Exploring the Benefits of Implementing CSR Practices: from a Supplier Perspective -A case study of IKEA and its Vietnamese Suppliers

Abstract

As a growing number of corporations today show concern to sustainable development and non-financial performance indicators, corporate social responsibility (CSR) is no longer viewed as an upsetting burden or merely a tactic to improve corporate brand image. While studies on various impacts of CSR are prevalent in both academia and the business world, few scholars and practitioners chose to look into this issue from a supplier perspective. The purpose of this thesis is to learn about the benefits that suppliers receive from implementing CSR policies, and to understand how these benefits are realized. By using a case study and an abductive research approach, the benefits that were found in literature review were tested and analysed against the empirical findings of the thesis. Although actual impact varied from one supplier to another, findings did show concurrence with the conceptual research model and all extracted benefits were supported. Moreover, additional benefits outside the conceptual model were discovered in relation to human capital and operational efficiency. Findings also stress the benefits to workers, which shall not be omitted due their key position when it comes to implementing CSR policies. The data was primarily collected through in-depth interviews with three of IKEA’s offshore suppliers, during a two-week field trip in Vietnam.