The Reasons Behind Corporate Philanthropy (CP). Creating Brand Value by CP. : A multiple case study from Sweden and Finland

Sammanfattning: Everyday Corporate Social Responsibility (CSR) plays a bigger role in companies’ work. People become more aware of how different organizations take care of their network. Certain consumer groups have expectations from companies’ CSR work, and they are willing to pay more for the brands of these firms compared to others. These facts have forced the companies to put more effort into their CSR work. On the other hand it has become an opportunity for corporations, which are forerunners in this area. CSR can be interpreted so that communities have expectations from the firms and the work the latter do for society’s good. Corporate Philanthropy (CP) is a part of CSR and a particular form of it. The reasons behind CP are not always apparent. Brand is the bridge between consumer and the product. One motive behind CP could be creating brand value and implementing particular products for consumers who appreciate the companies’ work for society’s good. Therefore we have formulated our research question as follows: What are the main reasons behind corporate philanthropy and how is it conducted in the firms? Our aim in this thesis is to emphasize CP as a part of CSR, to study how it is exercised in practice and to explore how firms’ philanthropic actions add value to their brands. We have limited our study to company perspective in order to get as accurate results as possible. To indentify the reasons to CP we have completed a qualitative study in the two Nordic countries: Finland and Sweden. The study has been done by semi-structured interviews for four companies, two in both countries. These companies are of two different sizes, large and small. Our study design is multiple-case study. Interpretivism and subjectivism constitute the philosophical basis for this research. The applied approach is deductive with inductive elements. In the theoretical framework we discuss CSR, philanthropy and branding in their different forms. We have linked these main theories together by relating older and recent theory to each other in a natural way. Earlier theories, which directly merge these two areas, do not considerably exist. Therefore we have had to make our own decisions to find the best path to reach our goal and find the main reasons behind CP. In the final part, analysis, we have related theoretical framework to empirical findings. We have linked different theories together and found if there is a connection between Corporate Philanthropy and creating brand value. We have also reflected on whether there are differences in the actions and aims for CP between the companies in these two Nordic countries.