 and making radical changes towards the free-market economy. The purpose is to find out whether the approach to ethics and responsibility has become more strategic among Estonian organisational leaders during last two decades. The paper is based on the results of several studies conducted by this author and her colleagues during the last 10 years and for analysis the author has integrated two development models, describing the stages of corporate moral development and strategical corporate responsibility. A more detailed analysis focuses on the awareness and CSR activities of the organisations that have taken part in the Responsible Business Index study in Estonia in 2009–2012.

It is concluded that more recent changes and developments in the business world, including the financial and economic crisis that hit Estonia rather hard, made several of the country’s most influential organisational leaders to understand the importance of different stakeholders and expectations of the society. However their activities can still be characterised as more reactive than proactive, mainly responding to the demands from customers and changes in the market and for gaining positive reputation. At the same time it can be positively noted that the number of business leaders who regard good relations, cooperation, trustworthiness and capability to act as a trusted partner on the international business arena as most important values that shape their business activities is growing every year. Those leaders have also started to approach ethics and responsibility in their organisations more strategically and regard these principles as a part of everyday and normal business activities within Estonian business society today.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

eBook
USD 16.99
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 109.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD 109.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Similar content being viewed by others

References

  • Aldrighi, D. M. (2009). From conflict alignment to interests: Structuring internal corporate governance to minimise corruption risks. Global Corruption Report, 2009 Corruption and the Private Sector (pp. 88–96). Transparency International, Cambridge University Press.

    Google Scholar 

  • Aronson, E. (2001). Integrating leadership styles and ethical perspectives. Canadian Journal of Administrative Sciences, 18(4), 244–256.

    Article  Google Scholar 

  • Aupperle, K. E., Carroll, A. B., & Hatfield, J. D. (1985). An empirical examination of the relationship between corporate social responsibility and profitability. Academy of Management Journal, 28, 446–463.

    Article  Google Scholar 

  • Blowfield, M., Blowfield, M., & Murray, A. (2008). Corporate responsibility: A critical introduction. Oxford: Oxford University Press.

    Google Scholar 

  • Brown, M., & Mitchell, M. (2010). Ethical and unethical leadership: Exploring new avenues for future research. Business Ethics Quarterly, 20(4), 583–616.

    Article  Google Scholar 

  • Carroll, A. B. (1979). A three dimensional model of corporate social performance. Academy of Management Review, 4(3), 497–505.

    Google Scholar 

  • Carroll, A. B. (1991). The pyramid of corporate social responsibility: Toward the moral management of organisational stakeholders. Business Horizons, 34(4), 39–48.

    Article  Google Scholar 

  • Carroll, A. B. (1995). Stakeholder thinking in three models of management morality: A perspective with strategic implications. In J. Näsi (Ed.), Understanding stakeholder thinking. Helsinki: LSR Publications.

    Google Scholar 

  • Carroll, A. B. (2008). A history of corporate social. Responsibility: Concepts and practices. In A. Crane et al. (Eds.), The Oxford handbook of corporate social responsibility. Oxford: Oxford University Press.

    Google Scholar 

  • Carroll, A. B. (2010). National business ethics survey, 2009. USA: The Ethics Resource Centre.

    Google Scholar 

  • Ciulla, J. B. (2001). Carving leaders from the warped wood of humanity. Canadian Journal of Administrative Sciences, 18(4), 313–319.

    Article  Google Scholar 

  • Ciulla, J. B. (2004). Ethics, the heart of leadership (2nd ed.). Westbury, CT: Quorum Books & Praeger.

    Google Scholar 

  • Cramer, J. (2005). Applying international standards and guidelines on corporate social responsibility: An action plan. Environmental Quality Management, 2005, 71–77.

    Article  Google Scholar 

  • CSR Foorum. (2013). Responsible business index. CSR Foorum Estonia homepage. Retrieved from http://www.csr.ee

  • Donaldson, T., & Preston, L. E. (1995). The stakeholder theory of the corporation: Concepts, evidence, and implication. Academy of Management Review, 20(1995), 65–91.

    Google Scholar 

  • Dynamic Economy. (2014). Country report. Retrieved from www.estonia.eu

  • Elkington, J. (1998). Cannibals with forks. Oxford: Capstone.

    Google Scholar 

  • Freeman, E. R. (1984). Strategic management: A stakeholder approach. Boston: Pitman Publishing.

    Google Scholar 

  • Freeman, R. E. (1995). Stakeholder thinking: The state of the art. In J. Näsi (Ed.), Understanding stakeholder thinking (pp. 35–46). Helsinki: LSR-Julkaisut.

    Google Scholar 

  • Freeman, R. E. (1997). Stakeholder theory of the modern corporation. In T. L. Beauchamp & N. E. Bowie (Eds.), Ethical theory and business (5th ed., pp. 66–76). Upper Saddle River, NJ: Prentice Hall Inc.

    Google Scholar 

  • Freeman, R. E. (2000). Business ethics at the millennium. Business Ethics Quarterly, 10(1), 169–180.

    Article  Google Scholar 

  • Freeman, R. E., & Evan, W. (1990). Corporate governance: A stakeholder interpretation. The Journal of Behavioral Economics, 19(4), 337–359.

    Article  Google Scholar 

  • Freeman, R. E., & Liedka, J. (1991). Corporate social responsibility: A critical approach. Business Horizons, 34(4), 92–96.

    Article  Google Scholar 

  • Freeman, R. E., Wicks, A. C., & Parmar, B. (2004). Stakeholder theory and the corporate objective revisited. Organisation Science, 15(3), 364–369.

    Article  Google Scholar 

  • Friedman, M. (1970). The social responsibility of business is to increase its profits. In T. L. Beauchamp & N. E. Bowie (Eds.) (1997), Ethical theory and business (5th ed., pp. 56–61). Upper Saddle River, NJ: Prentice Hall Inc.

    Google Scholar 

  • Googins, B., Veleva, V., Pinney, C., Mirvis, P., Carapinha, R., & Raffaelli, R. (2009). State of corporate citizenship 2009: Weathering the storm. Chestnut Hill: Boston College Center for Corporate Citizenship.

    Google Scholar 

  • Halme, M., & Laurila, J. (2009). Philanthropy, integration or innovation? Exploring the financial and societal outcomes of different types of corporate responsibility. Journal of Business Ethics, 84, 325–339.

    Article  Google Scholar 

  • Hansen, E. G., & Reichwald, R (2009). CSR leadership study—Leading corporate responsibility in multinational corporations. A study in Germany’s biggest firms. Institute for Information, Organization and Management at Technische Universität München, München

    Google Scholar 

  • Hollander, J., & Breen, B. (2010). The responsibility revolution: How the next generation of businesses will win. San Francisco: Jossey-Bass.

    Google Scholar 

  • IMF. (2013). Republic of Estonia: Article IV consultation (Staff Country Report). International Monetary Fund.

    Google Scholar 

  • Jonker, J., & de Witte, M. (2006). Management models for corporate social responsibility. Berlin: Springer.

    Book  Google Scholar 

  • Kohlberg, L. (1969). Stage and sequence: The cognitive-developmental approach to socialization. In D. A. Goslin (Ed.), Handbook of socialization theory and research. Chicago: Rand-McNally.

    Google Scholar 

  • Kohlberg, L. (1984). Psychology of moral development. New York, NY: HarperCollins.

    Google Scholar 

  • Kooskora, M. (2004). Estonia [15] incubating radical political and economic change. In A. Habisch, J. Jonker, M. Wegner, & R. Schmidpeter (Eds.), CSR across Europe (pp. 195–208). Berlin: Springer.

    Google Scholar 

  • Kooskora, M. (2006). Perceptions of business purpose and responsibility in the context of radical political and economic development – The case of Estonia. Business Ethics – A European Review, 15(2), 183–199. Blackwell Publishing.

    Article  Google Scholar 

  • Kooskora, M. (2008a). Understanding corporate moral development in the context of rapid and radical changes. The case of Estonia. Doctoral dissertation, Jyväskylä University, Jyväskylä.

    Google Scholar 

  • Kooskora, M., (2008b). Corporate governance from the stakeholder perspective, in the context of Estonian business organisations. Baltic Management Journal, 2(3), 193–217.

    Google Scholar 

  • Kooskora, M. (2009, May 7). Introducing the preliminary results of the CSR Index 2009 survey. CSR Index Seminar, Estonian Business School, Tallinn.

    Google Scholar 

  • Kooskora, M. (2010, January 29). Ethical and responsible business, theory and practise – A keynote speech. Annual Conference of the Estonian Economic Association, Viljandi, Estonia.

    Google Scholar 

  • Kooskora, M. (2012). Ethical leadership, the role of leader. In R. Pucetaite (Ed.), Cases in organizational ethics (pp. 23–38). Vilnius: Vilniaus universitetas.

    Google Scholar 

  • Kooskora, M. (2013). The role of (Right) values in an economic crisis. Journal of Management and Change, 30/31(1/2), 49–65.

    Google Scholar 

  • Kooskora, M. (2014). The moral development of estonian business community. Proceedings of the Annual Conference of Estonian Economic Scientists, 31.01–01.02.2014, Pärnu, Estonia.

    Google Scholar 

  • Kooskora, M. & Vau, K. (2011). Strategic corporate responsibility: A key for surviving and succeeding through turbulent times. In M. Vadi, K. Jaakson, & E. Kindsiko (Eds.), Proceedings of 5th International Conference ‘Management Theory and Practice: Synergy in Organisations’ (pp. 178–203). Tartu University Press.

    Google Scholar 

  • Matten, D., & Crane, A. (2005). Corporate citizenship: Toward an extended theoretical conceptualization. Academy of Management Review, 30(1), 166–179.

    Article  Google Scholar 

  • McElhaney, K. (2007). Strategic CSR. Sustainable Enterprise Quarterly, 4(1), 1–8. Kenan-Flagler Business School.

    Google Scholar 

  • McElhaney, K. (2008). Just good business. San Francisco: Berrett-Koehler Publisher.

    Google Scholar 

  • Mele, D. & Guillen, M. (2006). The intellectual evolution of strategic management and its relationship with ethics and social responsibility. IESE Business School – University of Navarra.

    Google Scholar 

  • Milliman, J., Ferguson, J., & Sylvester, K. (2008). Implementation of Michael Porter’s strategic corporate social responsibility model. Journal of Global Business Issues, 2, 29–33.

    Google Scholar 

  • Näsi, J. (1995). What is stakeholder thinking? A snapshot of a social theory of the firm. In J. Näsi (Ed.), Understanding stakeholder thinking. Jyväskylä: Gummerus Kirjapaino.

    Google Scholar 

  • O’Malley, C. (2003). Why entrepreneurs and innovators, not established businesses, will lead the way to a sustainable society. European Business Forum. Retrieved February 6, 2010, from http://www.ebfonline.com/at_forum/at_forum.asp?id=449&linked=448

  • OECD. (2001). Corporate responsibility: Private initiatives and public goals. OECD: Paris.

    Google Scholar 

  • Paine, L. S. (1997). Cases in leadership, ethics and organisational integrity. A strategic perspective. Chicago: Irwin.

    Google Scholar 

  • Porter, M. E., & Kramer, M. R. (2006). Strategy & society: The link between competitive advantage and corporate social responsibility. Harvard Business Review, 84, 78–92.

    Google Scholar 

  • Porter, M. E., & Kramer, M. R. (2011). The big idea. Creating. Shared value how to reinvent capitalism—And unleash a wave of innovation and growth. Harvard Business Review, 89(1/2), 62–77.

    Google Scholar 

  • Reidenbach, R., & Robin, D. (1991). A conceptual model of corporate moral development. Journal of Business Ethics, 10, 273–284.

    Article  Google Scholar 

  • Schreck, P. (2009). The business case for corporate social responsibility. Heidelberg: Springer.

    Book  Google Scholar 

  • Siller, M. (2014). Corporate sustainability index 2013: Overview of results and trends. Retrieved February 26, 2014 from http://www.csr.ee/upload/fck/2013-indeksi-ulevaade-VEF-25022014.pdf

  • Staehr, K. (2013). Austerity in the Baltic states during the global financial crisis. Intereconomics, 48(5), 293–302.

    Article  Google Scholar 

  • Terk, E., Andresoo, J., Tafel, K. (December, 2004). Corporate governance under the conditions of foreign and domestic ownership. Estonian Case (pp. 37–46). In: Európa No 4.

    Google Scholar 

  • Trevino, L. K., Brown, M., & Hartman, L. P. (2003). A qualitative investigation of perceived executive ethical leadership: Perceptions from inside and outside the executive suite. Human Relations, 56(1), 5–37.

    Article  Google Scholar 

  • UN Global Compact. (2009). Three different understandings of CSR. Retrieved September 3, 2010, from www.unglobalcompact.org

  • Visser, W., Matten, D., Pohl, M., & Tolhurst, N. (2010). The A to Z of corporate social responsibility. London: Wiley.

    Google Scholar 

  • Werther, W. B., Jr., & Chandler, D. (2010). Strategic corporate social responsibility: Stakeholders in a global environment. Thousand Oaks: Sage.

    Google Scholar 

  • Weber, B., & Gross, J. (2008). Business and poverty. The global CSR case-book. Vienna: ICEP, CODESPA.

    Google Scholar 

  • Zadek, P. (2004). The path to corporate responsibility. Harvard Business Review, 82(12), 125–132.

    Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Mari Kooskora .

Editor information

Editors and Affiliations

Rights and permissions

Reprints and permissions

Copyright information

© 2015 Springer International Publishing Switzerland

About this chapter

Cite this chapter

Kooskora, M. (2015). Corporate Social Responsibility in Estonia: Moving Towards a More Strategic Approach. In: Idowu, S., Schmidpeter, R., Fifka, M. (eds) Corporate Social Responsibility in Europe. CSR, Sustainability, Ethics & Governance. Springer, Cham. https://doi.org/10.1007/978-3-319-13566-3_16

Download citation

Publish with us

Policies and ethics